Anti Deficiency Act

[elevenohtoo]

I have a contract with 43% of funding obligated. This was for the CR through March 6. Now that we have a budget I?ve requested that the COR provide the remaining 57%. The COR is getting push back from his higher ups who do not want to release funding until their political appointees are in place. I notified the CO but he doesn?t seem to want to do anything about it. Aren?t we in violation of the anti deficiency act?

[Navy_Contracting_4]

I have a contract with 43% of funding obligated. This was for the CR through March 6. Now that we have a budget I?ve requested that the COR provide the remaining 57%. The COR is getting push back from his higher ups who do not want to release funding until their political appointees are in place. I notified the CO but he doesn?t seem to want to do anything about it. Aren?t we in violation of the anti deficiency act?

What type of contract do you have? Does it include a "Limitation of Funds" clause?

[elevenohtoo]

What type of contract do you have? Does it include a "Limitation of Funds" clause?

This is a services contract where the contractor invoices a firm fixed price per task. There is not a limitation of funds clause in the contract.

[Navy_Contracting_4]

This is a services contract where the contractor invoices a firm fixed price per task. There is not a limitation of funds clause in the contract.

When the contract was awarded, didn't it include some limitation of liability, stipulating what the contractor's obligation would be in the event no further funds were provided, e.g. contractor is not obligated to continue performance beyond the point at which the total of the funds payable plus an amount for termination expenses equals the funds obligated? What has changed?

[Guest Vern Edwards]

I have a contract with 43% of funding obligated. This was for the CR through March 6. Now that we have a budget I've requested that the COR provide the remaining 57%. The COR is getting push back from his higher ups who do not want to release funding until their political appointees are in place. I notified the CO but he doesn't seem to want to do anything about it. Aren't we in violation of the anti deficiency act?

I can't make heards or tails of your situation from that description. What is especially vague is the phrase: "with 43% of funding obligated." What does that mean? Have you obligated only 43 percent of the funds available for obligation? Have you funded only 43 percent of the total estimated cost or the price of an incrementally-funded order?

You ask if you have violated the Anti-Deficiency Act. The Act prohibits an obligation in the absence of or in advance of a Congressional appropriation. If Congress has appropriated funds for the work, and if those funds are available for obligation, then there cannot be a violation of the Anti-Deficiency Act, even if the contracting officer has not obtained an administrative commitment from finance and/or recorded an obligation by inserting a fund citation in the contract. However, when making an obligation, the failure to obtain an administrative commitment and to subsequently record an obligation increases the risk of a violation.

If you have an incrementally-funded task order, whether cost-reimbursement or fixed-price, and if the contractor has limited its obligation to 43 percent of the total estimated cost or of the price of the task order and funded that amount, then failure of the government to fund the remainder of the total estimated cost or price should not result in a violation of the Act. I assume that the contract includes a clause ithat limits the government's obligation to the current funding on the order. Thus, if you have an incrementally-funded task order with a total estimated cost or a price of $1,000,000, and if the government has funded the contract up to $430,000 and limited its obligation to that amount, then there should be no violation of the Act unless (1) the contracting officer has encouraged the contractor to exceed the $430,000 and (2) no appropriation is available to fund the excess.