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Let’s start here.   Have you read FAR part 32?    To add context take a look at the DFARS supplement part 232that drills down further to incrementally funded contracts.  Does your agency have a FAR supplement that does the same?   Finally read the terms and conditions of the specific GSA FSS contract that the order will be placed against and if not addressed do you believe you can add further terms and conditions to the order to allow for the incremental funding.   If this effort does not answer your questions, if not why not?

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I have read FAR Part 32 many times. The reason I asked the question is because I read Dream Management, Inc. v. Department of Homeland Security, Civilian Board of Contract Appeals decision 5517 from this past April, in which I came across this:

"Here, the plain language of the task order indicated that it is a time and materials task order placed against an FSS contract. The task order specifically stated that “[t]his is an incrementally funded, Time & Materials, Task Order against the contractor's GSA schedule contract identified above.” The RFQ also indicated that a time and materials contract would be awarded. The task order incorporated the Time and Materials Payments clause and met the requirements of FAR 8.404."

I looked at the current GSA solicitation for the services in question and did not find FAR 52.232-22 or any other incremental funding clause. I never heard of incremental funding being used in a contract for commercial items or in a GSA FSS task order. The sources that you referred me to don't explain how this could be. Did Homeland Security break the rules or is this something that can be done legitimately? And yes I looked at the DHS FAR supplement and it does not say anything about incremental funding.

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Retreadfed, You don't know the answer to my question, do you? If not, why post anything? Yes, I have read those FAR sections, and your response boils down to nothing more than "It's okay if it's okay." What's the point in that? The same goes for C Culham's response.

I am researching GSA's website. But if anyone knows the rules for GSA FSS contracts and knows the answer to my question about incremental funding, which is yes or no, then please tell me and provide an information source. I'll appreciate it. 

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You can add non-conflicting clauses to GSA schedules. By non-conflicting i mean you can't insert clauses such as 52.243-3 when 52.212-4(c) would apply to the schedule. 

The homeland security acquisition manual places certain restrictions on incremental funding. See HSAM 3032.702(e).

DHS also has a memo which essentially provides a deviation for their acquisition manual to specifically allow for the use of incrementally funded T&M contracts when operating under a continuing resolution (CR). 


I’ve seen in other agency supplements that address incremental funding during CR’s such as DTAR 1032.770.





can a T&M order against a GSA FSS contract be incrementally funded?


my opinion is yes, DHS can. Whether or not they were under a CR I don't know. 


https://www.dhs.gov/sites/default/files/publications/Incremental Funding Fixed Price and Time and Material Contracts During a Continuing Resolution.pdf


3032.702 Policy.

 (c) Additionally, all contracts and requirements using private sector financing shall be approved by the Office of Chief Procurement Officer (OCPO). The HCA shall submit the action, including legal counsel review and approval for legal sufficiency, to the OCPO for approval.

(d) The minimum guaranteed quantity specified under indefinite delivery indefinite quantity contracts must be fully funded (obligated at the time of contract award.)

(e) To avoid violating the Anti-Deficiency Act, fixed-price, labor-hour, and the time portion of time-and-material contracts shall not be incrementally funded. Cost-type contracts and the material portion (including, if appropriate, material handling costs as part of material costs) of time-and-material contracts may be incrementally funded provided such contracts include FAR Clause 52.232-22, Limitation of Funds, and comply with other applicable requirements.



Policy On Incremental Funding During A Continuing Resolution


…….The authorities granted by this memorandum expire upon promulgation of permanent policies in either the FAR, HSAM or Homeland Security Acquisition Regulation, or upon notice by the DHS Office of the Chief Procurement Officer.....

(I) Policy

(a) A fixed-price, Time and Materials or Labor Hour contract or order for commercial or noncommercial supplies or services may be incrementally funded only if, during a Continuing Resolution (CR), the department or Component is not allocated sufficient funds to fully fund a contract action that is otherwise authorized to be awarded, if approved one level above the contracting officer and­




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