NOAA Acquisition Manual

Main Table of Contents

Subchapter E- General Contracting Requirements


Part 1330-32 Contract Financing

Subpart 1330-32.5 Progress Payments Based on Costs

1330-32.502 Pre-Award matters

1330-32.502-2 Contract Finance Office Clearance

Subpart 1330-32.7 Contract Funding

1330-32.702 Policy

1330-32.702-70 Policy for Purchase Reacquisition for Conferences and Group Travel

1330-32.703 Contract Funding Requirements

1330-32.703-170 Purchase Requisition Funding for Fully Funded and Incrementally Funded NOAA Contracts

1330-32.703-270 Annual and Multiple Year Appropriations for Severable Services Contracts

1330-32.703-70 Initiation of Contracting Actions without Funding under a Continuing Resolution

1330-32.703-71 Initiation of Contracting Actions without Funding under a Full Appropriation

Subpart 1330-32.8 Assignment of Claims

1330-32.803 Policies
 

 

Part 1330-32 Contract Financing

Subpart 1330-32.5 Progress Payments Based on Costs

1330-32.502 Pre-award Matters

1330-32.502-2 Contract Finance Office Clearance

(a)(3) The contracting officer shall obtain the BPO’s approval before taking any of the actions in accordance with FAR 32.502-2(a) through (c).

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Subpart 1330-32.7 Contract Funding

1330-32.702 Policy

(a)  Internal Control for Funding Approval, Certification, and Obligation. The Anti-Deficiency Act prohibits making obligations in excess of available appropriations or apportionments. Each individual involved in the procurement process has specific authority, responsibility, and constraints associated with their role. Products and services are independently and separately approved for bona-fide needs, funds availability, and obligation. This separation of duties reflects the required checks and balances needed to protect NOAA from waste, fraud, and abuse. This policy applies to purchases for products or services that require a purchase request, purchases above the micro-purchase threshold and training requests that require a purchase order. The policy does not apply to travel.

  1. Definitions:
    “Organizationally Detached” as used in this subpart means the requisitioner and/or bona fide needs certifier, funds certifying official, and contracting officer shall, at a minimum, be separate people and shall report to a different first line supervisor.
  2. Roles and Responsibilities: The following roles and responsibilities apply to NOAA staff when approving purchase requests, certifying the availability of funds, and obligating the Government:

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    1. Requisitioner: The requisitioner creates the requisition document, enters all pertinent data elements, and shares the requisition document with the bona fide need certifier.
    2. Bona Fide Need Certifier: The bona fide need certifier certifies that a product or service meets a bona-fide need, is in the public interest, and is applicable to the appropriation to be utilized. The requisitioner is organizationally detached from the funds certifying official and the contracting officer to ensure an independent and unbiased certification. The requisition and the bona fide needs certifier do not need to be organizationally detached. The bona fide needs certifier may retain the role of the requisitioner, if desired.
    3. Funds Certifying Official: The funds certifying official certifies that sufficient funds are available in the identified appropriation and suitable for the intended purpose. The funds certifying official is organizationally detached from the requisitioner, bona fide needs certifier, and the contracting officer to ensure an independent and unbiased certification. The funds certifier shall be authorized in writing by the Chief Financial Officer (CFO) to certify funds as to availability and suitability for the intended purpose. The NOAA CFO has delegated this authority to the Line Offices (LO) and Office of Marine and Aviation Operations (OMAO) for their respective offices. The NOAA CFO serves as the CFO for all Staff Offices (SO). The NOAA CFO serves as the CFO for all Staff Offices. Staff Offices shall work with the NOAA CFO to identify and appoint Funds Certifying Officials.
    4. Contracting Officer:  The contracting officer contractually obligates the Government pursuant to a procurement contract. The contracting officer shall be organizationally detached from the requisition, bona fide need certifier, and the funds certifying official to ensure an independent and unbiased certification. The Contracting Officer shall be authorized in writing by the Bureau Procurement Official to obligate the Government.
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1330-32.702-70 Policy for Purchase Requisitions for Conferences and Group Travel

(a) The requisitioner shall follow the Conference and Group Travel Approval Process and ensure that a purchase requisition for conference expenses or group travel submitted to the Acquisition and Grants Office (AGO) or a Field Delegate must be accompanied by the proper approval documentation.

  1. Conferences and conference expenses: The policy for conference approval is set forth in the NOAA Chief Financial Officer (CFO) Policy Memorandum 14-01. Conference Memorandum issued on July 7, 2014, the Finance Policy Memorandum, Reminder on Conference Procedures issued on October 2, 2014, or any subsequent DOC or NOAA policy on conferences.
  2. Group Travel: The policy for group travel approval is set forth in the NOAA Finance Memorandum, entitled Travel Transmittal Number 31 issued on June 1, 2016 or any subsequent DOC or NOAA policy on group travel.

