Electronic Transmittal (ET) No. 07-02
Attachment 1
USAGE: Insert this clause in all contract modifications executed to exercise options; and contracts awarded when the effective date is on or after October 1, 2006 and funding is provided under the Continuing Resolution (CR) so long as the CR for fiscal year 2007 is in effect. This clause does not apply to contracts funded using carry-over funds.
WBR 1452.232-84 - LIMITATION OF GOVERNMENT'S OBLIGATION UNDER THE CONTINUING RESOLUTION -- BUREAU OF RECLAMATION (OCT 2006)
(a) Of the total contract price, only partial funding in the amount of $ [enter the dollar amount] for performance of this contract for the period October 1, 2006 through November 17, 2006 has been made available under a Fiscal Year 2007 continuing resolution enacted prior to the enactment of a full year appropriation act for the Bureau of Reclamation.
(b) The parties contemplate that the Government will allot additional funds incrementally up to the full price of this contract. The contractor shall perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount of funds actually allotted. Notwithstanding any other provision of this contract, the Government's total obligation to pay or reimburse the Contractor is limited to the amount allotted to this contract under paragraph (a) of this clause.
(c) If funds allotted are considered by the Contractor to be inadequate to cover the work to be performed through and including the period specified in paragraph (a) of this clause, the Contractor shall notify the Contracting Officer, in writing, within 72 hours prior to the date on which the work will reach a point at which the total amount payable by the Government (including amounts payable for work performed under subcontracts and/or for settlement costs) will approximate 85 percent of the total amount allotted to the contract.
The notice shall state: (i) the estimated date when expenditure of 85 percent of the total amount will be reached; and (ii) the estimated amount of additional funds required to continue performance through the period specified in paragraph (a) of this clause.
(d) If, after such notification is made in accordance with paragraph (c) of this clause, additional funds are not allotted by the end of the period specified in paragraph (a) of this clause or other date mutually agreed upon between the Contractor and the Contracting Officer, upon receipt of the Contractor's written request the Contracting Officer will terminate this contract on that date pursuant to the "Termination for Convenience of the Government" clause of this contract. If the Contractor estimates that funds available will allow it to continue to discharge its obligations beyond that date, it may specify a later date in its request which the Contracting Officer shall consider.
(e) The Government is not obligated to reimburse the Contractor for costs incurred in excess of the total amount allotted under paragraph (a) of this clause. The Contractor is not obligated to continue performance under this contract (including actions under the "Termination for Convenience of the Government" clause of this contract or otherwise incur costs in excess of the amount allotted until the Contracting Officer has increased the amount allotted under paragraph (a) of this contract. If the Contractor chooses to continue performance prior to such increase in allotment, it does so at its own risk.
(f) An equitable adjustment will be made in the price or prices (including appropriate target, billing, and ceiling prices, where applicable) for the contract work, or in the time of delivery, or both, if the Contractor incurs additional costs or is delayed in the performance of the work under this contract solely by reason of the Government's failure to allot additional funds in amounts sufficient for timely performance of this contract, and additional funds are allotted. Failure to agree to any such equitable adjustment hereunder will be a dispute concerning a question of fact within the meaning of the "Disputes" clause of this contract.
(g) The Government may at any time prior to the effective time and date of termination allot additional funds for this contract. If and when additional funds are allotted for continued performance, the Contractor shall continue performance for the period specified in paragraph (a) of this clause. The provisions of paragraphs (b) and (c) of this clause shall apply in a like manner with regard to any such additional funds allotted.
(h) If this contract is terminated or the estimated cost or price is not increased, the Contractor and the Contracting Officer shall negotiate an equitable distribution of all property produced or purchased under the contract based upon the share of costs incurred by each.
(i) Nothing in this clause shall be deemed to limit the Government's rights under any provision of the contract. The provisions of this clause are limited to the work on and allotment of funds for the contract as set forth in paragraph (a) above. This clause will become inoperative for any period of time after the allotment of funds for the total price of the work or any portion thereof under the fiscal year 2007 appropriations act.
(j) In the event the effective period of the Continuing Resolution is extended by Congress, then the terms of this clause shall apply to such extended period, and the amount of funds allotted by paragraph (a) of the clause and the period of performance specified in paragraph (a) of this clause will be revised by means of a unilateral contract modification.
[End of clause]