BSD has available for use only the following appropriations: (1) O&M, (2) Civilian Personnel, (3) Other Procurement, and (4) Military Construction. In July 2017, BSD's contracting office awarded a firm-fixed-price (FFP) supply contract for the purchase of 500 battery packs. The battery packs are initial spare parts for bio-sensor equipment used by the user community that Conrad Special supports and are specially manufactured in accordance with government-provided specifications. The battery packs are to be delivered over the next 12 months with a final delivery in July 2018. In December 2017, the program office informed Conrad that the battery packs had been very useful in the war effort; however, there was a need for some minor changes in the specifications to maintain the expected level of performance. Specifically, they needed to be made more heat resistant for use in desert conditions. In response, Conrad issued a change order and negotiated an equitable adjustment that increased the contract price. In April 2018, the program manager informed Conrad that due to the ongoing war on terror, there is a need for an additional 75 battery packs. These battery packs are needed as soon as possible but no later than 30 September 2018. Conrad is not very experienced in fiscal law matters. He asked my advice as to the correct appropriation accounts appropriation category and yearthat should have been used for each described contract action. I am no FMR expert, but I think there may be special definitions or rules or exceptions that apply. I also wonder if it makes any difference whether the changes are in scope or out of scope.

Questions

1. Which appropriation (account and FY) must be charged when awarding the original contract?

Explain. 2. Which appropriation (account and FY) should be charged to pay for the upward adjustment in the contract price resulting from the change order issued by the government in December? used by the user community that Conrad Special supports and are specially manufactured in accordance with government-provided specifications. The battery packs are to be delivered over the next 12 months with a final delivery in July 2018. In December 2017, the program office informed Conrad that the battery packs had been very useful in the war effort; however, there was a need for some minor changes in the specifications to maintain the expected level of performance. Specifically, they needed to be made more heat resistant for use in desert conditions. In response, Conrad issued a change order and negotiated an equitable adjustment that increased the contract price. In April 2018, the program manager informed Conrad that due to the ongoing war on terror, there is a need for an additional 75 battery packs. These battery packs are needed as soon as possible but no later than 30 September 2018. Conrad is not very experienced in fiscal law matters. He asked my advice as to the correct appropriation accounts appropriation category and yearthat should have been used for each described contract action. I am no FMR expert, but I think there may be special definitions or rules or exceptions that apply. I also wonder if it makes any difference whether the changes are in scope or out of scope.

Questions

1. Which appropriation (account and FY) must be charged when awarding the original contract? Explain.

2. Which appropriation (account and FY) should be charged to pay for the upward adjustment in the contract price resulting from the change order issued by the government in December? Explain.

3. Which appropriation (account and FY) must be charged for the purchase of the additional 75 units in April 2018? Explain.

4. Are there any special issues raised by the addition of the 75 units that I should consider?

Explain.