Here is a hypothetical question regarding the ADA. An agency awards a cost reimbursement contract to X. The contract contains the Limitation of Cost clause. When the contract is awarded, the agency has sufficient appropriations to cover the agencies obligations. The sequester is imposed reducing the amount of funding available to the agency with which to pay for the contract to X. However, there are sufficient appropriations to pay X the estimated cost of the contract and fixed fee. Upon contract completion and establishment of final indirect cost rates, it is discovered that X has an overrun on the contract that X did not know of and could not have known of in order to give the government notice of an overrun under the LOC clause. Because of the sequester, there are no funds in the appropriation used to fund the contract with X with which to pay for the overrun.
Two questions: 1) has a violation of the ADA occurred and 2) can the agency use current year appropriations to fund the overrun?