Request for Equitable Adjustment (REA)

REQUEST FOR EQUITABLE ADJUSTMENT (REA)

CONTRACTOR REQUEST FOR EQUITABLE ADJUSTMENT
Pursuant to FAR 52.243 and Contract Changes Clause

CONTRACTOR INFORMATION

Contractor Name: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

DUNS/UEI Number: [________________________________]

CAGE Code: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Point of Contact: [________________________________]

Title: [________________________________]

GOVERNMENT INFORMATION

Contracting Officer: [________________________________]

Agency: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Email: [________________________________]

Contracting Officer's Representative (COR): [________________________________]

CONTRACT INFORMATION

Contract Number: [________________________________]

Task/Delivery Order Number: [________________________________]

Contract Type: ☐ FFP ☐ CPFF ☐ CPIF ☐ T&M ☐ Other: [________________________________]

Award Date: [__/__/____]

Period of Performance: [__/__/____] through [__/__/____]

Current Contract Value: $[________________________________]

Program/Project Name: [________________________________]

I. INTRODUCTION

Date of REA Submission: [__/__/____]

REA Reference Number: [________________________________]

Total Equitable Adjustment Requested:

This Request for Equitable Adjustment (REA) is submitted pursuant to the Changes clause(s) incorporated in the above-referenced contract and seeks an equitable adjustment to the contract price and/or schedule as a result of:

☐ Government-directed change(s)
☐ Constructive change(s)
☐ Differing site conditions
☐ Defective specifications
☐ Government-caused delay
☐ Suspension of work
☐ Stop-work order
☐ Government-furnished property issues
☐ Other: [________________________________]

II. APPLICABLE CONTRACT CLAUSES

This REA is submitted under the following contract clause(s):

☐ FAR 52.243-1 - Changes - Fixed Price
☐ FAR 52.243-2 - Changes - Cost Reimbursement
☐ FAR 52.243-3 - Changes - Time and Materials or Labor Hours
☐ FAR 52.243-4 - Changes
☐ FAR 52.243-5 - Changes and Changed Conditions
☐ FAR 52.242-14 - Suspension of Work
☐ FAR 52.242-15 - Stop-Work Order
☐ FAR 52.242-17 - Government Delay of Work
☐ FAR 52.236-2 - Differing Site Conditions
☐ FAR 52.245-1 - Government Property
☐ Other: [________________________________]

III. EXECUTIVE SUMMARY

A. Brief Description of Changed Work

[________________________________]
[________________________________]
[________________________________]
[________________________________]

B. Summary of Events Leading to REA

[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Financial Impact Summary

IV. STATEMENT OF ENTITLEMENT

A. Detailed Statement of Facts

1. Original Contract Requirements

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

2. Government Direction/Action

Date(s) of Government Action: [________________________________]

Description of Government Direction:
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Reference Documents (letters, emails, meeting minutes, etc.):
[________________________________]
[________________________________]

3. Changed Work Required

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

4. Difference Between Original and Changed Requirements

[________________________________]
[________________________________]
[________________________________]
[________________________________]

B. Legal Basis for Entitlement

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Causation

The additional costs and schedule impacts claimed herein were directly caused by the Government's actions/directions described above because:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

V. QUANTUM (COST IMPACT)

A. Cost Summary

SUMMARY OF COSTS

B. Direct Labor Detail

C. Labor Overhead

Base: $[________________________________]

Rate: [____]%

Overhead Amount: $[________________________________]

D. Direct Materials

E. Material Handling (if applicable)

Base: $[________________________________]

Rate: [____]%

Material Handling Amount: $[________________________________]

F. Subcontractor Costs

G. Other Direct Costs

H. General & Administrative (G&A)

Base: $[________________________________]

Rate: [____]%

G&A Amount: $[________________________________]

I. Profit/Fee Calculation

☐ Weighted Guidelines Method
☐ Other: [________________________________]

Base for Profit: $[________________________________]

Profit Rate: [____]%

Profit Amount: $[________________________________]

VI. SCHEDULE IMPACT (IF APPLICABLE)

☐ No schedule adjustment requested
☐ Schedule adjustment requested as follows:

A. Critical Path Analysis

Original Contract Completion Date: [__/__/____]

Revised Completion Date Requested: [__/__/____]

Total Extension Requested: [____] calendar days

B. Schedule Impact Narrative

[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Impacted Activities

VII. CERTIFICATION (REQUIRED FOR REAs EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD)

CONTRACTOR CERTIFICATION

In accordance with 10 U.S.C. § 3862 and DFARS 252.243-7002, I certify that:

1. This request is made in good faith, and the supporting data are accurate and complete to the best of my knowledge and belief;

2. The amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable;

3. The request includes only costs for performing the changed work, and does not include any costs that already have been reimbursed or that have been separately claimed;

4. All indirect costs included in the request are properly allocable to the change in accordance with applicable acquisition regulations;

5. Certified cost or pricing data, as defined in FAR 2.101, are:
   ☐ Attached hereto
   ☐ Not required because: [________________________________]

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

VIII. CONTRACTOR STATEMENT (FOR REAs BELOW THE SIMPLIFIED ACQUISITION THRESHOLD)

The Contractor certifies that the information contained in this REA is accurate and complete to the best of its knowledge and belief.

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

IX. SUPPORTING DOCUMENTATION

The following documentation is attached in support of this REA:

☐ Tab A: Contract and Relevant Modifications
☐ Tab B: Government Direction Documentation (letters, emails, RFPs, etc.)
☐ Tab C: Meeting Minutes and Correspondence
☐ Tab D: Labor Time Records and Distribution Reports
☐ Tab E: Material Invoices and Purchase Orders
☐ Tab F: Subcontractor Quotes/Invoices
☐ Tab G: Indirect Rate Calculations and Support
☐ Tab H: Schedule Analysis (CPM, As-Planned vs. As-Built)
☐ Tab I: Technical Documentation and Drawings
☐ Tab J: Photographs
☐ Tab K: Expert Reports (if any)
☐ Tab L: [________________________________]

X. NEGOTIATION REQUEST

The Contractor requests the opportunity to negotiate this REA with the Contracting Officer to reach a fair and reasonable settlement. The Contractor's point of contact for negotiation purposes is:

Name: [________________________________]

Title: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

XI. RESERVATION OF RIGHTS

This REA represents the Contractor's current understanding of the impact of the changed work. The Contractor reserves the right to:

1. Submit additional information as it becomes available;

2. Revise cost and schedule estimates if additional impacts are identified;

3. Convert this REA to a Contract Disputes Act claim if negotiations are unsuccessful or if a timely response is not received.

IMPORTANT NOTES

REA vs. CDA Claim

An REA is a request for negotiated settlement, while a CDA claim requests a Contracting Officer's final decision. Key differences include:

Timing Considerations

• There is no statute of limitations for submitting an REA
• REAs should be submitted as soon as practicable after the change
• Contractor may convert REA to CDA claim at any time
• CDA claims must be submitted within 6 years of accrual

Cost Recovery for REA Preparation

Under FAR 31.205-33, costs of preparing and negotiating an REA may be allowable as a contract administration cost, unlike CDA claim preparation costs which are generally unallowable.

SOURCES AND REFERENCES

• FAR 52.243 - Changes Clauses
• FAR 52.242-14 - Suspension of Work
• FAR 52.242-17 - Government Delay of Work
• DFARS 252.243-7002 - Requests for Equitable Adjustment
• 10 U.S.C. § 3862 - Requests for Equitable Adjustment
• FAR 31.205-33 - Professional and Consultant Service Costs