When a government contractor identifies a change to a contract that will result in or has resulted in increased costs, the contractor may decide to submit a Request for Equitable Adjustment (“REA”) in order to recover those costs. The preparation of the REA requires the contractor to conduct investigations and cost determinations with respect to changed work, associated delay and disruption impacts, and related profit/fee considerations. The REA pricing can be based on the discrete cost impact of specific, individual changes, as well as on delay and disruption involving issues such as unabsorbed and extended overhead, idle labor and equipment, and loss of efficiency.
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