CEMP-E/CECW-E
EI 01D010
1 September 1997
perhaps entail a comparison and analysis and
CHAPTER 14
discussions with the designer or field office to ensure
CONTRACT MODIFICATIONS AND
common understanding of the scope of work. The
OTHER NEGOTIATED PROCUREMENT
cost engineer must assure that the proposed
modification or procurement action is clearly defined
14-1. General
with regard to specified work requirements, proposed
measurement, and payment.
a. FAR/ EFAR, Part 36 requires an indepen-
dently prepared Government estimate for
(2) Determining the status of construction
modifications in excess of 0,000. Normally,
and the effect the changed work will have impact on
estimates are not required for changes less than
the construction schedule. This will require
0,000, but are required by the Contracting
obtaining progress reports, schedules, and discussion
Officer for unilateral modifications. For contract
with the field office responsible for the construction.
modifications, the amount refers to the sum of the
For major or complex changes, a visit to the
absolute value of increases and decreases. For
construction site is required.
example, a modification containing an increase of
,000 and decrease of ,000 has an absolute
(3) Becoming fully aware of the
value of 5,000, and a Government estimate
contractor's existing methods, capabilities, and rates
would be required.
of accomplishment. The estimate should not
arbitrarily include methods and capabilities different
b. The cost engineer should become familiar
from the method in which the contractor is
with the modification and claim processes. Training
performing the ongoing work. The cost engineer
relevant to construction modifications is included in
should base the change on existing contractor
the prospect program.
operations for similar work. When work is
anticipated to be subcontracted, the estimate should
14-2. Directives
be prepared to include subcontractor costs.
(4) Obtaining current labor and equipment
Those responsible for the preparation of cost
rates for the work force and work actually ongoing.
estimates for contract modifications should be
These rates are usually available from labor reports
thoroughly familiar with the requirements set forth
or from the contractor upon request. Suppliers for
in FAR, DFAR, AFAR, EFAR, and the appropriate
materials should be contacted for quotes. The price
ER. The acronyms for the Federal Acquisition
which the contractor is expected to pay should be the
Regulations are listed in the Glossary
basis for estimating material costs. A list of
equipment on the job should be obtained and
14-3. Negotiated Procurement and
equipment rates be determined in accordance with
Contract Modifications
EP 1110-1-8, Equipment Ownership Schedule.
a. The cost engineer has several important
b. As a team member working with the
tasks to perform prior to actually preparing the
negotiator, coordinate with the contractor to agree
estimate. The cost engineer will prepare a technical
on scope of work and format prior to preparation of
analysis of the proposed procurement action or
the Government estimate and submittal of the
contract modification. Some of the major activities
contractors proposal. This discussion will assist
to be considered in preparing the technical and cost
both the Government and contractor in reaching a
analysis in addition to labor, material, equipment
mutually accepted scope of work to eliminate
and construction techniques include:
unnecessary effort for both parties during
negotiations.
(1) Reviewing available documents and
becoming thoroughly familiar with the scope and
requirements of the changed work. This will
14-1
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