“In Scope” vs. “Out of Scope” Modifications: How GAO Explains The Difference

One of the perennially popular topics on SmallGovCon has been the question of what constitutes a modification to a contract that renders that modification “Out of Scope.” This post will explore a leading GAO decision that came out back in 2017, along with some recent updates on this same question.

An agency may modify a contract without having to deal with restrictions in the Competition in Contracting Act (CICA), so long as the the modification is deemed “in scope.” An “out of scope” modification, on the other hand, is improper–and may be protested at GAO.

In a leading bid protest decision, GAO denied a protest challenging an agency’s modification of a contract where the modification was within scope and of a nature that competitors could have reasonably anticipated at the time of award. In its decision, GAO explained the difference between an in scope and out of scope modification, including the factors GAO will use to determine whether the modification is permissible.

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GAO Sustains Protest Where Contract Modification Fell Outside the Contract’s Scope

GAO protests typically address issues that occur before contract award. For example, GAO will review a solicitation’s terms. It will also review an agency’s evaluation of proposals submitted in connection with a solicitation.

But as a general rule, GAO won’t insert itself into disputes arising after award, which fall under the contract administration umbrella. But there is an exception–and an important one . . . one that all federal contractors should be aware of.

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“In Scope” vs. “Out of Scope” Modifications: GAO Explains The Difference

An agency may modify a contract without running afoul of the Competition in Contracting Act, so long as the the modification is deemed “in scope.” An “out of scope” modification, on the other hand, is improper–and may be protested at GAO.

In a recent bid protest decision, GAO denied a protest challenging an agency’s modification of a contract where the modification was within scope and of a nature that competitors could have reasonably anticipated at the time of award. In its decision, GAO explained the difference between an in scope and out of scope modification, including the factors GAO will use to determine whether the modification is permissible.

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