Funding Contracts During a Continuing Resolution: What You Need to Know
The U.S government operates under a fiscal year that runs from October 1st to September 30th. However, when Congress fails to pass a budget for the new fiscal year, funding is extended through a continuing resolution (CR). This temporary measure keeps the government running at current funding levels until Congress can pass a budget.
During a continuing resolution, federal agencies are authorized to enter into new contracts, grants, and cooperative agreements. However, the funding for those contracts is limited to the amount available in the previous fiscal year or as specified in the CR. This can present challenges for contractors who have been awarded new contracts but are uncertain about the amount of funding they will receive.
Here are some key things to keep in mind when funding contracts during a continuing resolution:
1. Understand the limitations of the CR.
As mentioned, the funding for new contracts during a CR is limited to the amount available in the previous fiscal year or as specified in the CR. This means that agencies may not have the full funding they need to award new contracts. Contractors should be aware of this limitation and communicate with agencies to ensure that funding is available before beginning work.
2. Monitor the CR expiration date.
A CR is only in effect for a limited period of time. Contractors should be aware of the expiration date and work with agencies to complete contracts within that timeframe. Additionally, if a new budget is not passed by the expiration date, another CR may be implemented. Contractors should be prepared for this possibility and be flexible with their timelines.
3. Seek guidance from the agency.
Each agency may have its own policies and procedures for funding contracts during a CR. Contractors should seek guidance from the agency about the availability of funding, any restrictions on spending, and any other relevant information. Clear communication with the agency can help prevent misunderstandings and delays.
4. Keep detailed records.
Due to the uncertainty of funding during a CR, contractors should keep detailed records of their spending and any changes to their contracts. This will help ensure that they are reimbursed appropriately and can provide documentation in case of any audits or disputes.
In conclusion, funding contracts during a continuing resolution can present challenges, but with careful planning and communication, contractors can successfully navigate this process. Keeping these key points in mind can help ensure that contracts are awarded and completed within the limited funding available during a CR.