HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance
Potential Appropriations Law Violation
Because you are using an annual appropriation to fund option(s) for severable services, each option cannot be funded for a period greater than one year. Funding an option period beyond one year is not permitted because the annual appropriation is no longer available for obligation.
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.