Contracting without an Appropriation
November 20, 2001
David Dempsey - Northern Virginia
Under the Anti-Deficiency Act (31 U.S.C. § 1341), a contracting officer is
prohibited from making or authorizing an expenditure or obligation exceeding an
appropriation. An exception, however, is found at 41 U.S.C. § 11, The Food and
Forage Act, which permits a DoD contracting officer to incur an obligation in
excess of an appropriation for food, fuel, forage and related items necessary to
meet current year needs. For contracts related to "Enduring Freedom,"
companies should be mindful of this authority when discussing with, or proposing
solutions to contracting officers during the government’s acquisition
planning, market research, acquisition of commercial items, or use of Simplified
Acquisition Procedures for items covered by The Food and Forage Act.
When preparing proposals for "Enduring Freedom," companies should
be cognizant of the FAR provisions concerning the following issues because these
provisions may influence the cost and management of an offer: government
technical data and software rights (FAR Part 27); allowability of costs (FAR
Part 31); contract financing (FAR Part 32); extraordinary contractual relief
(FAR Part 50); and use of government sources (FAR Part 51).