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HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance

HHS Reference Tool Content
I.	Basic Appropriations Law Concepts
	A.	Anti-Deficiency Act
	B.	Bona Fide Needs Rule
	C.	Appropriation Types
		1.	Annual
		2.	Multiple-Year
		3.	No-Year
	D.	Continuing Resolution
II.	Decision Factors
	A.	No-Year Appropriation
	B.	Bona Fide Needs Rule
	C.	Acquiring Severable Services
		1.	Annual Appropriation
			a.	Contract period not more than one year
			b.	Contract period more than one year
				-	Options
				-	Incremental Funding
		2.	Multiple-Year Appropriation
			a.	Contract period will not extend beyond multiple-year appropriation's period of availability
			b.	Contract period will extend beyond multiple-year appropriation's period of availability
				-	Options
				-	Incremental Funding
		3.	Modifications
	D.	Acquiring Non-severable Services
		1.	Funded in Full
			a.	Entire Contract/Single Requirement
			b.	Fully Funded Initial Requirement (Followed by Options)
		2.	Multi-year Contracting
		3.	Options After Initial Requirement
			a.	Severable Services
				-	Annual Appropriation
				-	Multiple-Year Appropriation
			b.	Non-severable Services
				-	Fully Funded
				-	Multi-Year Contract
		4.	Modifications
	E.	Acquiring both severable and non-severable services
		1.	Single Definitive Contract
		2.	Indefinite-Delivery/Indefinite-Quantity Contract
III.	Case Studies
IV.	Frequently Asked Questions

Multiple-Year Appropriation

Contract formation and funding (obligation) are valid because:

The contract modification will provide a funding increment from a then-current multiple-year appropriation, and the period covered will not extend beyond that appropriation’s period of availability, the contract action is compliant with governing appropriations law.

Return to Decision Factors

HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance

HHS Reference Tool Content

Multiple-Year Appropriation