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    If, due to variances, the Labor SLIN 110001 went over the funding by $200, but there is still $2,000 left on the ODC SLIN 310001 -- since they are the same ACRN -- can the contractor use the remaining ODC funding to pay the variance difference on the labor SLIN - if yes, can it be done without a contract modification? If the funding is FY10 R&D funding, it has expired, the funds can no longer be obligated and moved via a mod - correct? Is the contractor going to be able to collect the variance difference? Thanks! Sara


    Answer

    Please remember that AAP is simply adivsory in nature and it is difficult to answer questions such as this without having the entire contract and all clauses, terms, and conditions.  Ultimately, you are correct, expired funding can no longer be obligated.  But there are other issues that may come into play such as the contractor's requirement to notify the Contracting Officer prior to exceeding the estimated costs under the CPFF clins in accordance with 52.232-20. Please consult the cognizant contracting officer and budget officer and be sure to read the full text of all the clauses (FAR, DFARs, and Local Agency) to move forward.

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