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?

Answer (1)

Team Legistify

  • Sector-1, Noida

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.

Answered on 28 Sep 2018

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