# MP5332.7 Contract Funding

#### Mandatory Procedure

MP5332.7
Contract Funding

(INTERIM CHANGE: See Policy Memo 11-C-05)

#### June 2006

Funding Exemptions. Contracting activities shall not issue a solicitation for supplies or services without a funding document or a written statement of funds availability unless the purchase request is for:

(a) A requirement chargeable to the Air Force Stock Fund and the local primary stock fund manager (of a stock fund division that is exempt from apportionment control) furnishes the following signed certificate to the contracting office:

“I certify that all purchase requests for [insert stock fund item names] stock fund items for fiscal year [insert fiscal year] are provided for in the approved [insert name] operating program for fiscal year [insert fiscal year]. The proper accounting classification to be cited for the entire fiscal year is [insert classification].”

(b) A contract conditioned upon the availability of funds as authorized in FAR 32.703-2;

(c) A requirements type contract that does not require a firm funded order at the time of contract execution;

(d) Information needed for planning purposes pursuant to FAR 15.201(e); or

(e) Requirements procured pursuant to the Special Acquisition Provisions below.

Special Acquisition Provisions. When a purchase request is for one of the requirements listed in (a) through (d) below, the base contracting activity may issue a solicitation, receive and open offers, and prepare final award documents (including contract clearance, if required). However, the contract shall not be signed by the contracting officer; delivered to the contractor; nor will the contractor be notified that it has been awarded a contract until funds have been certified by the accountable Air Force Official. Since contract award will not be made subject to the availability of funds, the procedure and clause prescribed in FAR 32.703-2 (a) shall not be used. If additive or deductive items are included in the bid schedule, the contracting officer shall determine the amount of available funds before bid opening/RFP closing:

(a) A project in connection with family housing and/or mobile home parks, upon direction by AF/CE;

(b) O&M funded minor construction to commence in the next fiscal year if the approving authority certifies that the requirement has a high enough priority to ensure that it will not be canceled when the next fiscal year funds become available. Current fiscal year funds may be used if they become available before the end of the fiscal year, a significant portion of the work is initiated/completed by the end of the calendar year, and the contract is obligated;

(c) A military construction program (MCP) project when the contracting office receives written notification that the Air Force has responsibility for the acquisition, that the project has been approved for acquisition, and funds are available and being forwarded through channels. This exception still applies when the purchase request funding is limited to the amount of the initial Government estimate and the latest estimate, based on actual design and engineering information, exceeds the amount of the purchase request. In such cases, solicit bids or proposals before requesting additional funds; and

(d) A minor construction project supported by a statement that funds are being held in reserve at HQ USAF or MAJCOM and will be made available when needed to award the contract.

Facility Project Requirements. The MAJCOM Civil Engineer, Director of Contracting, and Comptroller may jointly agree in writing to authorize base contracting activities to issue solicitations for facility project requirements when it is anticipated that the contract will be awarded in the current fiscal year but funds are not yet available. Use of this authority is subject to the following:

(a) MAJCOMs should carefully consider the use of this authority. It should only be used for non-complex projects for which estimated bid or proposal preparation costs are relatively low in relation to the estimated cost of the project. Also, MAJCOMs should consider imposing a limit on either the project value or the aggregate value of all projects solicited using this procedure;

(b) Projects that may be solicited under this authority include those for maintenance, repair and minor construction, facility O&M projects, and environmental restoration and compliance projects, which the MAJCOM civil engineer has reviewed, verified as a bona fide need, and determined that there is a reasonable likelihood that the project will be funded in the annual year-end program.

(c) MAJCOM Civil Engineering and Comptroller officer will identify to contracting the projects selected to be solicited under this authority, in adequate time to permit solicitation and processing. MAJCOM Contracting, Comptroller, and Civil Engineering shall establish a reasonable cut-off date for cancellation of solicitations, in order to have time to open the offers and process the contract award before the end of the fiscal year;

(d) Offers should not be opened until the funds certifying official either certifies that funds are available, or notifies the contracting officer that there is a reasonable assurance that funds will be available before award. If a reasonable assurance notification is received from the funds certifying official, the offers may be opened and processed up to the point of award. However, the contract shall not be signed by the contracting officer, delivered to the contractor, nor will the contractor be notified that it has been awarded a contract until funds have been certified by the accountable Accounting and Finance Officer. If funds or a “reasonable assurance” notification cannot be provided by the established cut-off date, the solicitation will be cancelled before opening of offers; and

(e) Solicitations issued under this authority shall contain a notice on the cover sheet and in Section L as follows:

“Notice to Offerors: Funds are not presently available for this project. No award will be made under this solicitation until funds are available. The Government reserves the right to cancel this solicitation, either before or after the closing date.”