FAR Request for Equitable Adjustment Lawyers Helping Federal Contractors in ALL STATES to Avoid Costly Mistakes. Call us at 1-866-601-5518 fora FREE Initial Consultation.
Did you know that if you REA does not meet the proper Contract Disputes Act (CDA) requirements, you may lose your case on appeal? See below.
- Get immediate help from experienced federal procurement attorneys
- Get a detailed assessment of potential damages in request for equitable adjustment versus claim submissions
- Develop a reliable record that can protect your rights in the future (commonly missed by some lawyers)
- Prompt turnaround with equitable adjustment firm fixed price contract
- Competitive rates
Nationwide Help for Federal Contractors. Get a Free Initial Consultation. Call 1-866-601-5518.
There are appeal cases before the various boards of contract appeals or Court of Federal Claims where contractors are fiercely met with motions to dismiss the case for lack of subject matter jurisdiction. Small businesses often lose out simply because of improper interpretation of contract terms, not properly articulating differing site conditions, or simply inserting the proper certification language when trying to get a request for equitable adjustment converted to a claim.
- Whether you are trying to figure out the difference between claim and FAR 52.243 request for equitable adjustment in a firmed fixed price contract or cost-plus contract, or simply need help preparing your REA documents, we can help.
FAR Request for Equitable Adjustment Denial Appeals & Government Contracts Legal Services
At Watson & Associates, we provide a wide range of assistance for government changes under FAR 52.243 including:
- Change order and extra work conflict resolution;
- Assessment of contract terms and application of the FAR Changes Clause;
- Firm Fixed Price Contract and Cost Plus Contract REA
- Preparation of REA requests;
- Construction contract change order guidance;
- Equitable adjustment firm fixed price contract matters;
- Disputes with Contract Disputes Act requirements; and
- Contract compliance and regulatory assistance.
Appeal of request for equitable adjustment denial letter
- Get a proper assessment of the number of damages for extra work you seek.
- Assess the merits of your request for equitable adjustment versus claim legal requirements before wasting valuable resources.
- Learn from lawyers and consultants that have decades of government contracting experience.
To speak with an equitable adjustment consultant or attorney, call 1-866-601-5518. FREE INITIAL CONSULTATION.
REAS MEANING – IS YOUR REA A CONTRACT DISPUTES ACT CLAIM?
Many government contractors mistakenly believe that the equitable adjustment serves the same purpose and has the same requirements of a Contract Disputes Act Claim (CDA). However, 41 U.S.C. 7101 – 7109, does not provide the legal definition of a government contract claim. The definition a “claim” under the FAR is as follows:
“Claim” means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract. However, a written demand or written assertion by the contractor seeking the payment of money exceeding $100,000 is not a claim under the Contract Disputes Act of 1978 until certified as required by the Act. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim. The submission may be converted to a claim, by written notice to the contracting officer as provided in 33.206(a), if it is disputed either as to liability or amount or is not acted upon in a reasonable time.
Unfortunately when looking at the REAs meaning, an REA by itself is not a “claim” under the Contract Disputes Act. Although the equitable adjustment and your CDA claim may seek the same relief, you should be very careful not to make the costly mistake of thinking one equals the other.
CONTENTS OF AN EQUITABLE ADJUST REQUEST (REA)
When you submit an REA to the federal government, avoid using canned templates. This can come back to haunt you later. You may want to include at least the following parts in your equitable adjustment letter.
- Address points showing the contracting agency did or failed to do under the contract which directly led to additional costs or delay (this is based on the Changes Clause)
- Your points should consider describing the scope of work under the contract
- Explanation of how the government contributed to the increase of contract costs
- Explain why the increased cost was not foreseeable.
- The nexus between the cause and effect the Government’s actions or inactions and how it led directly to the planned path to complete the project.
- Have your equitable adjustment law draft a section that address the legal authority for why the government should pay the request.
- Have your lawyer to draft your request for equitable adjustment in a way that meets the Contract Disputes Act claim requirements
- Include legal and factual content that can preserve any appeal rights that you may have.
Request for Equitable Adjustment Consulting for Large and Small Business Government Contractors in ALL States.
With law offices located in Washington, DC and Colorado, Watson & Associates, LLC’s help federal contractors in all states. Clients use our broad federal contracting experience to sift through the various legal nuances associated with getting payment for REA requirements.
- Many REA disputes arise as to who has the authority to issue a change order that warrants contractor payment. In addition, the bulk of disputes occur because the government will argue that the requested changes are part of the contract.
- There is no such thing as a
- At Watson & Associates, LLC our REA government contracts attorneys help to sift through the legal issues and guide government contractors to providing better FAR equitable adjustment requests.
