Sign In
  • Question

    Is this allowed on a cost-type CLIN?


    Answer

    Accepting voluntary services from a contractor is a violation of the Anti-Deficiency Act (ADA) of 1906 (31 US Code 665a).   The ADA basically states you cannot spend money you do not have, and when you do spend appropriated funds, it needs to be spent exactly for the reason Congress appropriated the money for when the law was enacted.

    The ADA was codified in three major statutes:

    31 U.S.C. § 1341 LIMITATIONS ON EXPENDING AND OBLIGATING AMOUNTS [“ANTI-DEFICIENCY ACT”]
    31 U.S.C. § 1517 PROHIBITED OBLIGATIONS AND  EXPENDITURES
    31 U.S.C. § 1342 LIMITATION ON VOLUNTARY SERVICES.
    31 U.S.C. § 1342 Limitation on Voluntary Services appears to apply to your situation. The statute prohibits the

    Government from accepting voluntary services without paying for them.  If the Government were to accept services without funds on the contract for those services, the contractor could file a claim and would probably win the claim which would then lead to Congress having to provide the funding after the fact.  This would be a violation of the law and would lead to someone getting into big trouble.  Most likely the Contracting Officer.  Bottom line: Do NOT accept voluntary services, period.


    Additionally,
    FAR 52.232-20 -- Limitation of Cost is required for all fully funded cost reimbursement contracts, and the clause provides the steps that both the Contractor and the Contracting Officer are required to follow when it’s learned that the total cost for performance of the contract will be greater than previously estimated.  The Contractor must first notify the Government in writing when total cost will be greater than originally estimated, and the Contractor is not obligated to continue performance until the Contracting Officer notifies the Contractor the estimated cost has been increased and funds are available for the new estimated amount.  Finally, if the Contractor has “used its best efforts to perform the work specified and all obligations under this contract” and the Government decides not to increase the estimated cost, then the contract would either need to be terminated or an equitable adjustment negotiated.

    Open full Question Details