ISN’s contract required it to provide various services for Navy telecommunications networks and the contract stated the CO was the only person authorized to approve changes and should not comply with any government order or request not issued in writing and signed by the CO.  When ISN lagged behind in schedule the CO asked it to submit an engineering change order (ECO) but did not approve it due to lack of funding.  ISN recognized the ECP was not approved but nonetheless performed under the ECP until the contract was terminated.  ISN sought $891,000 for work performed arguing, in part, that since the work under the ECP was not part of the original contract and the Navy approved the work albeit without formal adoption, a constructive change to the contract had occurred allowing for an equitable adjustment in contract price. The Court explained that such a constructive change occurs when a contractor performs work beyond contract requirements without a formal order as the result of an informal order or the fault of the government.  For such a change to occur, the contractor must be truly required by the government to perform the work beyond contract requirements and also the informal order or conduct that caused the additional work must originate from one who is authorized to bind the government.  The court ruled none of these conditions were satisfied and hence ruled against ISN (Information Systems & Networks v US, Fed. Cl. No. 02-796C). 

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