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  • Question

    Is it legal to have a POP with 2 years, utilizing Army O&M 1 Year Funding? If the answer is yes, then what is the cut off for a POP with O&M funding? For example, can the POP last 5/10/15 years?


    Answer

    It all depends how you structure the contract and what the nature of the work is. If the work is segregable, you can use O&M funds and have an option or phase as a separate line item. The option CLIN is not funded, nor does the work commence or continue, until funding is provided. Yes, contracts can be structured for 5-10-15 years and still use O&M money- but only if the work is segregable and the contract is properly written.
     
    Since service contracts can cross fiscal years under certain circumstances, there is no such thing as a "cutoff" for a POP using O&M funds.  We recommend you cosult with both your Contracting Officer and Financial Officer.
     
     

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