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1330-32.703 Contract Funding Requirements

1330-32.703-170 Purchase Requisition Funding for Fully Funded and Incrementally Funded NOAA Contracts

(a) The following acquisition policy applies to fully funding a purchase requisition submitted to AGO for the initiation of a procurement:
 

  1. New Procurements: A purchase requisition for the initiation of a procurement submitted to AGO shall be fully funded. A new procurement for a contract award shall include a fully funded purchase requisition for the base period. A contract award shall normally establish an award and option-period renewal date in compliance with Commerce Acquisition Manual 1307.1 Procurement Administrative Lead Times (PALT) and the AGO Acquisition Cutoff Dates for the fiscal year. A contract award shall establish a performance period beginning not later than July 1st and an option-period renewal date not later than June 30th. A contract with continued services in subsequent years shall normally establish a base performance period of twelve months. The option periods(s) for a contract shall be established as a 12 month option period(s). An option period with a performance period less than twelve months shall normally require proper written justification (i.e. memorandum format) from the requisitioner, approval by the contracting officer, and shall not be less than six months.

    In the case of a procurement to establish an Indefinite-Quantity type contract, the requisition must provide sufficient dollars to fund the minimum guaranteed amount. A zero dollar purchase requisition will not be accepted to initiate the the procurement of a new contract(s) unless the requirement meets the following exceptions: 

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    1. When the procurement lead time is such that it requires initiation of a procurement in the then-current fiscal year with contract award to be made in the following fiscal year.
    2. When the Head of Contracting Office (HCO) has granted an exception due to extenuating circumstances that require submission of a zero dollar purchase requisition
  1. Contract Option Periods and Modifications: A purchase requisition for exercising an option period shall be fully funded for the requirement being procured. Purchase requisitions for modifications to partially or incrementally fund an option period will no longer be processed by AGO unless the requirement meets the following exceptions:
    1. When the requirement is to exercise an option for a high risk type contract (Cost reimbursement, time-and-materials, and labor-hour) or a firm fixed price contract under a continuing resolution
    2. When the HCO has granted an exception due to extenuating circumstances
  2. Changes to Purchase Requisitions: The requisitioner is required to ensure that a purchase requisition submitted to AGO for contacting action contains the appropriate accounting codes and sufficient funds to cover the period of performance. If it is determined later that there are insufficient funds in the account, the requisitioner is responsible to ensure that adequate funds are transferred under the original accounting code to fund the remainder of the period of performance. AGO will not allow the accounting codes to be changed on the requisition originally submitted. This will preclude loss of work already completed. Any change to correct an accounting code shall be approved by the HCO.

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(b) The following acquisition policy applies to the incremental funding of firm fixed price (under a continuing resolution), cost reimbursement, time-and-materials, and labor-hour contract actions. Absent specific authority, funding under a continuing resolution is available only to fund ongoing projects and activities. The use of these funds is not authorized for new initiatives or projects:

  1. Firm Fixed Price Contracts (under a Continuing Resolution): A continuing resolution is an appropriation act that provides budget authority for federal agencies, specified activities, or both in the continuance of operation when Congress and the President have not completed action on the regular appropriation acts by the beginning of the fiscal year. In accordance with agency policy and absent Congressional authority, the use of incremental funding on a firm fixed price contract action is only authorized during a continuing resolution. Unless specified by Congressional authority, incremental funds cannot be used on firm fixed price contract actions after the Department has received a full appropriation. In order to process an incrementally funded firm fixed price contract action during a period of continuing resolution, all the following requirements shall be met:
    1. Program offices are responsible for (a) the coordination with their respective acquisition division or acquisition office to confirm the funding amounts required for specific ongoing projects and activities, and (b) the coordination with their budget office to ensure that the terms of the continuing resolution are met before the funds are provided to the acquisition division or acquisition office. The submission of funding to the servicing acquisition division or acquisition office shall constitute that use of the funding for an obligation on the specific contract is in compliance with the terms of the applicable continuing resolution. The contract action being funded must be for the full period of the continuing resolution.
    2. After the appropriation has been received and allocated, program offices shall promptly provide the servicing acquisition division or acquisition office with the balance of funding necessary to fully fund the contract for the specific ongoing project. The full allocated amount of funds for an ongoing project or activity shall not be withheld for fragmented distribution to the servicing acquisition division or acquisition office throughout the fiscal year. The required funding shall be provided and obligated consistent with the established terms of the contract.
    3. The contract action shall cite the clause at FAR 52.232-18 Availability of Funds as the authority to expressly condition the government's obligation under the contract for the balance of funding required upon the availability of funds. If the FAR clause is not included in the contract, a bilateral modification is required for its inclusion.
       
