48 CFR ยง 2432.703-1 - General.

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2432.703-1 General.


(1) Except as described herein, a fixed-price contract may be funded incrementally only if -

(i) Sufficient funds are not available to the Department at the time of contract award or exercise of option to fully fund the contract or option; and

(ii) The contract (excluding any options) or any exercised option -

(A) Is for severable services; and

(B) Does not exceed one year in length; and

(C) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; and

(iii) If applicable, the contract uses funds available from multiple (2 or more) fiscal years and Congress has otherwise authorized incremental funding.

(2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available.

[77 FR 73530, Dec. 10, 2012, as amended at 81 FR 13752, Mar. 15, 2016]