Sign In
  • Question

    Can you legally incrementally fund the buy down partially with FY12 funds and partially with FY13 funds or do you have to fully fund with FY12 funds at the beginning of the period?


    Answer

    1. The FAR and DFARS references quoted below in pertinent part are applicable to this response.

    FAR 32.703-3 -- Contracts Crossing Fiscal Years
    (a) A contract that is funded by annual appropriations may not cross fiscal years, except in accordance with statutory authorization … and paragraph (b) of this subsection).

    (b) The head of an executive agency except NASA, may enter into a contract, exercise an option, or place an order under a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the period of the contract awarded, option exercised, or order placed does not exceed one year (10 U.S.C. 2410a and 41 U.S.C. 2531). Funds made available for a fiscal year may be obligated for the total amount of an action entered into under this authority.

    DFARS 232.703-3 -- Contracts crossing fiscal years
    (b) The Contracting Officer may enter into a contract, exercise an option, or place an order under a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the period of the contract awarded, option exercised, or order placed does not exceed 1 year (10 U.S.C. 2410a).

    2. Based on the FAR and DFARS references quoted above, and assuming that period of performance for the severable service contract in question will begin in FY12 and then cross over into FY13, then we believe that the Contracting Officer may incrementally fund the contract using both FY12 and FY13 3400 funds because the language in FAR 32.703-3(b) permits, but does not require that, the total contract period of performance in this case be funded entirely with FY12 funds at the beginning of the period.

    Open full Question Details