Pentagon amends defense regulations related to UCAs

The Pentagon today issued a final rule amending defense acquisition regulations to "provide a more transparent means of documenting the impact of costs incurred during the undefinitized period of an undefinitized contract action (UCA), and to recognize when contractors demonstrate efficient management and internal cost control systems through the submittal of a timely, auditable proposal in furtherance of definitization of a UCA."

According to the notice, Pentagon contracting personnel in some cases "have not documented their consideration of the reduced risk to the contractor of costs incurred during the undefinitized period of a UCA.

"While such costs generally present very little risk to the contractor, the contracting officer should consider the reasons for any delays in definitization in making their determination of the appropriate assigned value for contract type risk," the notice adds.