What does the bona fide needs rule require?
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 does bona fide need mean?
BONA FIDE NEED means a specified requirement with an identified deliverable and required delivery date, with the cost of the requirement to be encumbered in the current fiscal year with delivery/performance completed in the following fiscal year.
What is the bonafide 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.
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 does a bona fide need inquiry focus on?
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 a lead time exception in the federal government?
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.
Does bona fide need apply to no year funds?
(Note: The bona fide need rule does not apply to no-year funds. 43 Comp. Gen. 657 (1964).)
Does bona fide need rule apply to all appropriations?
Current year money for current year needs. The Bona Fide Needs Rule applies only to appropriations with limited periods of availability for obligation.
What is lead time exception?
What is the necessary expense rule?
The “Necessary Expense Doctrine” – Where a particular expenditure is not specifically provided for in the appropriation act, it is permissible if it is necessary and incident to the proper execution of the general purpose of the appropriation.
Can O&M funds be used to purchase equipment?
Using O&M funds to acquire equipment items that exceed the designated threshold amount for the mandatory use of procurement funds could be a potential ADA violation. For instance, O&M funds are used to purchase a computer system when Other Procurement funds are required.
What is a lead time exception in the federal Government?
What is the bona fide needs rule?
Bona Fide Needs Rule Background Future Years’ Needs Prior Years’ Needs Delivery of Materials Beyond the Fiscal Year Services Rendered Beyond the Fiscal Year Replacement Contracts Contract Modifications Multi-Year Contracts Specific Statutes Grants and Cooperative Agreements
What is a bona fide need for stock replacement?
An order or contract for the replacement of stock is viewed as meeting a bona fide need of the year in which the contract is made as long as it is intended to replace stock used in that year, even though the replacement items will not be used until the following year.
When does a project meet the bona fide need?
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). As per the FMR:
What is the bona fide need for appropriation?
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