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In response to numerous questions, the Department of Defense Comptroller Office has revised and clarified their Financial Management Regulation
for the delivery of goods for Non-Economy Act Orders. As of August 28th, 2008, the revision is published in the DoD FMR, Volume 11A, Chapter 18,
Section 180302A, and can be found at the following link:
http://www.defenselink.mil/comptroller/fmr/change.html
The revision is highlighted below in bold text:
A. Goods. Funds provided to a performing agency for ordered goods where the funds period of availability thereafter has expired shall be
deobligated and returned by the performing agency unless the request for goods was made during the period of availability of the funds and
the item(s) could not be delivered within the funds period of availability solely because of delivery, production, or manufacturing lead time,
or unforeseen delays that are out of the control and not previously contemplated by the contracting parties at the time of contracting.
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Where materials cannot be obtained in the same fiscal year in which they are needed and contracted for, provisions for delivery
in the subsequent fiscal year do not violate the bona fide need rule as long as the time intervening between contracting and
delivery is not excessive and the procurement is not for standard commercial off the shelf (COTS) items readily available
from other sources.
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The delivery of goods may not be specified to occur in the year subsequent to funds availability unless delivery meets the
exceptions cited above and a justifiable bona fide need exists in the year funds are available for obligation.
A copy of the FMR, Chapter 18, Non-Economy Act Orders is available for your convenience.
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