Federal activity overview — Undefinitized Contract Action
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A contract action for which the contract terms, specifications, or price are not agreed upon before performance is begun. Most commonly used in defense acquisition when urgency demands immediate performance.
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DFARS 217.74
Used in urgent situations, primarily in DoD, when a qualifying proposal has been submitted but negotiations cannot be completed before performance must begin. Must be definitized within 180 days.
Advantages: Enables rapid start of critical work. Disadvantages: High risk of cost overruns, contractor incentive to delay definitization, limits on allowable profit before definitization.
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Bureauify. (2026). Undefinitized Contract Action — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/undefinitized-contract-action
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