Warrant Prep 15 - Undefinitized Contract Actions

Front 1

Define "UCA"

Back 1

“Undefinitized contract action” means any contract action for which the contract terms, specifications, or price are not agreed upon before performance is begun under the action.

Front 2

What are the conditions that might lead to a UCA?

Back 2

1. When the Government's interest demands that the contractor be given a binding commitment so that contract performance can begin immediately
2. Negotiation of a definitive arrangement is not possible in sufficient time to meet the Government's requirements

Front 3

Who is the approval authority for a UCA?

Back 3

HCA, but in AFMC, authority is delegated to SCCO

Front 4

When using a UCA, when must the PCO obtain approval (3 situations)?

Back 4

1. Prior to entering into a UCA
2. When including requirements for non-urgent spare parts and support equipment in a UCA
3. Modifying the scope of a UCA after performance has already begun

Front 5

What 7 items must be included in a UCA package?

Back 5

1. Document why UCA is required
   
2. Explain the need to begin performance before definitization
   
3. Address adverse impact on agency requirements as a result from delay in beginning performance
   
4. Identify risk of using a UCA and how the USG will mitigate such risk
   
5. Identify and justify the specific contractual instrument to be used
   
6. Establish limitations on the obligation of funds
   
7. Provide definitization schedule of agreed-upon events that support timely definitization
   

Front 6

What type of review is required prior to UCA issuance and who schedules it?

Back 6

A Business Strategy Review (BSR) isrequired for any UCA prior to issuance and is scheduled by your PZC reviewer

Front 7

When must a UCA be definitized?

Back 7

Within 180 days of issuance (may be extended to at most 180 days after receipt of qualifying proposal) or the date on which funding obligated is equal to 50% of NTE.

Front 8

If the parties of a UCA fail to come to an agreement for definitization, what option does the PCO have?

Back 8

The PCO can unilaterally definitize, subject to the Disputes clause, and with SCCO approval (delegated from HCA). This course of action is laid out in the DFARS Contract Definitization clause.

Front 9

If a UCA falls more than 14 days behind schedule at any point, what will happen?

Back 9

The SCCO must review these UCAs monthly and provide a status report to the DAS(C) via email

Front 10

As your rationale for the UCA's NTE must be documented in the contract file, what are some examples of support rationale?

Back 10

IGCE, price analysis on previous buys, and the contractor's proposal/spend plan

Front 11

Explain the funding requirements for a UCA.

Back 11

Prior to receipt of a qualifying proposal, a max of 50% of NTE can be obligated on a UCA. This goes up to 75% of NTE upon receipt of a qualifying proposal. You must commit to cover the difference between obligation and NTE.

Front 12

What are some methods of recourse for the PCO if a contractor doesn't submit its proposal on time?

Back 12

You can suspend or reduce progress payments since submittal of the proposal is a material element of UCA performance.

Front 13

What can the PCO do to gain more insight into the contractor's subcontracting arrangements?

Back 13

Require the Consent to Subcontract clause

Front 14

What is the recommended financing arrangement for UCAs and why?

Back 14

The DPAP PBP Guide recommends starting UCAs with progress payments. The same factors that make price definitization difficult also make PBP arrangements difficult. PBPs could later be negotiated.

Front 15

How should profit be handled when definitizing a UCA?

Back 15

Using Weighted Guidelines, the contract type risk should be appropriately decreased on already-incurred costs, even down to a 0% level.

For UCAs over $100M, the Weighted Guidelines printout must be attached when reporting to DPAP.

Front 16

What two clauses are required in a UCA?

Back 16

FAR 52.216-24, Limitation of Government Liability and DFARS 252.217-7027, Contract Definitization

Front 17

What items does the DFARS Contract Definitization clause cover?

Back 17

1. The contractor agrees to submit a proposal as well as (certified) cost or pricing data
2. It includes a definitization schedule
3. It gives authority to the PCO (with SCCO approval) to unilaterally definitize if no agreement can be reached.