Does a Government caused delay for a undefined requirement meet the lead time exception requirements for the bona fide need rule. I would like to know if the scenario expressed above would violate the bona fide need rule.
Your question revolves around a Government caused delay for an undefined requirement that could violate the Bona Fide Need Rule. You provided additional information of the requirement stating that FY16 3400 Operation and Maintenance funds were used and the contract was awarded 27 Sep 16 with initial delivery date of 90 days from contract award or designation of the radio frequency. The original delivery was based on the contract award date and had a 19 Dec 16 delivery date. But, the Government has not provided the contract with an approved frequency because it is currently undergoing approval through the FAA. O&M funding is governed by the Annual Funding Policy which has one exception that a contract can cross fiscal years. Based on the information you have provided, there is no violation of the Bona Fide Need Rule since you needed the item procured at the time you ordered the item. The additional FAA requirement was unknown at the time of the award. As long as the FY16 3400 O&M funds were obligated and the item will be delivered within 12 months, there is no violation of the Bona Fide Need Rule based on my interpretation of the US Code.
Open full Question Details
I strongly suggest that you contact your local Comptroller/funds certifier to ensure that the Component/Agency does not have stricter guidance than the overall guidance in the Financial Management Regulation (FMR) 7000.14-R.