NIH CO

If I am reading OMB M-13-22, Attachment 1, II.A., Q&A1 correctly, no action is permitted for non-excepted activities. Several contracts (to which my staff administer) will lapse. Options will not be exercised and there will be delays in the acquisition process for new awards. How are other agencies addressing this issue?

I am looking for some guidance or a resource. My agency, HHS, currently has a policy (Agency supplement to the FAR)of permitting incremental funding on cost reimbursement and fixed price contracts under certain conditions. Let me provide a scenario and it is my intent to capture if correctly. I am making an assumption that a Continuing Resolution (CR) will be put in place in FY2014. HHS is funded by annual appropriations. Also, assume that the services are severable for this scenario and that funds would cross the fiscal years (2014 into 2015.) On October 1, 2013, the Agency is appropriated under a CR. During such CR, the Agency allots a percentage of the appropriations to budget officials and funds certifying officials. It is determined that such percentage will not permit full funding of options on all contracts. Most of the severable service contracts will be fully funded for a period not to exceed 12 months. But, in the situation where a contract option cannot be fully funded due to a CR, I have a few questions: Assume the following: Option Year is 12 months, severable services and it crosses fiscal years (2014 into 2015) 1. Is the partial funding, due to a CR, now considered incremental funding? The contract does not cite any incremental funding clauses, only option clauses. 2. If not considered as such, is it appropriate for the Contracting Officer to "shorten" the option period to match the funding available? Note: this funding approach was not solicited, evaluated, negotiated or awarded under such terms. 3. If it is considered an increment and the Agency is fully appropriated, can a Contracting Officer fund the remaining 12 months? or only through the end of the fiscal year of the appropriations?