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

Severable Services

Definition

Severable services means services provided on an on-going, as needed or recurring basis and that meet a need of the Government at the time they are delivered (refer to the examples listed below). When the need for a portion of recurring or continuing services arises in the fiscal year subsequent to the one in which the services were initially funded, that portion is severable and chargeable to appropriations available for obligation in the subsequent fiscal year.

Key Exception

A significant exception to this general rule was provided with the passage of the Federal Acquisition Streamlining Act (FASA) in 1994, providing agencies greater flexibility in their use of annual appropriations. This authority was implemented by FAR 32.703-3(b), Contracts crossing fiscal years.

Examples

  • Animal holding services (i.e., daily care and feeding of laboratory animals)
  • Janitorial/custodial/facilities support services
  • Temporary help services
  • Information technology help-desk support
  • Off-the-shelf training services
  • Technical assistance on an as-needed basis
  • Administrative/program management support services (provided on-site in support of daily operations)

Content last reviewed on December 4, 2014