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I am struggling to understand the difference from a funding perspective between severable and nonseverable CLINs. I always thought if funding was allocated by CLIN in the agreement expenditures must remain within the funding amount allocated for each CLIN and expended within the period defined for that CLIN, but I learned from my latest read of an agreement I might be wrong about that!

If there are multiple, separately priced nonseverable CLINs under a CPFF contract, can the funds allocated for one CLIN be used for activities/tasks under other CLINs? And would the funds also rollover to other CLINs if the CLIN has ended and there are unexpended funds? 

Any thoughts or resources I can reference to learn more would be appreciated. I do not find the FAR definition to be entirely clear. 

Thanks!

 

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Nicole, your use of “allocated” isn’t clear as Retreadfed mentioned.  Allocation is a budget/financial term that doesn’t seem to apply here.  Another question is are you talking about funding that has expired or still current funding?

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You might want to start with the DoD FMR if you are DoD. (See pages 8-13 and 8-14 for definitions)

https://comptroller.defense.gov/Portals/45/documents/fmr/current/03/03_08.pdf

Principles of Federal Appropriations Law, also known as the Red Book, is a good place to look for civilian agency employees. (Chapter 5?)

https://www.gao.gov/mobile/legal/appropriations-law-decisions/red-book

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Thanks, everyone. 

May I ask what I should clarify? I was using allocated to refer to the payment amounts for each CLIN in the Consideration and Payment Section (maybe obligated is the right word?).

To elaborate though, we have a contract that states:

image.png.8da2f40240fd828a75776852eda8b3d1.png

Estimated Cost:                          $XXX,XXX
Fixed Fee:                                     $XX,XXX
Estimated Cost Pus Fixed Fee: $XXX,XXX

And then (I could not get a good screen grab, sorry):

CLIN 6 - Optional Services Component 6 (12 Months) (Severable)

Estimated Cost:                         $XXX,XXX
Fixed Fee:                                     $XX,XXX
Estimated Cost Pus Fixed Fee: $XXX,XXX
 

I hope this helps clarify!

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My thoughts...as you read Jaamal's references remember that the important information with regard to the CLINS and the identification of severable versus nonseverable is the specific accounting classification that is associated with each CLIN as well.  Whether that accounting classification represents a no year fund/appropriation or a time limited fund/appropriation such as a one year fund/appropriation.   Sharing of funds between CLINS in one case might be okay and not in another, it depends on the accounting classification applicable to that CLIN.

For more about CLIN accounting classification you might take a look at the simple instructions of FAR 4.1005-1 as you read the references.

 

 

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On 9/23/2020 at 9:37 AM, C Culham said:

My thoughts...as you read Jaamal's references remember that the important information with regard to the CLINS and the identification of severable versus nonseverable is the specific accounting classification that is associated with each CLIN as well.  Whether that accounting classification represents a no year fund/appropriation or a time limited fund/appropriation such as a one year fund/appropriation.   Sharing of funds between CLINS in one case might be okay and not in another, it depends on the accounting classification applicable to that CLIN.

For more about CLIN accounting classification you might take a look at the simple instructions of FAR 4.1005-1 as you read the references.

 

 

Thanks, this was helpful!

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