Can we pay for the material against the previous option CPFF CLIN? Or should we pay for it when accepted by the Government on the current option CPFF CLIN? The contractor claims that they issued a FFP purchase with the vendor and should be able to charge it to the previous CPFF CLIN that has expired.
The question concerns appropriations law. RDT&E funds are available for incurring new obligations for a period of 2 years. After that 2 year period, they are available for adjustment to, or payment of, existing obligations for a period of 5 years. (see DoD Financial Management Regulation (FMR) Vol 2A, paragraph 010107B.25.).
If materials were ordered by the contractor one lead time away from need, even if they deliver during the PoP of Option 2, this would be a legitimate action. The materials were a Bona Fide need of Option 1. As such the materials not only can, but should, be paid for with the previous year RDT&E, N funds. This is a CPFF contract. There is no problem with the funds for obligation or payment under the Time Rule of the Antideficiency Act. You may pay the contractor when they submit the bill under a Cost Voucher using the previous year's RDT&E funds.
As always, you might want to consider running your question by your local legal representative for sufficiency.