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B-241415 1 (1992-06-08)

handle is hein.gao/gaobadobr0001 and id is 1 raw text is: V, dr'a 1 'i ~Comptroller General of the United States Washlngton, D.C. 20548 Decision Hatter of# Incremental Funding of Multiyear Contracts File: B-241415 Date: June 8, 1992 bIGEST Contracts that cannot be separated for performance by fiscal year may not be funded on an incremental basis without, statutory authority, Such contracts, as entire or nonseverable under the. bona fide need rulelare chargeable to the appropriation current at execution rather than funds current at the time goods or services are rendered, DECISION The Deputy Administrator Management, Food and Nutrition Service (FNS), United States Department of Agri('ulture (USDA), asks whether FNI may incrementally fund nonseverable contracts for expert or consulting services or Whether FNS must fully obligate funds at the time of contraci award to cover the estimated cost of such contracts, For the reasons discussed below, we conclude that the cost of such nonseverabie contracts must be recorded as an obligation and fully covered by currently available funds at the time of contract award. BACKGROUND The Deputy Administrator asks whether FNS may incrementally fundprojects falling under one of the categories stated in the Federal Acquisition Regulation (FNR), 48' C.FR. 32.703-3 (1991), namely, contracts for expert or consultant scervices crossing fiscal years. The FNS contracting officer has concluded that the incremental funding technique may be used for cost reimbursement contracts for consulting services, research and development, and other types of nonpersonal services, such as studies, surveys, and demonstration projects. However, the USDA Office of General Counsel has advised that since the proposed FN3 contracts appear to be executed in whole and cannot be separated into disc.cete phases, the entire contract must be funded from 1'

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