Federal · Title 10 — Armed Forces

10 U.S.C. § 3372: Undefinitized contractual actions: requirements and limitations relating to definitization of contractual terms, specifications, and price

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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 the date on which the amount of funds obligated under the contractual action is equal to more than 50 percent of the negotiated overall ceiling price for the contractual action. Except as provided in subparagraph (B), the contracting officer for an undefinitized contractual action may not obligate with respect to such contractual action an amount that is equal to more than 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. If a contractor submits a qualifying proposal (as defined in section 3377(b) of this title ) to definitize an undefinitized contractual action before an amount equal to more than 50 percent of the negotiated overall ceiling price is obligated on such action, the contracting officer for such action may not obligate with respect to such contractual action an amount that is equal to more than 75 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. A contingency operation. A humanitarian or peacekeeping operation. This subsection does not apply to an undefinitized contractual action for the purchase of initial spares. the service acquisition executive for the military department that awarded the contract, or the Under Secretary of Defense for Acquisition and Sustainment if the contract was awarded by a Defense Agency or other component of the Department of Defense, approves the definitization in writing; the contracting officer provides a copy of the written approval to the contractor; and a period of 30 calendar days has elapsed after the written approval is provided to the contractor. A unilateral definitization by a contracting officer shall be considered a final decision under chapter 71 of title 41, and a contractor may appeal this decision to the Armed Services Board of Contract Appeals or the United States Court of Federal Claims. Except as provided in paragraph (2), a contracting officer of the Department of Defense may not enter into an undefinitized contractual action for a foreign military sale unless the contractual action provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period described in subsection (a)(1)(A). The requirement under paragraph (1) may be waived in accordance with subsection (a)(3). Section 2326(b)(3) of title 10 , United States Code [now 10 U.S.C. 3372(a)(2)(B) ], shall not apply to any undefinitized contract action of the Department of Defense related to the national emergency for the Coronavirus Disease 2019 (COVID–19). In this section, the term ‘undefinitized contract action’ has the meaning given that term in section 2326(j)(6) of title 10 , United States Code [probably means section 2326(j)(1) of title 10 , now 10 U.S.C. 3377(b)(1) , which defines “undefinitized contractual action”].” The head of an agency may waive the provisions of section 2326(b) of title 10 , United States Code [now 10 U.S.C. 3372(a) ], with respect to a contract of such agency if the head of the agency determines that the waiver is necessary due to the national emergency for the Coronavirus Disease 2019 (COVID–19). In this section, the term ‘head of an agency’ has the meaning given that term in section 2302(2) [probably means section 2302(1); now 10 U.S.C. 3004 ] of title 10, United States Code.”

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