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  • Question

    What FAR or DFAR Clause should be used when de-obligating prior year fund from a Firm Fixed Price, Service Contract?


    Answer

    Generally speaking, once funds are obligated on a contract, they cannot be removed without the contractor's consent, unless the contract is complete and specific excess funds have been identified. So the direct answer is that you will cite "Mutual Agreement of the Parties" and not a FAR or DFARS clause.
     

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