Try2B

@Lionel Hutz The finance office had the full $800k available in the same FY, however the funding document they created for this contract was only for $500K. That's what was budgeted for at the time.

@joel hoffman The CS discovered the error.

Thanks for your responses. I was of the mindset that it was an administrative error easily fixed by a modification, however the supervisor insisted it was an ADA violation. So much so that there was disciplinary actions taken on the KO and the CS.

@Sunstrider $500K was cited in 252.232-7007.

$800k was obligated, but a modification was done to deobligate $300k, to match the $500k funding doc.

A firm fixed price proposal was negotiated at a value of $800K. Funding at the time was available in the amount of $500K.  The contract was awarded at a value of $800K, pursuant to DFARS 252.232-7007, the intention was to incrementally fund the contract in the amount of $500K. At the time, the organization was experiencing issues with the contract writing system, which resulted in the CLINs being inadvertently fully funded, thus over-obligating the $500K funding document by $300K.  Unknowingly, the KO signed the contract.  Within the same day, the error was discovered   A modification was done to reduce the obligation to the $500K available. 

Does this constitute an ADA violation?