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  2. Cost Reimbursement, Time-and-Materials, and Labor-Hour Contracts: The use of incremental funding for high risk type contracts (cost reimbursement, time-and-materials, and labor-hour) for services is permissible, when all of the requirements are met:
    1. Incremental funding is not prohibited by the agency, a specific appropriation, the financial management regulations, or the acquisition regulations.
    2. The services being procured are severable. Absent special authority, non-severable services must be fully funded at the time of the award.
    3. A bona fide need exists for the services when the initial obligation is made.
    4. The acquisition instrument includes any relevant agency supplemental and Federal Acquisition Regulation (FAR) clauses or provisions necessary to limit the government's financial liability. Contracting officers shall ensure that all cost reimbursement contract actions cite the clause at FAR 52.232-22 Limitation of Funds. Contracting officers shall ensure all time-and-materials or labor-hour contract solicitations, contracts, and orders include the NOAA solicitation and contract at NAM 1330-52.232-70, NOAA Limitation of Funds on Time-and-Materials and Labor-Hour contracts and orders.
    5. The award is in compliance with all applicable regulations. The Head of Contracting Office is responsible for approving the justification and approval determination for using cost-reimbursement, time-and-material, and labor-hour contracts. The Senior Bureau Procurement Official (SBPO) shall retain this approval authority when the HCO is also the contracting officer of the acquisition, the acquisition meets the Acquisition Review Board threshold or is subject to the major investment oversight process.

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1330-32.703-270 Annual and Multiple Year Appropriations for Severable Services Contracts

(a) Policy:
In accordance with 41 U.S.C.3902, multiple year appropriations, like annual appropriations, may be used for a severable services contract with a contract performance period that extends beyond the period of availability of the funds, as long as the services are provided within one year after the award of the procurement contract and the funds are obligated within their period of availability. 41 U.S.C. 3902 applies to both annual appropriations and multiple year appropriations in their final year of availability.

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1330-32.703-70 Initiation of Contracting Actions without Funding under a Continuing Resolution

(a) Policy
During periods of an extended Continuing Resolution, the BPO may authorize HCOs to initiate contracting actions at their discretion in advance of appropriations to ensure that essential NOAA services are in place when required and/or to effectively process the current fiscal year workload.

(b) Procedures

  1. The requiring office shall provide the following:
    1. Sufficient funding on the PR to evidence the need for the commodity or service and the intent to provide full funding as soon as the appropriation is passed, or
    2. A $0 PR if funding is not possible.
  2. As soon as NOAA’s appropriation is passed, the requiring office shall provide the balance of any funds required to meet the Government estimate to the contracting officer.
  3. Once the appropriation has been passed, HCOs shall not accept $0 PRs to initiate any contracting actions to be funded with the then-current year funding.

(c) Solicitation provisions and contract clauses

  1. Neither FAR 52.232-18, Availability of Funds, nor FAR 52.232-19, Availability of Funds for the Next Fiscal Year, shall be cited in the solicitation unless the conditions stated for their use in FAR Part 32 apply to the procurement.
  2. Should neither of the clauses apply, include a prominent statement in the solicitation informing prospective offerors that funds are not available.
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1330-32.703-71 Initiation of Contracting Actions without Funding under a Full Appropriation

(a) Policy
The BPO may authorize HCOs to initiate contracting actions at their discretion in a fiscal year for large dollar procurements to be awarded in the following fiscal year where conditions for use of the FAR Subject to Availability of Funds clauses do not apply.

(b) Procedure

  1. The requiring office shall provide $0 PR.
  2. HCOs have the discretion to accept $0 PRs to initiate the contracting actions in advance of appropriations.

(c) Solicitation provisions and contract clauses

  1. Neither FAR 52.232-18, Availability of Funds, nor FAR 52.232-19, Availability of Funds for the Next Fiscal Year, shall be cited in the solicitation unless the conditions stated for their use in FAR Part 32 apply to the procurement.
  2. Should neither of the clauses apply, include a prominent statement in the solicitation informing prospective offerors that funds are not available.

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Subpart 1330-32.8 Assignment of Claims

1330-32.803 Policies

(b) Document any prohibition of the assignment of claims in a determination for the contract file.

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