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B-277165 1 (2000-01-10)

handle is hein.gao/gaocrptakxd0001 and id is 1 raw text is: -e GeAtOa E Comptroller General of the United States United States General Accounting Office Washington, DC 20548 Decision Matter of: Funding for Air Force Cost Plus Fixed Fee Level of Effort Contract File: B-277165 Date: January 10, 2000 DIGEST Air Force (AF) treatment of modifications to cost-plus-fixed-fee level of effort (term) contracts for Launch Vehicle Integration analysis and support as severable services and charging the cost against appropriations current when the services were rendered was presumptively reasonable and nothing in the record overcomes presumption. In one instance, where AF did not treat one modification consistent with other similar modifications, AF should adjust accounting records to reflect obligation in the records of the appropriation current when the services were rendered. Nature of the work determines whether a service is severable or nonseverable for obligational purposes. However, agency determination whether to use a cost plus fixed fee (CPFF) term or completion contract necessarily involves consideration of same factors that are relevant to determining whether the contract is severable or nonseverable for obligational purposes. DECISION This decision responds to a request from a contracting officer asking whether repeat launch vehicle integration analysis and support are severable or nonseverable services for purpose of determining the proper appropriation to charge with contract modifications extending the period of contract performance. The contracting officer also asks whether a single or multiple factor approach is correct for making a serverability determination. BACKGROUND Beginning in 1967, the Defense Support Program (DSP) designed, developed, and deployed a series of infrared technology satellites. The satellites are composed of a sensor (for data gathering) mated to spacecraft segment (for communications, attitude control and telemetry). A satellite is placed in orbit by a launch vehicle.

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