Avoid Dangerous Mistakes With FAR Requirements for Equitable Adjustment FAR Contract Claims Under FAR 52.243
A Request for Equitable Adjustment (“REA government contracts”) in federal government contracting is a request to the contracting officer to adjust the contract upwards or downwards in price.
On its face, it would appear that an REA is intended to be a non- adverse action whether the parties to the contract negotiate the issues and go on their merry way.
Unfortunately, the various boards of contract appeals are bombarded with litigation for cases that stemmed from submitting FAR 52.243 request for equitable adjustment cases. More unfortunate is the fact that both small businesses and larger DOD contractors would appear to have viable arguments that would normally build a strong case against the government. The following problems should be avoided.
- Not making sure that your request for equitable adjustment also meets the FAR certification requirements for a claim under the Contract Disputes Act.
- Not fully articulating the basis for the upward adjustment and why it was not anticipated in the contract.
- Avoid taking directions from contracting officer representatives. Generally, these people cannot bind the U.S. government.
- Making the mistake to think that interest is allowable under REA rules.
You want to be aware of the following and also make sure that your equitable adjustment also meets the following requirements.
1) A claim by the Contractor shall be made in writing and, unless otherwise stated in this contract, submitted within 6 years after accrual of the claim to the Contracting Officer for a written decision. A claim by the Government against the Contractor shall be subject to a written decision by the Contracting Officer.
(i) The contractor shall provide the certification specified in paragraph (d)(2)(iii) of this clause when submitting any claim exceeding $100,000.
(ii) The certification requirement does not apply to issues in controversy that have not been submitted as all or part of a claim.
(iii) The certification shall state as follows: “I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable; and that I am authorized to certify the claim on behalf of the Contractor.”
(3) The certification may be executed by any person authorized to bind the Contractor with respect to the claim.
(e) For Contractor claims of $100,000 or less, the Contracting Officer must, if requested in writing by the Contractor, render a decision within 60 days of the request. For Contractor-certified claims over $100,000, the Contracting Officer must, within 60 days, decide the claim or notify the Contractor of the date by which the decision will be made.
(f) The Contracting Officer’s decision shall be final unless the Contractor appeals or files a suit as provided in 41 U.S.C. chapter 71.
ARE YOU ENTITLED TO AN EQUITABLE ADJUSTMENT?
Not all situations entitle you to an equitable adjustment. However, the FAR makes it clear that government contractors are eligible for different adjustments that are directly related to the performance of their contracts and government action. You can be entitled to an equitable adjustment for a constructive change in the contract, delays or other government caused increases to the cost of performing the contract.
REQUEST FOR EQUITABLE ADJUSTMENT VERSUS CONTRACT DISPUTES ACT CLAIM REQUIREMENTS
Avoid this costly mistake in your contract management approach: without a valid contract change order, many government contractors submit REA packages without any idea of how the contract clauses impact getting paid for the alleged contractor modification.
- FAR 52.243 request for equitable adjustment without specific elements, does not automatically meet the definition of a Contract Disputes Act claim.
- Under FAR 33.207 (c) when the claim amount exceeds $100,000, and it must be submitted to the Contracting Officer in a way that clearly provides the factual, technical, and legal basis for an equitable adjustment to the contract.
If the claim does not exceed $100,000 or not, Watson’s government contract lawyers will help to develop the alleged contract change order request in a fashion that still meets the requirements of the Contract Disputes Act of 1978, 41 USC 601-613.
The difference between a claim and FAR equitable adjustment: When attempting dispute resolution for extra work performed, an REA contractor claim attorneys does not require a contractor’s certification under the Contract Disputes Act. Another difference between a claim and a FAR equitable adjustment is that if you submit the additional work as a “claim,” government contractors are entitled to the interest, but not claim preparation costs. If you submit additional work via a request for equitable adjustment, you are entitled to compensation for claim preparation costs, but not interest.
Tip: Additional costs must be allowable, allocable, and reasonable.
Tip: When deciding to file an REA adjustment for construction change order, the Changes Clause at FAR 52.243-4 requires that only costs incurred within 20 days from the time that the Contractor gives notice are recoverable.
Call Our Government Contracts Attorneys & Consultants for Immediate Help
Whether you are submitting a Request for Equitable Adjustment versus claim due to change orders under FAR Part 43 or Construction changes to the scope of work under FAR 52.243, contact our request for equitable adjustment consultants and law firm or call 1-866-601-5518 for immediate help.
How to REA? Helpful Equitable Adjustment Claim Topics
|Read more relevant information about FAR Equitable Adjustments.|
GET A FREE INITIAL CONSULTATION
For help meeting the FAR Request for Equitable Adjustment requirements or disputes about the CO’s request for equitable adjustment letter of denial or your federal contract change order claim., Call our REA lawyers and consultants at 1866-601-5518.