Pricing of an in-scope bilateral modification

If you're buying additional quantities of supplies or services, I wouldn't think it would be relevant what the original work cost, other than for cost or price analysis purposes. Am I missing something? Wouldn't you price the additional quantities the same whether they were being added to this contract or being bought on a stand-alone basis?

If you're buying additional quantities of supplies or services, I wouldn't think it would be relevant what the original work cost, other than for cost or price analysis purposes. Am I missing something? Wouldn't you price the additional quantities the same whether they were being added to this contract or being bought on a stand-alone basis?

Ah, say most of the work is development of a service that will be offered to X number of people, and you are simply increasing the number of people. The cost of development is the bulk of the contract price, and there is only line item covering both development and offering of the service.

The rule for equitable adjustments would not apply. That rule says that the contractor is entitled to the amount of any reasonable increase in cost attributable to a change order, or other specified event such as a differing site condition, plus a reasonable allowance for profit. That rule applies only when a change is made pursuant to a clause that says that the contractor is entitled to an equitable adjustment.

There is no clause in a commercial items contract that allows the Government to make unilateral changes or to unilaterally add additional quantities and that limits the price of additional supplies or services to an equitable adjustment. You could charge any amount you want that you could persuade the Government to pay and that you would be willing to accept. You would not be limited to the amount of the increase in cost plus a profit.