Question 6: You are working on an undefinitized contract action (UCA) for the purchase of cargo hooks for the CH-47 Chinook helicopter. The not-to-exceed (NTE) price is $7,000,000. Can you obligate the total amount at time of award? Why or why not?

Answer: (please select one)

A) No, the regulations only allow you to obligate up to 20% of the NTE price prior to definitization

B) Yes, the regulations allow you to obligate 100% of the NTE price prior to definitization

C) No, the regulations only allow you to obligate up to 50 percent of the estimated definitized contract cost prior to definitization

D) Yes, the regulations allow you to obligate 20 percent of the NTE price prior to definitization