Everything You Need to Know About Requests for Equitable Adjustments (REA's)

Everything You Need to Know About Requests for Equitable Adjustments (REA's)

Contractors: Has the government delayed your project? Did the government suspend work on your job site? If the government delays your project, suspends your work or there have been other unforeseen circumstances in your project, you are entitled to submit an REA.

What are Requests for Equitable Adjustments (REAs)?  

A Request for Equitable Adjustment (REA) is a Reimbursable Expense Agreement that helps cover the extra costs that are associated with the delays. If a contractor runs into unforeseen problems with their project it is in their best interest to file an REA if they were unable to negotiate with the contracting officer to increase the contract price to account for the new increase in price and time the contractor is seeking. There are four major types of REAs; default, differing site conditions, unforeseen or unintended changes, or suspension of work. To learn more about each one of them, read our blog post entitled “The Top Four Types of Request for Equitable Adjustments (REAs).”

What is the REA submittal process?

Requests for Equitable Adjustments (REAs) are claims filed by contractors who can factually back up a lack proper funding in the original contract for the adjusted cost of work that is being provided.  In order to file an REA, you will need to include several pieces of information:

  1. Letterhead with the date, serial number, and contact information
  2. The title of the REA and the contract it pertains to
  3. The name and address of the contracting officer
  4. The reason for the REA, including the money and time you are seeking
  5. The clause number and title you are seeking relief under
  6. A story explaining the REA in detail, along with supporting documentation
  7. REA certification, citing the FAR (Federal Acquisition Regulation) part for the number of days for resolution
  8. The signature of a company representative with authority to sign REAs.

Providing this information will give your REA the best chance of being approved by the contracting officer.

As a contractor, what should you be doing?

Have you been submitting Requests for Information (RFIs)? Have you been corresponding via serial letter with the contracting officer about the changes in your project?

If you’re considering submitting an REA, it’s important to keep track of all documents we use for REAs. It is indispensable to show that the contractor has been submitting RFIs for the project while ensuring all correspondence with the contracting officer is preserved. This helps the government understand the  project's complete timeline, including the issues with the project, along with the efforts to combat those issues.

How can GovGig help?

Under FAR 31.205-33: Professional and consultant costs; hiring a professional to help you obtain information, give advice, and training, and working with government officials are allowable costs. The costs of the professional and consultant services fall under your contract with the government. With FAR 31.205-33, Govgig will work with you to develop your REAs and correspond with the government on your behalf to adjust your contract price.

Sign up on GovGig today!