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  • Question

    Can I incrementally fund a multi-year remedial action task order for NON-severable services using no-year money? We would like to write the scope of work without the use of optional tasks.


    Answer

    Financial Management Regulation Volume 3, Chapter 8, page 8-13 states:

    "Unless the period of performance is entirely within a single fiscal year or within the charged account’s period of availability if funded using a multiyear appropriation, non-severable services contracts may not be funded on an incremental basis unless Congress has authorized incremental funding. These type contracts must be funded entirely with appropriations available for new obligations at the time the contract is awarded or options exercised." 


    While "no year" funds would avoid violation of the Bona Fide Needs rule, incrementally funding a non-severable contract contradicts the FMR requirement that such contracts "must be funded entirely with appropriations available for new obligations at the time the contract is awarded or options exercised." Whether the funds are "no year" funds or current year funds, they are in fact "appropriations available for new obligations at the time the contract is awarded." If there is some exception to this requirement permitted for "no year funds," I'm not aware of it. You may want to consult with your activity's legal counsel on this unique matter of fiscal law.

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