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  • Question

    Do the funds need to be pulled back and re-obligated in FY17? Or since CIP funds are 2 year funds can the POP be amended to show 2017?


    Answer

    While it is not completely clear how the funds were provided via reimbursement
    (assume Project Order), the Project Order for the goods or services being
    provided can be modified.  This would include changing the date and using the
    same funds, since the funds do not expire and can fund a bona fide need of
    FY17 requirements (given that Procurement funds are 2 year funds for
    obligation).  See DoD FMR Volume 11A, Chapter 2:
     
    *020514. Project-Order Modification
    The Project Order statute 41 U.S.C. 6307 differs from the Economy Act 31
    U.S.C. 1535
    because it permits agencies to account for obligations for orders encompassed
    in paragraph
    020102 in the same manner as orders for similar work placed with commercial
    manufacturers
    and private contractors. Project orders, similar to commercial contracts, may
    contain special
    provisions and may be modified. Unlike procurement contracts with commercial
    concerns,
    where competition requirements limit permissible contract modifications,
    project orders may be
    changed or increased at any time to accommodate new or additional work so long
    as proper
    funding is available, and so long as the new work otherwise meets the general
    conditions
    governing issuance and acceptance of project orders. If the appropriation used
    to fund the initial
    order remains available for new obligation, then use it to fund all
    modifications that are a bona
    fide need of that appropriation, even if the modification changes the scope of
    the project order.
     
    While it appears allowed per the DoD FMR, Service comptrollers can always
    utilize stricter rules and controls, so it is always necessary to check and
    comply with service comptrollers rules and procedures.
     

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