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  • Question

    Can my contract be considered a non-severable contract? Can we pay for the whole year in advance to get the discount? If so where do I find the regulation to support this yearly payment?


    Answer

    You cannot pay for a year in advance because it violates the Bona Fide Need rule.  The rule states: "A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to exist in, the fiscal year for which the appropriation was made." Unless you have "no year" funds (the Bona Fide Need rule does not apply to no year funds), it would be inappropriate and an Anti-Deficiency Act violation to spend this year's funding on a requirement that doesn't exist until next year.
     
    Please refer to the attached Job Aid.


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