Operating Status
FULLY OPERATIONAL
OPERATING STATUS
Sometimes scenarios like this happen. I will make the assumption that it was an honest mistake by the contractor and they would not have agreed to the modification deobligating funds if they knew/realized they hadn't been paid yet. I will also make the assumption that the contractor completed the work successfully and it was accepted by the government.
My advice is to pay the invoice; see FAR 1.602-2(b). If my assumptions above are accurate, it is quite dubious the government would prevail should the contractor choose to file a claim. Furthermore, a claim under the disputes act would require a contracting officers final decision. Most agencies require the contracting officer's final decision to be reviewed by legal... I seriously doubt (again if my assumptions are accurate) any contract attorney would approve of such a contracting officer's final decision denying payment in this case.
Because of the Time Statute 31 U.S.C. § 1502 you will need to use FY19 funds. Your finance office should know the procedures and forms you will need to follow/fill out to request an Obligation Adjustment Requirement. There is a very, very good chance your agency still has FY19 funds. While these can't be used for new requirements (they don't expire for another 4 years) they can be used for adjustments on work during FY19, specifically for the purposes that your scenario represents.
Required fields marked with *
Please note that you should expect to receive a response from our team, regarding your inquiry, within 2 business days.