What does the bona fide needs rule require?
ยง 1502(a), commonly referred to as the bona fide needs rule, which provides that fixed period appropriations are only available for the legitimate needs of the period of availability for which they were made. The bona fide needs rule applies to cost-reimbursement contracts, just as it does to other contract types.
What is federal appropriation law?
Appropriation: A law of Congress that provides an agency with budget authority. An appropriation allows the agency to incur obligations and to make payments from the U.S. Treasury for specified purposes. Appropriations are definite (a specific sum of money) or indefinite (an amount for “such sums as may be necessary”).
Does bona fide need apply to no year funds?
It follows that the bona fide needs rule does not apply to no-year funds.
What is a lead time exception in the federal government?
Lead-time exception: Agencies are permitted to consider normal lead-time in determining bona fide need for a purchase. For example, if the normal lead-time for an item is 30 days, the government may obligate FY 21 funds for an item required on or before 30 Oct 21.
What is severable vs non severable?
“Severable” describes an action that can be divided into two or more parts that are not necessarily dependent upon each other. “Non-severable” describes an action that cannot be divided into two or more parts without negatively effecting performance of the task.
What does a bona fide need inquiry focus on?
The Bona Fide Need rule (31 USC, Section 1502) requires appropriated funds to be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation.
How does the federal appropriations process work?
Appropriations – The House and Senate Appropriations Committees, through their 12 subcommittees, hold hearings to examine the budget requests and needs of federal spending programs. The House and Senate then produce appropriations bills to fund the federal government.
What law requires that appropriated funds be used only for the purpose and program for which the appropriation was made?
Misappropriation is the intentional and illegal use of funds for another use or other unauthorized purpose than its intended purpose. (31 USC, Section 1301) requires that funds appropriated by Congress be used only for the programs and purposes for which the appropriation was made.
What is a lead time exception in the federal government agencies permitted to consider normal production lead time in determining bona fide needs?