Query on Severable Contract

Can a requesting agency transfer one-year or multi-year funds to a servicing agency for a non-severable service that exceeds the period of availability of the funds when using an authority other than the Economy Act?

Team Legistify

Yes. If the requesting agency has determined that it has a bona fide need for the service and that the service is non-severable in nature. If the requesting agency is paying the servicing agency to perform non-severable services, then its funds are available to pay the servicing agency’s costs (including contractual costs) even though the work extends beyond the funds’ period of availability. For non-severable services, the requesting agency must obligate funds to pay the entire cost of the service up front.


Ask Your Legal Question Now

Ask a Query

Tags: Employment Agreement Services Agreements

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!

You might like reading these