According to the Department of Defense Inspectory General, over 80% of the undefinitized contractual actions (UCAs) entered into over a six-year period did not meet statutory and procedural requirements. Consequently, the Inspector General has concluded that DOD assumed additional cost risk, may have paid excessive profits and may have paid more than fair and reasonable prices.

According to the Department of Defense Inspectory General, over 80% of the undefinitized contractual actions (UCAs) entered into over a six-year period did not meet statutory and procedural requirements. Consequently, the Inspector General has concluded that DOD assumed additional cost risk, may have paid excessive profits and may have paid more than fair and reasonable prices.

The most common failures were not definitizing actions within the 180-day time frame and failure to determine whether contractor profits reflected work performed during the undefinized period. Other problems included improper justification to issue a UCA and failure to adequately support UCA authorization requests.