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jsprandel

Extending this fiscal year orders into next fiscal year

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I have a situation where a program office ordered a lot of material to be delivered within a narrow time-frame and realized after award, that they didn't have the capacity to accept it all during that timeframe. They want to modify the contracts to extend the delivery into the future when they can accept the product. They want some of the stuff to be delivered after Oct 1, during the next fiscal year. My question is, if they accidentally ordered more than they could process for delivery, can we extend the delivery into the next fiscal year or do we have an anti-deficiency problem?

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Guest Vern Edwards

I don't think you have a problem. It you are already on contract, I doubt that have an antideficiency act problem or a bona fide need problem. Lack of process or storage capacity is a valid reason to postpone delivery.

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I agree with Vern but with one caveat. I assume that the lack of storage capacity was not known at the time of the order. If the agency knew at the time of the order it did not have the capacity to receive everything that was ordered, but went ahead and ordered it anyway intending to postpone delivery, I would review the situation a lot more closely and might arrive at a different conclusion.

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I guess that's a matter of interpretation. The recipient initially scheduled all the orders to come in during the beginning of the period of performance with the intention of scheduling them for more realistic dates prior to award. They forgot to do that and when the first delivery dates were at hand, they were scrambling to schedule deliveries in the time they had available (we order in truckload quantities and most docks can only handle a certain number of trucks a day). There were too many deliveries to schedule them all during this fiscal year, so they want to schedule some of them during next fiscal year.

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Guest Vern Edwards

Based on the info you've provided, you do not have an ADA or bona fide need problem.

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