In order to meet urgent needs, the Ministry of Defence (DOD) may adopt indefinite contractual measures (UCA) allowing contractors to start working before reaching a final agreement on the terms of the contract. There is little incentive for the contractor to control costs during this period, creating the potential to waste taxpayers` money. In accordance with the House of Representatives report on the National Defense Authorization Act for fiscal 2007, we assessed (1) DOD`s insight into the use of UCAs, (2) how and when DOD UCAs uses, (3) whether DOD UCAs defines in a timely manner and (4) whether contract agents document the basis of negotiated profits or fees. The GAO reviewed 77 randomly selected contracts at seven sites and interviewed DOD officials. The definition contains any agreement or provision of contractual terms, specifications and prices that transform the undefined action of the contract into a final contract. Therefore, an undefined contractual action can be defined simply as any contractual action for which the contractual terms, specifications or price are not agreed before the start of the service as part of the action. Correspondence contracts, basic order contracts and provisions for item contracts for which the price was not agreed before the start of execution can be cited as general examples of UCA. The correspondence contracts. According to FAR 16.603-1, a letter/UCA contract is a written interim contractual instrument that authorizes the contractor to immediately begin providing or providing services. In the current circumstances, a mail/UCA contract should be as comprehensive and final as possible. Comments: In its comments on a draft report, the DOD endorsed the recommendation and indicated that it was reviewing changes to its contractual funding and funding policy. An AT-L guide was published on August 29, 2008.

It states that contract agents should avoid compliance with the maximum funding allowed at the time of the award of the inconclusive contractual action (UCA). It instructs contract agents to assess the contractor`s expenses for the unspecified period and to commit the credits only in an amount corresponding to the contractor`s requirements for the unspecified period. The effects of the UCA are limited by the same regulation in order to prevent the parties from manipulating their benefits. In accordance with Section 217.7403, the UCA can only be used if the negotiation of final contractual measures is not possible in a timely manner to meet government requirements. UCA is also used when the government`s interest requires the contractor to obtain a binding commitment so that the execution of the contract can begin immediately. A UCA must continue to cover the detailed contexts of the program/project, prices and the proposed definition schedule. A UCA is a contractual action for which the terms, specifications or prices are not agreed before the start of the service as part of the action. The objective of a UCA is to allow a contractor to start work before the contract is concluded, in order to meet a particularly urgent need. The terms of the contract are defined if the parties agree to all the terms of the contract (including the price). Currently, 10.C No.

2326 (b) require that UCAs be defined by previous UCs (a) 180 days after the filing of a qualified proposal of the contractor or b) by the date on which the amount of funds committed by the UCA is more than 50% of the total maximum price.