Can a FFP contract be incrementally funded?

The FAR only mentions incremental funding with respect to cost reimbursement contracts. FAR 52.232-22 is used for solicitations and contracts if an incrementally funded cost reimbursement contract is contemplated. Worse, most contract writing systems will not support an incrementally funded FFP contract.

What is incremental funding?

Incremental funding means the partial funding of a contract or an exercised option, with additional funds anticipated to be provided at a later time.

Can you incrementally fund with O&M funds?

You may have statutory authority (Civil Works Revolving Fund 33. U.S.C. 576) to incrementally fund your contract with civil works O&M.

Can you incrementally fund a labor hour contract?

1032.770-6 Procedures. (a) An incrementally funded fixed-price, time-and-materials or labor-hour contract shall be fully funded once funds are available.

Can you incrementally fund a non severable service?

The non-severable service must meet the bona fide need rule and be fully funded at the time of award. Contracts for non-severable services cannot be incrementally funded.

When can you incrementally fund a fixed-price contract?

A fixed-price contract (FAR Subpart 232.704-70) may be incrementally funded only if it’s for: Services that do not exceed one year in length and uses funds available (unexpired) as of the date the funds are obligated.

Can you incrementally fund non severable services?

Can you incrementally fund a severable service?

Whether a contract is for severable or nonseverable services affects how the agency may fund the contract; severable services contracts may be incrementally funded, while nonseverable services contracts must be fully funded at the time of the award of the contract.

Can you incrementally fund firm fixed-price?

Can severable services be incrementally funded?

What is the difference between severable and non-severable?

“Severable” describes an action that can be divided into two or more parts that are not necessarily dependent upon each other. “Non-severable” describes an action that cannot be divided into two or more parts without negatively effecting performance of the task.

Can non-severable services cross fiscal years?

The performance period of a fixed price non-severable services contract may cross fiscal years, but must be fully funded in the initial fiscal year unless contract funding requirements exists set forth at DFARS 232.703-1(1)(ii).