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  • Question

    Is there a waiver or exception to the 12 month delivery rule?


    Answer

    Per DoD Financial Management Regulation Volume 2A, Chapter 1 , paragraph 010202, Full Funding of Procurement Programs, there are two general exceptions to the full funding policy: one permits the use of Advance Procurement (AP) funding for components or parts of an item that have long production lead times; the other permits advance procurement funding for economic order quantity (EOQ) procurement, which normally occurs in programs that have been approved for multiyear procurements (MYP).
     
    As you are aware, the Funded Delivery Period (FDP)aspect of Full Funding Policy means one can't fund a production lot consisting of more items than contractor can deliver in 12 month period following first item delivery.
     
    So, what do you do if you discover that lot delivery stretches beyond the 12 month FDP?
     
    - Reduce number of items in lot so it fits in FDP or
    - Delay first delivery so last item delivery occurs within 12 months of first.

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