4/12/2023 0 Comments Vmd mt security![]() ![]() This “effective date” rule is also followed by the SBA. New FAR provisions, however, can apply to a solicitation if they were in a solicitation issued before that effective date and the contract was awarded after that effective date. What are the rules for FAR clauses in a pending solicitation? According to FAR, new FAR regulations generally apply only “to solicitations issued on or after the effective date of the change.” FAR 1.108(d)(1). Again, new FAR clauses can be inserted into commercial item contracts if the contractor receives consideration. The standard Changes clause in those contracts requires both the government and the contractor to agree to any changes. Nor can the government unilaterally change the terms and conditions of a commercial-item contract. New FAR clauses can, of course, be inserted into non-commercial item contracts if the contractor receives consideration. The standard FAR Changes clause in a non-commercial item contract typically allows unilateral changes to the contract’s drawings and specifications but the terms and conditions are generally considered not part of the contract’s “specifications” subject to the Changes clause. Those clauses, however, do not allow the government to unilaterally rewrite a government contract. The fact that new laws are not instantly applicable to existing contracts may seem especially strange to experienced contractors familiar with the various FAR Changes clauses that allow the government to make unilateral changes to existing contracts. To date, no final FAR changes have been issued. In December 2016, the FAR Council issued proposed changes to FAR implementing the SBA regulations. The SBA adopted final regulations implementing these changes in 2013. For example, in 2010, Congress passed and the President signed the Small Business Jobs Act that changed small business set-asides. What is especially interesting about the impact that new statutes and regulations have on government contracts is the long delay between the time the Congress passed these laws and the time they affect government contracts. A “deal is a deal” even with the government.Įxisting contracts generally also remain unchanged by new laws passed by Congress and new regulations adopted by federal agencies implementing these new laws. Although the President may sign new Executive Orders, the terms and conditions of an existing contract do not automatically change. ![]() Government contractors trying to cope with the current flood of executive orders being issued by President Trump must remember that these changes generally do not rewrite their existing government contracts.
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