COR Modifications & Change Orders 3 — Questions and Answers
Question 1: The 'cardinal change' doctrine is significant because it means:
- The CO approved an out-of-scope change without competition
- A change so drastic it falls outside the original contract scope, potentially allowing the contractor to treat it as a breach (Correct answer)
- A change was made without proper FAR authority
- The modification exceeded the simplified acquisition threshold
Correct answer: A change so drastic it falls outside the original contract scope, potentially allowing the contractor to treat it as a breach
A cardinal change alters the fundamental nature of the contract and may expose the government to breach claims because it exceeds what was competitively awarded.
Question 2: Which of the following best describes a 'constructive change' in federal contracting?
- A formal written modification that adds new work
- Contractor performance of additional work due to government action or inaction without a formal change order (Correct answer)
- A CO-approved change issued via SF 30
- A modification that reduces the contract price
Correct answer: Contractor performance of additional work due to government action or inaction without a formal change order
A constructive change occurs when the government's conduct effectively directs extra work without a formal change order, entitling the contractor to an equitable adjustment.
Question 3: A COR's written direction to a contractor to 'use a higher-grade material than specified' without a modification in place could create which problem?
- An unauthorized commitment leading to a constructive change (Correct answer)
- A valid unilateral modification under FAR 43.103
- A termination for default if refused
- No problem, as CORs may direct technical decisions
Correct answer: An unauthorized commitment leading to a constructive change
Directing a higher-grade material constitutes an unauthorized commitment that may result in a constructive change and government liability for additional costs.
Question 4: What is the primary purpose of the Standard Form (SF) 30 in government contracting?
- To document a contractor's performance evaluation
- To amend solicitations or modify contracts (Correct answer)
- To authorize contractor invoices for payment
- To report contract closeout actions
Correct answer: To amend solicitations or modify contracts
SF 30 (Amendment of Solicitation/Modification of Contract) is the official form used to amend solicitations before award or modify contracts after award.
Question 5: When the government issues a stop-work order, which of the following is the contractor generally entitled to receive?
- Termination for convenience settlement only
- An equitable adjustment for unavoidable costs incurred during the stop-work period (Correct answer)
- No compensation if the stop-work was for government convenience
- A contract extension equal to twice the stop-work period
Correct answer: An equitable adjustment for unavoidable costs incurred during the stop-work period
Under FAR 52.242-15, a contractor is entitled to an equitable adjustment for reasonable costs incurred during a stop-work period if it is not at fault.
Question 6: A modification is needed to correct the contract's payment office address. Which modification type is appropriate and what level of approval is typically required?
- Bilateral modification requiring both parties' signatures and senior CO approval
- Unilateral administrative change requiring only the CO's signature (Correct answer)
- Supplemental agreement requiring the PCO and head of agency approval
- No modification is needed; verbal notification suffices
Correct answer: Unilateral administrative change requiring only the CO's signature
Correcting an administrative detail like a payment office address is an administrative change issued unilaterally by the CO without contractor consent.
Question 7: Under the Changes clause, what is the contractor's obligation if it disagrees with a unilateral change order issued by the CO?
- Stop work immediately pending resolution
- Continue performance while reserving the right to submit an REA or claim (Correct answer)
- Refuse performance until a bilateral modification is executed
- File a protest with the GAO before proceeding
Correct answer: Continue performance while reserving the right to submit an REA or claim
The Changes clause requires contractors to continue performance under government direction while pursuing an REA or claim for equitable adjustment.
COR Modifications & Change Orders 3
The 'cardinal change' doctrine is significant because it means: