What is a request for equitable adjustment (Rea)?
In such cases, the contractor has the choice of submitting a request for equitable adjustment (“REA”) to the contracting officer –calling for a negotiated settlement—or of submitting a [Contract Disputes Act] claim requesting a contracting officer decision…”
How do I make an adjustment to a DoD contract?
DoD contracting personnel shall follow this “general” process if receive a REA, claim, or any other non-routine written request asking for an adjustment to a contract: First, determine if the request meets the definition and standards of a claim in accordance with FAR 52.233-1, regardless of what it’s referred to in the document.
How do I turn an REA into a claim?
Alternately, the REA may be turned into a claim by complying with FAR 52.233-1 (i.e., requesting the contracting officer provide a final decision, and providing the required written certification if over $100,000).
When is a claim better than a Rea?
If the contractor’s plan includes pursuing legal action, a claim would be the more appropriate option than a REA.
What is a request for equitable adjustment?
What is a REA in a contract?
What is a constructive change in a REA?
What is an equitable adjustment claim?
A request for equitable adjustment (REA) is a contractor's proposal to the contracting officer (CO) seeking an equitable increase to the contract price based on a change to the contract requirements.
What is the difference between an REA and a claim?
An REA is considered collaboration between a Government Contracting Officer and a contractor attempting to resolve an issue and reach an amicable resolution; a Claim however, is a formal dispute which may lead to litigation.
What is a claim in FAR?
A claim is defined in FAR § 2.101 as “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.
When can you request an equitable adjustment?
An REA normally occurs when the contractor finds that an unexpected issue has arisen that wasn't anticipated during the development of the original contract. The contractor will submit a proposal to the contracting officer outlining the issue and the justification of the equitable adjustment.
What is the difference between a claim and an action?
Difference Between a Claim & Cause of Action In some cases, there can be many causes of action. These will all factor into your case. If there is no cause of action, this means the facts presented won't support a lawsuit. Your claim is the section of your lawsuit where you state the damages you wish to recover.
How do you write an equitable adjustment request?
Tips For A Successful Request For Equitable AdjustmentDetail What Happened. ... Include Supporting Documents. ... Review The Releases. ... Get The Timing Right. ... Track The Time You Spend. ... Track Legal Fees. ... Get It Certified If Required.
What is a claim under FCA?
The 1986 amendments to the FCA expanded the definition of “claim” to include a broader array of transactions. A claim is any request or demand of money from the government, made directly or made through an intermediary, including a contractor, grantee, or other recipient of federal funds.
What is a general claim?
More Definitions of General Claim General Claim means any claim based upon, arising out of or otherwise related to any material inaccuracy in any representation or warranty or any breach of any covenant or agreement made by any of the parties in or pursuant to this Agreement.
What is a prolongation claim?
So what is a prolongation cost claim? Succinctly, it can be defined as the contractual mechanism for the recovery of additional time related costs that have been properly incurred due to compensable delay(s) to the completion of the works.
What does Rea mean in construction?
A dispute arises between the contractor and the Government. The contractor submits a Request for Equitable Adjustment (“REA”) or a claim. If the contractor submits a REA and the REA is unsuccessful, it submits a claim.
What is the best method to calculate an equitable adjustment when a contractor?
Most equitable adjustments should be determined under the reasonable cost method. This method is the most widely used and preferred by the courts and boards. Reasonable cost is determined by the difference between the contractor's: Cost of original work.
Can a contractor submit a claim by email?
You can file your claim by email, mail or in person, download a claim form, complete and print it, attach applicable documents and mail to the Labor Commissioner's Office.
What does Rea mean in contracting?
Request for Equitable AdjustmentA dispute arises between the contractor and the Government. The contractor submits a Request for Equitable Adjustment (“REA”) or a claim. If the contractor submits a REA and the REA is unsuccessful, it submits a claim.
What does Rea mean in government contracting?
Request for Equitable AdjustmentREAs are typically used in contracting, but can apply to anyone involved with U.S. Government contracts.
What does Rea stand for in law?
Reciprocal Easement AgreementAn agreement that: Provides for the rights and obligations of multiple owners of real property.
What is effective Rea?
