As prescribed in 1843.205-70(a)(1), insert the following clause, modified to suit contract type:
ENGINEERING CHANGE PROPOSALS
(OCTOBER 2001)
(a) Definitions.
“ECP” means an Engineering Change Proposal (ECP) which is a proposed engineering change and the documentation by which the change is described, justified, and submitted to the procuring activity for approval or disapproval.
(b) Either party to the contract may originate ECPs. Implementation of an approved ECP may occur by either a supplemental agreement or, if appropriate, as a written change order to the contract.
(c) Any ECP submitted to the Contracting Officer shall include a "not-to-exceed"
[price or estimated cost] increase or decrease adjustment amount, if any, and the required [time of delivery or period of performance] adjustment, if any, acceptable to the originator of the ECP. If the change is originated within the Government, the Contracting Officer shall obtain a written agreement with the contractor regarding the "not-to-exceed"
[price or estimated cost] and [delivery or period of performance] adjustments, if any, prior to issuing an order for implementation of the change.
(d) After submission of a contractor initiated ECP, the contracting officer may require the contractor to submit the following information:
(1) Cost or pricing data in accordance with
FAR 15.403-5 if the proposed change meets the criteria for its submission under
FAR 15.403-4; or
(2) Information other than cost or pricing data adequate for contracting officer determination of price reasonableness or cost realism. The contracting officer reserves the right to request additional information if that provided by the contractor is considered inadequate for that purpose. If the contractor claims applicability of one of the exceptions to submission of cost or pricing data, it shall cite the exception and provide rationale for its applicability.
(e) If the ECP is initiated by NASA, the contracting officer shall specify the cost information requirements, if any.
(End of clause)
ALTERNATE I
(JULY 1997)
As prescribed in 1843.205-70(a)(2), add the following paragraph (f), modified to suit contract type, to the basic clause:
(f) If the ___ [price or estimated cost] adjustment proposed for any Contractor-originated ECP is ___ [insert a percent or dollar amount of the contract price or estimated cost] or less, the ECP shall be executed with no adjustment to the contract ___ [price or estimated cost].
ALTERNATE II
(SEPTEMBER 1990)
As prescribed in 1843.205-70(a)(3), add the following sentence at the end of paragraph (c) of the basic clause:
An ECP accepted in accordance with the Changes clause of this contract shall not be considered an authorization to the Contractor to exceed the estimated cost in the contract Schedule, unless the estimated cost is increased by the change order or other contract modification.
