US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 3372

Undefinitized contractual actions: requirements and limitations relating to definitization of contractual terms, specifications, and price

(a)

Contractual Action to Provide Time for Definitization of Contractual Terms, Specifications, and Price; Limitations on Obligation of Funds.—

(1)

Terms for time for definitization to be included in contractual action .—

A contracting officer of the Department of Defense may not enter into an undefinitized contractual action unless the contractual action provides for agreement upon contractual terms, specifications, and price by the earlier of—
(A)
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
(B)
the date on which the amount of funds obligated under the contractual action is equal to more than 50 percent of the negotiated overall ceiling price for the contractual action.
(2)

Limitation on obligation of funds before definitization.—

(A)

50 percent limitation .—

Except as provided in subparagraph (B), the contracting officer for an undefinitized contractual action may not obligate with respect to such contractual action an amount that is equal to more than 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action.
(B)

75 percent limitation when contractor submits qualifying proposal .—

section 3377(b) of this titleIf a contractor submits a qualifying proposal (as defined in ) to definitize an undefinitized contractual action before an amount equal to more than 50 percent of the negotiated overall ceiling price is obligated on such action, the contracting officer for such action may not obligate with respect to such contractual action an amount that is equal to more than 75 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action.
(3)

Waiver authority .—

The head of an agency may waive the provisions of this subsection with respect to a contract of that agency if that head of an agency determines that the waiver is necessary in order to support any of the following operations:
(A)
A contingency operation.
(B)
A humanitarian or peacekeeping operation.
(4)

Inapplicability with respect to purchase of initial spares .—

This subsection does not apply to an undefinitized contractual action for the purchase of initial spares.
(b)

Limitation on Unilateral Definitization by Contracting Officer.—

(1)

In general .—

With respect to any undefinitized contractual action with a value greater than $50,000,000, if agreement is not reached on contractual terms, specifications, and price within the period or by the date provided in subsection (a)(1), the contracting officer may not unilaterally definitize those terms, specifications, or price over the objection of the contractor until—
(A)
the service acquisition executive for the military department that awarded the contract, or the Under Secretary of Defense for Acquisition and Sustainment if the contract was awarded by a Defense Agency or other component of the Department of Defense, approves the definitization in writing;
(B)
the contracting officer provides a copy of the written approval to the contractor; and
(C)
a period of 30 calendar days has elapsed after the written approval is provided to the contractor.
(2)

Treatment of unilateral definitization of a contract as a final decision .—

A unilateral definitization by a contracting officer shall be considered a final decision under chapter 71 of title 41, and a contractor may appeal this decision to the Armed Services Board of Contract Appeals or the United States Court of Federal Claims.
(c)

Foreign Military Contracts.—

(1)

-day requirement 180.—

Except as provided in paragraph (2), a contracting officer of the Department of Defense may not enter into an undefinitized contractual action for a foreign military sale unless the contractual action provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period described in subsection (a)(1)(A).
(2)

Waiver authority .—

The requirement under paragraph (1) may be waived in accordance with subsection (a)(3).

Pub. L. 116–283, div. A, title XVIII, § 1819(a)134 Stat. 4189Pub. L. 118–159, div. A, title VIII, § 803138 Stat. 1965(Added and amended , (c), , ; , , .)

Editorial Notes

Codification

section 2326 of this titlePub. L. 116–283, § 1819(c)(1)Pub. L. 99–500, § 101(c) [title X, § 908(d)(1)(A)]100 Stat. 1783–82Pub. L. 99–591, § 101(c) [title X, § 908(d)(1)(A)]100 Stat. 3341–82Pub. L. 99–661, div. A, title IX100 Stat. 3920Pub. L. 100–26, § 3(5)101 Stat. 273Pub. L. 103–355, title I, § 1505(a)108 Stat. 3298Pub. L. 105–85, div. A, title VIII, § 803(a)111 Stat. 1831Pub. L. 115–91, div. A, title VIII, § 815(b)131 Stat. 1462Pub. L. 99–500Pub. L. 99–591Pub. L. 99–661The text of subsec. (b) of , which was transferred to this section, redesignated as subsec. (a), and amended by , (2), was based on , , , 1783–140, and , , , 3341–140; , formerly title IV, § 908(d)(1)(A), , , renumbered title IX, , , ; , (b), , ; , , ; , , . , , and added identical subsections.

section 2326 of this titlePub. L. 116–283, § 1819(c)(1)Pub. L. 115–91, div. A, title VIII, § 815(a)(2)131 Stat. 1462The text of subsec. (c) of , which was transferred to this section, redesignated as subsec. (b), and amended by , (3), was based on , , .

section 2326 of this titlePub. L. 116–283, § 1819(c)(1)Pub. L. 114–328, div. A, title VIII, § 811(3)130 Stat. 2268Pub. L. 115–91, div. A, title VIII, § 815(a)(1)131 Stat. 1462The text of subsec. (h) of , which was transferred to this section, redesignated as subsec. (c), and amended by , (4), was based on , , ; , , .

