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

No-year Appropriation

Contract formation may continue without regard to the remainder of the information presented in this reference tool with the exception noted below. If you are in doubt about the nature of the appropriation source, consult your contracting officer or OPDIV/STAFFDIV budget/finance officials.

EXCEPTION: If an agency chooses to use the multi-year contracting authority provided by 41 U.S.C 254c (passed as part of FASA and implemented in FAR Subpart 17.1) and obligate no-year funds on an annual basis, the contract must obligate the full cancellation ceiling in the first year and cannot continue beyond the statutorily authorized term—5 years for HHS and other agencies operating under the general authority conferred by FASA.

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