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Awarding a CLIN for severable services full time equivalent support worker with annual funds on 9/30/2025 for 12 month period of performance but the contractor does not get them onboard until 9/29/2026?

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Is the following scenario OK in terms of using the obligated FY25 annual funds to pay for work done on 9/29/2026?

Awarding a CLIN for severable services full time equivalent support worker with annual funds on 9/30/2025 for 12 months but contractor does not get them onboard until 9/29/2026.

Illustration:

CLIN 0001: Hours: 1,912 Rate: $100/hr Total: $191,200.00 (annual FY25 funds obligated)

Period of Performance: 9/30/2025 - 9/29/2026

The contractor did not get the worker onboard until the last day of the period of performance (and the government is somehow OK with this), so they will get paid 8 hours * $100 = $800, with the annual FY25 funds, for the work done on 9/29/2026, and we will deobligate the rest.

1) Is this OK?

2) How long do you wait for a contractor to get someone onboard to actually start performing the services before you start to think that decreasing the hours is out of scope?

3) If it's out of scope, even from a decreasing scope rather than adding scope, wouldn't that need to be paid with FY26 annual funds? Because out of scope changes must be paid with current year funds?

  • Sam101 changed the title to Awarding a CLIN for severable services full time equivalent support worker with annual funds on 9/30/2025 for 12 month period of performance but the contractor does not get them onboard until 9/29/2026?

I'm not seeing a problem from a fiscal law perspective, assuming there was a bona fide need on 9/30/25.

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