CFR /  Title 48  /  Part 2432  /  2432.703-1 General.

(b)(1) Except as described herein, a fixed-price contract may be funded incrementally only if--

(1) Except as described herein, a fixed-price contract may be funded incrementally only if--

(i) Sufficient funds are not available to the Department at the time of contract award or exercise of option to fully fund the contract or option;

(ii) The contract (excluding any options) or any exercised option--

(A) Is for severable services;

(B) Does not exceed one year in length; and

(C) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or

(iii) The contract uses funds available from multiple (2 or more) fiscal years and Congress has otherwise authorized incremental funding.

(2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available. [77 FR 73530, Dec. 10, 2012]