When the final price of an unpriced change order is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects-
(a) Any reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price;
(b) The contractor's reduced cost risk for costs incurred during performance of the remainder of the contract; and
(c) The extent to which costs have been incurred prior to definitization of the contract action (see 215.404-71-3 (d) (2)). The risk assessment shall be documented in the contract file.
243.204-70-7 Plans and reports.
To provide for enhanced management and oversight of unpriced change orders, departments and agencies shall-
Management Plan required by 217.7405, the actions planned and taken to ensure
that unpriced change orders are definitized in accordance with this subsection; and
(b) Include in the Consolidated UCA Management Report required by 217.7405, each unpriced change order with an estimated value exceeding $5 million.
