Department of the Treasury Acquisition Regulations; Incremental Funding of Fixed-Price, Time-and-Material or Labor-Hour Contracts During a Continuing Resolution, 80608-80610 [2016-27548]
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Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations
sensitive events such as a recertification
deadline or the end of a deferment
period, and in the 30 days before such
an event, rather than limiting the
exception to calls made when the debt
is delinquent or in default. Similarly,
the Commission expanded the reach of
the exception by allowing covered calls
to be made to a phone number
subsequently provided by the debtor to
the servicer or owner of the debt, or a
number obtained from an independent
source, rather than limiting calls to the
number provided on the loan
application. These changes benefit
regulated entities of all sizes.
93. Timetables. The Commission does
not see a need to establish a special
timetable for small entities to reach
compliance with the modification to the
rules. No small business has asked for
a delay in implementing the rules.
94. Reporting requirements;
performance standards. Since the rule
does not impose reporting requirements,
there is no need to establish less
burdensome reporting requirements for
small businesses. Similarly, there are no
design standards or performance
standards to consider in this
rulemaking.
95. Exemption. The Commission does
not see a need to consider an exemption
for small businesses from the modified
rules. No small business has asked for
such an exemption.
mstockstill on DSK3G9T082PROD with RULES
Congressional Review Act
The Commission will send a copy of
document FCC 16–99 to Congress and the
Government Accountability Office pursuant
to the Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
Final Paperwork Reduction Act of 1995
Analysis
Document FCC 16–99 contains modified
information collection requirements. The
Commission, as part of its continuing effort
to reduce paperwork burdens, will invite the
general public to comment on the
information collection requirements
contained in document FCC 16–99 as
required by the Paperwork Reduction Act
(PRA) of 1995, Public Law 104–13. In
addition, the Commission notes that,
pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107–198, 44
U.S.C. 3506(c)(4), the Commission previously
sought comment on how the Commission
might ‘‘further reduce the information
burden for small business concerns with
fewer than 25 employees.’’ See Rules and
Regulations Implementing the Telephone
Consumer Protection Act of 1991, Notice of
Proposed Rulemaking, published at 81 FR
31889, May 20, 2016 (2016 NPRM).
List of Subjects in 47 CFR Part 64
Claims, Communications common
carriers, Credit, Reporting and
VerDate Sep<11>2014
16:03 Nov 15, 2016
Jkt 241001
recordkeeping requirements,
Telecommunications, and Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2016–24745 Filed 11–15–16; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF THE TREASURY
48 CFR Parts 1032 and 1052
Department of the Treasury
Acquisition Regulations; Incremental
Funding of Fixed-Price, Time-andMaterial or Labor-Hour Contracts
During a Continuing Resolution
Department of the Treasury.
Final rule.
AGENCY:
ACTION:
This final rule amends the
Department of Treasury Acquisition
Regulation (DTAR) for the purposes of
providing acquisition policy for
incremental funding of Fixed-Price,
Time-and-Material or Labor-Hour
contracts during a continuing
resolution.
SUMMARY:
DATES:
Effective date: December 16,
2016.
FOR FURTHER INFORMATION CONTACT:
Thomas O’Linn, Procurement Analyst,
Office of the Procurement Executive, at
(202) 622–2092.
SUPPLEMENTARY INFORMATION:
Background
The DTAR, which supplements the
Federal Acquisition Regulation (FAR), is
codified at 48 CFR Chapter 10.
The Anti-Deficiency Act, 31 U.S.C.
1341 and the FAR section 32.702, state
that no officer or employee of the
government may create or authorize an
obligation in excess of the funds
available, or in advance of
appropriations unless otherwise
authorized by law. A continuing
resolution (CR) provides funding for
continuing projects or activities that
were conducted in the prior fiscal year
for which appropriations, funds, or
other authority was previously made
available.
Each CR is governed by its specific
terms. However, amounts available
under a CR are frequently insufficient to
fully fund contract actions that may be
required during its term. No existing
contract clause permits partial funding
of a contract action awarded during a
CR. While other strategies are available
to address the need to take contract
actions during a CR, these strategies—
for example short-term awards—are
PO 00000
Frm 00046
Fmt 4700
Sfmt 4700
inefficient and may have other
disadvantages.
