Undefinitized Contract Action(UCA)
A contract or modification for which the contract terms, specifications, or price are not agreed upon at the time of signing, used to allow work to begin before definitization.
Overview
An Undefinitized Contract Action (UCA) is a contract or contract modification where the parties have not yet agreed on one or more essential elements — typically price, quantity, or specifications — at the time of award. UCAs allow the government to authorize work to begin before definitization to meet urgent needs. The FAR and DFARS impose strict limits and procedures on UCAs.
Why It Matters in GovCon
UCAs are used when there is an urgent need to start work but negotiating final terms would cause unacceptable delay. Contractors performing under UCAs assume risk until definitization — the government's obligation is typically limited to a ceiling. Understanding UCA rules (including fee limitations and definitization timelines) is important when negotiating urgent contracts, especially in DoD.
Key Details
- Definitization: The process of negotiating and documenting the final contract terms; must occur within a specified timeframe (e.g., 180 days).
- Ceiling: UCAs include a not-to-exceed amount; obligation is limited until definitization.
- Fee Limits: FAR and DFARS limit fee/profit on the undefinitized portion to reduce contractor incentive to delay definitization.
- DoD: DFARS 217.74 contains specific UCA procedures for defense acquisitions.
- Justification: UCAs require approval and documentation of the urgent need.
Related Terms
- Contract Modification
- Definitization
- Letter Contract
- Firm Fixed Price (FFP)
More Contracts Terms
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A contract type where the price is set at award and does not change regardless of the contractor's actual costs, placing maximum risk on the contractor.
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