Responding to the contractor's Change Order Proposal

Review and consider the ACO's response to the contractor's Proposal Letter to complete this scenario:

In response to the contractor's Cost Proposal letter asserting its right to contract price and schedule adjustments, the ACO responds to the contractor via e-mail. When you have finished reading the ACO's response, answer the questions that follow.

Date: 10 Days After Receipt of Contractor's Cost Proposal

Ms. A. B. Roads VP Contracts and Finance Your Company 16000 My Way Onetown, USA 40000-0000

Re: Contract No. "Withheld", Modification A00001

Dear Ms. Roads

I am in receipt of your Change Order Cost Proposal letter asserting your firm's right to contract price and schedule adjustments pursuant to the "Changes" clause resulting from the subject contract modification.

After reviewing your summary of facts and comparing these with the current DCMA cost analysis position, we find that your proposed price increases of $368,222 to CLIN 0001 and of $378,971 to Option CLIN 1001 are denied. At this time, the Government has no facts, nor have you presented any facts or data in your current proposal submittal to support your assertion that any higher-level quality requirements will be required on ALL task orders. The applicable contract reference and standards invoked will vary within individual tasks and will be called out in each task order. At the time that each task order is issued, you will have the opportunity to prepare a cost proposal for each task order that reflects the level of quality requirements that will be required. To adjust the estimated cost at this time based on speculation would be improper.

However, a modification adjusting the timeframe allowed for submitting and obtaining approval of the required policies is forthcoming.

If you have any questions, please contact me.

Sincerely,

CO Joe

Administrative Contracting Officer DCMA Anytown

Does FAR 52.243-2, Alt II, cited by the contractor in its written proposal asserting its right to contract price and schedule adjustments (Part 1), allow for the relief that the contracting officer granted directly above (Part 2)? Should the Government have granted the request to extend the time for the delivery of revised deliverable documentation? Why or why not? (Cite the language in the clause that supports your response)