Part 32.7 Contract Funding

Question 1

What is a fully funded contract?

Answer 1

funds obligated to cover the price or target price of the fixed price contract, or the estimated cost and any fee for a cost-reimbursement contract.

Question 2

What is a incrementally funded contracts?

Answer 2

funds obligated to cover the amount allotted and any corresponding increment of fee. You CANNOT incrementally fund non-severable services

Question 3

What is LOC?

Answer 3

Limitation of Cost

Question 4

What is LOF?

Answer 4

LImitation of Funds

Question 5

What is LOGO

Answer 5

Limitation of Governments Obligation

Question 6

What does LOC, LOF, or LOGO say?

Answer 6

The contracto may or will need more funds than what is currently obligated to complete the contract

Question 7

All three clauses (LOC, LOF, and LOGO), impose what?

Answer 7

duty on the contracto to notify the CO when determining that within a certain period of time, they except to expend a certain percentage of funds obligated.

Question 8

When is LOC used?

Answer 8

fully funded cost reimbursement contracts. KTR notifies CO within 60 days expected to exceed 75%.

Question 9

When is LOF used?

Answer 9

incrementally funded cost-reimbursement contract. 60 days 75%

Question 10

When is LOGO used?

Answer 10

incrementally funded FP contract. 90 days and 85%

Question 11

What happens when the CO is notified?

Answer 11

obligate additional funds
de-scope effort to match the funds obligated
Terminate for Convience

Question 12

What happens if KTR does not notify CO?

Answer 12

government is not required to reimburse the KTR.

Question 13

Bona Fide Need?

Answer 13

Appropriated funds may be obligated only to meet a legitimate need arising in the fiscal years for which the appropriation was made. Purpose Time and Amount.

Question 14

Bona Fide Need PURPOSE?

Answer 14

funds shall be applied only to the objects for which it was appropriated for.

Question 15

Bona FIde Need TIME?

Answer 15

funds are only available for obligation during the availability of the appropriation. Do not obligate before president signs the appropriations bill or after availability period.

Question 16

Bona Fide Need AMOUNT?

Answer 16

Don’t spend excess or in advance. Use only the amount of funds available.

Question 17

What does initated me?

Answer 17

administrative plans for funds

notice of pending commitmemnt

Question 18

WHat does commitment mean?

Answer 18

Administrative reservation of funds

Reserves funds for future obligations

Question 19

What does obligation mean?

Answer 19

Transactions made by Federal agencies during a given period

Requires outlay of funds in some future period

Question 20

What does current mean?

Answer 20

funds available to be obligated

length depends on the types of funds

Question 21

What does expired mean?

Answer 21

funds can no longer be obligated for new requirements, but are available to pay theFive years, no matter the type of funds

Question 22

What does cancelled means?

Answer 22

Funds are no longer available for anyting including to pay the bills.
funds are DEAD

Question 23

O&M Funds

Answer 23

(3400) 1 year current, 5 years expired, the cancelled

Question 24

RDT&E funds

Answer 24

(3600) 2 year current, 5 years expired, then cancelled

Question 25

Procurement funds

Answer 25

3010, 3020, 3080) 3 years current, 5 years expired, then cancelled.

Question 26

What does annual mean?

Answer 26

made for a particular fiscal year and available only during that year (O&M and Military Personnel)

Question 27

What does multiple year mean?

Answer 27

Available for obliation for a definite period in excess of one year (R&D, Procurement, Military Construction)

Question 28

What does No Year mean?

Answer 28

Available for obligation without fiscal year constraints.

Question 29

Air Force Appropriations

Answer 29

``` 3010 - Aircraft Procurement 3020 - Missile Procurment 3080 - Other Procurment 3400 - Operation & Maintenance 3600 - Research, Development, Test and Evaluation ```

Question 30

3010 Aircraft Procurement?

Answer 30

3 year funds

Question 31

3020 Missile Procurement?

Answer 31

3 Year Funds

Question 32

3080 Other Procurement?

Answer 32

3 Year Funds

Question 33

3600 RDT&E

Answer 33

2 year funds

Question 34

3400 O&M

Answer 34

1 year funds: general expenses, not tied to a central procurement fund. Necessary for operation, maintenance, and administration of the Air Force. Pays for sustainment of current weapon systems.

Question 35

What are Working Capital Funds? (WCF - 4930)

Answer 35

Zero year funds formerly referred to SMAG or DMAG funds. Used for Depot sustainment and supply chain.