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  • Question

    Can a CO award/obligate funds in the contracting system with an effective date of October 1st and sign the SF 30 with a September date? Can the TO be executed and sent to the contractor after the CO signs in September? Is it correct that the TO is not actually obligated because fiscal has not finalized the obligation of funds in the financial system? OR is the CO anti deficient when the TO is signed and issued to the contractor in with a September date.


    Answer

    The Government incurs the obligation when the task order or delivery order is signed and issued to the contractor, so it is NOT true that an obligation would not be created simply because the funds were not finalized in the financial system. However, FAR 37.703-2(a) permits the contracting officer to "...initiate a contract action properly chargeable to funds of the new fiscal year before these funds are available, provided that the contract includes the clause at 52.232-18, Availability of Funds." Also note this authority is available only for O&M and continuing services. Please consult with your organization's legal counsel on this matter of fiscal law, as federal agencies may have different rules regarding the timing of funds obligation. 

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