17.7404-1 Authorization.

(a) A proposed undefinitized contract action (UCA), as defined in DFARS 217.7401, regardless of value, or an unpriced change order with an estimated value exceeding $5 million must be submitted to J72 for staffing to the Director, DLA, for approval before entering into the UCA or unpriced change order. No letter contract or other UCA shall be awarded until properly approved in accordance with this requirement. This requirement includes UCAs of any dollar value and those falling under one or more of the exceptions in DFARS 217.7402. Head of Contracting Activity (HCA) authority in DFARS 217.7404-1 to approve entering into UCAs is withheld and shall not be used by PLFAs and other contracting offices.

(b) Requests for approval to use the authority in DFARS 217.7404-1(b) to authorize use of a UCA for a non-urgent requirement will normally be approved only where the non-urgently needed quantity should be included and priced coincident to definitization of an urgently required quantity of the item. Authorization will normally be limited to use of a UCA to fill a requisition for a backordered or non-stocked quantity requiring heightened management, i.e.:

(i) a Military Service requisition with Issue Priority Designator (IPD) 01;

(ii) a Military Service requisition with IPD 02 or 03; and either an Anticipated Not Mission Capable Supply (ANMCS) or Not Mission Capable Supply (NMCS) indicator in the required Delivery Date field (record positions 62-64) beginning with a "9", "N", or "E" or an OSD/JCS project code (record position 57-59) beginning with a "9".

(iii) a Foreign Military Sale requisition under the Cooperative Logistics Program Support Agreement (CLSSA) with IPD 02 or 03 and an OSD/JCS project code beginning with a "9".

(c) Follow the procedures of DLAD PGI 17.7404-3 when requesting HQ DLA review and approval of a letter contract or other UCA, regardless of value, or an unpriced change order with an estimated value exceeding $5 million. The request for approval shall document the specific urgency which compels use of a UCA or unpriced change order, demonstrate that the requirements of DFARS 217.7403 and/or DFARS 243.204-70 are met, and identify the consequences of failure to take such action.