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Contract Allotment and Termination Liability


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Greetings All,

Sorry to post such a newbie question, but when discussing an allotment to an incrementally funded, CPAF, DoD contract, is the allotment defined by what was appropriated to the program by Congress, or what is obiligated to the program by the CO?

Thanks for any references you can provide.

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If you are using the term as it is used in the clause at FAR 52.232-22 Limitation of Funds, then allotted means obligated on the contract by the contracting officer -- not the amount "allotted" by the Congress in an appropriations bill; not the amount "allotted to the agency by OMB; not the amount "allotted" by the agency to the program office; not the amount "allotted" by the program office for the contract; but the amount allotted by the contracting officer on the contract as payable to the Contractor.

This is how I see it.

There are terms such as allocated and alloted and apportioned and appropriated and so forth used in budget circles, so I can understand that there is some misunderstanding sometimes.

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Guest Vern Edwards

The terminology is:

Congress
authorizes
and
appropriates
funds.

OMB
apportions
funds to agencies.

Agencies
allot
funds to organizational units and programs.

Apportionment
and a
llotment
are called
administrative division
and
subdivision
.

COs
obligate
funds (make
obligations
) that have been authorized, appropriated, apportioned, and allotted.

Finance offices
commit
and
disburse
funds (make
commitments
and
disbursements
).

See GAO, A Glossary of Terms Used in the Federal Budget Process (Sept. 2005).

FAR 52.232-22, Limitation of Funds, which is used in incrementally funded contracts, refers to the increment of funds obligated as "the amount available" and "the amount allotted" to the contract.

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