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  • Question

    Our airshow is scheduled in Nov 2012. Can an act or a service be secured before October 2012 (FY2013) ?


    Answer

    The air show would be considered a non-severable service, as it is a single undertaking that cannot be feasibly subdivided. There is a non-severable services exception to the Bona Fide Need Rule that permits funding the effort with dollars available for obligation at the time the contract is awarded, even though contract execution crosses fiscal years. This is an important exception, and it would be extremely prohibitive if an agency needed a non-severable service that required extensive planning by the contractor upon contract award, well in advance of delivery of the service (an air show in this case).

    An ACQuipedia article on the Bona Fide Need Rule can be found here. Please consult with your organization's legal counsel for a more authoritative response on this important aspect of fiscal law.

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