[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR332.702]



[Page 59-60]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 332_CONTRACT FINANCING--Table of Contents

 

                     Subpart 332.7_Contract Funding

 

Sec. 332.702  Policy.





    An incrementally funded contract is a contract in which the total 

work effort is to be performed over multiple time periods and funds are 

allotted to cover discernible phases or increments of performance.

    (a) Incremental funding may be applied to cost-reimbursement type 

contracts for the acquisition of research and development and other 

types of nonpersonal, nonseverable services. It shall not be applied to 

contracts for construction services, architect-engineer services, or 

severable services. Incremental funding allows nonseverable cost-

reimbursement contracts, awarded for more than one year, to be funded 

from succeeding fiscal years.

    (b) It is departmental policy that contracts for projects of 

multiple year duration be fully funded, whenever possible, to cover the 

entire project. However, incrementally funded contracts may be used 

when:

    (1) A project, which is part of an approved program, is anticipated 

to be of multiple year duration, but funds are not currently available 

to cover the entire project;

    (2) The project represents a valid need for the fiscal year in which 

the contract is awarded and of the succeeding fiscal years of the 

project's duration, during which additional funds may be obligated by 

increasing the allotment to the contract;



[[Page 60]]



    (3) The project is so significant to the approved program that there 

is reasonable assurance that it will command a high priority for 

proposed appropriations to cover the entire multiple year duration; and

    (4) The statement of work is specific and is defined by separate 

phases or increments so that, at the completion of each, progress can be 

effectively measured.