Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 48 - Federal Acquisition Regulations System |
Chapter 3 - Health and Human Services |
SubChapter G - Contract Management |
Part 342 - Contract Administration |
Subpart 342.71 - Administrative Actions for Cost Overruns |
§ 342.7102 - Contract modifications.
Latest version.
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(a) Modifications to contracts containing the Limitation of Cost clause shall include either—
(1) A provision which: Increases the estimated or ceiling amount in the Limitation of Cost clause of the contract; and states that such clause will thereafter apply to the increased amount; or
(2) A provision stating that the estimated or ceiling amount in the Limitation of Cost clause is not changed by the modification.
(b) The Contracting Officer shall not change a fixed-fee in a contract when funding a cost overrun. The Contracting Officer shall make changes in fixed-fee only to reflect changes in the SOW/PWS that justify an increase or decrease in fee.