PGI 217.7404-1 Authorization.

(1)  The requiring activity, in coordination with the contracting office, will prepare the request for approval package for an undefinitized contract action (UCA) requirement. The approval package shall-

(i)  Document why a UCA is required (for letter contracts see DFARS 216.603);

(ii)  Provide a detailed explanation for the need to begin performance before definitization;

(iii)  Address the adverse impact on agency requirements that would result from delays in beginning performance;

(iv)  Identify the risk of using a UCA and the means by which the Government will mitigate such risk;

(v)  Identify and justify the specific contractual instrument to be used;

(vi)  Establish limitations on the obligation of funds; and

(vii)  Provide the definitization schedule of agreed-upon events that support timely definitization.

(2)  A sample format with certain variations for letter contracts is provided here.