In general, pricing deductive changes should be based on the contractor’s current estimate ("would have" cost) for performing the deleted work. Stated differently, the equitable price adjustment the government is entitled to is the difference between the estimated reasonable cost of contract performance without the deletion and the estimated reasonable cost of performance with the deduction. With limited exceptions discussed below, the "would have" cost technique is not the bid amount, the initial estimate or contract line items. If the difference between these original items and estimated costs yield either losses or high profits, the results are intended to keep the contractor in the same position.

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