On July 12, 2016, the Department
issued a proposed rule (81 FR 45118)
that would establish policies and
procedures in order to facilitate
successful, timely, and economical
execution of Treasury contractual
actions during a CR. Specifically, the
proposed rule would set forth
procedures for using incremental
funding for fixed-price, time-andmaterial and labor-hour contracts during
a period in which funds are provided to
Treasury Departmental Offices or
Bureaus under a CR. Heads of
contracting activities may develop
necessary supplemental internal
procedures as well as guidance to advise
potential offerors, offerors and
contractors of these policies and
procedures.
The comment period for the proposed
rule closed on September 12, 2016. No
public comments were received.
Accordingly, the Department is
adopting the proposed rule without
substantive change.
Regulatory Planning and Review
This rule is not a significant
regulatory action as defined in section
3(f) of Executive Order 12866. Therefore
a regulatory assessment is not required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. chapter 6) generally requires
agencies to conduct an initial regulatory
flexibility analysis and a final regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
It is hereby certified that this rule will
not have a significant economic impact
on a substantial number of small
entities. The rule is intended to make
changes to the DTAR that would allow
for improvements in continuity when
Treasury funding is operating under a
CR and should not have significant
economic impacts on small entities.
List of Subjects in 48 CFR Parts 1032
and 1052
Government procurement.
Accordingly, the Department of the
Treasury amends 48 CFR Chapter 10 as
follows:
PART 1032—CONTRACT FINANCING
1. The authority citation for part 1032
continues to read as follows:
■
Authority: 41 U.S.C. 1707.
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1032.770–4
2. Add subpart 1032.7 to read as
follows:
■
Subpart 1032.7—Contract Funding
Sec.
1032.770 Incremental funding during a
Continuing Resolution.
1032.770–1 Scope of section.
1032.770–2 Definition.
1032.770–3 General.
1032.770–4 Policy.
1032.770–5 Limitations.
1032.770–6 Procedures.
1032.770–7 Clause.
Subpart 1032.7—Contract Funding
1032.770 Incremental funding during a
Continuing Resolution.
1032.770–1
Scope of section.
This section provides policy and
procedure for using incremental funding
for fixed-price, time-and-material and
labor-hour contracts during a period in
which funds are provided to Treasury
Departmental Offices or Bureaus, under
a continuing resolution (CR). HCAs may
develop necessary supplemental
internal procedures as well as guidance
to advise potential offerors, offerors and
contractors of these policies and
procedures. Additionally, Bureaus who
receive non-appropriated funds may
utilize and tailor these policies and
procedures to fit their needs.
1032.770–2
Definition.
‘‘Continuing Resolution’’ means an
appropriation, in the form of a joint
resolution, that provides budget
authority for federal agencies, specific
activities, or both to continue operation
until the regular appropriations are
enacted. Typically, a continuing
resolution is used when legislative
action on appropriations is not
completed by the beginning of a fiscal
year.
mstockstill on DSK3G9T082PROD with RULES
1032.770–3
General.
The Anti-Deficiency Act, 31 U.S.C.
1341 and FAR 32.702, states that no
officer or employee of the Government
may create or authorize an obligation in
excess of the funds available, or in
advance of appropriations unless
otherwise authorized by law. A CR
provides funding for continuing projects
or activities that were conducted in the
prior fiscal year for which
appropriations, funds, or other authority
was previously made available. Each CR
is governed by the specific terms in that
specific CR (e.g. duration of the CR) and
under certain CRs, the funding amounts
available for award of contract actions
are inadequate to fund the entire
amounts needed for some contract
actions.
VerDate Sep<11>2014
16:03 Nov 15, 2016
Jkt 241001
Policy.
(a) A fixed-price, time-and-materials
or labor-hour contract or order for
commercial or non-commercial supplies
or severable or non-severable services
may be incrementally funded when—
(1) Funds are provided to a Treasury
Departmental Office or Bureau under a
CR. This includes funds appropriated to
a bureau, funds appropriated to another
entity that will be directly obligated on
a Treasury contract, and funds in a
revolving fund or similar account that
will be reimbursed by a customer
agency funded by a CR;
(2) Sufficient funds are not being
allocated from the responsible fiscal
authority to fully fund the contract
action that is otherwise authorized to be
issued;
(3) There is no statutory restriction
that would preclude the proposed use of
funds;
(4) Funds are available and
unexpired, as of the date the funds are
obligated;
(5) Assurance is provided by the
responsible financial authority that full
funding is anticipated once an
Appropriation Act is enacted; and
(6) The clause prescribed by
1032.770–7 is incorporated into the
contract or order.
