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B-207433 1 (1983-09-16)

handle is hein.gao/gaobadlhu0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION ' . OF THE UNITED STATES WASHINGTON. 0.C. 20548 V~NITL0 FILE: B-207433 DATE: September 16, 1983 MATTER OF: Magnavox--Use of Contract Underrun Funds DIGEST: Once the period of availability expires for an appropriation used to finance a contract, the Army may not use cost underrun money which re- sults from that contract to order an additional quantity of items. A modification to increase the quantity would exceed the scope of the ori- ginal contract and would be chargeable only to funds current at the time of the modification. This decision results from requests by two members of Congress concerning whether after the period of availability expires for an appropriation used to finance a contract for the purchase of thermal viewers, the Department of the Army may use cost underrun money due it under that contract to modify the contract to provide for an increased quantity. For reasons which follow, we hold that the Army may not enter into the modification agreement, except by using current funds. Background In 1977, the United States Department of the Army intended to purchase 557 thermal viewers I/ from the Magnavox Government and Industrial Electronics Company. For this purchase the Army planned to obligate fiscal year 1977 funds which, under a multi- year appropriation, were available until the end of fiscal year 1979. 2/ For the amount of money which the Army was willing to I/ Hand-held devices to enable infantry to see in darkness or through camouflage. 2/ The funds were part of a lump-sum appropriation for Other Procurement, Army, contained in the Defense Department Ap- propriation Act for FY 1977, Pub. L. No. 94-419, 90 Stat. 1286. The appropriation had a 3-year period of availability, expir- ing for obligational purposes on September 30, 1979.

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