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Electronic Transmittal (ET) No. 07-02
Contractor Notification of Funding Limitations under a Continuing Resolution (CR)

Expires: Upon enactment of the FY 2007 Energy and Water Development Appropriations Act

October 11, 2006

To: Regional Director, PN, MP, LC, UC, GP
Attention: 84-27810 (Eckelberg), PN-3700 (Ford), MP-3800 (Ventuleth),
LC-3100 (Guilbert), UC-800 (Ward), GP-3800 (Worley)
From: Karla J. Smiley /s/ Diana Terrell (Acting For)
Manager, Acquisition and Assistance Management Division
Subject: Electronic Transmittal (ET) No. 07-02, Contractor Notification of Funding Limitations under a Continuing Resolution (CR)
  1. Purpose: This ET transmits guidance for use in the award and administration of contracts during the fiscal year (FY) 2007 Continuing Resolution. It does not apply to service contracts under which performance is begun and completed during the period of the CR.
  2. Effective Date: This guidance is effective October 1, 2006.
  3. Expiration Date: Upon enactment of the FY 2007 Energy and Water Development Appropriations Act. Should the CR be extended or a new CR enacted, this guidance will be updated by an ET supplement.
  4. Background:
    1. The President has signed a CR providing interim funding until enactment of FY 2007 permanent appropriations or through November 17, 2006, whichever occurs first.
    2. On September 29, 2006, the President signed P.L. 109-289, the "Department of Defense Appropriations Act, 2007". Division B of this Act is the "Continuing Appropriations Resolution, 2007", which provides funding through November 17, 2006, for most Federal agencies, including the Bureau of Reclamation.
    3. The CR is intended to permit contractors to continue work under contracts at particular rates of expenditure as set forth in P.L. 109-289, the "Department of Defense Appropriations Act, 2007," Division B (see http://www.senate.gov/pagelayout/reference/appropriations/2007.htm) and the Office of Management and Budget Bulletin No. 06-04, "Apportionment of the Continuing Resolution(s) for Fiscal Year 2007", at http://www.whitehouse.gov/omb/bulletins/index.html.
    4. We suggest you do not use funds made available under the CR if carryover funds from previous fiscal year appropriations are to be used in a particular instance. In this situation, it is suggested that the contractor be contacted and informed that it is not affected by the funding limitations of the CR, since a different source of funding is being used.
    5. While Reclamation operates under the CR, notification must be provided to current contractors, and special provisions must be included in new contracts (including purchase orders), modifications to existing contracts which extend the contract performance period, and other contract actions which obligate only partial funding under the CR. To ensure uniform notification is given to contractors in order to inform them of their rights and responsibilities during the effective period of the CR and to allow for timely payment of invoices during this period, the guidance in this memorandum shall be followed by all contracting offices.
  5. Explanation of Changes:
    1. The attached clauses (attachment 1 and 2), entitled "Limitation of Government's Obligation," have been developed to formally provide notification of the CR. Also attached (attachment 3), is a copy of a letter which can be used to notify a contractor of restricted funding under the CR.
    2. All contractors with on-going contracts 1) which extend beyond FY 2006 and 2) for which FY 2007 funding will be provided, must be notified of funding restrictions under the CR.
  6. Action Required:
    1. Regional acquisition offices should distribute this memorandum to all regional acquisition and sub-buying personnel.
    2. Contracting Officers shall:
      1. Insert the attached clause(s) into all purchase orders, contracts, and contract modifications to exercise options to be funded under this authority.
      2. Send written notification using the attached sample notification letter (or a letter containing similar language) to all contractors with existing contracts containing any of the clauses at FAR 52.232-18 through 52.232-22 that are to be funded under this authority.
    3. If regional management determines that certain existing service contracts must continue in effect past the current, or any extended, CR expiration, available carryover funds may be used for this purpose. If such a determination is made for a contract, a bilateral contract modification should be issued (pursuant to the authority of mutual agreement of the parties), which increases the funds allotted and the period for allotment. The modification should clearly indicate that the additional funds being added are carryover monies and not CR money subject to the clauses contained in this guidance.
  7. Point of Contact: Vicki Cook at 303-445-2443 or by email, vcook@do.usbr.gov.
Attachment 1
Attachment 2
Attachment 3
cc: 84-27800, (Cook, Schmidt, Terrell), 84-27810 (Lintz), PN-3702 (Hedeen), MP-3800 (Heitz, Steele), LC-3110 (Nelson), UC-820 (Postell), UC-840 (Nelson), GP-3800 (Woegens)