Rea Effective Date means the date on which the Lender confirms to the Borrower in writing substantially in the form set out in Schedule 1 that all the conditions precedent in Clause 3.1 and 3.2 (in respect of the Rea Vessel) have been satisfied, which confirmation the Lender shall be under no obligation to give if an ...
Get Request For Equitable Adjustment Template - US Legal Forms
F $ to the Commonwealth, including interest and penalty. 2. I understand that any past-due child support owed to the custodial parent is not subject to equitable adjustment and that even if this request is approved, DOR will continue its enforcement actions to collect any past-due support owed to the custodial parent.
Request for Equitable Adjustment - Scope & Fiscal Question
Thanks for your input! RE: Signing modifications. As I stated, the contractor never submitted any price proposal with any SF30 leading up until now, but he was regularly articulating ot the COR and PCO that he was having trouble keeping up with performance requirements under the accelerated contract scenario and that he was experiencing major cost impacts, although he could not quantify them.
FFP Equitable Adjustment Examples? - The Wifcon Forums and Blogs
No what I am saying is that the parties can change anything in a commercial contract they want by mutual written agreement. Specific to the OP, there is a controversy or at least a perceived one as the contractor has requested a equitable adjustment so I say sit down with them and work it out if it a commercial item contract, no need to find a clause that says yes you can or no you can't.
REQUEST FOR EQUITABLE ADJUSTMENTS | DoD Board of Appeals
» request for equitable adjustments | phone: 607-754-2228
How To Submit A Request For Equitable Adjustment
Government contracts are designed to anticipate and address problems that might arise while contractors are performing their work. However, there are some circumstances when a contractor might find the scope of its work changing in a way that merits additional compensation.
Requests for Equitable Adjustment (REA) - Defense Acquisition University
Lesson 5, Project Risk Mitigation. TLOs-Given a construction scenario, analyze project issues and formulate alternative responses.ELOs: Identify assigned project issues. Analyze project issues in terms of impact to project cost, schedule, and performance.
What is a request for equitable adjustment?
A request for equitable adjustment (REA) is a contractor’s proposal to the contracting officer (CO) seeking an equitable increase to the contract price based on a change to the contract requirements. Typically, when the contractor discovers some unexpected problem that is not contemplated by the contract, the contractor and the CO will negotiate a solution, with the contractor receiving an increase in the contract price in exchange for performing this new work. An REA is the contractor’s first option when the parties cannot come to an agreement, because the Government believes that the additional work is already covered by the contract. In the REA, the contractor lays out in detail why the Government is wrong and why the additional work that the CO is demanding of the contractor is not already covered by the contract. If the CO agrees, the parties enter a new contract modification.
What is a REA in a contract?
When a contractor submits a REA, he is asking the CO to unilaterally adjust the contract price pursuant to his authority under the contract’s “Changes” clause. The exact clause differs depending on the type of contract: 48 C.F.R. § 52.243-1 (Fixed Price), 52.243-2 (Cost Reimbursement), 52.243-3 (Time and Materials). If for whatever reason the contract does not have a changes clause, courts may nevertheless read the changes clause into the contract, pursuant to the Christian Doctrine. These Changes clauses also create obligations for the contractor. For example, if the contractor believes it is entitled to an equitable adjustment and the CO disagrees, the contractor has thirty (30) days to “assert its rights to an adjustment.” Courts and boards, however, do not strictly construe this requirement unless the untimely notice is prejudicial to the government. Watson, Rice & Co., HUD BCA No. 89-4468-C8, 90-1 BCA ¶ 22,499; SOSA Y Barbera Constrs., S.A., ENG BCA No. PCC-57, 89-2 BCA ¶ 21,754; E.W. Jerdon, Inc., ASBCA No. 32957, 88-2 BCA ¶ 20,729. Importantly, while the clause requires that the contractor timely assert his right to an adjustment, this does not mean that he must submit the REA in those 30 days. A contractor is free to submit an REA anytime before contract close out. Even after final closeout, a REA is valid if it was pending at the time or if the government had constructive knowledge of the REA. Mingus Constructors, Inc. v. United States, 812 F.2d 1387 (Fed. Cir. 1987). Contractors, though, must be careful not to wait too long. While there is no time limit for a REA, a certified claim must be submitted to the CO within six years of when the contractor knew or should have known about his grounds for adjustment. Otherwise, the certified claim is untimely and outside the jurisdiction of the Boards and COFC.
