MAIL BAG: CONTRACTORS MUST READ MODS TO ENSURE THAT THERE ARE NO COMPLIANCE SURPRISES

Student reader F. Liebowitz of E. Dickinson College writes, “My company’s GSA contract was recently modified to add new products, yet the document we received back from GSA said that our Basis of Award customer was “all customers”, not what we’d originally negotiated.  GSA knows what our Basis of Award is, right?  Should I got back and fix the mod.?”  Absolutely, F.  You must move immediately to clarify in writing to your CO that your Basis of Award is not “all customers” and cite what the original contract term is.  CO’s inadvertently change contract terms all the time in modifications, whether through inattention to detail, “modification by copier”, or some other error.  It cannot be said strongly enough:  Failure to change this key term back to the original, requires substantially greater compliance from your company and exposes it to substantial risk without a prompt, written, correction.  This is just one example of why it is a best practice to have two sets of eyes review all contracts and mods.  Contractors should not assume that a modification will leave all other terms in place.  Read the mod.  Read the contract.  Make sure that you are 100% sure of your company’s compliance responsibilities.  Otherwise, you could end up with an explosion – with or without a kiln.