Section 27-3240. CONTRACT FUNDING

 

3240.1In accordance with the Antideficiency Act (31 U.S.C. §665), no contracting officer or other District employee shall make or authorize an encumbrance or expenditure in advance of appropriations or which exceeds the budget authority available under a current appropriation.

 

3240.2Before executing any contract, the contracting officer shall obtain certification from an official designated by the Deputy Mayor for Finance that the amount of the contract does not exceed the amount of unencumbered budget authority as of the date on which the contract is executed.

 

3240.3For purposes of this section, "unencumbered budget authority" shall mean that portion of an appropriation which has been allocated to the object of the procurement and which has not been reallocated to another purpose, committed to any other procurement, or expended.

 

3240.4If the contract provides for expenditures in excess of the amount of unencumbered budget authority, the contracting officer shall not sign the contract unless the contract contains a provision, approved by the Director, which expressly provides that the portion of the contract requiring payment of any amount in excess of available budget authority is conditioned upon the appropriation or allocation of additional budget authority.

 

3240.5If the contract provides for expenditures in a future fiscal year, the contracting officer shall not sign the contract unless the contract contains a provision, approved by the Director, which expressly provides that the portion of the contract requiring expenditures in a future fiscal year is conditioned upon the appropriation of budget authority for that fiscal year.

 

3240.6Before execution of a contract, the contracting officer shall ensure that the appropriate amount of allocated budget authority is encumbered to cover the cost of the contract.

 

3240.7Budget authority shall be encumbered as follows:

 

(a)In an amount sufficient to cover the price or target price of a fixed-price contract, or the price of that portion of the contract to be performed in the current fiscal year; or

 

(b)In an amount sufficient to cover the estimated cost and any fee of a cost-reimbursement contract, or that portion of the estimated cost and fee applicable to the current fiscal year.

 

3240.8For contracts which extend to a fiscal year for which appropriations have not been made or allocated at the time of contract execution, the contracting officer shall ensure that the appropriate amount of allocated budget authority is encumbered when the appropriation is made.

 

3240.9Each encumbrance shall expire at the end of the fiscal year to which it applies. The portion of any contract not performed or delivered during the fiscal year shall be handled as follows:

 

(a)If the contract does not extend beyond the end of the fiscal year, that portion of the contract shall be cancelled; or

 

(b)If the contract extends to the following fiscal year, that portion of the contract shall be encumbered against appropriated budget authority in the following fiscal year or cancelled if budget authority is not available.

 

3240.10A contractor shall not perform services or deliver goods under a contract conditioned upon the availability of funds until the contracting officer has given written notice to the contractor that funds are available. The contracting officer shall not give notice to the contractor until the appropriate amount of budget authority has been encumbered.

 

3240.11The District shall not accept goods or services under a contract conditioned upon the availability of funds until the contracting officer has given written notice to the contractor that funds are available.

 

source

Final Rulemaking published at 35 DCR 1643 (February 26, 1988).