What is a constructive change in a REA?
Typically, when a contractor submits a REA, he is seeking a constructive change to the contract. “Constructive changes exist whenever the government, through action or inaction, and whether intentionally or unintentionally, imposes a change to the terms and conditions of contract performance – but fails to do so formally (in writing or otherwise).” Administration of Gov’t Contracts, Cibinic, Nash & Nagle (2006, p. 427). In such cases, the contractor often argues the change entitles it to additional compensation or extension of performance period.
What is a claim in a contract?
Claims involve legal implications and thus can significantly affect the outcome of a contract. When a contractor encounters an “unforeseen or unintended change” in the contract requiring an equitable adjustment, they typically submit a REA that does not meet the definition of a claim pursuant to FAR clause 52.233-1.
How to adjust a contract?
DoD contracting personnel shall follow this “general” process if receive a REA, claim, or any other non-routine written request asking for an adjustment to a contract: 1 First, determine if the request meets the definition and standards of a claim in accordance with FAR 52.233-1, regardless of what it’s referred to in the document. 2 If it meets the standards of a claim, then you must process it as a claim regardless. 3 If it does not meet the standards of a claim found in FAR 52.233-1:#N#If the contractor has called it a “claim” (or there is some other reason to believe the contractor intends it to be a claim under FAR 52.233-1), reply immediately to the contractor pointing out the item (s) preventing it from being considered a claim, and work with them for further resolution, encouraging non-legal recourse if possible.#N#If the contractor has called it by some other name (e.g., “request for adjustment”, “request for consideration”, etc.), it is more than likely a REA and should be treated as such.
Why is it important for contracting officers to recognize the differences between a REA and a claim?
It is crucial for contracting officers to recognize the differences between a REA and a claim so that they can act accordingly. The process and final outcome (s) ultimately impact the entire DoD acquisition program, including personnel from various functional areas.
What to do if a contractor calls it a claim?
If the contractor has called it a “claim” (or there is some other reason to believe the contractor intends it to be a claim under FAR 52.233-1), reply immediately to the contractor pointing out the item (s) preventing it from being considered a claim, and work with them for further resolution, encouraging non-legal recourse if possible.
Why do contractors submit REA?
Because of the stigma the term “claim” often carries (i.e., a document with legal recourse and potential consequences), a common practice by many contractors is to submit a REA first, seeking a satisfactory mutual agreement in equity, unless they know beforehand that such is unlikely.
Do you need a REA before submitting a claim?
There is no requirement to submit a REA before submitting a claim and, although most often the case, the matter does not have to be in dispute before tendering a claim to the U.S. Government. The following table contains most of the similarities and differences between a REA and a claim. Attribute. REA Only.
Who is authorized to certify a claim on behalf of the contractor?
the certifier is authorized to certify the claim on behalf of the contractor.
When can a contractor recover interest on a CDA claim?
The contractor may recover interest on a CDA claim commencing on the date that the claim of over $100,000 was submitted to the contracting officer.
What is recovery of attorney fees?
Recovery of Attorneys’ Fees. Attorneys’ fees incurred in preparing and negotiating an REA are allowable if the REA was not submitted in preparation for filing a claim or initiating an adversarial process.
How long does a contractor have to file a CDA claim?
Extended Time-Period for Submission. A CDA claim must be filed within six years of when the claim accrued. Thus, in many cases, a contractor has a longer period to submit a claim.
Can an agency respond to a REA?
Delays or Refusal to Issue Decisions on REAs. The flexible process of pursuing an REA has its own set of disadvantages. An agency is not required to respond to an REA within a specified period. Indeed, it may not respond to an REA at all.
What is a REA claim?
The reason for this is that a REA is considered a recovery remedy for increased contract performance costs associated with unforeseen Government modifications to the original contract. A Claim is considered a “routine request for payment” and usually involves a voucher or invoice.
What is the difference between a REA and a claim?
Some of the differences between a REA and a Claim include: Consultant fees, attorney fees, profit, and overhead are recoverable under a REA, whereas they are not recoverable under a Claim. An REA is considered collaboration between a Government Contracting Officer and a contractor attempting to resolve an issue and reach an amicable resolution;
How long does it take to file a REA?
