HHS Home > ASFR Home > Office of Grants and Acquisition Policy and Accountability > Division of Acquisition > Contract Funding Desk Reference

HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance

HHS Reference Tool Content
I.	Basic Appropriations Law Concepts
	A.	Anti-Deficiency Act
	B.	Bona Fide Needs Rule
	C.	Appropriation Types
		1.	Annual
		2.	Multiple-Year
		3.	No-Year
	D.	Continuing Resolution
II.	Decision Factors
	A.	No-Year Appropriation
	B.	Bona Fide Needs Rule
	C.	Acquiring Severable Services
		1.	Annual Appropriation
			a.	Contract period not more than one year
			b.	Contract period more than one year
				-	Options
				-	Incremental Funding
		2.	Multiple-Year Appropriation
			a.	Contract period will not extend beyond multiple-year appropriation's period of availability
			b.	Contract period will extend beyond multiple-year appropriation's period of availability
				-	Options
				-	Incremental Funding
		3.	Modifications
	D.	Acquiring Non-severable Services
		1.	Funded in Full
			a.	Entire Contract/Single Requirement
			b.	Fully Funded Initial Requirement (Followed by Options)
		2.	Multi-year Contracting
		3.	Options After Initial Requirement
			a.	Severable Services
				-	Annual Appropriation
				-	Multiple-Year Appropriation
			b.	Non-severable Services
				-	Fully Funded
				-	Multi-Year Contract
		4.	Modifications
	E.	Acquiring both severable and non-severable services
		1.	Single Definitive Contract
		2.	Indefinite-Delivery/Indefinite-Quantity Contract
III.	Case Studies
IV.	Frequently Asked Questions

Option(s) for Non-severable Services — Multi-Year Contracting Procedures

Will the option(s) be structured using multi-year contracting procedures, funding the first program year and a separate, fully funded cancellation ceiling when exercised?

Yes No

Help Notes

REMINDER: All options must comply with FAR Subpart 17.2. Use of options as a unilateral right of the Government requires their identification in the solicitation, evaluation of their terms and pricing as part of the award determination, and their inclusion in the contract award. Because the option discussed here will use the multi-year contracting procedure, it requires its own fully-funded cancellation ceiling (and funding for the first program year) upon being exercised. MORE…

HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance

HHS Reference Tool Content

Option(s) for Non-severable Services — Multi-Year Contracting Procedures

Help Notes