Skip Navigation
  • Text Size: A A A
  • Print
  • Email
  • Facebook
  • Tweet
  • Share
  • Print
  • Email
  • Facebook
  • Tweet
  • Share

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

Non-severable Services

Definition

Non-severable services constitute a specific, entire job or single undertaking with a defined end-product that cannot feasibly be subdivided for separate performance. Accordingly, non-severable services must be financed entirely out of the appropriation current at the time of award, even though performance may extend into future fiscal years. Following that logic, contracts for non-severable services cannot be incrementally funded (see 71 Comp Gen 428 (1992) and GAO Decision B-317139, Matter of Financial Crimes Enforcement Network).

Key Exception

The only means to award a contract for non-severable services without full funding up front is to use the multi-year contracting method per FAR Subpart 17.1.

Example

A multi-year contract with two line items, covering: (1) a 5-year study, concluding in a final report documenting the research results; and (2) an option for a 3-year follow-up study of research participants, again concluding in a final report documenting study results.


Content last reviewed on December 4, 2014