Just Want To Double Check To See If I Determined The Right Answer If Not What Is

  1. Just want to double check to see if I determined the right answer, if not what is the right answer so that I can determine what I did wrong.


You receive a requirement from General Ashley’s office to purchase 557 Model X noncommercial guns. The purchase request states that $509,000 in funding has been reserved for this acquisition. Unfortunately, you are only able to get the contractor to agree to deliver 509 guns for the amount of funds that you have available. As such, you award a fixed-price incentive contract for 509 noncommercial guns with a target price of $509,000.

During performance of the contract, the contractor achieves significant cost efficiencies and has under run the target cost. As a result, there will be sufficient funds available to purchase the originally requested quantity of 557 guns. General Ashley requests that you issue a change order to increase the contract quantity by 48, which is slightly less than a 10% increase.   

Can you comply with General Ashley’s request? Why or why not?

Reference: FAR 52.243-1(a)


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