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Office of Acquisition and Logistics (OAL)

 

Part 817 - Special Contracting Methods

Part 801—Department of Veterans Affairs Acquisition Regulation System Part 802—Definitions of words and terms Part 803—Improper business practices and personal conflicts of interest Part 804—Administrative and information matters Part 806—Competition requirements Part 808—Required sources of supplies and services Part 809—Contractor qualifications Part 810—Market Research Part 811—Describing agency needs Part 812—Acquisition of Commercial Products and Commercial Services Part 813—Simplified acquisition procedures Part 814—Sealed bidding Part 815—Contracting by negotiation Part 816—Types of contracts Part 817—Special contracting methods Part 819—Small business programs Part 822—Application of labor laws to Government acquisitions Part 823—Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace Part 824—Protection of privacy and freedom of information Part 826—Other Socioeconomic Programs Part 827—Patents, Data, and Copyrights Part 828—Bonds and insurance Part 829—Taxes Part 831—Contract cost principles and procedures Part 832—Contract financing Part 833—Protests, disputes, and appeals Part 835—Research and Development Contracting Part 836—Construction and architect-engineer contracts Part 837—Service contracting Part 839—Acquisition of Information Technology Part 841—Acquisition of utility services Part 842—Contract administration and audit services Part 843—Contract Modifications Part 844—Subcontracting Policies and Procedures Part 845—Government Property Part 846—Quality assurance Part 847—Transportation Part 849—Termination of contracts Part 852—Solicitation provisions and contract clauses Part 853—Forms Part 871—Vocational rehabilitation and employment programs Part 873—Simplified procedures for health-care resources
 
Sec. Title
Subpart 817.1 through 817.4—[Reserved]
Subpart 817.5—Interagency Acquisitions
817.501 General.
Subpart 817.70—Undefinitized Contract Actions
817.7000 Scope.
817.7001 Definitions.
817.7002 Exceptions.
817.7003 Policy.
817.7004 Limitations.
817.7004-1 Authorization.
817.7004-2 Price ceiling.
817.7004-3 Definitization schedule.
817.7004-4 Final price negotiation–profit.
817.7005 Contract clause.
 

AUTHORITY:  38 U.S.C. 8127-8128; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

Subpart 817.1 through 817.4—[Reserved]

Subpart 817.5 - Interagency Acquisitions

817.501  General.

(d) Any contract, agreement, or other arrangement with any governmental entity to acquire goods and services, including construction, that permits the governmental entity to acquire goods and services on behalf of the Department of Veterans Affairs shall include a requirement that the entity will comply, to maximum extent feasible, with the provisions of 38 U.S.C. 8127 and 8128, and the Veterans First Contracting Program as implemented at subpart 819.70.

Subpart 817.70 - Undefinitized Contract Actions

817.7000  Scope.

This subpart prescribes policies and procedures for use of undefinitized contract actions.

817.7001  Definitions.

As used in this subpart—

(a) Contract action includes:

(1) Contracts and contract modifications for supplies or services.

(2) Task orders and delivery orders.

(3) It does not include change orders, administrative changes, funding modifications, or any other contract modifications that are within the scope and under the terms of the contract, e.g., engineering change proposals and value engineering change proposals.

(b) Definitization means the agreement on, or determination of, contract terms, specifications, and price, which converts the undefinitized contract action to a definitive contract.

(c) Definitization proposal means a proposal containing sufficient data for the VA to do complete and meaningful analyses and audits of the—

(1) Data in the proposal; and

(2) Any other data that the contracting officer has determined VA needs to review in connection with the contract.

(d) Undefinitized contract action means any contract action for which the contract terms, specifications, or price are not agreed upon before performance is begun under the action. Examples are letter contracts and orders under basic ordering agreements for which the final price has not been agreed upon before performance has begun.

817.7002  Exceptions.

(a) The following undefinitized contract actions (UCAs) are not subject to this subpart:

(1) Purchases at or below the simplified acquisition threshold.

(2) Congressionally mandated long-lead procurement contracts.

(b) However, the contracting officer shall apply the policy and procedures to the contract actions in paragraph (a) to the maximum extent practicable.

817.7003  Exceptions.

Undefinitized contract actions shall—

(a) Be used only when—

(1) The negotiation of a definitive contract action is not possible in sufficient time to meet the Government’s requirements; and

(2) The Government’s interest demands that the contractor be given a binding commitment so that contract performance can begin immediately.

(b) Be as complete and definite as practicable.

817.7004  Limitations.

817.7004-1  Authorization.

The contracting officer shall obtain approval one level above the contracting officer before—

(a) Entering into a UCA. The request for approval must fully explain the need to begin performance before definitization, including the adverse impact on the VA resulting from delays in beginning performance.

(b) Including requirements for non-urgent items and equipment in a UCA. The request should show that inclusion of the non-urgent items is consistent with good business practices and in the best interest of the Government.

(c) Modifying the scope of a UCA when performance has already begun. The request should show that the modification is consistent with good business practices and in the best interests of the Government.

817.7004-2  Price ceiling.

UCAs shall include a not-to-exceed price.

817.7004-3  Definitization schedule.

(a) UCAs shall contain definitization schedules that provide for definitization by the earlier of—

(1) The date that is 180 days after issuance of the action (this date may be extended but may not exceed the date that is 180 days after the contractor submits a definitization proposal); or

(2) The date on which the amount of funds paid to the contractor under the contract action is equal to more than 50 percent of the not-to-exceed price.

(b) Submission of a definitization proposal in accordance with the definitization schedule is a material element of the contract. If the contractor does not submit a timely definitization proposal, the contracting officer may suspend or reduce progress payments under FAR 32.503-6, or take other appropriate action.

817.7004-4  Final price negotiation–profit.

Before the final price of a UCA is negotiated, contracting officers shall ensure the profit agreed to and documented in the contract negotiation memorandum reflects consideration of any risks incurred in performance of the work under the UCA.

817.7005  Contract clause.

(a) Use the clause at 852.217-70, Contract Action Definitization, in—

(1) All UCAs

(2) Solicitations associated with UCAs;

(3) Orders against basic ordering agreements;

(4) Indefinite delivery task orders; and

(5) Any other type of contract providing for the use of UCAs.

(b) Insert the applicable information in paragraphs (a), (b), and (d) of the clause.

(c) If, at the time of entering into the UCA, the contracting officer knows that the definitive contract action will meet the criteria of FAR 15.403-1, 15.403-2, or 15.403-3 for not requiring submission of certified cost or pricing data, the words “and certified cost or pricing data” may be deleted from paragraph (a) of the clause.

 
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