CHAPTER 3 AVAILABILITY OF APPROPRIATIONS AS TO TIME I.INTRODUCTION.................................................................................................................1 II.KEY DEFINITIONS............................................................................................................1 A.Appropriation or Appropriations Act..................................................................................1 B.Authorizing Legislation......................................................................................................2 C.Fiscal Year..........................................................................................................................2 D.Period of Availability..........................................................................................................2 E.Commitment.......................................................................................................................4 F.Obligation...........................................................................................................................5 G.Subject to the Availability of Funds...................................................................................6 III.THEBONA FIDENEEDS RULE.......................................................................................7 A.THEBONAFIDENEED ..........................................................................................................7 B.THEBONAFIDENEEDSRULE ...............................................................................................8 C.BONAFIDENEEDSMETHODOLOGY ...................................................................................10 D.Supplies.............................................................................................................................10 E.Services.............................................................................................................................16 F.Training.............................................................................................................................20 G.Construction......................................................................................................................22 H.Leases................................................................................................................................23 IV.MULTIPLE YEAR APPROPRIATIONS........................................................................23 V.BONA FIDENEEDS RULE APPLIED TO REVOLVING FUNDS.............................25
VI.BONA FIDENEEDS RULE APPLIED TO INTERAGENCY ACQUISITIONS.......27 VII.USE OF EXPIRED/CLOSED APPROPRIATIONS...................................................28 A.Definitions.........................................................................................................................28 B.Expired Appropriations.....................................................................................................29 C.Closed Appropriations......................................................................................................30 VIII.USE OF EXPIRED FUNDS: FUNDING REPLACEMENT CONTRACTS / CONTRACT MODIFICATIONS.............................................................................................31 A.General..............................................................................................................................31 B.Contract Modifications Affecting Price............................................................................32 C.Bid Protests.......................................................................................................................36 D.Terminations for Default (T4D)........................................................................................36 E.Terminations for Convenience of the Government (T4C)................................................37 IX.MULTI-YEAR CONTRACTS AND FULL FUNDING POLICY.................................39 A.Full Funding Policy...........................................................................................................39 B.Incremental Funding of Major Defense Systems..............................................................40 C.Incremental Funding of RDT&E Programs......................................................................40 D.Multi-year Contracts.........................................................................................................41 E.Incremental Funding of Fixed-Price Contracts.................................................................42 X.MISCELLANEOUS...........................................................................................................43 A.Options..............................................................................................................................43 B.Requirements or Indefinite Quantity Contracts................................................................44 XI.CONCLUSION...................................................................................................................44 APPENDIX A..............................................................................................................................45
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