The Contracting Education Academy

Contracting Academy Logo
  • Home
  • Training & Education
  • Services
  • Contact Us
You are here: Home / Archives for undefinitized contract action

June 18, 2020 By cs

Small business contractors experience diverse results under Coronavirus

Some firms suffer amid COVID-19, while others benefit from prescient agencies.

The COVID-19 coronavirus has been a mixed bag for small business contractors working with the federal government. Some are facing unique challenges as they try to fulfill their contractual obligations amid site shutdowns, while others are able to meet their obligations relatively seamlessly under contracts designed for telework.

Small business problems range from workers’ compensation details to meeting contractual specifications when not allowed to work on government sites. These problems may be the tip of the iceberg as the government moves forward in the post-COVID-19 era, experts say.

Yet some contracting bodies lessened the impact by awarding contracts that allowed, or even encouraged, telework and other alternate workplace requirements. Ultimately, structuring future contracts along these lines, where applicable, may hold the key to prevent challenges if similar situations unfold.

Uncertainty is the overriding concern of federal small business contractors, says Forrest Burke, CEO of Connected Logistics.  He relates that the federal government has shown flexibility in the move toward telework, and that flexibility has helped the transition become more seamless. But the top priority for many small businesses is to maintain their staff, and that often requires out-of-pocket outlays to keep people on payroll.

Keep reading this article at: https://www.afcea.org/content/small-business-contractors-experience-diverse-results-under-coronavirus

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized.  Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

Filed Under: Government Contracting News Tagged With: coronavirus, COVID-19, DISA, FAR, flexibility, pandemic, small business, telework, undefinitized contract action, workforce, workplace flexibility

March 27, 2019 By AMK

DoD seeking comment on how ‘undefinitized contract actions’ are definitized

In the National Defense Authorization Acts for 2017 and 2018, Congress required the Department of Defense (DoD) to implement certain reforms for issuing and definitizing Undefinitized Contract Actions (UCAs). 

After a long delay, DoD has issued a proposed rule and requested comments from industry.

UCAs are meant to be used when the Government has urgent needs that do not leave enough time for the parties to agree on all the terms, conditions, and pricing of a formal contract.  In those circumstances, the parties can agree to a general framework that allows work to begin and payments to be made on a modified cost-reimbursement basis under a UCA, and the parties agree to definitize the contract in the near future – aspirationally, no later than 180 days after the UCA award date, or before 50 percent of the work is complete, whichever is earlier.  (See: DFARS 217.7404-3)

The Defense Federal Acquisition Regulation Supplement (DFARS) currently allows the contracting officer to extend that date to 180 days after the date on which the contractor submits a “qualifying proposal” for definitization.  In practice, as the GAO repeatedly has highlighted and as Congress has noted, poor acquisition planning has led to the unnecessary use of UCAs, and UCAs often are not definitized within the 180-day time set by regulation.

One particularly inequitable result of the delayed definitization of UCAs is its effect on profit.  Because UCAs are cost-type agreements with the contractor bearing minimal cost risk, the DFARS provides guidance for acceptable profit rates when “a substantial portion of the required performance” is completed before definitization.  If a contractor completes a large proportion of the work before the contract is belatedly definitized, an agency often will insist on a profit rate that is materially lower than it would have been if the agency had promptly definitized the contract.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=787536

Filed Under: Government Contracting News Tagged With: acquisition planning, cost-type contract, definitization, DFARS, GAO, profit, UCA, undefinitized, undefinitized contract action

Popular Topics

abuse acquisition reform acquisition strategy acquisition training acquisition workforce Air Force Army AT&L bid protest budget budget cuts competition cybersecurity DAU DFARS DHS DoD DOJ FAR fraud GAO Georgia Tech GSA GSA Schedule GSA Schedules IG industrial base information technology innovation IT Justice Dept. Navy NDAA OFPP OMB OTA Pentagon procurement reform protest SBA sequestration small business spending technology VA
Contracting Academy Logo
75 Fifth Street, NW, Suite 300
Atlanta, GA 30308
info@ContractingAcademy.gatech.edu
Phone: 404-894-6109
Fax: 404-410-6885

RSS Twitter

Search this Website

Copyright © 2023 · Georgia Tech - Enterprise Innovation Institute