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Working Capital Funds Be Carried Over


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A time-and-material contract was awarded with a base period and four one-year option periods. The ceiling amount for the base period is $2M with a performance period ending April 29, 2011. The contractor?s invoices for effort performed in the base period totalled $1.9M, leaving an unexpended balance of $12K. The program office requested that the unexpended funds (Working Capital Funds) be carried over into the next performance period (Option 1).

I understand that a working capital fund is a no-year fund and is available until expended; however, what are the required procedures for using unexpended funds? Please advise. Thanks.

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Assuming you don't have complicated behind the scene accounting issues, the simplest way is exercise Option 1 and state in the mod that" the full estimated value of the option is $2 million of which $1,988,000 is provided as funding by this mod and the remaining $12,000 is carried over as unexpended funds from the base period and made available for option 1".

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