Government Contracts NASA Eliminates Incremental Funding Restrictions
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Thursday, April 2, 2020

NASA Eliminates Incremental Funding Restrictions

By Government Contracts Editorial Staff

The National Aeronautics and Space Administration has issued Procurement Notice 20-01. The notice revises the NASA Federal Acquisition Regulation Supplement at NFS 1832.702-70 to remove conditions limiting incremental funding. Under the prior version of NFS 1832.702-70, incremental funding was allowed only if the total value of the contract or task order was $1 million or more (lower for certain research and development contracts), the performance period exceeded one year, funds were not available to fund the contract or task order in full at the time of award, and initial funding was $100,000 or more. The regulation also required incrementally funded contracts and orders to be fully funded as soon as adequate funding became available and limited the use of incremental funding for modifications of less than $25,000. However, NFS 1832.702-70 also allowed the procurement officer to waive any of these conditions, and contracting activities frequently and routinely issued waivers. The PN removes these restrictions, which will eliminate the waiver process and reduce procurement lead time. NASA will continue to align with contract funding principles and restrictions under FAR Subpart 32.7. The effective date of the PN is March 3, 2020. For the text of the notice, see ¶70,049.298.

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