Is it possible to exercise an option with 0 dollars and then once the funds have been released, create a modification to apply funding? We have the funding; however, the ITPR is pending and finance cannot release the funds under the ITPR is received.
No, you cannot do that. What happens if the funds are withdrawn or cancelled or diverted to a higher priority program? What happens if there is a moratorium declared on issuing and funding contracts (has happened several times in the past)? Any of those events puts you and your activity into an Anti-Deficiency Act violation, which is a criminal offense punishable both by fines and jail time-- you do not want to go there.
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