Section 217.7404 - LimitationsSee PGI 217.7404 for additional guidance on obtaining approval to authorize use of an undefinitized contact action, documentation requirements, and other limitations on their use.
(a)Foreign military sales contracts.(1) A contracting officer may not enter into a UCA for a foreign military sale unless- (i) The UCA provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period beginning on the date on which the contractor submits a qualifying proposal; and(ii) The contracting officer obtains approval from the head of the contracting activity to enter into a UCA in accordance with 217.7404-1.(2) The head of the contracting activity may waive the requirements of paragraph (a)(1) of this section, if a waiver is necessary in order to support any of the following operations: (i) A contingency operation.(ii) A humanitarian or peacekeeping operation.(b)Unilateral definitization by a contracting officer. Any UCA with a value greater than $50 million may not be unilaterally definitized until-(1) The earlier of- (i) The end of the 180-day period, beginning on the date on which the contractor submits a qualifying proposal to definitize the contractual terms, specifications, and price; or(ii) The date on which the amount of funds expended under the contractual action is equal to more than 50 percent of the negotiated overall not-to-exceed price for the contractual action;(2) The head of the contracting activity, without power of redelegation, approves the definitization in writing;(3) The contracting officer provides a copy of the written approval to the contractor; and(4) A period of 30 calendar days has elapsed after the written approval is provided to the contractor.84 FR 39206, Aug. 9, 2019