CONTRACT MODIFICATIONS AND OTHER NEGOTIATED PROCUREMENT

FAR Part 36 requires an independently prepared Government estimate for modifications in excess of $100,000. Normally, estimates are not required for changes less than $100,000, but are required by the Contracting Officer for unilateral modifications. For contract modifications, the amount refers to the sum of the absolute value of increases and decreases. For example, a modification containing an increase of $60,000 and decrease of $45,000 has an absolute value of $105,000, and a Government estimate would be required. Technical Data about this field explained in quantity surveyor courses in Rawalpindi.

DIRECTIVES:

Those responsible for the preparation of cost estimates for contract modifications should be thoroughly familiar with the requirements set forth in FAR, DFARS, their supplements, the appropriate ER, and per guidance of the cognizant design agency. The acronyms for the Federal Acquisition Regulations are listed in the Glossary. Some more details of quantity surveyor courses in rawalpindi are as under.

NEGOTIATED PROCUREMENT AND CONTRACT MODIFICATIONS:

The cost engineer has several important tasks to perform prior to actually preparing the estimate. The cost engineer will prepare a technical analysis of the proposed procurement action or contract modification. Some of the major activities to be considered in preparing the technical and cost analysis in addition to labor, material, equipment and construction techniques include:

Review of Available Documents:

Reviewing available documents and becoming thoroughly familiar with the scope and requirements of the changed work. This will perhaps entail a comparison, analysis, and discussions with the designer or field office to ensure common understanding of the scope of work. The cost engineer must assure that the proposed modification or procurement action is clearly defined with regard to specified work requirements, proposed measurement, and payment.

Determine Status of Construction:

Determining the status of construction and the effect the changed work will impact the construction schedule. This will require obtaining progress reports, schedules, and discussion with the field office responsible for the construction. For major or complex changes, a visit to the construction site is required.

Contractor’s Existing Methods, Capabilities and Rates:

The cost engineer shall be fully aware of the contractor's existing methods, capabilities, and rates of accomplishment. The estimate should not arbitrarily include methods and capabilities different from the method in which the contractor is performing the ongoing work. The cost engineer should base the change on existing contractor operations for similar work. When work is anticipated to be subcontracted, the estimate should be prepared to include subcontractor costs.

Current Labor and Equipment Rates:

The cost engineer shall obtain current labor and equipment rates for the work force and work actually ongoing. These rates are usually available from labor reports or from the contractor upon request. Suppliers for materials should be contacted for quotes. The price, which the contractor is expected to pay, should be the basis for estimating material costs. A list of equipment on the job should be obtained and equipment rates determined in accordance with EP 1110-1-8, Construction Equipment Ownership and Operating Expense Schedule.

Teaming with Negotiator:

As a team member working with the negotiator, coordinate with the contractor to agree on scope of work and format prior to preparation of the Government estimate and submittal of the contractors proposal. This discussion will assist both the Government and contractor in reaching a mutually accepted scope of work to eliminate unnecessary effort for both parties during negotiations. TSK is the best institute in Rawalpindi Islamabad who wants to join quantity surveyor courses in Rawalpindi.

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