FAR 52.216-25 — Contract Definitization
Provides for converting Undefinitized Contract Actions (UCAs) — such as letter contracts — into definitive contracts with negotiated price and terms within a specified period.
When This Clause Applies
Required in UCAs and letter contracts. DoD has specific definitization timeline requirements (180 days target).
What This Means for Contractors
Work begins under the UCA at provisional terms; definitive price and scope must be negotiated within the specified period. Contractor is reimbursed up to a ceiling (typically 50% of estimated price) during the UCA period. Failure to definitize on time can result in unilateral CO determination of price.
Common Pitfalls
- 1Performing work beyond the UCA ceiling expecting later reimbursement
- 2Inadequate cost tracking during UCA period
- 3Disputes over scope and price at definitization
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