Sign In
  • Question

    Is there any provision in law that would allow us to incrementally fund the minimum guarantee and we didn't have the dollars to fully fund the guaranteed minimum?


    Answer

    Answer:
     
    Based on your question, "Can a TO that is to fullfill the guaranteed minimum be incrementally funded" the answer is yes, but it must be done based on how costs were expected to be incurred in order to deliver a final product with an RDT&E appropriation.  RDT&E appropriations follow the incremental funding policy, in which you "...only those funds required for work in a given fiscal year shall be included in the RDT&E budget request for that fiscal year for most classes of effort."  Funds should be allocated based on what costs are incurred during each respective fiscal year for the effort.  Over obligating each year of an IDIQ (indefinite delivery/definite quantity) contract, commonly called forward financing is prohibited. 
     
    The incremental funding policy requires that an RDT&E budget request be based on the costs expected to be incurred during a fiscal year, and thus placed on contract accordingly. Exceptions to this policy include the funding of contracts over 12 months, but less than 18 months in which there is 1) no logical way to divide the work, 2) it is clearly unfeasible to limit the contract to a shorter period, or 3) the planned technical effort is such that no responsible contractor can be found who will accept a contract for less than the full period of performance. Forward financing is a violation of the incremental funding policy. Comptroller review and approval of carryovers of RDT&E funds from one fiscal year to the next is designed to prevent forward financing. To determine RDT&E budget requirements, list all tasks expected to incur costs during the budget year, then determine when costs will be incurred across the life of each task.
     
    I strongly suggest you contact your local comptroller and contracting office immediately to ensure you are going by the guidance of your local agency based on when costs are expected to be incurred for the IDIQ contract.

    Open full Question Details