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FAR and DFARS › DFARS Part 217: Special Contracting Methods › Subpart 217.74

DFARS 217.7404 Limitations.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This DFARS section limits when a contracting officer can use an undefinitized contract action (UCA) for foreign military sales and when a UCA over $50 million can be unilaterally definitized. It matters because it sets conditions and approvals that must be met before certain UCA actions can proceed.

Applies to: Contracting officers using undefinitized contract actions, especially for foreign military sales or UCAs over $50 million.

What it requires

  • For a foreign military sale UCA, ensure the UCA provides for agreement on terms, specifications, and price by the end of the 180-day period beginning on the date the contractor submits a qualifying proposal.
  • For a foreign military sale UCA, obtain approval from the head of the contracting activity in accordance with 217.7404-1.
  • For a UCA over $50 million, do not unilaterally definitize until the earlier of the 180-day period or when funds expended exceed 50 percent of the negotiated overall not-to-exceed price.
  • For a UCA over $50 million, obtain written approval from the head of the contracting activity (without power of redelegation), provide a copy to the contractor, and wait 30 calendar days after providing the approval.

Key terms: undefinitized contract action (UCA) · foreign military sale · qualifying proposal · head of the contracting activity · unilateral definitization

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

See PGI 217.7404 for additional guidance on obtaining approval to authorize use of an undefinitized contact action, documentation requirements, and other limitations on their use.

(a) Foreign military sales contracts.

(1) A contracting officer may not enter into a UCA for a foreign military sale unless—

(i) The UCA provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period beginning on the date on which the contractor submits a qualifying proposal; and

(ii) The contracting officer obtains approval from the head of the contracting activity to enter into a UCA in accordance with 217.7404-1.

(2) The head of the contracting activity may waive the requirements of paragraph (a)(1) of this section, if a waiver is necessary in order to support any of the following operations:

(i) A contingency operation.

(ii) A humanitarian or peacekeeping operation.

(b) Unilateral definitization by a contracting officer. Any UCA with a value greater than $50 million may not be unilaterally definitized until—

(1) The earlier of—

(i) 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

(ii) The date on which the amount of funds expended under the contractual action is equal to more than 50 percent of the negotiated overall not-to-exceed price for the contractual action;

(2) The head of the contracting activity, without power of redelegation, approves the definitization in writing;

(3) The contracting officer provides a copy of the written approval to the contractor; and

(4) A period of 30 calendar days has elapsed after the written approval is provided to the contractor.

Sections it refers to

Sections that refer to it

← 217.7403 Policy. · 217.7404-1 Authorization. →

Rule changes for DFARS Part 217

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 217.7404 Limitations · SpendQuery