Federal activity overview — Letter Contract
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Letter Contract Government Contracts & Federal Records
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A written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing supplies or performing services. It must be superseded by a definitive contract within a specified timeframe.
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FAR 16.603
Used only when the government's interests demand that the contractor be given a binding commitment so that work can start immediately, and negotiating a definitive contract is not possible in sufficient time.
Advantages: Enables immediate contract start in urgent situations. Disadvantages: Incomplete terms create risk, must be definitized within 180 days, maximum liability is limited.
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Bureauify. (2026). Letter Contract — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/letter-contract
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