Work Authorization Clause/Instructions

970.5211-1

Work authorization.

As prescribed in 970.1170-2, insert the following clause.
WORK AUTHORIZATION [INSERT MONTH AND YEAR OF PUBLICATION IN
THE FEDERAL REGISTER]
(a) Work Authorization Proposal. Prior to the start of each fiscal year, the
Contracting Officer or designee shall provide the contractor with program execution
guidance in sufficient detail to enable the contractor to develop an estimated cost, scope,
and schedule. In addition, the Contracting Officer may unilaterally assign work. The
contractor shall submit to the Contracting Officer or other designated official, a detailed
description of work, a budget of estimated costs, and a schedule of performance for the
work it recommends be undertaken during that upcoming fiscal year.
(b) Cost Estimates. The contractor and the Contracting Officer shall establish a
budget of estimated costs, description of work, and schedule of performance for each
work assignment. If agreement cannot be reached as to scope, schedule, and estimated
cost, the Contracting Officer may issue a unilateral work authorization, pursuant to this
clause. The work authorization, whether issued bilaterally or unilaterally shall become
part of the contract. No activities shall be authorized or costs incurred prior to
Contracting Officer issuance of a work authorization or direction concerning continuation
of activities of the contract.
(c) Performance. The contractor will perform work as specified in the work
authorization, consistent with the terms and conditions of this contract.
(d) Modification. The Contracting Officer may at any time, without notice, issue
changes to work authorizations within the overall scope of the contract. A proposal for

adjustment in estimated costs and schedule for performance of work, recognizing work
made unnecessary as a result, along with new work, shall be submitted by the contractor
in accordance with paragraph (a) of this clause. Resolution shall be in accordance with
paragraph (b) of this clause.
(e) Increase in Estimated Cost. The contractor shall notify the Contracting
Officer immediately whenever the cost incurred, plus the projected cost to complete work
is projected to differ (plus or minus) from the estimate by 10 percent. The contractor
shall submit a proposal for modification in accordance with paragraph (a) of this clause.
Resolution shall be in accordance with paragraph (b) of this clause.
(f) Expenditure of Funds and Incurrence of Costs. The expenditure of monies by
the contractor in the performance of all authorized work shall be governed by the
“Obligation of Funds” or equivalent clause of the contract.
(g) Responsibility to achieve Environment, Safety, Health, and Security
Compliance. Notwithstanding other provisions of the contract, the contractor may, in the
event of an emergency, take that corrective action necessary to sustain operations
consistent with applicable environmental, safety, health, and security statutes,
regulations, and procedures. If such action is taken, the contractor shall notify the
Contracting Officer within 24 hours of initiation and, within 30 days, submit a proposal
for adjustment in estimated costs and schedule established in accordance with paragraphs
(a) and (b) of this clause.
(End of clause)