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  • Question

    Based on the bonafide needs rule, what year funds do I use for a request for equitable adjustment?


    Answer

    You have inquired about the utilization of funds for the correct Fiscal Year based on a Request for Equitable Adjustment (REA).  Based on the Financial Management Regulation (FMR) 7000.14-R Volume 3 Chapter 8 as you have correctly assessed below the funds you refer to from FY 2012 are in the expired status as of FY 2015.  The original obligation was cited based on the FY 2012 which means you need to use the original obligation from FY 2012 cited to pay the REA you have received in your office.  The REA does not constitute a Bona Fide Need Violation as the change in the amount of the government's contractual liability that resulted from an amendment, within scope change, to a contract is chargeable generally to the appropriation or other fund current at the time the contract was executed. 
     
    I strongly suggest you contact your Comptroller or funds certifier for further direction in this matter.
     

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