Which of the following provides an exception to the bona fide needs rule for supply contracts?

Which of the following provides an exception to the bona fide needs rule for supply contracts?

Two GAO recognized exceptions to the Bona Fide Needs Rule, specific to supplies, are the lead- time exception (for both delivery and production) and the stock-level exception. See DoD 7000.14-R, Volume 3, Chapter 8. (b) Services. The bona fide need for services does not arise until the services are rendered.

What are the 3 main elements of fiscal law?

The main theme of fiscal law can be summed up in three words: “Purpose, Time and Amount.” This concept is often referred to by its acronym—“PTA.” A fiscal law analysis first asks whether or not a particular expenditure is in accordance with the purpose for which Congress provides us with that type of funding.

What is bona fide needs rule?

§ 1502(a), commonly referred to as the bona fide needs rule, which provides that fixed period appropriations are only available for the legitimate needs of the period of availability for which they were made. The bona fide needs rule applies to cost-reimbursement contracts, just as it does to other contract types.

What is a lead time exception in the federal government agencies permitted to consider normal production lead time in determining bona fide needs?

Lead-time exception: Agencies are permitted to consider normal lead-time in determining bona fide need for a purchase. For example, if the normal lead-time for an item is 30 days, the government may obligate FY 21 funds for an item required on or before 30 Oct 21.

What is the bona fide needs rule and explain its applicability to funding federal contracts for goods and services?

The Bona Fide Need rule (31 USC, Section 1502) requires appropriated funds to be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation.

What are the three general restrictions on the authority to obligate appropriated funds?

Appropriated funds are subject to three basic fiscal constraints: time, purpose, and amount. The time constraint includes two major elements. First, appropriations have a definite period of availability. Second, appropriations normally must be used for the needs that arise during the period of availability.

What are the bona fide needs rule Why is it important?

The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.

What is the three part purpose test?

The “Necessary Expense Doctrine” (a.k.a. The 3-part Purpose Test). The purpose statute does not require every expenditure to be specified in an appropriation act. That is not possible or feasible. “The spending agency has reasonable discretion in determining how to carry out the objects of the appropriation.”

Which of the following are prohibited by the Antideficiency Act?

The Antideficiency Act prohibits federal employees from: making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law.

What are the exceptions to the bona fide needs rule?

There are three important exceptions to the Bona Fide Needs Rule in awarding replacement contracts: NOT A. Termination for default, termination for convenience and termination for failure NOT B. Termination for closing, termination for opening, and bid acceptances

What are the three major provisions of the bona fide need Act?

Bona Fide Need The three major legal provisions that concern funds execution are the Anti-deficiency Act, Purpose Statute (also known as the “Misappropriation Act”), and the Bona Fide Need Rule (also known as the “time statute”).

When is a project order considered a bona fide need?

Project Orders: The DoD Financial Management Regulation (FMR) (Vol 11A, 020510) provides for a year-end exception for project orders. This exception applies only to DoD and states that a project will be considered to have met the bona fide need of the prior fiscal year (FY) if work is started by the end of the calendar year (CY).

When does a bona fide need arise under the Appropriation Act?

Strict interpretation of this law – combined with the appropriation act language – means that the need may arise anytime during the period the appropriation act states the funds are available (e.g., two years for RDT&E or three years for most procurement accounts).