3 modifying the scope of a uca when performance has

3. Modifying the scope of a UCA when performance has already started.
Your request should show that the modification is consistent with good
business practices and is in the best interests of the U.S.
h. When should a UCA be Definitized?
i. It is mandatory for UCAs to include definitization schedules that provide for
definitization by the earlier of:
1. The date that is 180 days after issuance of the action (this date can
be extended an additional 180 days when a qualifying proposal is
received from the contractor) - or –
2. The date on which the amount of funds obligated under the action is
equal to more than 50 percent of the NTE price.
ii. Delayed definitization of UCAs transfers additional cost and performance risk
to the government , since contractors are normally reimbursed for
all allowable costs incurred before definitization.
i. Limitation of Government Liability

CON 200
i. The government shall not obligate more than 50 percent of the NTE price
before the UCA is definitized. However, if a contractor submits a qualifying
proposal before 50 percent of the NTE price has been obligated by the
government, then the limitation may be increased to no more than 75
percent.
12. Letter Contracts
a. Written preliminary contractual instruments that authorize the contractor to begin
immediately manufacturing supplies or performing services prior to the finalization of
the contract terms.
b. Letter contracts may only be used when the government's needs are so urgent that
work must begin immediately and negotiation of a definitive contract in time to meet
the need is not possible. However, you must ensure that a letter contract contains as
many terms and conditions as feasible under the circumstances.
c. Definitizing a Letter Contract
i. It is mandatory for each letter contract to have a definitization schedule that
includes:
1. Dates for submission of the contractor’s price proposal, required
certified cost or pricing data, and data other than certified cost or
pricing data, and if required, make-or-buy subcontracting plans.
2. A date for the start of negotiations, and a target date for definitization,
which shall be the earliest practicable date for definitization. This
schedule provides for definitization of the contract within 180 days
after date of the letter contract or before completion of 40% of the
work to be done, whichever occurs first; however, in extreme cases,
you may authorize an additional period.
d. Negotiation of a Letter Contract Definitization
i. The contract definitization clause requires the contractor to submit a proposal
for negotiation of the contract.
ii. As contracting officer, you must develop pre-negotiation objectives before the
negotiation of any pricing action. Your objectives should be based upon an
analysis of:
1. The offeror’s proposal
2. Field pricing support, if any
3. Audit reports and technical analysis
4. Fact-finding reports
5. Independent government estimates
6. Price histories
e. Limitations on the Use of a Letter Contract
i. You may use the letter contract only after the head of the contracting activity