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Unpriced Change Order versus Undefinitized Contract Action
By Flick on Friday, October 20, 2000 - 11:06 am:

My understanding is that an Unpriced Change Order is a within scope change for which the terms, specifications, or price are not agreed upon before performance is begun because of conditions of urgency or uncertainty. An Undefinitized Contractual Action (UCA) is outside the scope of the contract for which the terms. specifications, or price are not agreed upon before performance begins. I can find all kinds of procedure and guidance for UCA's, but no discussions in detail regarding within or outside of scope issues or unpriced change orders.


By Vern Edwards on Friday, October 20, 2000 - 11:32 am:

Flick:

You are correct, assuming that the unpriced change order is within the scope of the contract and assuming that you work for DOD.

The term undefinitized contractual action is defined in DFARS 217.7401. It does not include change orders that are within the scope of the contract. See DFARS 217.7401 (a) and (d) as follows:

"(a) 'Contract action' means an action which results in a contract.

(1) It includes contract modifications for additional supplies or services.

(2) It does not include change orders, administrative changes, funding modifications, or any other contract modifications that are within the scope and under the terms of the contract, e.g., engineering change proposals, value engineering change proposals, and over and above work requests as described in Subpart 217.77.

[Underlining added.]

(d) 'Undefinitized contract action' means any contract action for which the contract terms, specifications, or price are not agreed upon before performance is begun under the action. Examples are letter contracts, orders under basic ordering agreements, and provisioned item orders, for which the price has not been agreed upon before performance has begun."

I don't know of any official definition of "unpriced change order," but since a change order is a unilateral order that is issued pursuant to the changes clause, and since the changes clause only authorizes changes that are within scope, I assume that an unpriced change order is a unilateral, within scope order on which the parties have not yet reached agreement on an equitable adjustment.

The guidelines for determining when a change order is or is not within scope are complex and are not discussed in the procurement regulations. They are laid down in case law. For a general discussion of those guidelines see, Cibinic and Nash, Administration of Government Contracts, 3d ed., pp. 384-390.


By joel hoffman on Friday, October 20, 2000 - 11:45 am:

Flick, I noticed your E-mail address suggests Savannah District, USACE.

You may go to EFARS 43.102 for general prescriptions for undefinitized contract modifications. Mobile and Huntsville both have detailed guidance pertaining to undefinitized contract modifications for construction contracts in their District/Center. Huntsville's is on the Internet (Adobe PDF Format). Mail me and I will provide a Web-site. Savannah should also have such CAB guidance for construction contracts.
Happy Sails! Joel

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