Determine Whether a Change Is Within the Scope of the Contract

In this scenario, I am the Administrative Contracting Officer (ACO) for the first production run of Flexible Skin Helper Suits (FISHS). FISHS are lightweight, unisex thermal wetsuits that are used by the Special Operations Command. Special polymers were designed for these suits, which the government owns technological rights to.

Open competition was used, and formal source selection procedures determined the best value proposal for the government. The solicitation and award was for 10,000 large suits. After evaluation, Tepid Corporation was found to be the best value, and they were awarded a FFP contract for 10,000 suits priced at $1.2 million on April 18, 2007. The delivery schedule is 2,500 suits a month starting July 18, 2007 and ending October 18, 2007.

So far, the first lot of 2,500 suits has been delivered on time, and has exceeded the performance standards of the contract. The customer is extremely pleased, and wants to order an additional 2,500 suits, at the same price, to be delivered by November 18, 2007. I am assuming that the contractor will continue to perform well and meet the delivery schedule for the remaining months on the contract.

When considering making a change to the existing contract, I reviewed the implications of the Competition in Contracting Act of 1984 (CICA). The elements of CICA are also found in FAR Part 6. In order to determine whether the competition requirement in CICA applies, I must see if a material difference between the modified contract and the original order exists. To determine if a material difference exists, I look to see if changes in the type of work, performance period, and costs between the contract as awarded and as modified are found. I also must consider whether the original contract advised offerors of the potential for change, and whether the modification would reasonably have been anticipated at the time of award. If it is found that CICA does apply to the given situation, than either a new contract must be solicited, or the Justifications and Approval process for other than full and open competition must be followed.

A contract change is within the scope of the contract if the original purpose of the contract has not changed in a drastic nature, resulting in the original contract morphing into an entirely different contract. I believe the Government can issue a valid change order for an addition 2,500 units to be supplied by Tepid Corporation. The contract type remains as FFP, the product is the same, wetsuits, and the price of the additional units is the same at $120 per a unit. The delivery schedule is also consistent with the original contract; delivery will be 1 month after the scheduled final delivery date of the original contract.

The total price of the contract would increase by $300,000 if the change was made. Although this seems to be a significant increase, 25% of the original contract, price alone does not change the scope of the contract. It is something to consider, but all factors should be considered. An additional 2,500 units does not materially change the purpose of the original contract. The change involves the same product, price, and delivery schedule. It is not a change that other offerors wouldn’t have anticipated. For the reasons listed, this change should not require re-solicitation for full and open competition, or involve using the Justification and Approval process. The scope of the contract has not changed.

The Government and contractor can enter into a bilateral modification to increase the original contract quantity by 2,500 units. As the ACO, I would request written authority from the PCO in order to issue the bilateral modification.

...