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(Revised September 21, 1999)


 252.243-7000 Engineering Change Proposals.
 252.243-7001 Pricing of Contract Modifications.
 252.243-7002 Requests for Equitable Adjustment.

252.243-7000  Engineering Change Proposals.

As prescribed in 243.205-70, use the following clause:




      (a)  The Contracting Officer may ask the Contractor to prepare engineering change proposals for engineering changes within the scope of this contract.  Upon receipt of a written request from the Contracting Officer, the Contractor shall prepare and submit an       engineering change proposal in accordance with the instructions of MIL-STD-973, in effect on the date of contract award.


      (b)  The Contractor may initiate engineering change proposals.  Contractor initiated engineering change proposals shall include a “not to exceed” price* or a “not less than” price* and delivery adjustment.  If the Contracting Officer orders the engineering change, the increase shall not exceed nor the decrease be less than the “not to exceed” or “not less than” amounts**.


      (c)  When the price* of the engineering change is $500,000 or more, the Contractor shall submit—


              (1)  A contract pricing proposal using the format in Table 15-2, Section 15.408, of the Federal Acquisition Regulation; and


              (2)  At the time of agreement on price*, or on another date agreed upon between the parties, a signed Certificate of Current Cost or Pricing Data.


(End of clause)



As prescribed in 243.205-70, add the following paragraph (d) to the basic clause:


      (d)  If the price* of a Contractor initiated engineering change is __________*** or less, the change, if ordered, shall be made at no adjustment in the contract price*.


*    Use a term suitable for the type of contract.


**  In cost reimbursement type contracts, replace this sentence with the following:  “Change orders issued under the Changes clause of this contract are not an authorization to exceed the estimated cost in the schedule unless there is a statement in the change order, or other contract modification, increasing the estimated cost.”


***      Insert a percentage of the contract price or a dollar amount.


252.243-7001  Pricing of Contract Modifications.

As prescribed in 243.205-71, use the following clause:




When costs are a factor in any price adjustment under this contract, the contract cost principles and procedures in FAR Part 31 and DFARS Part 231, in effect on the date of this contract, apply.


(End of clause)


252.243-7002  Requests for Equitable Adjustment.

As prescribed in 243.205-72, use the following clause:




      (a)  The amount of any request for equitable adjustment to contract terms shall accurately reflect the contract adjustment for which the Contractor believes the Government is liable.  The request shall include only costs for performing the change, and shall not include any costs that already have been reimbursed or that have been separately claimed.  All indirect costs included in the request shall be properly allocable to the change in accordance with applicable acquisition regulations.


      (b)  In accordance with 10 U.S.C. 2410(a), any request for equitable adjustment to contract terms that exceeds the simplified acquisition threshold shall bear, at the time of submission, the following certificate executed by an individual authorized to certify the request on behalf of the Contractor:


I certify that the request is made in good faith, and that the supporting data are accurate and complete to the best of my knowledge and belief.






(Official’s Name)









      (c)  The certification in paragraph (b) of this clause requires full disclosure of all relevant facts, including¾


              (1)  Cost or pricing data if required in accordance with subsection 15.403-4 of the Federal Acquisition Regulation (FAR); and


              (2)  Information other than cost or pricing data, in accordance with subsection 15.403-3 of the FAR, including actual cost data and data to support any estimated costs, even if cost or pricing data are not required.


      (d)  The certification requirement in paragraph (b) of this clause does not apply to¾


              (1)  Requests for routine contract payments; for example, requests for payment for accepted supplies and services, routine vouchers under a cost-reimbursement type contract, or progress payment invoices; or


              (2)  Final adjustments under an incentive provision of the contract.


(End of clause)




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