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

Non-severable Services — Funded in Full at Contract Award

Contract formation and funding (obligation) are valid.

Contracts for non-severable services must be fully funded from the appropriation current when the contract is awarded unless another funding approach is authorized by statute. At this time, the only statutorily authorized exception applicable to HHS is the general authority conferred by 41 U.S.C. 254c* and FAR Subpart 17.1 to enter into multi-year contracts.

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* Re-codified as 41 U.S.C. 3903 by Public Law 111-350, January 4, 2011. This new citation is not yet available as a hyper-link in the United States Code web site maintained by the Office of the Law Revision Counsel, U.S. House of Representatives.