Amendments

Pub. L. 118–1592024—Subsec. (b). designated introductory provisions as par. (1) and inserted heading, redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, of par. (1) and realigned margins, and added par. (2).

Pub. L. 116–283, § 1819(c)(1)section 2326 of this title2021—Subsec. (a). , (2)(A), redesignated subsec. (b) of as subsec. (a) of this section and substituted “Contractual Action to Provide Time for Definitization of Contractual Terms, Specifications, and Price; Limitations on Obligation of Funds” for “Limitations on Obligation of Funds” in heading.

Pub. L. 116–283, § 1819(c)(2)(A)Subsec. (a)(1). , inserted heading.

Pub. L. 116–283, § 1819(c)(2)(C)Subsec. (a)(2). , inserted par. (2) designation and heading. Former par. (2) redesignated subpar. (A) of par. (2).

Pub. L. 116–283, § 1819(c)(2)(B)Subsec. (a)(2)(A). , (D), redesignated subsec. (a)(2) as (a)(2)(A), inserted heading, realigned margin, and substituted “Except as provided in subparagraph (B),” for “Except as provided in paragraph (3),”.

Pub. L. 116–283, § 1819(c)(2)(B)section 3377(b) of this titleSubsec. (a)(2)(B). , (E), redesignated subsec. (a)(3) as (a)(2)(B), inserted heading, realigned margin, and substituted “” for “subsection (h)”.

Pub. L. 116–283, § 1819(c)(2)(F)Subsec. (a)(3). , redesignated par. (4) as (3) and inserted heading. Former par. (3) redesignated subpar. (B) of par. (2).

Pub. L. 116–283, § 1819(c)(2)(G)Subsec. (a)(4), (5). , redesignated par. (5) as (4) and inserted heading. Former par. (4) redesignated (3).

Pub. L. 116–283, § 1819(c)(1)section 2326 of this titleSubsec. (b). , (3), redesignated subsec. (c) of as subsec. (b) of this section and substituted “subsection (a)(1)” for “subsection (b)(1)” in introductory provisions.

Pub. L. 116–283, § 1819(c)(1)section 2326 of this titleSubsec. (c). , redesignated subsec. (h) of as subsec. (c) of this section.

Pub. L. 116–283, § 1819(c)(4)(A)Subsec. (c)(1). , (B), inserted heading and substituted “subsection (a)(1)(A)” for “subsection (b)(1)(A)”.

Pub. L. 116–283, § 1819(c)(4)(C)Subsec. (c)(2). , (D), inserted heading and substituted “subsection (a)(3)” for “subsection (b)(4)”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleSection and amendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .

Existing Agreement Limits for Operation Warp Speed

Pub. L. 117–263, div. A, title VIII, § 883136 Stat. 2746Pub. L. 119–60, div. A, title VIII, § 811(b)(1)139 Stat. 948, , , which provided that the value of any modification to, or order made under, a contract or other agreement by the Department of Defense on or after , to address the COVID–19 pandemic through vaccines and other therapeutic measures generally would not be counted toward any limit established prior to , on the total estimated amount of all projects to be issued under the contract or other agreement, was repealed by , , .

Relaxation of Undefinitized Contract Action Limitations and Restrictions Related to National Emergency for Coronavirus Disease 2019

Pub. L. 116–136, div. B, title III, § 13004134 Stat. 522

“(a)
Section 2326(b)(3) of title 1010 U.S.C. 3372(a)(2)(B) , United States Code [now ], shall not apply to any undefinitized contract action of the Department of Defense related to the national emergency for the Coronavirus Disease 2019 (COVID–19).
“(b)
section 2326(j)(6) of title 10section 2326(j)(1) of title 1010 U.S.C. 3377(b)(1) In this section, the term ‘undefinitized contract action’ has the meaning given that term in , United States Code [probably means , now , which defines “undefinitized contractual action”].”
, , , provided that:

Pub. L. 116–136, div. B, title III, § 13005134 Stat. 522

“(a)
section 2326(b) of title 1010 U.S.C. 3372(a) The head of an agency may waive the provisions of , United States Code [now ], with respect to a contract of such agency if the head of the agency determines that the waiver is necessary due to the national emergency for the Coronavirus Disease 2019 (COVID–19).
“(b)
10 U.S.C. 3004 In this section, the term ‘head of an agency’ has the meaning given that term in section 2302(2) [probably means section 2302(1); now ] of title 10, United States Code.”
, , , provided that: