MP5317.74 Undefinitized Contract Actions

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Mandatory Procedure

MP5317.74 -
Undefinitized Contract Actions (UCA)

[Revised June 3, 2016]

1. Policy

a. UCAs should be used on an infrequent basis for clearly defined, urgent requirements and must be definitized within the established 180 day definitization schedule.

b. Contracting officers must only obligate funds consistent with the contractor’s spend plan for the undefinitized period and also stay within the maximum obligation amount allowed in DFARS 217.7404-4. Obligating funds in excess of the contractor’s spend plan encourages extended periods of performance prior to definitization.

2. Proposal and Definitization Requirements

a. Contracting officers must comply with MP5315.4 for procedures on proposal kick-off and proposal walk-through meetings, proposal instructions, and requesting data/documentation after receipt of the proposal.

b. Undefinitized Contract Actions (UCA) approval authorities must establish procedures for field offices to track all UCAs as defined in DFARS 217.7401(d) and DFARS 217.7402, to the maximum extent practicable.

c. The DAS(C) may require the MAJCOM/DRU SCO (or for AFLCMC and SMC, the SCCO), and any members of the definitization team, to brief the appropriate HAF staff on the status of any UCA not definitized within 180 days of issuance. For any delays in the definitization schedule, contracting officers must document the contract file with the justification to include the revised definitization milestone schedule.

3. Profit

Contracting officers must comply with the Weighted Guidelines method at DFARS 215.404-71-3(d)(2) which indicates that, when costs have been incurred prior to definitization, generally the contract type risk should be regarded to be in the low end of the designated range. If a substantial portion of the costs have been incurred prior to definitization, the contracting officer may assign a value as low as 0 percent, regardless of contract type. AFMC maintains a web-based Weighted Guidelines Application that provides the capability to address incurred costs in the profit analysis for UCAs. Contracting officers must use this tool throughout the UCA negotiation process to make adjustments based on costs incurred to the AF profit objective.

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