32.700
Scope of subpart
FAR 32.700 sets the foundation for contract funding requirements and the use of limitation of cost or funds clauses, but detailed rules are found in agency fiscal regulations.
Overview
FAR 32.700 outlines the scope of Subpart 32.7, which addresses the fundamental requirements for contract funding and the procedures for applying limitation of cost or limitation of funds clauses in government contracts. This section serves as an introduction, clarifying that while it covers the basics of contract funding and the use of specific limitation clauses, more detailed funding requirements are governed by individual agency fiscal regulations. Contracting professionals should use this subpart as a starting point for understanding funding obligations and the application of cost/funds limitation clauses, but must also consult agency-specific rules for comprehensive compliance.
Key Rules
- Basic Contract Funding Requirements
- Establishes the foundational rules for ensuring contracts are properly funded.
- Limitation of Cost/Funds Clauses Procedures
- Prescribes when and how to use limitation of cost or limitation of funds clauses in contracts.
- Reference to Agency Fiscal Regulations
- Directs users to agency-specific regulations for detailed acquisition funding requirements.
Responsibilities
- Contracting Officers: Must ensure contracts are funded in accordance with this subpart and include appropriate limitation clauses as required.
- Contractors: Should be aware of funding limitations and comply with any clauses included in their contracts.
- Agencies: Responsible for issuing and enforcing detailed fiscal regulations that supplement this subpart.
Practical Implications
- This section exists to provide a framework for contract funding and the use of limitation clauses, helping to prevent over-obligation of government funds.
- It impacts daily contracting by requiring careful attention to funding sources and contract clauses.
- Common pitfalls include overlooking agency-specific funding rules or failing to properly apply limitation clauses.