Which term describes a formal request to modify a contract, potentially leading to additional costs?

Which term describes a formal request to modify a contract, potentially leading to additional costs?

• A. Unauthorized Commitment
• B. Change Order
• C. Reprogramming Action
• D. IOT&E

Answer: (B)

A change order is the formal request to modify a contract, and it may involve changes to the scope, schedule, or price, often leading to additional costs. It is a written document that must be approved by the appropriate authority, ensuring the modification is authorized and properly tracked. This formal process keeps both parties aligned on new terms and helps prevent disputes. Unauthorized commitment describes actions taken without proper authority to bind the government and isn’t a formal contract modification. Reprogramming action deals with shifting funds within a program, not changing a contract. IOT&E refers to Initial Operational Test and Evaluation, a testing phase, not contract modification.

A change order is the formal request to modify a contract, and it may involve changes to the scope, schedule, or price, often leading to additional costs. It is a written document that must be approved by the appropriate authority, ensuring the modification is authorized and properly tracked. This formal process keeps both parties aligned on new terms and helps prevent disputes. Unauthorized commitment describes actions taken without proper authority to bind the government and isn’t a formal contract modification. Reprogramming action deals with shifting funds within a program, not changing a contract. IOT&E refers to Initial Operational Test and Evaluation, a testing phase, not contract modification.