HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance
Potential Appropriations Law Violation
In this instance "contract action" refers to the base period and all subsequent option(s). Because you are using an annual appropriation, neither the base period nor any option(s) may be funded for a period greater than one year.
REMINDER: FAR 32.703-3(b) permits a contract, option, or order for severable services to begin in one fiscal year and continue into the next, provided the period involved does not extend beyond one year. Funds available for a fiscal year (annual appropriation) may be used to fund the total amount of the contract action.
Consult the Office of the General Counsel.