Operational and Maintenance Funds
DTIC does not place restrictions on types of funds that may be accepted under IAC contracts. The sending organization must verify that funds are appropriate for the intended purpose. Limitations on the original appropriation sent to DTIC remain; use of DTIC's RDT&E authority does not change the conditions and limitations imposed on the use of funds (per DoD FMR Volume 11A, Chapter 3, 030104).
The contract cites DTIC's funding line under reimbursable authority (per Title 10, USC, section 2205). The customer (sending organization) is responsible for certifying the funds submitted to DTIC are for the proper purpose; certification is made on the DD Form 448, MIPR (per DoD FMR Volume 11A, Chapter 3, 030402). For funds accepted under DTIC reimbursable authority (Cat I MIPR) DTIC calculates earnings based on an estimated burn rate documented in the contract modification.
Most IAC TATs are considered to be severable, meaning that the government derives value before the entire scope of the TAT has been completed. For severable services, Operational and Maintenance (O&M) funds must be expended within 12 months of the date of obligation (when they are placed on contract). If a particular TAT is considered non-severable, it must be fully funded upon award; in such a case, O&M funds may be used and expended over a period of performance (PoP) that exceeds 12 months.
Based on DTIC and AFICA's review of past contract actions, in the context of the above DoD guidance, we have determined that the following will apply to any O&M funds received for IAC contracts. This applies to O&M funds received for new orders, as well as incremental funding actions funded with O&M on any existing orders.
- Each O&M MIPR must specify what tasks under the TAT SOW it is funding.
- If O&M funding (which has a 12 month obligation limit) is the only funding received to start a new TAT, then the subject TAT will have performance terms (base, options) no longer than 12 months.
- Each O&M MIPR received will be placed on its own/separate 12-month CLIN; for example:
Current TAT PoP is 1 Jan 13 to 31 Dec 15 - O&M MIPR for incremental funding is placed on contract on 1 Dec 13; that MIPR will be placed on a CLIN valid 1 Dec 13 to 30 Nov 14; all funds must be expended and work completed during that period; any funds not expended may not be "rolled over" into another CLIN or used for other tasks after 30 Nov 14.
Appropriations and Authority
For information on DoD Appropriations, you can use the Treasury Financial Manual as a reference.The Economy Act is the general statutory authority that allows customers to order services from DTIC on a cost-reimbursable basis. The OSD comptroller annually reviews and approves a specific limit and funding line for DTIC's reimbursable authority.