Question
It is July 2018. The contracting officer at Fort Jefferson is about to award a contract for a computer system that the Post Engineer will
It is July 2018. The contracting officer at Fort Jefferson is about to award a contract for a computer system that the Post Engineer will use to track work orders and inventory. This $15,000 computer system is readily available within a few days from any of several local vendors. The Post Engineer intends to use the system in a warehouse for which construction will begin in November 2018; the warehouse will be complete in December 2018. The contract cites FY 2018, Operations and Maintenance, Army (OMA) funds. What should you advise the contracting officer?
The contracting officer may award the contract citing FY 2018 OMA funds. Obligating FY 2018 funds in July 2018 will not violate the Antideficiency Act. The Post Engineer, however, may not pay for the system until the warehouse is completed. | ||
Because the Post Engineer will use the system to perform installation operations and because the "lead time" exception clearly permits the use of FY 2018 funds for the system, the contract award is proper. | ||
The contracting officer should award this contract after 1 October 2018, with FY 2019 OMA funds.To do otherwise would violate the Bona Fide Needs rule. | ||
Award now is proper if the installation later obtains Procurement funds to replace the funds obligated for the computer system. |
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