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  • Question

    Does the long lead time associated with retrieving the amplifiers allow for a non-severable contract even though it may take the Contractor approximately two months to overhaul the equipment?


    Answer

    Long lead time is irrelevant to a severability determination. The pertinent question is when does the Government get a usable product or service? If the answer is at the end of the contract, then you have a non-severable service; if you can make discrete "chunks" of work where you can get deliverables, then you have a severable service. 
     
    The GAO stated in 23 Comp. Gen. 370, 371 (1943). A contract that is viewed as “entire” is chargeable to the fiscal year in which it was made, notwithstanding that performance may have extended into the following fiscal year. The determining factor for whether services are severable or entire is whether they represent a single undertaking. Here, where the overhaul and refurbishment of the power amps cannot be chopped into multiple pieces, the work is clearly non-severable.


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