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  • Question

    Can I extend the Period of Performance on a Cost Reimbursement Project Order after the PoP and funds have expired?


    Answer

    There are 2 fiscal laws pertinent to your question:

    1. The Bona Fide Need Rule (31 USC §1502(a)):
      “The balance of an appropriation or fund limited for obligation to a definite period is available only for payment of expenses properly incurred during the period of availability…”  For procurement appropriations, this period of availability is 3 years.
    2. The Time Rule 31 USC §1552(a):
      “On September 30th of the 5th fiscal year after the period of availability for obligation of a fixed appropriation account ends, the account shall be closed and any remaining balance (whether obligated or unobligated) in the account shall be cancelled and thereafter shall not be available for obligation or expenditure for any purpose.”  This means that, for each appropriation there are 3 periods:
    1. Current Period:  Available for new obligations, obligation adjustments, expenditures, and outlays.  For FY17 Procurement, this would be from 1 Oct 2016 – 30 Sept 2019
    2. Expired Period:  Available for obligation adjustments, expenditures, and outlays, but no new obligations.  For FY17 Procurement, this would be from 1 Oct 2019 – 30 Sept 2024
    3. Cancelled:  Unavailable for obligations, obligation adjustments, expenditures, and outlays. For FY17 Procurement, this would be starting 1 Oct 2024…

    Also, the DoD 7000.14-R, Financial Management Regulation, Volume 11A, Chapter 2 (PROJECT ORDERS) (Dated January 2018), addresses the topic of extending a Project Order:

    https://comptroller.defense.gov/Portals/45/documents/fmr/Volume_11a.pdf

    020503. Expiration

    Expiration dates of project orders must not extend beyond the point in time in which the appropriation funding the order cancels (generally five years after the appropriation expires for new obligations).

    020514. Project-Order Modifications

    C. If the appropriation used to fund the initial order has expired, then use it to fund only those amendments and modifications that are within the general scope of the initial project order.

    D. All modifications that increase or change the general scope of work of the original order must be charged to a current appropriation.

    020604. Expiration Dates

    Expiration dates of project orders may be extended with the approval of the ordering DoD Component. Expiration dates of project orders may not extend beyond the point in time in which the ordering appropriation cancels.

    As such, you should be able to extend the expiration date of your Project Order up until the point in time in which the ordering appropriation cancels (which for FY17 Procurement would be 30 Sept 2024), so long as the modifications is within the general scope of the initial project order.  If you were intending to extend the expiration date of your Project Order simply to allow already completed work to be billed and expended, this project order modification should not be necessary, since as outlined above, you have until 30 Sept 2024 for this billing/expenditure/outlay to complete, after which time the funds become cancelled and are unavailable for obligations, obligation adjustments, expenditures, and outlays.

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