Procurement Information Circular
September 20, 2011
FY2012 CR FUNDING AVAILABILITY FOR SEVERABLE ACTIVITY, NOTIFYING CONTRACTORS
PURPOSE: To provide guidance on notification to contractors of funding availability to ensure continuity of severable services funded with the CAS Appropriation.
BACKGROUND: The NASA FY 2011 Appropriation Bill provides that NASA’s Cross-Agency Support Funds (CAS) are limited to a one-year period of availability. The funds will expire on September 30, 2011. For FY 2011 CAS funds, NASA does not have contractual authority to write contracts across fiscal years for severable services nor fund them across fiscal years. This limitation means contractors cannot use CAS funds obligated in FY 2011 for performance in FY 2012. Therefore, the FY 2012 Continuing Resolution (CR) Authority and appropriations process can significantly impact the CAS-funded contracts.
Procurement Information Circular (PIC) 11-04 was issued to describe the preliminary steps contracting officers must take to determine contracts affected by the 2011 CAS funds limitation, and prepare those contracts and contractors for end-of-fiscal-year funding procedures. This PIC supplements PIC 11-04; the two PICs should be considered jointly in the administration of affected contracts.
The Procurement POC template consists of Centers’ procurement focal points who actively participated in the development of this PIC.
GUIDANCE: Notification of funds availability for severable work funded with FY 2012 CAS must be provided to the contractor by the Contracting Officer (CO) using the instruction below. Notification to contractors shall take place only after the CO receives funding certifications for the FY 2012 CAS appropriation or after the Agency CFO provides authorization to proceed.
Significant CO activities include:
Contracting officers shall then inform contractors that funds are available for performance in FY 2012 using the letter “Notice to Contractors: FY 2012 CR Funding Availability for Severable Activity” (Enclosure 1 to this PIC). Centers are authorized to utilize alternative notification methods, consistent with the time available to ensure timely receipt by contractors, including e-mail and fax. The letter shall include dollar amounts authorized and the number of days the contractor is authorized to proceed in FY 2012. This interim method of notification is designed to prevent a break in contract performance until the Government opens its systems on October 1, 2011, and the CO issues a formal funding modification. Depending upon the language in the CR, multiple interim notifications may be utilized until passage of an appropriations act for FY 2012.
REFERENCE: Enclosure 1, Notice to Contractors: FY 2012 Funds Availability for Severable Activities.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until cancelled or superseded.
Michael L. Powers, Office of Procurement, Contract Management Division,
(202) 358-2346, email: firstname.lastname@example.org.
Director, Contract Management Division
Notice to Contractors: FY 2012 CR Funding Availability for Severable Activity
To: Your Contractor Name and address here,
Contract No: *
By letter dated, I notified you that contract no.__________was potentially impacted by a limitation in NASA’s appropriation authority applicable to fiscal year 2011 Cross Agency Support (CAS) funds. That communication provided a modification to incorporate FAR clause 52.232-19, Availability of Funds for the Next Fiscal Year and advised you that NASA was not obligated to pay for performance occurring in FY 2012 unless you were advised that FY 2012 funding was available.
This is to advise that the FY2012 Appropriation or Continuing Resolution (CR) Authority, allowing NASA to continue to operate after September 30, 2011, has been signed, thereby permitting continued performance under your CAS-funded contract after that date.
In order to minimize breaks in service, you are authorized to continue performance into FY 2012 with the following limitations. FY 2012 CAS funding, in the amount of $ _________ is presently available for performance under contract ___________, for performance for ______ days. The Government’s obligation for performance of this contract beyond ______days is contingent upon the availability of additional appropriated funds from which payment for contract services can be made. No legal liability on the part of the Government for any payment may arise for performance under this contract beyond _________days until funds are made available to the Contracting Officer for performance and until you are notified of funds availability. This authorization to proceed for _______days will be confirmed by contract modification. Likewise, all future authorizations to proceed, which may occur frequently depending upon the terms of a continuing resolution, will be confirmed by contract modification.
If you have any questions please contact the undersigned at ________, or _______________.
*Note to Contracting Officers: Contracting officers may modify the word “contract” for situations where severability determinations were made below the contract level; i.e., the letter may be modified to reflect the level at which the determination was made and funding is delineated (e.g. task, CLIN, work authorization). REMOVE THIS NOTE BEFORE ISSUING THIS LETTER TO CONTRACTOR.