14 U.S.C. § 1109: Undefinitized contractual actions

The Coast Guard may not enter into an undefinitized contractual action unless such action is directly approved by the Head of Contracting Activity of the Coast Guard. Any request to the Head of Contracting Activity for approval of an undefinitized contractual action shall include a description of the anticipated effect on requirements of the Coast Guard if a delay is incurred for the purposes of determining contractual terms, specifications, and price before performance is begun under the contractual action. 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 under such contractual action an amount that exceeds 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. Notwithstanding subparagraph (A), if a contractor submits a qualifying proposal to definitize an undefinitized contractual action before an amount that exceeds 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 exceeds 75 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. a contingency operation (as that term is defined in section 101(a)(13) of title 10 ); operations to prevent or respond to a transportation security incident (as defined in section 70101(6) 1 of title 46); 1 See References in Text note below. an operation in response to an emergency that poses an unacceptable threat to human health or safety or to the marine environment; or an operation in response to a natural disaster or major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq.). This subsection does not apply to an undefinitized contractual action for the purchase of initial spares. good business practice; and in the best interests of the United States. good business practice; and in the best interests of the United States. the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before the final price is negotiated; and the reduced cost risk of the contractor with respect to costs incurred during performance of the remaining portion of the contract. Except as provided in subparagraph (B), the term “undefinitized contractual action” means a new procurement action entered into by the Coast Guard for which the contractual terms, specifications, or price are not agreed upon before performance is begun under the action. foreign military sales; purchases in an amount not in excess of the amount of the simplified acquisition threshold; or special access programs. The term “qualifying proposal” means a proposal that contains sufficient information to enable complete and meaningful audits of the information contained in the proposal as determined by the contracting officer.