48 CFR § 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.