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Letter Contract - Definitization

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I am in the process of definitizing a letter contract. The Not-To-Exceed amount, based upon the proposal submitted by the contractor, is $50,000.00. The contract definitization schedule allowed 60 days. I am now ready to definitize the contract. The base period of the contract is $1,460,500. The program office only provided available funds in the amount of $460,500, which will only incrementally fund the contract for this amount. In preparing the SF30, what amount do I place on the modification? And do I go back and prepare an SF33/SF1449 and attached the modification?

I have no experience with letter contracts. Please help.

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Both amounts ( a ) and ( b ) can go into the definitizing document. Or, do a bilateral definitizing document for ( a ) and a separate unilateral contract modification for ( b ).

Here, ( a ) is the agreed-upon definitized price and ( b ) is the amount obligated in incremental funding.

If the program office does not intend to provide additional funding, then you need to renegotiate ( a ) and the work scope down to match ( b ). If the program office intends to provide the remainder of the funding later and your contract allows for incremental funding, all is well.

If your letter contract was done in SF-33/SF-1447/SF-1449 format, then your definitizing document can be a SF-30 modification. If your letter contract was done by letter (where would this idea come from?), then your definitizing document can be a SF-33/SF-1447/SF-1449.

ji

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ji20874

The program office does intend to provide additional funding.

Since the letter contract was done by letter, which is how the agency does it here, do I only need to definitize the contract on an SF33/1449?

It is a bit frustrating trying to put together contractual documents the right way without proper guidance. I really appreciate your immediate response to my question. It really helps me to put my documentation together in a timely fashion.

I noticed many times when a WIFCON member addresses a question; several reviewers may review it without a response. This site really helps those of us, including myself, who are just entering into the 1102 series to understand and apply the concepts of the acquisition process. So, your immediate replies are so important to us. Thank you.

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If your letter contract was done by letter, then yes, your definitizing contract can be bilaterally formed on a SF-33, SF-1447, or SF-1449 (or SF-1442 for a construction contract).

The best answers come from asking questions...

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Guest carl r culham

I would suggest a read of FAR 53.2 for prescription of forms and also any agency supplement you might have in the same area. Also FAR Part 12 and any agency supplement to it as well.

You have mentioned either a SF-33 or a SF-1449. Seems to me that you would use the 1449 only if your solicitation, letter contract and definitized contract is for a commercial item. The SF-33 is for procurements other than commercial item. It actually gets more detailed than just this as already mentioned the SF-1442, SF-1447, OF-347, or SF-26 may be appropriate in your specific instance. You need to apply the details of your specific instance the prescription information found in FAR 53.2.

Pay close attention to prescription as use depends on not only commercial item or not but whether you solicited bids, proposals, or accomplished the procurement through a single source.

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Guest Vern Edwards

Contract definitization is a contract modification. It should be done under Standard Form 30, even if the original contract is in letter form.

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Acq_4_life,

What you should do is ensure that a financial obligation of $50,000 was recorded using the letter contract. Now do a definization modification using an SF30 showing the amount of available incremental funds as $460,450 (you alreday have $50,000 obligated).

Just curious - are you asking about an SF33 and SF1449 becuase you use an automated system and a "letter" award won't work to obligate the money?

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