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Option(s) for Non-severable Services - Funded in Full at Option Exercise

Option(s) for Non-severable Services — Funded in Full at Option Exercise

Contract formation and funding (obligation) are valid.

Contract modifications to exercise option(s) (for non-severable services) must fully-funded from a then-current appropriation source, 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. In this case, the option(s) will be fully funded from a then-current appropriation source upon exercise and, therefore, will comply with the applicable provisions of appropriations law.

NOTE: The term "then-current appropriation source" means one that is available for obligation on the date the contract action will be executed/effective. 

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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