Importance of Standard Default Clause
All government contracts contain provisions that protect the interest of the government and the contractor. The provisions in a contract indicate the requirements, conditions, and the obligations for all who are involved in the contract. Provisions suggest the contractor is to conduct business during the period of a contract. Interfacing with the government is also included in the provisions. Contractors who are new to government contracting and do not understand or are aware of the provisions in contract are those contractors that have some sort of dispute (Hearn, 2011).
Keeping the interest of the tax payer in mind, encouraging competition, and the advancement of socioeconomic goals government contracts are governed by many rules and regulations. Clauses contained in government contracts give the government the right to change or terminate contracts. The default clause which is almost like Termination for Default allows the government to terminate a contract for the failure or untimely delivery of products or performance of a service, make progress, or failure to perform any of the provisions of the contract. When a contract is terminated the contracting officer must notify the contractor in writing. The default clause excuses the contractor’s ability to perform if the reason for default is caused by a natural act of God which includes fires, floods, strikes, and strange unusual weather. Under this clause they government is authorized to reprocure the supplies and/or services needed under the terms of the contract and charge extra payments to the contractor (Vacketta, 2008). Combining the delay and default clause the contractor is given the opportunity to replace nonconforming and defective supplies (“Inspection of Supplies, n.d.” 52.246-2). Once receiving a written notice the contractor will have 10 days to replace the defective or nonconforming items. If the problem is not fixed with in the 10 day period the government has the right to terminate all or parts of the contract reducing negotiated price of payment. The contracting officer also has the authority to make changes to sections of the contract as long as these changes are within the provisions of the contract. Under the default and delay clause time and material and labor hour contracts the contracting officer will change the final cost. When submitting changes the contracting officer must include a supplemental agreement showing the adjusted terms of the price and the schedule of delivery. Contracting Officer’s Changes to the Payment Terms Change orders are work in the scope of a contract has been changed. …show more content…
Work can be either added or taken away from the contract. Change orders normally affect the amount of the contract and the completion date. Contracting officers and contractors have to be agreement when changes are made during the scope of the contract. The exception to the rule is the contracting officer and the contractor does not have to agree to the changes of a contract when the contract is funded in increments or the contract is a cost-reimbursement contract. The contractor will still be required to perform under the provisions of the original contract. Chang orders are used to suit the needs of the government which why there are many clauses that are used in government contracting. These clauses authorize the contracting officer to change contract terms and specifications, but not the characteristics of a contract (FAR Subpart 43.2). Inspection Criteria FAR
All government contracts contain provisions that protect the interest of the government and the contractor. The provisions in a contract indicate the requirements, conditions, and the obligations for all who are involved in the contract. Provisions suggest the contractor is to conduct business during the period of a contract. Interfacing with the government is also included in the provisions. Contractors who are new to government contracting and do not understand or are aware of the provisions in contract are those contractors that have some sort of dispute (Hearn, 2011).
Keeping the interest of the tax payer in mind, encouraging competition, and the advancement of socioeconomic goals government contracts are governed by many rules and regulations. Clauses contained in government contracts give the government the right to change or terminate contracts. The default clause which is almost like Termination for Default allows the government to terminate a contract for the failure or untimely delivery of products or performance of a service, make progress, or failure to perform any of the provisions of the contract. When a contract is terminated the contracting officer must notify the contractor in writing. The default clause excuses the contractor’s ability to perform if the reason for default is caused by a natural act of God which includes fires, floods, strikes, and strange unusual weather. Under this clause they government is authorized to reprocure the supplies and/or services needed under the terms of the contract and charge extra payments to the contractor (Vacketta, 2008). Combining the delay and default clause the contractor is given the opportunity to replace nonconforming and defective supplies (“Inspection of Supplies, n.d.” 52.246-2). Once receiving a written notice the contractor will have 10 days to replace the defective or nonconforming items. If the problem is not fixed with in the 10 day period the government has the right to terminate all or parts of the contract reducing negotiated price of payment. The contracting officer also has the authority to make changes to sections of the contract as long as these changes are within the provisions of the contract. Under the default and delay clause time and material and labor hour contracts the contracting officer will change the final cost. When submitting changes the contracting officer must include a supplemental agreement showing the adjusted terms of the price and the schedule of delivery. Contracting Officer’s Changes to the Payment Terms Change orders are work in the scope of a contract has been changed. …show more content…
Work can be either added or taken away from the contract. Change orders normally affect the amount of the contract and the completion date. Contracting officers and contractors have to be agreement when changes are made during the scope of the contract. The exception to the rule is the contracting officer and the contractor does not have to agree to the changes of a contract when the contract is funded in increments or the contract is a cost-reimbursement contract. The contractor will still be required to perform under the provisions of the original contract. Chang orders are used to suit the needs of the government which why there are many clauses that are used in government contracting. These clauses authorize the contracting officer to change contract terms and specifications, but not the characteristics of a contract (FAR Subpart 43.2). Inspection Criteria FAR