A Claim does allow for recovery of interest, provided that a contractor properly submits a certified Claim, and interest begins accruing on the date of certification. An REA can be filed as soon as a modification to a contract arises and must be filed within a year of a modification. However, a Claim must be filed within 30 days of cancellation ...
Can a contractor file a claim?
A contractor may, at any given point, decide to file either a Claim or a REA depending upon its situation and contractual requirements. Assistance by a consultant should be obtained to protect a contractor’s interests properly and thoroughly. The experts at Excell Consulting International, Inc. can assist and evaluate your company’s position and provide valuable and cost-effective protection for your business. With empowerment through partnership, you can rest assured that you will be guided through the Claim and REA processes.
Is a written demand for equitable adjustment a claim under the contract dispute act?
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. (See FAR § 2.101)). A Request for Equitable Adjustment (REA), on the other hand, allows a contractor to recover costs associated ...
Does a REA require a final decision?
An REA does not require a Government Contracting Officer’s final decision but, a Claim does require a Government Contractor’s final decision as a jurisdictional requirement. An REA does not allow recovery of interest. A Claim does allow for recovery of interest, provided that a contractor properly submits a certified Claim, ...
What is a request for equitable adjustment?
A request for equitable adjustment (REA) is a contractor’s proposal to the contracting officer (CO) seeking an equitable increase to the contract price based on a change to the contract requirements. Typically, when the contractor discovers some unexpected problem that is not contemplated by the contract, the contractor and the CO will negotiate a solution, with the contractor receiving an increase in the contract price in exchange for performing this new work. An REA is the contractor’s first option when the parties cannot come to an agreement, because the Government believes that the additional work is already covered by the contract. In the REA, the contractor lays out in detail why the Government is wrong and why the additional work that the CO is demanding of the contractor is not already covered by the contract. If the CO agrees, the parties enter a new contract modification.
What is a REA in a contract?
When a contractor submits a REA, he is asking the CO to unilaterally adjust the contract price pursuant to his authority under the contract’s “Changes” clause. The exact clause differs depending on the type of contract: 48 C.F.R. § 52.243-1 (Fixed Price), 52.243-2 (Cost Reimbursement), 52.243-3 (Time and Materials). If for whatever reason the contract does not have a changes clause, courts may nevertheless read the changes clause into the contract, pursuant to the Christian Doctrine. These Changes clauses also create obligations for the contractor. For example, if the contractor believes it is entitled to an equitable adjustment and the CO disagrees, the contractor has thirty (30) days to “assert its rights to an adjustment.” Courts and boards, however, do not strictly construe this requirement unless the untimely notice is prejudicial to the government. Watson, Rice & Co., HUD BCA No. 89-4468-C8, 90-1 BCA ¶ 22,499; SOSA Y Barbera Constrs., S.A., ENG BCA No. PCC-57, 89-2 BCA ¶ 21,754; E.W. Jerdon, Inc., ASBCA No. 32957, 88-2 BCA ¶ 20,729. Importantly, while the clause requires that the contractor timely assert his right to an adjustment, this does not mean that he must submit the REA in those 30 days. A contractor is free to submit an REA anytime before contract close out. Even after final closeout, a REA is valid if it was pending at the time or if the government had constructive knowledge of the REA. Mingus Constructors, Inc. v. United States, 812 F.2d 1387 (Fed. Cir. 1987). Contractors, though, must be careful not to wait too long. While there is no time limit for a REA, a certified claim must be submitted to the CO within six years of when the contractor knew or should have known about his grounds for adjustment. Otherwise, the certified claim is untimely and outside the jurisdiction of the Boards and COFC.
What is a constructive change in a REA?
Typically, when a contractor submits a REA, he is seeking a constructive change to the contract. “Constructive changes exist whenever the government, through action or inaction, and whether intentionally or unintentionally, imposes a change to the terms and conditions of contract performance – but fails to do so formally (in writing or otherwise).” Administration of Gov’t Contracts, Cibinic, Nash & Nagle (2006, p. 427). In such cases, the contractor often argues the change entitles it to additional compensation or extension of performance period.
