BONA FIDE Needs Rule

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Long Description: The National Labor Relations Board (NLRB) did not violate the bona fide
needs rule when, in September 2006, it obligated fiscal year (FY) 2006 funds
for five Web site database subscription renewals that it needed to have in
place on October 1, 2006, the first day of FY 2007. Even though delivery of
the renewed subscriptions would occur entirely in FY 2007, to ensure
continued receipt of the subscriptions, NLRB reasonably determined that
the renewal orders needed to be placed in FY 2006, before the expiration of
the existing subscriptions on September 30, 2006. However, NLRB violated
the bona fide needs rule when it obligated FY 2006 funds to renew two Web
site database subscriptions that were not due to expire until October 31,
2006. These subscription renewals were a bona fide need of FY 2007, and
NLRB should have purchased these subscriptions using its FY 2007
appropriation.
File Title: B-309530
Web Site Address: http://www.gao.gov/decisions/appro/309530.pdf
Benefit/Value: Determination of what constitutes a bona fide need of a fiscal year depends in large measure upon the facts and circumstances of the particular case.stances of the particular case.