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flitzer

Incremental Funding, Continuing Resolutions, and The Anti-Deficiency Act

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This is in regard to FFP service contracts.  I have some contracts that are being incrementally funded from one CR to another and am confused about how to avoid being in violation of the ADA, an act I really don't understand well.  Say a program manager provides 1/4 of funds for half a year for a contract that does not cross fiscal years because the CR (or so they say). Let us say I don't receive more funds until two weeks after three months into the year to cover the fourth month of the contract.  Is that a violation of the ADA if the services were being performed during those two weeks without funding even though the services were paid for on time ar the end of the month?  

     Now say a contract is funded right up to the end of a CR and funds can not be provided until a new CR is passed.  Must services be stopped at the end of the CR if the program manager can't provide a purchase request a week after the PR is funded?  

    These contracts have the subject to availablity clauses in them.  

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12 hours ago, flitzer said:

This is in regard to FFP service contracts.  I have some contracts that are being incrementally funded from one CR to another and am confused about how to avoid being in violation of the ADA, an act I really don't understand well.  Say a program manager provides 1/4 of funds for half a year for a contract that does not cross fiscal years because the CR (or so they say). Let us say I don't receive more funds until two weeks after three months into the year to cover the fourth month of the contract.  Is that a violation of the ADA if the services were being performed during those two weeks without funding even though the services were paid for on time ar the end of the month?  

     Now say a contract is funded right up to the end of a CR and funds can not be provided until a new CR is passed.  Must services be stopped at the end of the CR if the program manager can't provide a purchase request a week after the PR is funded?  

    These contracts have the subject to availablity clauses in them.  

Let me rephrase please.

You are managing FFP service contracts. Some of the contracts have periods of performance that are established by the appropriation authority. In other words, the PoPs run only as far as Congress as appropriated funding. Your agency has decided to manage its funds by incrementally funding the contracts. The contractor is constantly billing on the edge of the funding provided. In fact, often the contractor is performing for a couple of weeks in excess of available funding, at its own risk.

If I have all that right, then I don't see an ADA problem.

To your second question, if a contract is fully funded and there are no more funds (for whatever reason), the contractor should stop work when it has billed to its funding limits. If it chooses to continue work at its own risk, that is up to the contractor.

That's how I see it.

(In addition, from a contractor's viewpoint, incremental funding of FFP service contracts is rather silly. It just makes more work for everybody. I hope the contractor included its additional costs for managing to incremental funding in its proposal, so that the costs could be included in the FFP.)

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8 hours ago, Vern Edwards said:

I wonder if "incrementally funded" is the right term.

If a contract is funded only to the end of a CR, is that considered fully funded or is that considered incrementally funded?  And let's say this same contract has a POP of one year, yet the CR period is three months.

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