# DLAD PGI

- SUBPART 17.74 Limitations

- PGI 17.7404-3 Definitization schedule

SUBPART 17.74 Limitations

PGI 17.74 Limitations.

PGI 17.7404-3 Definitization schedule

(a)(2) To ensure timely approval, submit all proposed undefinitized contract actions (UCAs), regardless of value, or unpriced change orders with an estimated value exceeding $5 million to J72 a minimum of two weeks prior to proposed issuance date in order to permit J7 and General Counsel review and DLA Director approval. Requests for HQ DLA review and approval of a letter contract or other UCA, regardless of value, or unpriced change order with an estimated value exceeding $5 million shall be prepared in accordance with DFARS Subpart 217.74 and DLAD 17.74. The proposed action must be as complete and definite as practicable under the particular circumstances, including all Supply Chain and/or contracting activity review, coordination, and approval. HCAs for activities with an assigned HCA shall review requests for UCAs or unpriced change orders and may disapprove requests or forward them to J72 for further processing.

(b) At a minimum, requests for approval shall include:

> (1) An Acquisition Plan

> (2) Any required Justification and Approvals or Determination and Findings

(3) A written Statement of Urgency supporting the requirement for a UCA or unpriced change order, including:

(i) The quantities, dates and priorities of existing and projected requirements to be filled by the buy;

(ii) The date that the requirement was first known to exist;

(iii) Why the interests of national defense demand that a contractor be given a binding commitment so that work can begin immediately , including the adverse impact on agency requirements resulting from delays in beginning performance;

(iv) Why negotiation of a definitive contract or priced order did not and cannot occur in sufficient time to meet the acquisition need; and

(v) The determination required by FAR 16.603-3 (letter contracts only);

(4) The contracting officer's responsibility determination concerning the prospective contractor (FAR 9.103);

(5) A price negotiation memorandum that includes the not-to-exceed ceiling total price and ceiling unit price(s) to be included.

(6) A funding document that includes the offeror’s proposed obligation amount by period prior to definitization, interim billing price, and the predefinitization limits of the Government's liability under the UCA or change order;

(7) A discussion of any requirement for progress payments, provisional payments, and options for increased quantity or performance period;

(8) The proposed definitization schedule including dates for--

> (i) Proposed obligation rate against the not-to-exceed ceiling price;

(ii) Receipt of the contractor's proposal;

(iii) Beginning of negotiations;

(iv) Completion of negotiations;

(v) Target date for definitization; and

(9) The following additional milestone dates (unless another contract management activity will definitize):

(i) Receipt of field pricing report;

(ii) Receipt of the local price or cost/price analysis; and

(iii) Submission of the proposed definitive contract/change order and supporting file for HQ DLA review and approval, pursuant to 1.690-6(c)(6).

(10) The delivery schedule.

(c) A copy of a signed letter contract shall be forwarded to HQ DLA, ATTN: J73, within 1 week of execution.