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How to Submit a Request for Equitable Adjustment (REA)

In government contracting, unexpected changes can lead to financial and operational challenges. A Request for Equitable Adjustment (REA) becomes a critical solution in such scenarios. In this comprehensive guide, we'll break down the step-by-step process of submitting an REA and how Federal Edge Consulting can be your trusted partner in this complex procedure.

What is a Request for Equitable Adjustment (REA)?

An REA is a formal request by a contractor to seek compensation or modification of contract terms due to unforeseen changes. It ensures fairness and adherence to applicable laws and regulations in federal contracting.

Steps to Submit an REA

1. Identify the Need for an REA

Determine if unexpected issues warrant an REA, assessing whether the request meets the definition and standards of an REA or claim according to FAR 52.233-1.

2. Review Contract and Relevant Clauses

Understand the original contract, including specific “Change Clauses” (e.g., Fixed Price: 48 C.F.R. 52.243-1, Cost Reimbursement: 48 C.F.R. 52.243-2).

3. Prepare the Proposal

Outline the issue, justification, certified cost or pricing data, and estimated costs.

4. Include Certification (if required)

For requests exceeding the simplified acquisition threshold, include a certificate executed by an authorized individual as per DFARS 252.243-7002.

5. Provide Supporting Documentation

Offer comprehensive documentation such as cost breakdowns, schedules, and relevant correspondence.

6. Submit the REA

Send the REA to the contracting officer, following specific procedures, timelines, and documentation requirements.

7. Communicate and Cooperate in the Review Process

Maintain communication, participate in the review, and provide additional information as required.

8. Negotiate if Necessary

Engage in negotiations with the contracting officer if the REA is deemed valid.

9. Ensure Compliance and Keep Accurate Records

Adhere to all applicable laws, regulations, and procedures, and maintain a well-organized file of all documents.

10. Act in Good Faith

Act with diligence, fairness, and a focus on equitable and reasonable outcomes throughout the process.

11. Seek Professional Assistance

Consider enlisting the help of technical, legal, and financial experts within your organization as needed.

Let us assist you in submitting and managing your REAs. Our experience as warranted Contracting Officers provides a level of expertise that can help your organization achieve its goals and maintain profitability. With Federal Edge Consulting, you can make your REA process smooth and successful.

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