(a) Approval for the use of an early effective date is at the Wing PK level or equivalent (per AFMCFARS table in 5301.9001(g)(1)). After reaching agreement on terms, conditions, price, and if funds are available, the contracting officer may advise a prospective contractor in writing of the Government’s intent to use an effective date before the contract mailing (award) date. The early effective date shall not be earlier than the price agreement date.
(b) State in the notice to the contractor that any costs recognized in a resulting contract shall be limited to those allowable, allocable and reasonable; costs that would normally be recognized if incurred after contract award. Also state that if there is no contract, all incurred costs shall be at the contractor’s own risk.
(c) Provide contractual coverage with a letter contract, or other appropriate undefinitized contractual action, if the Government intends to direct a prospective contractor, accept benefits of efforts, or make payments before definitive contract mailing date.
(d) Obtain legal review for early effective dates established more than 30 days prior to the envisioned contract award date.
(e) See 5331.109(h)(4)(90) - Advance Agreements, if it is necessary to recognize incurred costs before the effective date of a resulting contract.
(f) See additional guidance for clarification between Early Effective Date, Pre-contract Costs and Advance Agreements.
