PART 5243 CONTRACT MODIFICATIONS
5243.102-90 Use of modifications for additional quantities.
DON policy is to avoid the use of contract modifications for additional quantities as a means of purchasing new requirements of supplies, when such a procedure would result in prolonging the life of the contract beyond the time when final settlement would normally be made.
(90) Each undefinitized change order shall include a not-to-exceed price unless the CCO waives this requirement.
(91) The policies and procedures of DFARS 217.74 should be applied to change orders (except value engineering change proposals (VECP's)) to the maximum extent practicable.
(92) The use of VECP's is encouraged due to the potential savings and system improvements that may be realized.
(a) Prompt action should be taken to implement those VECP's deemed to be technically sound.
(b) When considering VECP's, contracting officers should consider the impact on the projected savings that the normal negotiation and definitization process would have versus use of an unpriced change order. Unpriced contract modifications that implement VECP's should:
(1) Define minimum unit cost savings, and
(2) Define maximum development/implementation costs
5243.204-70 Definitization of change orders.
5243.204-70-1 (DFARS 243.204-70-1) Scope.
(b) Submit the required contracting officer notice to DASN(AP) via electronic mail address
RDAJ&As@navy.mil. Properly identify in the subject line of the email “Contracting Officer Notice pursuant to DFARS 243.204-70-1—FMS/SAP Unpriced Change Orders.”
5243.204-70-7 (DFARS 243.204-70-7) Plans and Reports.
(b) Report unpriced change orders in accordance with the schedule and in the format prescribed at NMCARS 5217.7405.