Alaska Bulletin AK300-8-3

Date:                      November 26, 2007

Subject:                 LTP - Clarify Policy Related to Modifications of Conservation Contracts

Purpose:                To advise field offices of signature requirements when making modifications to contracts

Expiration Date:    September 30, 2008

Background:    All District Conservationists should be well versed in contract modification policy found in CPM part 512, subpart F. This bulletin is intended to clarify national policy for NRCS Alaska employees regarding several key aspects of Conservation Program Contract Administration.

Participant Signatures:  CPM part 512, Conservation Program Contracting - 512.50(c) and 512.50(d) explains which modifications require signatures from participants. When a modification is processed which requires participant signature, this signature will always be obtained before the modification is submitted for approval. NRCS approval in Protracts finalizes a modification, which may entail obligation or practice changes. This final approval cannot be processed until it is clear the landowner has agreed and committed to the changes proposed.

Certain contract changes do not require a signature. Minor contract changes that do not require a signature include:

• Scheduling changes within the original length of the contract.
• Change in the planned amount of a component when the payment amount per contract item is not increased more than $1,000.
• Add or delete a component from a planned practice.
• Change in contract servicing office, crop type, acres, or livestock type.
• Add a vendor code to a participant.

Design quantities differ from those in the Conservation Program Contract: Situations arise when a final practice plan and design is completed which has significant differences in practice or component quantities from those that are in the conservation program contract. In those instances, clear communication with the program participant is critical. A meeting will be held with the landowner, reviewing the contract, the final design, and the proposed modification. A contract modification shall be completed and approved before the landowner is given authorization to begin practice implementation. Increases in contract obligation, resulting from this type of modification will be processed in accordance with all program rules and policy, and will depend upon the availability of funds in the appropriate cost overrun account.

Cost Over-run During Practice Installation: Situations may also occur when there is a valid basis for a cost-overrun during installation of the practice, because of variations in on-site conditions during construction. These will fall into two general categories:

• When the cost over-runs are $1,000 or less per practice or component, there is no need to process a modification. These situations can be addressed during the payment process.
• When these cost over-runs are $1,000 or more per practice or component, a contract modification will be processed as soon as is practical. The final "as-built" modification will result in a contract, which represents actual approved installation quantities. In all instances, these modifications must be processed before payment applications are processed.

Communication: In all cases, when changes to a contract occur, communication with the landowner is critical. This includes going over a contract concurrently with the design, the "as-built," and any proposed modification. NRCS staff must communicate to the participant that, until a contract modification is processed and approved, NRCS's financial obligation remains as stated in the current contract. Additions to payments can only be processed if funds are available, regardless of on-site conditions.

If you have any questions or concerns related to this matter, please do not hesitate to contact me at (907)761-7757 or e-mail thomas.hedt@ak.usda.gov.

TOM HEDT
Assistant State Conservationist (Programs)

< Back to Alaska Bulletins