(b) Incremental funding may be
limited to individual line item(s) or a
particular order(s).
1032.770–5
(a) This policy does not apply to
contract actions that are not covered by
the CR.
(b) If this policy is applied to nonseverable services or to supplies, the
contracting officer shall take into
consideration the business risk to the
Government if funding does not become
available to fully fund the contract. If
the contracting officer determines the
use of incremental funding for nonseverable services or supplies is in the
best interest of the Government the
contracting officer shall ensure the
contractor fully understands how the
limitations of the Government’s
liabilities under the contract might
impact its ability to perform within the
prescribed contract schedule.
1032.770–6
Frm 00047
Clause.
The contracting officer shall insert the
clause at 1052.232–70, Limitation of
Government’s Obligation, in
(a) Solicitations and resultant
contracts when incremental funding of
fixed-price, time-and-material or laborhour contract via a CR is anticipated; or
(b) Contracts or orders when
incremental funding of a fixed-price,
time-and-material or labor-hour contract
is authorized and the Treasury
Departmental Office or Bureau is
operating under a CR (see 1032.770–4);
and
(c) The CO shall insert the
information required in paragraphs (a)
and (c) of the clause.
PART 1052—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
Procedures.
(a) An incrementally funded fixedprice, time-and-materials or labor-hour
contract shall be fully funded once
funds are available.
(b) The contracting officer shall
ensure that sufficient funds are allotted
to the contract to cover the total amount
payable to the contractor in the event of
termination of convenience by the
Government.
PO 00000
(c) Upon receipt of the contractor’s
notice under paragraph (c) of the clause
at 1052.232–90, Limitation of
Government’s Obligation, the
contracting officer shall promptly
provide written notice to the contractor
that the Government is—
(i) Obligating additional funds for
continued performance and increasing
the Government’s limitation of
obligation in a specified amount;
(ii) Obligating the full amount of
funds needed;
(iii) Terminating for convenience, as
applicable, the affected line items or
contract; or
(iv) Considering whether to allot
additional funds; and
(A) The contractor is entitled by the
contract terms to stop work when the
Government’s limitation of obligation is
reached; and
(B) Any costs expended beyond the
Government’s limitation of obligation
are at the contractor’s risk.
(d) Upon learning that the contract
will receive no further funds by the date
provided in the notice under paragraph
(c) of the clause at 1052.232–70,
Limitation of Government’s Obligation,
the contracting officer shall promptly
give the contractor written notice of the
Government’s decision and terminate
the affected line items or contract, as
applicable, for the convenience of the
Government.
1032.770–7
Limitations.
80609
Fmt 4700
Sfmt 4700
3. The authority citation for part 1052
continues to read as follows:
■
Authority: 41 U.S.C. 1707.
4. Add 1052.232–70 to subpart 1052.2
to read as follows:
■
1052.232–70
obligation.
Limitation of Government’s
As prescribed in 1032.770–7, insert
the following clause. Contracting
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Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations
officers are authorized, in appropriate
cases, to revise paragraph (a) of this
clause to specify the work required
under the contract, in lieu of using
contract line item numbers as well as
revise paragraph (c) of this clause to
specify a different notification period
and percentage. The 30-day period may
be varied from 45, 60 to 90 days, and
the 75 percent from 75 to 85 percent:
Limitation of Government’s Obligation
(Nov 2016)
(a) Funding is not currently available to
fully fund this contract due to the
Government operating under a continuing
resolution (CR). The item(s) listed in the table
below are being incrementally funded as
described below. The funding allotted to
these item(s) is presently available for
payment and allotted to this contract. This
table will be updated by a modification to the
contract when additional funds are made
available, if any, to this contract.
Contract line item number
(CLIN)
CLIN
total price
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Totals ...........................................................................................................................................
