Assignment: Describe the goals of the federal acquisition process as it relates to culture, the environment or the current social climate in the world. Arrange to research this topic and related material in the library and on the web.
STUDENT 1:
Contract modifications could be necessary if “funding changes, making correction, delivery, changing the terms, adding or deleting supplies or service” just to name a few.
When Medical Maintenance changes contracts, it is usually to increase or decrease the amount of service we need from the manufacturer. Because we have a lot of green suiters (military members) fluctuating in and out of the shop. The training changes every couple of years, so we have our contracts to reflect the abilities of the maintenance shop.
There are only two-way contracts can be modified, unilateral and bilateral. The meaning is in the word, unilateral is where the contracting officer (KO) can change the contract and sign it without the other party. These changes are like issue “changes orders, funding action, implement terms or conditions or making administrative changes.” Bilateral is where both parties sign the contract. This would be changing the terms and conditions, negotiate equitable adjustments or definitive changes orders.
Terminations
Like in every job the government can terminate contracts. One or more of the following failed to happen: Delivery of supplies within a time frame, appropriate progress or perform provisions of the contract.
For medical maintenance side of the house, we do not see this. I like said, each technician takes pride in their job. Most of the time they go above and beyond what they are required. For me, it is that human idea that they (mother, father, sister, you pick) could be laying in a bed and they do not want the equipment to fail.
Rumbaugh, M. G. (2013). Contract management body of knowledge (CMBOK) Ashburn, VA: National Contract Management Association.
STUDENT 2:
Government and commercial contracts have some similarities but are different when it comes to contract modifications and terminations. The government uses guidance from the FAR when conducting contract modifications, terminations, and claims. This guidance favors the government and the taxpayer. Businesses have their own regulations, Uniform Commercial Code (UCC), to follow that are related to commercial contracts between other businesses. The UCC is a set of laws governing commercial transactions within the U.S. and the primary source of guidance in the commercial contracting community (Rumbaugh, 2013, p. 19). All states are different as to which articles of the UCC they adopt. The UCC can be tailored to allow people to make the contracts they want while using this guidance to fill in any missing provisions (Rumbaugh, 2013, p. 19).
For contract modifications under the UCC, modifications should be between both parties and should be in writing. Under the FAR, contract modifications can be made by the contracting officer both unilaterally and bilaterally. The government has a right to terminate a contract for convenience when the contract is no longer in the best interest of the government. Contracts can also be terminated for default with no prior notice to the contractor unless the contract includes those provisions. Commercial contracts can be terminated by either party, at any time for contracts that are indefinite in duration. Terminations also have to be of good faith between both parties.
I didn’t see a lot of guidance regarding contracting with non-profit organizations. The main detail that I read was that the government is required to reimburse non-profits for the reasonable indirect costs (administrative) for services they have delivered.
References
Rumbaugh, M. (2013). Contract management body of knowledge (CMBOK), 4th edition.
