(90) To discourage extended periods of performance prior to definitization and to preserve the DFARS flexibility to increase the pre-definitization level following submission of a qualifying proposal (i.e., one which provides the required cost or pricing data, along with the conractor’s spend plan for the contract and any other information the contracting officer deems necessary for price definitization (see DFARS 217.7401(c)), the contracting officer shall keep the obligation level at or below 50 percent of the not-to-exceed UCA ceiling price. Upon receipt of such required information, the contracting officer should assess the contractor’s performance, the liquidation rate and determine whether a change in predefinitization funding ceiling is warranted. The assessment and conclusions shall be documented in the contract file. (These requirements are not applicable to UPO’s)