(b) For the incrementally funded item(s)
identified in paragraph (a) of this clause, the
Contractor agrees to perform up to the point
at which the total amount payable by the
Government, including any invoice payments
to which the Contractor is entitled and
reimbursement of authorized termination
costs in the event of termination of those
item(s) for the Government’s convenience,
does not exceed the total amount currently
obligated to those item(s). The Contractor is
not authorized to continue work on these
item(s) beyond that point. The Government
will not be obligated in any event to
reimburse the Contractor in excess of the
amount allotted to the line items of the
contract regardless of anything to the
contrary in any other clause, including but
not limited to the clause entitled
‘‘Termination for Convenience of the
Government’’ or paragraph (1) entitled
‘‘Termination for the Government’s
Convenience’’ of the clause at FAR 52.212–
4, ‘‘Commercial Terms and Conditions
Commercial Items.’’
(c) Notwithstanding paragraph (h) of this
clause, the Contractor shall notify the
Contracting Officer in writing at least thirty
days prior to the date when, in the
Contractor’s best judgment, the work will
reach the point at which the total amount
payable by the Government, including any
cost for termination for convenience, will
approximate 85 percent of the total amount
then allotted to the contract for performance
of the item(s) identified in paragraph (a) of
this clause. The notification shall state the
estimated date when that point will be
reached and an estimate of additional
funding, if any, needed to continue
performance. The notification shall also
advise the Contracting Officer of the
estimated amount of additional funds
required for the timely performance of the
item(s) funded pursuant to this contract. If
after such notification additional funds are
not allotted by the date identified in the
Contractor’s notification, or by an agreed
upon substitute date, the Contracting Officer
will terminate any item(s) for which
additional funds have not been allotted,
pursuant to the terms of this contract
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16:03 Nov 15, 2016
Jkt 241001
authorizing termination for the convenience
of the Government. Failure to make the
notification required by this paragraph,
whether for reasons within or beyond the
Contractor’s control, will not increase the
maximum amount payable to the Contractor
under paragraphs (a) and (b) of this clause.
(d) The Government may at any time prior
to termination allot additional funds for the
performance of the item(s) identified in
paragraph (a) of this clause.
(e) The termination provisions of
paragraphs (a) through (h) of this clause do
not limit the rights of the Government under
the clause entitled ‘‘Default’’ or ‘‘Termination
for Cause.’’ The provisions of this clause are
limited to the work and allotment of funds
for the item(s) set forth in paragraph (a) of
this clause. This clause no longer applies
once the contract is fully funded.
(f) Nothing in this clause affects the right
of the Government to terminate this contract
pursuant to the Government’s termination for
convenience terms set forth in this contract.
(g) Nothing in this clause shall be
construed as authorization of voluntary
services whose acceptance is otherwise
prohibited under 31 U.S.C. 1342.
(h) The parties contemplate that the
Government will allot funds to this contract
from time to time as the need arises and as
funds become available. There is no fixed
schedule for providing additional funds.
(End of clause)
Dated: November 8, 2016.
Iris B. Cooper,
Senior Procurement Executive, Office of the
Procurement Executive.
[FR Doc. 2016–27548 Filed 11–15–16; 8:45 am]
BILLING CODE 4810–25–P
PO 00000
Frm 00048
Funds
allotted to
the
CLIN
Fmt 4700
Sfmt 4700
$
$
$
$
$
$
$
$
$
$
Funds
required for
complete
funding of
the
CLIN
$
$
$
$
$
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 150916863–6211–02]
RIN 0648–XF036
Fisheries of the Exclusive Economic
Zone Off Alaska; Pacific Cod in the
Bering Sea and Aleutian Islands
Management Area
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; modification of
a closure.
AGENCY:
NMFS is opening directed
fishing for Pacific cod by catcher/
processors using pot gear in the Bering
Sea and Aleutian Islands Management
Area (BSAI). This action is necessary to
fully use the 2016 total allowable catch
of Pacific cod allocated to catcher/
processors using pot gear in the BSAI.
DATES: Effective 1200 hours, Alaska
local time (A.l.t.), November 15, 2016,
through 2400 hours, A.l.t., December 31,
2016. Comments must be received at the
following address no later than 4:30
p.m., A.l.t., December 1, 2016.
ADDRESSES: You may submit comments
on this document, identified by NOAA–
NMFS–2015–0118, by any of the
following methods:
• Electronic Submission: Submit all
electronic public comments via the
Federal e-Rulemaking Portal. Go to
www.regulations.gov/
#!docketDetail;D=NOAA-NMFS-20150118, click the ‘‘Comment Now!’’ icon,
complete the required fields, and enter
or attach your comments.
