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  • Question

    Can I pickup the FF&E option with DWCF funds at award or will the bona fide need prevent award of the option until closer to the end of the contract when the furniture is actually needed? The FF&E option period is 2 years.


    Answer

    This question is a bit tricky without knowing the full terms and conditions of your contract and project, so here is one interpretation based on fiscal law and the regulations.  Please consult your fiscal department and legal before exercising the option.  Since DWCF is being used,the assumption is the FY obligation limitations are not applicable to this particular scenario.  Based on FMR 080901, the Bona Fide Needs Rule does apply.  As long as funds are available in the DWCF and there is a valid determination for a bona fide need for that option period at award, it is possible to exercise that option at award in accordance with FAR 17.207 and DFARS 217.207.  It is recommended to document how this obligation action is in the best interest of the Government since you are then obligating the funds at that time.  Also, ensure to carefully review the regulations concerning DWCF in the FMR since there have been updates concerning DWCF and bona fide needs as recent as February, 2020.   

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