Which of the following provides an exception to the bona fide needs rule for supply contracts?

Which of the following provides an exception to the bona fide needs rule for supply contracts?

Two GAO recognized exceptions to the Bona Fide Needs Rule, specific to supplies, are the lead- time exception (for both delivery and production) and the stock-level exception.

What is bona fide needs rule?

The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.

What is a lead time exception in the federal government?

Lead-time exception: Agencies are permitted to consider normal production lead-time in determining bona fide need for a purchase. For example, if the normal lead-time for an item is 30 days, the government may obligate FY 21 funds for an item required on or before 30 Oct 21.

What are the most common constraints on the use of appropriated funds?

Appropriated funds are subject to three basic fiscal constraints: time, purpose, and amount. The time constraint includes two major elements.

What is severable vs non severable?

(a) “Severable services” means services that are continuing and ongoing in nature—such as help-desk support, maintenance, or janitorial services—for which benefit is received each time the service is rendered. Contracts for goods or non-severable services are not similarly limited.

What is severable vs non-severable?

What is an Antideficiency Act violation?

The issuance of funds by means of a formal subdivision of funds (allocation, allotment, suballotment or other formal designation of a limitation) in an amount that exceeds the amount currently available would result in a violation of the Antideficiency Act if those excess funds distributed are actually obligated or …

Who has the ability to appropriate funds to be spent by the federal government?

Congress—and in particular, the House of Representatives—is invested with the “power of the purse,” the ability to tax and spend public money for the national government.

What is O&M funding?

Operation & Maintenance (O&M) Appropriations funds the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.

What happens to the funds after the period expires?

A. Expired funds retain their fiscal year identity for 5 years after the time an appropriation expires (see Chapter 13, subparagraph 130208. B of this volume). Certain appropriations are available for obligation for a specific period, i.e., annual and multiyear appropriations.

Can the government accept free work?

Companies can offer gratuitous services and goods to the Government by written contract. Agencies can accept free services and goods offered to the Government from a person or company who specifically agrees, in writing, to waive all expectation of payment and future pay claims against the Government.

What does the Antideficiency Act specifically prohibit?

Overview. This act prohibits federal agencies from obligating or expending federal funds in advance or in excess of an appropriation, and from accepting voluntary services. involving the government in any obligation to pay money before funds have been appropriated for that purpose, unless otherwise allowed by law.

What is an appropriation clause?

Rather, the Appropriations Clause creates a legislative duty that Congress exercise control and assume responsibility over the federal fisc. The Appropriations Clause would appear to categorically enjoin the President and federal agencies to spend funds only as appropriated by Congress.

What are the two main categories that are part of the federal budget?

The federal budget contains two main parts-revenues and expenditures.

How long are Milcon funds good for?

Military Construction (MILCON): appropriations fund major projects such as bases, schools, missile storage facilities, maintenance facilities, medical/dental clinics, libraries, and military family housing. Available five (5) Years.

How long is procurement funding good for?

three years
Procurement funding provided to the department in a given fiscal year can usually be obligated over a period of three years. The most prominent exception is Navy Shipbuilding and Conversion funding, which is available for five years. The Department of Defense Appropriations Act, 2021 (Division C of P.L.