Attachment 10-NIH ORF Form 1a and 1b - NIH Change Order Summary for Prime_Subcontractors.xls

ORF FM 1a Prime National Institutes of Health CONSTRUCTION CHANGE ORDER COST SUMMARY

(PRIME CONTRACTOR)

(C)

ORF FM 1b Sub-Contractor(s) National Institutes of Health CONSTRUCTION CHANGE ORDER COST SUMMARY

(SUBCONTRACTOR)

(C)

MACC IDIQ Terms & Conditions

G.16 CONTRACT CHANGES

G.16.1 This information supplements the clauses entitled "Changes" in FAR 52.243-4, 52.243-5 and "Differing Site Conditions"in FAR 52.236-2 as follows:

G.16.1.1 When requested by the Contracting Officer, the contractor shall submit proposals for changes in work to Contracting Officer, who will in-turn submit the proposal to the COR and/or resident engineer. Proposals, to be submitted as expeditiously as possible but within 30 calendar days after receipt of request, shall be in legible form, original and two copies, with an itemized breakdown that will include material, quantities, unit prices, labor costs (separated into trades), construction equipment, etc. (Labor costs are to be identified with specific material placed or operation performed.) The contractor must obtain and furnish with a proposal an itemized breakdown as described above, signed by each subcontractor participating in the change regardless of tier. When certified cost or pricing data are required under FAR Subpart 15.403 , the cost or pricing data shall be submitted in accordance with FAR 15.403-5 .

G.16.1.2 When the necessity to proceed with a change does not allow sufficient time to negotiate a modification or because of failure to reach an agreement, the contracting officer may issue a change order instructing the contractor to proceed on the basis of a tentative price based on the best estimate available at the time, with the firm price to be determined later. Furthermore, when the change order is issued, the contractor shall submit a proposal, which includes the information required by paragraph (a)(1), for cost of changes in work within 30 calendar days.

G.16.1.3 The contracting officer will consider issuing a settlement by determination to the contract if the contractor's proposal required by paragraphs (a)(1) or (a)(2) of this clause is not received within 30 calendar days or if agreement has not been reached.

G.16.1.4 Bond premium adjustment shall be included in submitted change order proposals. Within 10 days of incorporation of the change by modification the contractor shall provide bonding riders equal to amount of the change.

G.16.1.5 Allowances not to exceed 10 percent each for overhead and profit for the party performing the work will be based on the value of labor, material, and use of construction equipment required to accomplish the change. As the value of the change increases, a declining scale will be used in negotiating the percentage of overhead and profit. Allowable percentages on changes will not exceed the following:10 percent overhead and 10 percent profit on the first $20,000; 7-1/2 percent overhead and 7-1/2 percent profit on the next $30,000; 5 percent overhead and 5 percent profit on balance over $50,000. Profit shall be computed by multiplying the profit percentage by the sum of the direct costs and computed overhead costs.

G.16.1.6 The prime contractor's or upper-tier subcontractor's fee on work performed by lower-tier subcontractors will be based on the net increased cost to the prime contractor or upper-tier subcontractor, as applicable. Allowable fee on changes will not exceed the following:10 percent fee on the first $20,000; 7-1/2 percent fee on the next $30,000; and 5 percent fee on balance over $50,000.

G.16.1.7 Not more than three percentages, none of which exceed the percentages shown above, will be allowed regardless of the number of tiers of subcontractors.

G.16.1.8 Where the contractor's or subcontractor's portion of a change involves credit items, such items must be deducted prior to adding overhead and profit for the party performing the work. The contractor's fee is limited to the net increase to contractor of subcontractors' portions cost computed in accordance herewith.

G.16.1.9 Where a change involves credit items only, a proper measure of the amount of downward adjustment in the contract price is the reasonable cost to the contractor if he/she had performed the deleted work. A reasonable allowance for overhead and profit are properly includable as part of the downward adjustment for a deductive change. The amount of such allowance is subject to negotiation.

G.16.1.10 Cost of Federal Old Age Benefit (Social Security) tax and of Worker's Compensation and Public Liability insurance appertaining to changes are allowable. While no percentage will be allowed thereon for overhead or profit, prime contractor's fee will be allowed on such items in subcontractors' proposals.

G.16.1.11 Overhead and contractor's fee percentages shall be considered to include insurance other than mentioned herein, field and office supervisors and assistants, security police, use of small tools, incidental job burdens, and general home office expenses and no separate allowance will be made therefore. Assistants to office supervisors include all clerical, stenographic and general office help. Incidental job burdens include, but are not necessarily limited to, office equipment and supplies, temporary toilets, telephone and conformance to OSHA requirements. Items such as, but not necessarily limited to, review and coordination, estimating and expediting relative to contract changes are associated with field and office supervision and are considered to be included in the contractor's overhead and/or fee percentage.

G.16.1.12 ORF Form 1 (attachment 11) will be utilized by all MACC Contractors and be supplemented by supporting documentation of the cost/price elements that make up a change proposal.