17.7403 Policy.

(Follow the procedures of DLAD PGI 17.7404-3 when requesting HQ DLA review and approval of a letter contract or other undefinitized contract action (UCA), regardless of value, or an unpriced change order with an estimated value exceeding $5 million. Only the Director, DLA, has the authority to approve use of a UCA, regardless of value, or an unpriced change order with an estimated value exceeding $5 million. Definitization of any UCA or an unpriced change order valued over $5 million within the mandated time frames does not require DLA Director approval. Definitization beyond the mandated time frames does require the approval of the DLA Director.

(a)(90) The contracting officer shall expedite Government and contractor efforts to secure an acceptable price proposal and evaluation pending and following approval by the Director, DLA, to award a UCA. All proposed UCAs, regardless of value, and all unpriced change orders with an estimated value exceeding $5 million must be approved in accordance with this policy before issuance by the contracting officer. Contracting officers shall ensure that contractors understand that no work is to be performed until the proposed UCA is properly approved and awarded, and that anything done and any costs incurred in anticipation of the UCA are at the contractor's own risk and will not result in Government liability or be reimbursed by the Government under the UCA. The chief of the contracting office shall monitor usage of UCAs for conformance with regulatory requirements.

(a)(91) The chief of the contracting office (or a local UCA Monitor, where designated) shall:

(i) monitor the activity's usage of UCAs for conformance with local UCA procedures, DLAD and higher level regulatory requirements;

(ii) prepare and forward the activity's template reports, including negative reports, electronically to HQ DLA J73 not later than ten calendar days following the end of each month and

(iii) ensure UCAs are correctly coded in the Federal Procurement Data System

(c)(90) Use the current electronic version of the DoD Template for Consolidated Undefinitized Contract Action (UCA) Management Report (available from HQ DLA J73, in MS Excel) for enhanced management oversight and monthly reporting of all UCAs having an estimated or actual contract ceiling value (including options) that exceeds $5 million. In addition, include in the report any unpriced change orders over $5 million, as required by DFARS 243.204-70-7.