Getting What You Deserve: Navigating the World of Requests for Equitable Adjustments (REA)
- Ricky Brown
- Jun 24, 2023
- 4 min read
Requests for Equitable Adjustments (REA) are common in government contracting, where changes in the scope of work or other unforeseen events can impact the cost and schedule of a project. An REA is a formal request made by a Contractor to the Contracting Officer for additional compensation or time due to a change in the scope of work or unforeseen circumstances.
In this blog, we will explore what an REA is, when it is appropriate to submit one, the types of supporting documents needed, and the process for submitting an REA.
What is an REA?
An REA is a request made by a Contractor to the Contracting Officer for additional compensation or time due to a change in the scope of work, change order, or unforeseen circumstances. It is a formal request that follows a set of guidelines and procedures established by the Federal Acquisition Regulations (FAR). Therefore, all REAs are required to be submitted to the Contracting Officer in accordance with a FAR authority (clause) listed in the contract.
When is it appropriate to submit an REA?
An REA is appropriate when there is a change in the scope of work, an official change order is submitted by the Contracting Officer, or unforeseen circumstances that impact the cost or schedule of a project. This can include changes in the specifications, changes in the site conditions, changes in the labor or material costs, and delays caused by the Government or acts of God. However, be careful because this also depends on the clauses in the contract along with contract type as well (firm fixed price versus cost reimbursement). Understand risk and who bares the burden for each type. On firm fixed price type contracts, the Contractor bares the risk and if the market changes, the Contractor assumes the risk and is not entitled to an REA.
Types of supporting documents needed for an REA
When submitting an REA, it is important to provide the Contracting Officer with all the necessary documentation to support the request because the burden of proof is on the Contractor. The types of supporting documents needed can vary depending on the nature of the change or unforeseen circumstance. However, some common types of supporting documents include:
Original contract and modifications
Timecards and payroll records
Invoices and receipts for materials and equipment
Change orders and work orders
Correspondence with the Contracting Officer and other government officials
Photos and videos of site conditions
Impact analysis and cost estimates
Process for submitting an REA
The process for submitting an REA can vary depending on the contract and agency involved.
However, the following steps are generally followed:
Notify the Contracting Officer of the change or unforeseen circumstance and the potential impact on the cost or schedule of the project.
Prepare the supporting documentation for the REA.
Submit the REA to the Contracting Officer in writing with appropriate FAR authority contract clause) along with supporting documents.
The Contracting Officer will review the REA and may request additional documentation or clarification.
The Contracting Officer will make a decision on the REA and notify the Contractor in writing.
If the REA is approved, the Contractor will be compensated for the additional costs or time in a contract modification.
Requests for Equitable Adjustments are an important part of government contracting. They allow Contractors to request additional compensation or time due to changes in the scope of work or unforeseen circumstances. When submitting an REA, it is important to provide the Contracting Officer with all the necessary documentation to support the request and to use the appropriate authority as agreed in the contract terms and conditions. The process for submitting an REA can vary depending on the contract and agency involved, but generally involves notifying the Contracting Officer, preparing supporting documentation, submitting the REA, and waiting for a decision from the Contracting Officer.
If you are a government Contractor and have experienced changes in the scope of work or unforeseen circumstances that have impacted the cost or schedule of your project, it may be appropriate to submit a Request for Equitable Adjustment (REA). By submitting an REA, you can request additional compensation or time to help mitigate the impact of these changes on your project.
If you believe you may need to submit an REA, it is important to start preparing the necessary documentation and to familiarize yourself with the process for submitting an REA under your specific contract and agency. Don't hesitate to reach out to your Contracting Officer, legal counsel, or business mentor for guidance and support.
Submitting an REA can be a complex and time-consuming process, but it can also be critical to ensuring that you receive fair compensation for the work you have performed. So if you believe you may be eligible for an REA, take action and start gathering the necessary documentation and information to support your request. Your hard work and attention to detail could make a significant difference in the success of your project and your business. It you want to learn more or would like to know if you are able to submit an REA then contact us at the link below to schedule a 1 on 1 call. Another great resource for winning Government contracting is "The Ultimate Guide to Winning Government Contract". This quick read will help you to stay competitive in this fast moving and evolving landscape.
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