Contractor500 Posted September 22, 2022 Report Share Posted September 22, 2022 Good Morning - I have a scenario in which we received a mod for option year 1 after completion of the base year, but after asking the CO why CLIN numbers weren't updated, he states that the CLIN numbers will remain the same for option year 1 like the base year, and unused funding will roll forward if it's listed on the auth. hours sheets. Any funds that need to come off would be reflected in a de-obligation and modification to the authorized hours sheet. I've never seen the CLIN numbers not be updated for the next option year. Is there an issue with this procedure or has anyone seen this before? Thank you Link to comment Share on other sites More sharing options...
formerfed Posted September 22, 2022 Report Share Posted September 22, 2022 It’s not uncommon. All the CO is doing is using existing obligated funding. Agencies financial practices, accounting, and types of funding vary. As long as the CO tells you it’s okay, you’re fine. Link to comment Share on other sites More sharing options...
Vern Edwards Posted September 22, 2022 Report Share Posted September 22, 2022 Each option year should have been assigned its own CLIN at the time of solicitation. You shouldn't have to update them. Using the same CLIN for the base year and an option year is inconsistent with FAR 4.1003. Link to comment Share on other sites More sharing options...
formerfed Posted September 22, 2022 Report Share Posted September 22, 2022 1 hour ago, Vern Edwards said: Each option year should have been assigned its own CLIN at the time of solicitation. You shouldn't have to update them. Using the same CLIN for the base year and an option year is inconsistent with FAR 4.1003. True. But it’s sometimes done this way to use existing money. With many automated contract/finance systems, new funding is required for a new CLIN. It’s difficult to transfer unused funding from an old CLIN to a new option period. I’m not saying it’s proper from a contract standpoint, but it happens. Link to comment Share on other sites More sharing options...
Contractor500 Posted October 27, 2022 Author Report Share Posted October 27, 2022 Thank you Vern and Formerfed! I really appreciate your feedback! Link to comment Share on other sites More sharing options...
styrene Posted October 27, 2022 Report Share Posted October 27, 2022 A lot of it has to do with the work, severable vs. non-severable, in addition to the type of funding that is used (annual appropriations vs no year / multiple year funding). It would be nice to be able to use up all the funding as obligated before digging into the next pot, however, appropriation law seems to get in the way. Link to comment Share on other sites More sharing options...
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