How does a modification change a defense contract’s value?
A modification changes an existing contract. Report the amount of the change separately from the revised total; a modification can also change timing or scope without adding funds.
Read the increment and the new total
In an Army missile-program audit, the inspector general describes a roughly $412,000 modification that brought the cost-plus-incentive fee to about $53.45 million and extended the completion date. The $412,000 was already inside the new total. Calling $53.45 million a new award would overstate the action.
What if the notice gives only a revised ceiling?
Find the previous value for the same contract and the same type of figure. A ceiling increase, obligation and revised fee are different measures. Preserve the modification identifier and effective date so readers can reconstruct the sequence.
Read the sources
Defense Department inspector general’s acquisition audit