Sign In
  • Question

    If funding a UCA with 3600 funds is considered, is it necessary to have 100% of the funds in hand before proceeding with the UCA?


    Answer

    We're not sure what you mean by "proceding with the UCA," nonetheless, here is some information that might be helpful for you:

    This is provided by Professor Greg Martin.

    DFAR subpart 217.7404-2 requires that a UCA have a not to exceed price 
     
     
     DFAR subpart 217.7404-4 (limitations on obligations for undefinitized contract action) caps the obligation at 50% of that not-to-exceed.
     
     (a)  The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization.  However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, then the limitation on obligations before definitization may be increased to no more than 75 percent (see 232.102-70 for coverage on provisional delivery payments).
     
     (b)  In determining the appropriate amount to obligate, the contracting officer shall assess the contractor’s proposal for the undefinitized period and shall obligate funds only in an amount consistent with the contractor’s requirements for the undefinitized period.
     

    Open full Question Details