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ArmyofOne

J&A to increase task order ceiling

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Hello,

Is a J&A required to increase the ceiling of task order for work that is within scope. Or is a memo to the file with the CO's rationale sufficient?

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Can you be more specific as to what the facts are?  Are you talking about an increase in ceiling price as a result of a change order?  If not what type of action are you talking about?

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By work within scope, are you ADDING work that is the same as the current work? Or does the modification have something to do with the currently required work, pursuant to a contract clause providing for a price and/or time adjustment? If the latter, why would you ask if a justification and approval would be necessary?

If it is the former, then it may be actually out of scope. Please clarify the nature of the modification. Thanks

 

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Gents,

Thank you.  Yes, this would be an increase in ceiling price as a result of a change order.  This is a cost type task order, the additional work is the same type of work, and the ceiling increase is less than 10 percent.

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Assuming that you are agreeing with my second option, I don’t know why you would need a J&A

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3 hours ago, ArmyofOne said:

change order. 

Okay so what within the cost reimbursement changes clause whether for supplies, services, or both authorizes  an increase in work?

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6 hours ago, ArmyofOne said:

...this would be an increase in ceiling price as a result of a change order...

We're talking about a cost-reimbursement contract, so the contract includes the clause at FAR 52.243-2, perhaps with one of its alternates, right?

A change order is only allowed for work within the general scope of the contract.  Thus, since we're talking about a change order, a J&A is not needed.

My thoughts here assume the original poster is using the correct understanding of change order.

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10 hours ago, ji20874 said:

We're talking about a cost-reimbursement contract, so the contract includes the clause at FAR 52.243-2, perhaps with one of its alternates, right?

A change order is only allowed for work within the general scope of the contract.  Thus, since we're talking about a change order, a J&A is not needed.

My thoughts here assume the original poster is using the correct understanding of change order.

I am not quite so sure your assumption is correct noting the OP has stated its is "additional work" of the same kind and has brought in matter of ceiling Increase less than 10%. 

@ArmyofOne   Can your clarify?   With regard to the change order you have noted per the 52.243-2 clause in the contract what are you changing (such as drawings, designs, place of delivery, etc.) or is your contemplated modification simply adding more work?

   

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Carl, I'm also not sure my assumption is correct.  I hope the original poster will answer your question.

I wanted to teach two correct principles: first, that a change order is only for within-scope changes as described in the contract clause at FAR 52.243-2; and second, that a J&A is not required for a change order.,

Army, it might be that you asked the wrong question.  The real question is whether the change is within scope as described in the contract clause at FAR 52.243-2.  If YES, then your use of a change order was likely correct and a J&A is not required.  If NO, then your use of a change order was likely improper and a J&A (or SSJ or JEFO or LSJ of some sort) is likely needed.  

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Just now, ji20874 said:

Carl, I'm also not sure my assumption is correct.  I hope the original poster will answer your question.

I wanted to teach two correct principles: first, that a change order is only for within-scope changes as described in the contract clause at FAR 52.243-2; and second, that a J&A is not required for a change order.,

Army, it might be that you asked the wrong question.  The real question is whether the change is within scope as described in the contract clause at FAR 52.243-2.  If YES, then your use of a change order was likely correct and a J&A is not required.  If NO, then your use of a change order was likely improper and a J&A (or SSJ or JEFO or LSJ of some sort) is likely needed.  

ji, There might be a third  you should add for clarity.  That is....

#3 - If Army is simply adding more work to the contract, work that is within the scope of the contract, then it is not a change order rather it is an agreement by both party's to add work to the contract.

I might add that in such cases of adding more work, within the scope, there is no magic formula.  I say this as the Army has added info about the ceiling price going up less than 10%.  With regard to scope this might be a good read for Army.  

 

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An additional correct principle:

  • There is no "ceiling" on a cost-reimbursement contract.  Rather, for a cost-reimbursement contract, there is an agreed estimated cost and maybe a fee, which added together constitute the contract price. 

I recommend the use of correct terms wherever possible.  Using correct terms will help reinforce correct principles.

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5 hours ago, ji20874 said:

An additional correct principle:

  • There is no "ceiling" on a cost-reimbursement contract.  Rather, for a cost-reimbursement contract, there is an agreed estimated cost and maybe a fee, which added together constitute the contract price. 

I recommend the use of correct terms wherever possible.  Using correct terms will help reinforce correct principles.

No, that's incorrect. Cost-reimbursement contracts do not have "prices". They have estimated costs and usually fees. Contrast the required data elements FAR 4.1005-1(a)(5)(i) and (ii):
 

Quote

 

(i) For fixed-price line items:

                     (A) Unit of measure.

                     (B) Quantity.

                     (C) Unit price.

                     (D) Total price.

                (ii) For cost-reimbursement line items:

                     (A) Unit of measure.

                     (B) Quantity.

                     (C) Estimated cost.

                     (D) Fee (if any).

                     (E) Total estimated cost plus any fee.

 

FAR 15.401 contains a definition of price that applies in FAR subpart 15.4 only:

Quote

Price means cost plus any fee or profit applicable to the contract type.

People commonly misinterpret that to mean that all contracts have a "price". The definition is merely a convention that obviates the need to write something like "Contracting officers shall award contracts at a fair and reasonable prices (or estimated costs and fees)." When that convention is not used outside of FAR subpart 15.4, we get sentences like the following at FAR 16.103(a):

Quote

The objective is to negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance. 

 

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