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  • Question

    Can an REA negotiated in FY21 be awarded using FY22 funds to pay for an REA from FY19?


    Answer

    This is a question we receive quite often here at AAP.

    Your scenario typically involves an Obligation Adjustment Requirement (OAR) often referred to as a Upward Obligation Adjustment Request, where you ask your financing activity for a prior years funds. This is because of the Time Statute 31 U.S.C. § 1502. Depending on all of the facts, there is a very good chance you need to use FY19 funds ESPECIALLY if it was a one-year appropriation (i.e. O&M). Your finance office should know the procedures, process, and forms you will need to follow/fill out to request an Obligation Adjustment Requirement. Only in the unlikely event your organization does not have FY19 funds available for your action would you be able to (and required) to use FY22 funds.

    References: It really depends on the facts of your acquisition, but OARs are covered in DoD FMR Volume 3, multiple chapters (note: the DoD FMR is a painful, confusing read for most contracting personnel).

    Because you are Navy; we also provide the following link.

    Also, feel free to use the robust AAP search engine to find multiple questions that might have more detail that better aligns itself to your scenario.

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