SUMMARY:
E:\FR\FM\16NOR1.SGM
16NOR1
]]>Agencies
[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Rules and Regulations]
[Pages 80608-80610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27548]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
48 CFR Parts 1032 and 1052
Department of the Treasury Acquisition Regulations; Incremental
Funding of Fixed-Price, Time-and-Material or Labor-Hour Contracts
During a Continuing Resolution
AGENCY: Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Department of Treasury Acquisition
Regulation (DTAR) for the purposes of providing acquisition policy for
incremental funding of Fixed-Price, Time-and-Material or Labor-Hour
contracts during a continuing resolution.
DATES: Effective date: December 16, 2016.
FOR FURTHER INFORMATION CONTACT: Thomas O'Linn, Procurement Analyst,
Office of the Procurement Executive, at (202) 622-2092.
SUPPLEMENTARY INFORMATION:
Background
The DTAR, which supplements the Federal Acquisition Regulation
(FAR), is codified at 48 CFR Chapter 10.
The Anti-Deficiency Act, 31 U.S.C. 1341 and the FAR section 32.702,
state that no officer or employee of the government may create or
authorize an obligation in excess of the funds available, or in advance
of appropriations unless otherwise authorized by law. A continuing
resolution (CR) provides funding for continuing projects or activities
that were conducted in the prior fiscal year for which appropriations,
funds, or other authority was previously made available.
Each CR is governed by its specific terms. However, amounts
available under a CR are frequently insufficient to fully fund contract
actions that may be required during its term. No existing contract
clause permits partial funding of a contract action awarded during a
CR. While other strategies are available to address the need to take
contract actions during a CR, these strategies--for example short-term
awards--are inefficient and may have other disadvantages.
On July 12, 2016, the Department issued a proposed rule (81 FR
45118) that would establish policies and procedures in order to
facilitate successful, timely, and economical execution of Treasury
contractual actions during a CR. Specifically, the proposed rule would
set forth procedures for using incremental funding for fixed-price,
time-and-material and labor-hour contracts during a period in which
funds are provided to Treasury Departmental Offices or Bureaus under a
CR. Heads of contracting activities may develop necessary supplemental
internal procedures as well as guidance to advise potential offerors,
offerors and contractors of these policies and procedures.
The comment period for the proposed rule closed on September 12,
2016. No public comments were received. Accordingly, the Department is
adopting the proposed rule without substantive change.
Regulatory Planning and Review
This rule is not a significant regulatory action as defined in
section 3(f) of Executive Order 12866. Therefore a regulatory
assessment is not required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. chapter 6) generally
requires agencies to conduct an initial regulatory flexibility analysis
and a final regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements, unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities.
It is hereby certified that this rule will not have a significant
economic impact on a substantial number of small entities. The rule is
intended to make changes to the DTAR that would allow for improvements
in continuity when Treasury funding is operating under a CR and should
not have significant economic impacts on small entities.
List of Subjects in 48 CFR Parts 1032 and 1052
Government procurement.
Accordingly, the Department of the Treasury amends 48 CFR Chapter
10 as follows:
PART 1032--CONTRACT FINANCING
0
1. The authority citation for part 1032 continues to read as follows:
Authority: 41 U.S.C. 1707.
[[Page 80609]]
0
2. Add subpart 1032.7 to read as follows:
Subpart 1032.7--Contract Funding
Sec.
1032.770 Incremental funding during a Continuing Resolution.
1032.770-1 Scope of section.
1032.770-2 Definition.
1032.770-3 General.
1032.770-4 Policy.
1032.770-5 Limitations.
1032.770-6 Procedures.
1032.770-7 Clause.
Subpart 1032.7--Contract Funding
1032.770 Incremental funding during a Continuing Resolution.
1032.770-1 Scope of section.
This section provides policy and procedure for using incremental
funding for fixed-price, time-and-material and labor-hour contracts
during a period in which funds are provided to Treasury Departmental
Offices or Bureaus, under a continuing resolution (CR). HCAs may
develop necessary supplemental internal procedures as well as guidance
to advise potential offerors, offerors and contractors of these
policies and procedures. Additionally, Bureaus who receive non-
appropriated funds may utilize and tailor these policies and procedures
to fit their needs.
1032.770-2 Definition.
