What are severable services?
(a) “Severable services” means services that are continuing and ongoing in nature—such as help-desk support, maintenance, or janitorial services—for which benefit is received each time the service is rendered.
Can severable services be incrementally funded?
Whether a contract is for severable or nonseverable services affects how the agency may fund the contract; severable services contracts may be incrementally funded, while nonseverable services contracts must be fully funded at the time of the award of the contract.
When can you incrementally fund?
A fixed-price contract (FAR Subpart 232.704-70) may be incrementally funded only if it’s for: Services that do not exceed one year in length and uses funds available (unexpired) as of the date the funds are obligated.
What does incrementally funded mean?
“Incremental funding” means the partial funding of a contract or an exercised option, with additional funds anticipated to be provided at a later time.
Can you incrementally fund a FFP contract?
Worse, most contract writing systems will not support an incrementally funded FFP contract. The checks and balances may force you to describe the FFP as the funded amount. Most will not allow partial billing.
Is severability legal?
The severability principle is a legal doctrine that holds a contract intact, even if a specific provision is unenforceable. Severability principles support the basic concept that contracts should not lead to inseverability for the rest of the agreement.
What does severable services mean in contract funding requirements?
532.703 Contract funding requirements. (a) “Severable services” means services that are continuing and ongoing in nature—such as help-desk support, maintenance, or janitorial services—for which benefit is received each time the service is rendered.
Can a federal agency use multiple year funds for severable services?
Hence, federal agencies may use multiple year or no-year funds to enter into contracts for severable services for a period of performance longer than 1 year and an agency using multiple year or no-year funds is free to contract for the full period of availability the statute appropriating those funds allows.
When does a severable service contract address a recurring or continuing need?
Since a severable service contract addresses a recurring or continuing need, such as a maintenance contract, 35 Comp. Gen. 319 (1955), the cost of addressing such needs are charged under the bona fide needs rule to the appropriation current at the time services are provided. 71 Comp. Gen. 428, 430 (1992).
How long are severable services contracts funded by no-year appropriations?
In our opinion, these statutory provisions do not restrict to 1 year the contract periods of severable services contracts funded by no-year appropriations or by multiple year appropriations.