PART 1843

**CONTRACT MODIFICATIONS**

**TABLE OF CONTENTS**

**SUBPART [1843.2](#OLE_LINK1) CHANGE ORDERS**

1843.205 Contract clauses.

1843.205-70 NASA contract clauses.

**SUBPART [1843.70](#OLE_LINK70) UNDEFINITIZED CONTRACT ACTIONS**

1843.7001 Definitions.

1843.7002 Policy.

1843.7003 Procedures.

1843.7004 Exceptions.

1843.7005 Definitization.

**SUBPART [1843.71](#OLE_LINK71) SHARED SAVINGS**

1843.7101 Shared Savings Program.

1843.7102 Solicitation provision and contract clause.

**PART 1843**

**CONTRACT MODIFICATIONS**

**Subpart** []{#OLE_LINK1 .anchor}**1843.2\--Change Orders**

**1843.205 Contract** **clauses.**

As authorized in the prefaces of clauses [**FAR
52.243-1**](http://www.arnet.gov/far/current/html/52_241_244.html#1046722),
Changes- Fixed Price; [**FAR
52.243-2**](http://www.arnet.gov/far/current/html/52_241_244.html#1046767),
Changes\--Cost Reimbursement; and [**FAR
52.243-4**](http://www.arnet.gov/far/current/html/52_241_244.html#1046824),
Changes, and in the prescription at 43.205(c) for [**FAR
52.243-3**](http://www.arnet.gov/far/current/html/52_241_244.html#1046805),
Changes\--Time-and-Material or Labor-Hours, the period within which a
contractor must assert its right to an equitable adjustment may be
varied not to exceed 60 calendar days.

**1843.205-70 NASA** **contract** **clauses.**

(a)(1) The contracting officer may insert in contracts a clause
substantially the same as
[**1852.243-70**](http://www.hq.nasa.gov/office/procurement/regs/5242-44.htm#1852.243-70%2352.243-70),
Engineering Change Proposals, when ECPs are expected. Paragraphs (c) and
(d) of the basic clause and Alternate I of the clause shall be changed
to reflect the specific type of contract.

\(2\) If it is desirable to preclude a large number of small-dollar,
contractor-initiated engineering changes and to reduce the
administrative cost of reviewing them, the contracting officer shall use
the clause with its Alternate I.

\(3\) If the contract is a cost-reimbursement type, the contracting
officer shall use the clause with its Alternate II.

\(b\) The contracting officer may insert a clause substantially as
stated at 1852.243-72, Equitable Adjustments, in solicitations and
contracts for --

\(1\) Dismantling, demolishing, or removing improvements; or

\(2\) Construction, when the contract amount is expected to exceed the
simplified acquisition threshold and a fixed-price contract is
contemplated.

**Subpart** []{#OLE_LINK70 .anchor}**1843.70\--Undefinitized Contract
Actions**

**1843.7001  Definition~~s~~.**

**\"Undefinitized contract action (UCA)\"** means a unilateral or
bilateral contract modification or delivery/task order in which the
final price or estimated cost and fee have not been negotiated and
mutually agreed to by NASA and the contractor. (Issuance of letter
contracts and their modifications are governed by [**Subpart
1816.6**](http://www.hq.nasa.gov/office/procurement/regs/1816.htm#P277_40249).)

7002. **Policy.**

\(a\) Undefinitized contract actions may be issued only on an exception
basis, and centers must ensure that NASA liabilities and commitments are
minimized. When an undefinitized contract action is justified and
program requirements can be severed into smaller, discreet efforts, the
work authorized by the undefinitized contract action must be limited to
the minimum severable effort required to satisfy the urgent program
requirements. The remaining requirements may not be initially included
in the undefinitized contract action and must be acquired through a
separate fully priced and definitized contract action.

\(b\) The contract file for each UCA shall be documented to justify
issuance and shall include a Government estimate for the changed
requirements.

1843.7003 Procedures.

(a)(1) Issuance of undefinitized contract actions with a Government
estimated cost or price over \$100,000 must be approved in writing by
the head of the contracting activity.

\(2\) All other undefinitized contract actions must be approved in
writing by the procurement officer.

