The base year is about to complete, time to execute the option(s). For this, we have to use incremental funding (not preferable, but dealing with funding prioritization/availability; working with two increments, one at start and one at halfway point). There is a dispute on how we have to apply the initial increment. One camp says that funds must be applied to the Basic Option Year (12 mos) until it is fully funded, and only then can remaining funds be applied to the 12 1-month surge options, as necessary (the first increment is not sufficient to fully fund the basic option. In total, it could cover about 9.5 months of it). The other camp argues that an initial increment amount can be applied (split) to each of those CLINs, allowing them to both execute (start) at the same time, as long as they are both fully funded by the second increment, which is what is planned.
Relevant contract clause language on SOW Task 9, the second year surge support options: "This option may be exercised at award of Task 8 Option or during the period of performance of Task 8 Option, and shall not extend the period of performance of Task 8 Option. This option may be awarded for a maximum of twelve (12) option periods." For ref, Task 8 is the 12 month base option year.
Question: Is there a FAR/DFARS/case law reference you can point us to that will support a determination on this question? Fundamentally, can a portion (less than the full first increment, in this case enough to fund 6 months of the basic option) be applied to that CLIN, and the remainder be applied to execute three consecutive Task 9 1-month surge options, which is a separate CLIN? This is all assuming there is an operational need to execute that surge support (which we are told by the tech manager there is).
After researching, DFARS 252.232-7007, Limitation of Government obligation, states the obligation time line, specifically paragraphs (a)(d) and (j). FAR 52.232-22, Limitation of Funds, talks about funding. Neither makes a reference to how. The case law references all discussed the obligation and timeline. It is recommended you work with your Contracting Officer and legal office to make the determination.
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