Does anything allow for the contract extension to be awarded by KO subject to availability of funds (passing of FY17 appropriations or extension of CRA)?
Although this question was overcome by events when the Consolidated Appropriations Act, 2017 became law on 5 May 2017, this answer is provided as academic.
Nothing in the Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement permits the exercise of an option subject to the availability of current fiscal year funds.
FAR 32.703-2 describes the policies and procedures for contracts conditioned upon availability of funds. There are two clauses for contracting in advance of funds. The clause at FAR 52.232-18, Availability of Funds, is used in solicitations and contracts if the contract will be chargeable to funds of the new fiscal year and the contract action will be initiated before the funds are available. The clause at FAR 52.232-19, Availability of Funds for the Next Fiscal Year, is used in solicitations and contracts when a one-year indefinite-quantity or requirements contract for services is contemplated and the contract is funded by annual appropriations and will extend beyond the initial fiscal year. These clauses apply to the availability of funds at the start of a new fiscal year or for the next fiscal year. They do not apply to the availability of funds during the current fiscal year. Further, a contracting officer may not exercise an option until he or she has determined that funds are available [FAR 17.207(c)(1)].
Please follow the link below to the answer to a related Ask A Professor question, which explains that the expiration date of a continuing resolution applies to the date that the funds must be obligated, not the period of performance of the contract action.
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