\(3\) In emergency situations, approval may be given orally and
subsequently confirmed in writing.

\(4\) The approval authorities in paragraphs (a)(1) and (2) of this
section are not delegable.

(b)(1) Undefinitized contract actions exceeding \$100,000 must be issued
as bilateral agreements setting forth a ceiling price or \"not to
exceed\" estimated cost figure for the changed contractual requirements.
For fixed price contracts the negotiated price for the changed contract
requirements shall not exceed the established ceiling price. In the case
of cost type contracts any costs eventually negotiated for the changed
requirements in excess of the \"not to exceed\" estimated cost figure
shall be non-fee bearing. The ceiling price or \"not to exceed\"
estimated cost figures shall be separately identified in the UCA
instrument from the pricing structure of the basic contract.

\(2\) The head of the contracting activity may waive the ceiling price
or \"not to exceed\" estimated cost figure and bilateral agreement
requirements prior to UCA issuance on the basis of urgency. This waiver
authority is not delegable. Any waivers shall be documented in the
contract file.

\(c\) The changed contractual requirements set forth in the UCA shall be
clearly defined and shall be limited to the minimum effort required to
satisfy urgent program requirements while a cost proposal is prepared,
analyzed and negotiated.

\(d\) For undefinitized contract actions with a Government estimate
greater than \$1,000,000 and not excepted under subpart 1843.7004, a 180
day funding profile shall be obtained from the contractor prior to
execution of the undefinitized contract action.

\(e\) Undefinitized contract actions with a Government estimated cost or
price greater than \$1,000,000 shall include a requirement that the
change shall be separately accounted for by the contractor to the degree
necessary to provide the contracting officer visibility into actual
costs incurred pending definitization. The contracting officer may waive
this requirement for individual actions if there is a documented finding
that such accounting procedures would not be cost effective. Any such
waiver shall not affect existing NASA Form 533 or other financial
reporting requirements set forth in the contract.

**1843.7004 Exceptions.**

\(a\) Exceptions to the requirement for head of the contracting activity
or procurement officer approval of undefinitized contract actions are\--

\(1\) Modifications to facilities contracts;

\(2\) Modifications to construction contracts using Construction of
Facilities funding;

\(3\) Urgent modifications resulting from Shuttle manifest changes or
that involve immediate issues of safety or damage/loss of property;

\(4\) Modifications to decrease the contract value; or

\(5\) Modifications to letter contracts.

\(b\) The contract file for any of the modifications in paragraph (a) of
this section shall cite the exception and include complete supporting
rationale for its applicability.

**1843.7005 Definitization.**

\(a\) Undefinitized contract actions should be sufficiently complete and
detailed as to enable the contractor to begin immediate preparation of a
cost proposal for the changed requirement. The NASA goal is to
definitize UCAs within 180 days from date of issuance.

\(b\) Whenever possible, pre-change study efforts or engineering change
proposals (ECPs) shall be utilized to negotiate and definitize changes
prior to issuance.

**Subpart** []{#OLE_LINK71 .anchor}**1843.71\--Shared Savings**

**1843.7101 Shared Savings Program.**

This subpart establishes and describes the methods for implementing and
administering a Shared Savings Program. This program provides an
incentive for contractors to propose and implement, with NASA approval,
significant cost reduction initiatives. NASA will benefit as the more
efficient business practices that are implemented lead to reduced costs
on current and follow-on contracts. In return, contractors are entitled
to share in cost savings subject to limits established in the contract.
The contracting officer may require the contractor to provide periodic
reporting, or other justification, or to require other steps (e.g., cost
segregation) to ensure projected cost savings are being realized.

**1843.7102 Solicitation provision and contract clause.**

The contracting officer shall insert the clause at
[**1852.243-71**](http://www.hq.nasa.gov/office/procurement/regs/5242-44.htm#1852.243-71),
Shared Savings, in all solicitations and contracts expected to exceed
\$1,000,000, except those awarded under [**FAR Part
12**](http://www.arnet.gov/far/current/html/Subpart_12_1.html#1046814),
NRA and AO procedures, or the SBIR and STTR programs.