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  • Question

    Is it allowable to let cust incrementally fund? Services will not cross fiscal years. Is it a good idea? Is it difficult to administer with incremental funds. Please answer ASAP (naturally :--)


    Answer

    DFARS 232.703-1 describes the conditions under which a contract may be incrementally funded, so you need to consult that section. It's not entirely clear if your contract is predominantly a contract for services, so that must be considered. In order to convert to incremental funding, the contract will have to be bilaterally modified. This will require concurrence of the contractor, as switching from full funding to incremental funding changes a basic term/condition of the contract and adds a clause. Administering an incrementally funded contract is not more difficult than administering a fully funded contract; the primary difference is obtaining agreement on the bilateral modification.

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