``Continuing Resolution'' means an appropriation, in the form of a
joint resolution, that provides budget authority for federal agencies,
specific activities, or both to continue operation until the regular
appropriations are enacted. Typically, a continuing resolution is used
when legislative action on appropriations is not completed by the
beginning of a fiscal year.
1032.770-3 General.
The Anti-Deficiency Act, 31 U.S.C. 1341 and FAR 32.702, states that
no officer or employee of the Government may create or authorize an
obligation in excess of the funds available, or in advance of
appropriations unless otherwise authorized by law. A CR provides
funding for continuing projects or activities that were conducted in
the prior fiscal year for which appropriations, funds, or other
authority was previously made available. Each CR is governed by the
specific terms in that specific CR (e.g. duration of the CR) and under
certain CRs, the funding amounts available for award of contract
actions are inadequate to fund the entire amounts needed for some
contract actions.
1032.770-4 Policy.
(a) A fixed-price, time-and-materials or labor-hour contract or
order for commercial or non-commercial supplies or severable or non-
severable services may be incrementally funded when--
(1) Funds are provided to a Treasury Departmental Office or Bureau
under a CR. This includes funds appropriated to a bureau, funds
appropriated to another entity that will be directly obligated on a
Treasury contract, and funds in a revolving fund or similar account
that will be reimbursed by a customer agency funded by a CR;
(2) Sufficient funds are not being allocated from the responsible
fiscal authority to fully fund the contract action that is otherwise
authorized to be issued;
(3) There is no statutory restriction that would preclude the
proposed use of funds;
(4) Funds are available and unexpired, as of the date the funds are
obligated;
(5) Assurance is provided by the responsible financial authority
that full funding is anticipated once an Appropriation Act is enacted;
and
(6) The clause prescribed by 1032.770-7 is incorporated into the
contract or order.
(b) Incremental funding may be limited to individual line item(s)
or a particular order(s).
1032.770-5 Limitations.
(a) This policy does not apply to contract actions that are not
covered by the CR.
(b) If this policy is applied to non-severable services or to
supplies, the contracting officer shall take into consideration the
business risk to the Government if funding does not become available to
fully fund the contract. If the contracting officer determines the use
of incremental funding for non-severable services or supplies is in the
best interest of the Government the contracting officer shall ensure
the contractor fully understands how the limitations of the
Government's liabilities under the contract might impact its ability to
perform within the prescribed contract schedule.
1032.770-6 Procedures.
(a) An incrementally funded fixed-price, time-and-materials or
labor-hour contract shall be fully funded once funds are available.
(b) The contracting officer shall ensure that sufficient funds are
allotted to the contract to cover the total amount payable to the
contractor in the event of termination of convenience by the
Government.
(c) Upon receipt of the contractor's notice under paragraph (c) of
the clause at 1052.232-90, Limitation of Government's Obligation, the
contracting officer shall promptly provide written notice to the
contractor that the Government is--
(i) Obligating additional funds for continued performance and
increasing the Government's limitation of obligation in a specified
amount;
(ii) Obligating the full amount of funds needed;
(iii) Terminating for convenience, as applicable, the affected line
items or contract; or
(iv) Considering whether to allot additional funds; and
(A) The contractor is entitled by the contract terms to stop work
when the Government's limitation of obligation is reached; and
(B) Any costs expended beyond the Government's limitation of
obligation are at the contractor's risk.
(d) Upon learning that the contract will receive no further funds
by the date provided in the notice under paragraph (c) of the clause at
1052.232-70, Limitation of Government's Obligation, the contracting
officer shall promptly give the contractor written notice of the
Government's decision and terminate the affected line items or
contract, as applicable, for the convenience of the Government.
1032.770-7 Clause.
The contracting officer shall insert the clause at 1052.232-70,
Limitation of Government's Obligation, in
(a) Solicitations and resultant contracts when incremental funding
of fixed-price, time-and-material or labor-hour contract via a CR is
anticipated; or
(b) Contracts or orders when incremental funding of a fixed-price,
time-and-material or labor-hour contract is authorized and the Treasury
Departmental Office or Bureau is operating under a CR (see 1032.770-4);
and
(c) The CO shall insert the information required in paragraphs (a)
and (c) of the clause.
PART 1052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. The authority citation for part 1052 continues to read as follows:
Authority: 41 U.S.C. 1707.
