Can this funding be realigned, repurposed or some other way to utilize the fund as there in or than $1.6 m that will be lost
The question revolves around using OMA funding from FY 2017 for a purpose different than the original purpose. O&M funding has a one year period of availability which means it is only available for 12 months for new obligations. Based on the question I am assuming the OMA was FY 2017 funding which means that this FY 2017 OMA funding has moved into an expired category. You are not able to make new obligations with FY 2017 OMA dollars since it has now moved into the expired category.
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If the SOW is such that you can make an obligation adjustment to the new contract using these funding then I would do that but you must be sure that this is not something new as far as purpose from the reason you were given the FY 2017 OMA dollars.
You need to consult with the Comptroller/BFM to see if the SOW is the same so you could move that funding - if the SOW isn't the same then you will not be able to obligate those FY 2017 OMA dollars.