FAR 43.101—Definitions.
Plain-English Summary
FAR 43.101 defines two core concepts used throughout the contract modification rules in FAR Part 43: what counts as an administrative change and how to determine the effective date of different kinds of contract modifications. It explains that an administrative change is a unilateral written change that does not alter the parties’ substantive rights, with examples such as changing the paying office or appropriation data. It also sets the effective-date rules for solicitation amendments, change orders, administrative changes, supplemental agreements, confirming notices of termination for convenience, modifications converting a default termination to a convenience termination, and modifications confirming a prior letter determination of the amount due in a convenience-termination settlement. In practice, these definitions matter because the effective date controls when the change takes legal effect, which can affect performance obligations, payment processing, termination settlement timing, and the record of what the Government and contractor agreed to or directed. The section is designed to reduce disputes by making clear when a modification is merely administrative, when it is unilateral versus bilateral, and which date governs for each type of modification or termination-related action.
Key Rules
Administrative changes are limited
An administrative change is a unilateral written contract change that does not affect the substantive rights of either party. Typical examples include changes to the paying office or appropriation data, which are clerical or administrative rather than contractual in substance.
Issue date controls unilateral changes
For a solicitation amendment, change order, or administrative change, the effective date is the issue date of the document. This means the change takes effect when the Government issues it, not when the contractor receives it or later acknowledges it.
Bilateral modifications use agreed date
For a supplemental agreement, the effective date is whatever date the contracting parties agree to. Because a supplemental agreement is a bilateral modification, the parties can set the date that best reflects their intent and the transaction.
Confirming termination notices relate back
If a modification is issued as a confirming notice of termination for convenience, its effective date is the same as the effective date of the initial termination notice. The confirming notice does not create a new termination date; it confirms the original action.
Default-to-convenience conversion keeps original date
When a modification converts a termination for default to a termination for convenience, the effective date remains the same as the effective date of the original default termination. The conversion changes the legal basis for the termination, but not the date the termination took effect.
Settlement confirmations use prior date
A modification confirming the termination contracting officer’s prior letter determination of the amount due in settlement of a convenience termination takes the same effective date as that prior letter determination. This preserves the timing of the settlement decision and avoids uncertainty about when the amount due was established.
Responsibilities
Contracting Officer
Identify whether a proposed change is administrative, unilateral, or bilateral; issue administrative changes, change orders, and confirming notices with the correct effective date; and ensure termination-related modifications accurately reflect the date of the original notice or prior determination.
Contractor
Review modifications and notices for the correct effective date, recognize when a unilateral administrative change does not alter substantive rights, and adjust performance, billing, or settlement actions based on the governing date.
Agency
Maintain accurate contract records, paying office and appropriation information, and termination documentation so that issued changes and confirming notices are consistent with the underlying action and its effective date.
Practical Implications
The effective date can control when obligations change, so getting the date wrong can create disputes over performance, payment, or termination costs.
Administrative changes should stay purely clerical; if a change affects price, scope, delivery, or other substantive rights, it is not an administrative change and must be handled under the proper modification authority.
For unilateral actions, the issue date matters, so contractors should track the date on the document itself rather than waiting for later administrative processing.
Termination-related confirmations do not reset the clock; they usually relate back to the original termination or settlement date, which is important for claims, settlement calculations, and appeal timing.
Contracting officers should document the basis for the modification clearly to avoid confusion between a confirming notice, a conversion from default to convenience, and a new substantive modification.
Official Regulatory Text
As used in this part— Administrative change means a unilateral (see 43.103 (b)) contract change, in writing, that does not affect the substantive rights of the parties ( e.g. , a change in the paying office or the appropriation data). Effective date - (1) For a solicitation amendment, change order, or administrative change, the effective date shall be the issue date of the amendment, change order, or administrative change. (2) For a supplemental agreement, the effective date shall be the date agreed upon by the contracting parties. (3) For a modification issued as a confirming notice of termination for the convenience of the Government, the effective date of the confirming notice shall be the same as the effective date of the initial notice. (4) For a modification converting a termination for default to a termination for the convenience of the Government, the effective date shall be the same as the effective date of the termination for default. (5) For a modification confirming the termination contracting officer’s previous letter determination of the amount due in settlement of a contract termination for convenience, the effective date shall be the same as the effective date of the previous letter determination.