Good day,
We have a discussion on my workplace of whether or not we can exercise an option early only to obligates the funds. We have done it several times and now we are questionning whether or not this is a violation of the Anti-Deficiency Act.
Scenario:
Contracts is for R&D, Cost Reimbursable. Exercise of Option was to obligate funds but not to change the period of performance. We specify that work shall commence as stated in the period of performance not at the effective date of modification that exercised the option. Funds are FY11 with expiration date of 30 Sep 2012.
Are we violating the bona fide rule and the anti-deficiency act?
I do not believe we have violated the anti-deficiency act or bona fide rule as funds were appropriated in February 2011 (per MIPR), the intend to exercise the option was deemed necesary and in the best interest of the program.
Your advise is appreciated.