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Annual Appropriations - Nonseverable work


WC79

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So my organization is currently faced with the issue of having annual funding to conduct non-severable activity (biomedical R&D). With funding lacking to obligate an entire contract amount up front  I was wondering if the statement of work for the requirement was written in phases (recruitment, exam, follow-up) and the phases are listed as options could each phase be fully funded when exercised. Lets assume the phases were recruitment - 6 months, exam - 22 months, follow up - 8 months.  

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3 hours ago, WC79 said:

So my organization is currently faced with the issue of having annual funding to conduct non-severable activity (biomedical R&D). With funding lacking to obligate an entire contract amount up front  I was wondering if the statement of work for the requirement was written in phases (recruitment, exam, follow-up) and the phases are listed as options could each phase be fully funded when exercised. Lets assume the phases were recruitment - 6 months, exam - 22 months, follow up - 8 months.  

If the research project is a nonseverable ("entire") bona fide need of the year for which the funds were appropriated, you can use those funds even if the project will cross fiscal years. See GAO Red Book, 3d ed. Vol. 1, Ch. 5, B.5, Services rendered beyond the fiscal year:

Quote

A contract that is viewed as “entire” is chargeable to the fiscal year in which it was made, notwithstanding that performance may have extended into the following fiscal year. The determining factor for whether services are severable or entire is whether they represent a single undertaking. Thus, in 23 Comp. Gen. 370, a contract for the cultivation and protection of a tract of rubber-bearing plants, payable on completion of the services, was chargeable against fiscal year funds for the year in which the contract was made. Because the services necessarily covered the entire growing period, which extended into the following fiscal year, the Comptroller General characterized them as a single undertaking, which “although extending over a part of two fiscal years, nevertheless was determinable both as to the services needed and the price to be paid therefor at the time the contract was entered into.” Id. at 371.

 

Edited by Vern Edwards
Edited to correct incorrect citation, as alerted by Joel Hoffman
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1 hour ago, Vern Edwards said:

See GAO Red Book, Vol. 3, Ch. 5, B.5, Services rendered beyond the fiscal year:

Vern, doesn’t Volume 1 cover Chapters 1-5?

I think the question is can the phases be awarded as options spanning 34 months and funded as awarded,  subsequent to the initial year.

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8 hours ago, joel hoffman said:

Vern, doesn’t Volume 1 cover Chapters 1-5?

I think the question is can the phases be awarded as options spanning 34 months and funded as awarded,  subsequent to the initial year.

Yes. 3d edition, Vol. 1, Ch. 5. Thanks, Joel.

Yes, that was the question. My answer is: Why not? It's been done before. I don't know of any rule against it.

That's not saying it's a good idea.

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