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Query on Severable Contract
Can a requesting agency transfer one-year or multi-year funds to a servicing agency for a severable service and that exceeds the availability of the funds when using an authority other than the Economy Act?
- Sector-1, Noida
Yes, if the requesting agency is paying the servicing agency to procure a severable services contract on its behalf, then the funds may be used even if the contract extends beyond the period of availability of the funds so 3 long as the contract (excluding option years) is no longer than one calendar year. No, if the requesting agency is paying the servicing agency to perform severable services and the work is being done in-house by the servicing agency, then funds are only available to pay for services to be completed by the end of the period of availability of the funds.
Answered on 28 Sep 2018
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