0
4. Add 1052.232-70 to subpart 1052.2 to read as follows:
1052.232-70 Limitation of Government's obligation.
As prescribed in 1032.770-7, insert the following clause.
Contracting
[[Page 80610]]
officers are authorized, in appropriate cases, to revise paragraph (a)
of this clause to specify the work required under the contract, in lieu
of using contract line item numbers as well as revise paragraph (c) of
this clause to specify a different notification period and percentage.
The 30-day period may be varied from 45, 60 to 90 days, and the 75
percent from 75 to 85 percent:
Limitation of Government's Obligation (Nov 2016)
(a) Funding is not currently available to fully fund this
contract due to the Government operating under a continuing
resolution (CR). The item(s) listed in the table below are being
incrementally funded as described below. The funding allotted to
these item(s) is presently available for payment and allotted to
this contract. This table will be updated by a modification to the
contract when additional funds are made available, if any, to this
contract.
----------------------------------------------------------------------------------------------------------------
Funds required for
Contract line item number (CLIN) CLIN total price Funds allotted to the complete funding of
CLIN the CLIN
----------------------------------------------------------------------------------------------------------------
$ $ $
$ $ $
$ $ $
$ $ $
Totals.......................... $ $ $
----------------------------------------------------------------------------------------------------------------
(b) For the incrementally funded item(s) identified in paragraph
(a) of this clause, the Contractor agrees to perform up to the point
at which the total amount payable by the Government, including any
invoice payments to which the Contractor is entitled and
reimbursement of authorized termination costs in the event of
termination of those item(s) for the Government's convenience, does
not exceed the total amount currently obligated to those item(s).
The Contractor is not authorized to continue work on these item(s)
beyond that point. The Government will not be obligated in any event
to reimburse the Contractor in excess of the amount allotted to the
line items of the contract regardless of anything to the contrary in
any other clause, including but not limited to the clause entitled
``Termination for Convenience of the Government'' or paragraph (1)
entitled ``Termination for the Government's Convenience'' of the
clause at FAR 52.212-4, ``Commercial Terms and Conditions Commercial
Items.''
(c) Notwithstanding paragraph (h) of this clause, the Contractor
shall notify the Contracting Officer in writing at least thirty days
prior to the date when, in the Contractor's best judgment, the work
will reach the point at which the total amount payable by the
Government, including any cost for termination for convenience, will
approximate 85 percent of the total amount then allotted to the
contract for performance of the item(s) identified in paragraph (a)
of this clause. The notification shall state the estimated date when
that point will be reached and an estimate of additional funding, if
any, needed to continue performance. The notification shall also
advise the Contracting Officer of the estimated amount of additional
funds required for the timely performance of the item(s) funded
pursuant to this contract. If after such notification additional
funds are not allotted by the date identified in the Contractor's
notification, or by an agreed upon substitute date, the Contracting
Officer will terminate any item(s) for which additional funds have
not been allotted, pursuant to the terms of this contract
authorizing termination for the convenience of the Government.
Failure to make the notification required by this paragraph, whether
for reasons within or beyond the Contractor's control, will not
increase the maximum amount payable to the Contractor under
paragraphs (a) and (b) of this clause.
(d) The Government may at any time prior to termination allot
additional funds for the performance of the item(s) identified in
paragraph (a) of this clause.
(e) The termination provisions of paragraphs (a) through (h) of
this clause do not limit the rights of the Government under the
clause entitled ``Default'' or ``Termination for Cause.'' The
provisions of this clause are limited to the work and allotment of
funds for the item(s) set forth in paragraph (a) of this clause.
This clause no longer applies once the contract is fully funded.
(f) Nothing in this clause affects the right of the Government
to terminate this contract pursuant to the Government's termination
for convenience terms set forth in this contract.
(g) Nothing in this clause shall be construed as authorization
of voluntary services whose acceptance is otherwise prohibited under
31 U.S.C. 1342.
(h) The parties contemplate that the Government will allot funds
to this contract from time to time as the need arises and as funds
become available. There is no fixed schedule for providing
additional funds.
(End of clause)
Dated: November 8, 2016.
Iris B. Cooper,
Senior Procurement Executive, Office of the Procurement Executive.
[FR Doc. 2016-27548 Filed 11-15-16; 8:45 am]
BILLING CODE 4810-25-P
