About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-197274 1 (1983-09-23)

handle is hein.gao/gaobadlhz0001 and id is 1 raw text is: ' THE COMPTROLLER QENERAL DlClSI~~i ,O ; lOF T'IHE UNITED ETATES WA HINGT0N D.C. 2 0 4 FILE: B-197274 DATE: September 23, 1983 MATTER OF: Obligating Letter Contracts DIGEST: Where a letter contract and the subse- quent superseding agreeaent are entered into during the sa me fiscal year, the cost of both contracts is obligated against the sa:Te fiscal year appropria- tion. HYwever, when the letter contract is entered into c2uring one year and the superseding agreer nt is not definitized until the next fiscal year, then it is appropriate to obligate only the maximum liability which may be incurred under the letter contracc against appropria- tions current when it is entered into. The supo-seding cootract is obligated against .Lropriations cirrent when it is definitized and encered into. This decision is in respon-te to an inquiry from Kamal J. Rahal, Director of the Procurc-,ent and CoLtracts Staff, Office of Personnel and Aainistrat ion, Justice Managemn )t Division, Departmant of Justice, seek- ing our guidrance r.garding the correct mn- ner of recording the total obligation for letter contract? coverin bona fide, no.severable require- irents of a given fiscal year whern an annual appropriation is involved and the letter contracts may not be clefinitized before the end of the fiscal year. The Director's inquiry is prort ted by difficulty incurredi in applying principles stated in tvo recent decisions of this Office. Our decision in the matter of !HUD'S Cbliati N, ,o Year Contract Aurhcrit;, 8-197274, February 16, 1982, stated that ...1.ter contricts: may be recorded as objligations only to the extent of the amour-t necessary to cover expnses to h2- incurred by the oontractor prior to the execution of the definitive contract, 34 Cox.p. Gen. 418, 421 (1955); 13-127518, May 10, 1956. Additionally, our decision in the matter of Obliqations and Charqes Unde-r Sm,,i' Business Servici Cnrtar:cts, 60 Corp. Gen. 219 (1981), indicci-6.eJ J, that uninr thne bon -. rule established by this Office when construing 31 U.S.C. § 150 (iorrerly 31 U.S.C. § 712a), annual appropriations may only be applied to the payreant of exp>anses oroperly incurred during that year, that is, a ..ra fide need which exists at the time the contract is executed. 0rK Ca

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most