Can we modify the contract for additional work with a different funding source? (we were told we cannot do this because of different payment offices on the same contract). Or is their a way to justify a separate sole source purchase order to the contractor due to the differing funds?
Can we modify the contract for additional work with a different funding source? When modifying a contract there are a number of factors that must be considered.
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First, is the modification within the general scope of the contract and is it a type of change allowed by the applicable changes clause, see Federal Acquisition Regulation (FAR) 52.243-1, 2, 3 or 4?
Second, depending on the contract, it can have multiple contract line items (CLINs) but each must reflect a single accounting classification citation, see Defense Federal Acquisition Regulation Supplement (DFARS) 204.7103-1. The fact that you have different funding sources would not necessarily prevent a modification to the contract.
Third, the funds cited must be available and intended for the purpose for which they are being used, and in the case of R&D funds, they are two year funds that can be used for both expenditures and investments. You should look at your changes clause and make sure the change is within the scope of your contract. If it is and you have current R&D funds being provided by your customer for HVAC repairs you may be able to modify the contract to add a CLIN for the additional work.
However, depending on the circumstances and what the contract says, it could be seen as new work in which case you would need to issue a new purchase order. You should review this matter with your contracting officer and your policy/legal office.