Government compel contractor

Unless your contract says that the Government can, then no it cannot compel you. However, see FAR 15.404-4©(4) on limitations on profit in certain types of contracts:

(4)(i) The contracting officer shall not negotiate a price or fee that exceeds the following statutory limitations, imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 254(:

(A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract’s estimated cost, excluding fee.

( For architect-engineer services for public works or utilities, the contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of construction of the public work or utility, excluding fees.

© For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the contract’s estimated cost, excluding fee.

If your contract is one of these types of contracts, then it is illegal for the Government to enter into business with you when the fee exceeds those statutory maximums.

jpaynehydroid,

Is this a follow-up question to the one in the other thread? If so, the Government has the right to issue change orders if your contract contains a Changes clause. You have the right to request an equitable adjustment if the change order increases the cost of or time required for performance. When negotiating a price adjustment, the Government is not bound to whatever profit rate you proposed for the item originally.

It seems you don't like this answer, but it's going to be the same no matter how many different ways you ask it.

Thank you, Don Acquisition and Metteec! Well put! I will advise my supervisors.

Thanks again.

This is similar to another post in another thread.

There might be any number of reasons why the government can compel the contractor to perform for a different fee.

Thank you, Don Acquisition and Metteec! Well put! I will advise my supervisors.

Thanks again.

Yes - each change stands on its own. Also - you aren't renegotiating the "profit" on the unchanged work.

If an equitable adjustment (which considers profit) is involved in a contract price adjustment, then, generally, the government may take a reasonable credit for profit on deleted work and the contractor may add a reasonable profit for new or revised work. The amount of profit (e.g., percentage) in such situations isn't necessarily the same as was originally bid. It may be higher or lower.

What is "reasonable" is negotiable but there are guidelines that have been upheld in legal proceedings.

There are some wrinkles and exceptions but that is the general jist.

There is a good discussion of this in the books "Administration of Government Contracts" or in "Government Contract Changes" by Nash and Cibinic or by Nash and whomever is the latest collaberator since Prof. Cibinic's passing a few years ago.