Defense to Monitor Undefinitized Contracts The Defense Department is tightening controls over undefinitized contract actions, contracts that are awarded before the final terms are set. DOD procurement policy chief Shay Assad has directed contracting officers to submit semiannual reports on all UCAs worth more than $5 million, and to draw up plans for using such contracts. Congress ordered the department to enforce rules on the use of UCAs after the Government Accountability Office found that policies often were not being followed. UCAs are permitted when the government needs a contractor to start work immediately, before a formal contract can be signed. “A UCA is a valuable tool for meeting urgent requirements,” Assad wrote in a memo. “However, without appropriate management and controls, these instruments can lead to increased cost risks for the Department.” GAO said the greatest risk is that the contractor will work for a long period of time before the UCA is replaced by a formal contract. Some contracting officers told the auditors “their focus is on getting the UCA awarded; after that, they often must turn to other pressing awards so that following up on definitizations becomes less of a priority.” Assad’s memo states, “When possible, to discourage extended periods of performance prior to definitization, contracting officers should avoid obligating the maximum possible funding at the time of the UCA award.” The memo is available here.