ipod24 Posted March 30, 2012 Report Share Posted March 30, 2012 I was faced with an excuse by an Administrative Contracting Officer about the reason why some contracts with Option years were not deobligated at the end of each period of performance (POP) (i.e., base year ends, excercise 1st option period, deobligate base year provided all invoices under that POP has been accounted for). The excuse was "because they are bulk funded"... I've not heard of this term buld funding, but based on my research it is defined under FAR 13.101((4) Use bulk funding to the maximum extent practicable. Bulk funding is a system whereby the contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document. Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period. So to me bulk funding does not necessarily have relevance to why we cannot deobligate funds from previous POP provided all invoices were accounted for that year. If appropriated funds were available it has to stay within the alloted time period - In this case a year.... Am I understaning this correctly? Link to comment Share on other sites More sharing options...
Retreadfed Posted March 30, 2012 Report Share Posted March 30, 2012 I was faced with an excuse by an Administrative Contracting Officer about the reason why some contracts with Option years were not deobligated at the end of each period of performance (POP) (i.e., base year ends, excercise 1st option period, deobligate base year provided all invoices under that POP has been accounted for). The excuse was "because they are bulk funded"... I've not heard of this term buld funding, but based on my research it is defined under FAR 13.101( (4) Use bulk funding to the maximum extent practicable. Bulk funding is a system whereby the contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document. Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period. So to me bulk funding does not necessarily have relevance to why we cannot deobligate funds from previous POP provided all invoices were accounted for that year. If appropriated funds were available it has to stay within the alloted time period - In this case a year.... Am I understaning this correctly? It would be helpful if you identified the type of funds used, and their period of availability for obligation. Link to comment Share on other sites More sharing options...
ipod24 Posted March 31, 2012 Author Report Share Posted March 31, 2012 It is O&M Funds... Link to comment Share on other sites More sharing options...
dcarver Posted March 31, 2012 Report Share Posted March 31, 2012 Are you asking if you are understanding the correct definition of bulk funds, or whether the ACO should or should not de-obligate the funding for you/what you can do about it? Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted March 31, 2012 Report Share Posted March 31, 2012 If the obligation period for the funds has expired, all deliveries have been made, and all bills have been paid, the bulk funded purchase order must be closed out and any excess funds deobligated. O&M money is one-year money and options have to be funded with appropriations available for the period covered by the option. Link to comment Share on other sites More sharing options...
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