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  • Question

    What would constitute starting work enough to meet the bona fide need rule? Submittals? Ordering Supplies?


    Answer

    The excerpt below is from DAU's Bona Fide Need ACQuipedia article:
    Construction contracts: To be properly considered a bona fide need of a fiscal year, construction contracts obligated and awarded late in a FY (e.g., September) must have a performance start date within 90 days of contract award. For example, if a contract was awarded on 15 September with funds from that fiscal year, performance must start by 13 December of the new fiscal year, in accordance with DoD fiscal law, to be a bona fide need of the FY that ended 30 September. The government should also consider normal lead-time, typical weather conditions, and factors within government control (e.g., site access availability) in determining bona fide need for construction projects:
    • Weather conditions: A project that cannot reasonably be expected to commence before the onset of winter weather is not a bona fide need of the prior fiscal year.
    • Factors within government control: In considering bona fide need, the government must consider the required delivery date, the normal rate of construction, when the government intends to make facilities, sites, or tools available, and the degree of control the government has over when the contractor may begin work.
    It should suffice for the contracting officer to document the file with the reason that location requires five months' lead time until construction starts. The location would have to be remote (and very cold) to do so.

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