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Combining Change Order and Option Exercise

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Assume the following:

  • 5-year non-commercial, severable services contract
  • The Government has communicated its preliminary intent to exercise the upcoming option, which begins in less than 30 days
  • The Government must issue a change order to revise the Performance Work Statement/associated Contract Data Requirements List
  • The Government intends for the change order to be effective from the next option through contract completion, not the date of change order issuance

May the CO combine unilateral exercise of the option and issuance of this change order in one contract action?

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Yes.

Then, a subsequent modification may be needed for whatever equitable adjustment is negotiated because of the change.

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10 hours ago, ji20874 said:

Yes.

Then, a subsequent modification may be needed for whatever equitable adjustment is negotiated because of the change.

Ya beat me to it, ji.  

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Contrary view, is it good contract hygiene?  I for one would think it more appropriate to separate the issues.  Change Order and follow on equitable adjustment can become cumbersome.  

Do either but look forward.

Tongue in Cheek but Seriously - Now what block do you check in Section 13 on the SF30 and cite as authority.  Note form says "Check One" and change order is specific.  Does this not imply handling the two matters separately?

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I thought about that.  And in my own practice, I would probably do it as two modifications (both unilateral).

But since both actions can be done unilaterally, and since both actions affect the same work and period, I don't object to doing both actions in one modification.  I hope the contracting officer will make it very clear that the modification does two actions, and handles each of them separately in the single modification.  If I did these two actions in a single modification, I would want to check both 13A and B (will the system let me?), and clearly indicate at the top of block 14 that 13A applies to the change order covered below, and that 13D applies to the option exercise covered below,

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