D.C. Mun. Regs. r. 27-3243

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-3243 - LIMITATION OF COST OR FUNDS

3243.1

Upon learning that a partially funded contract will receive no further funds, the contracting officer shall promptly give the contractor notice of the decision not to provide funds.

3243.2

Under a cost-reimbursement contract, the contracting officer, upon learning that the contractor is approaching the estimated cost of the contract or the limit of the budget authority allocated and encumbered, shall promptly obtain information about funding and programming pertinent to the continuation of the contract and notify the contractor in writing of one (1) of the following:

(a) That additional funding is available or the estimated cost has been increased in a specified amount;

(b) That the contract will not be further funded, and that the contractor shall submit a proposal for an adjustment of fee, if any, based on the percentage of work completed in relation to the total work called for under the contract;

(c) That the contract will be terminated; or

(d) That the District is considering whether to allot additional funds or increase the estimated cost, that the contractor is entitled by the contract terms to stop work when the funding or cost limit is reached, and that any work beyond the funding or cost limit will be at the contractor's risk.

3243.3

Under a cost-reimbursement contract, the contracting officer may issue a change order, a direction to replace or repair defective items or work, or a termination notice without immediately increasing the funds available.

3243.4

Under a cost-reimbursement contract, because a contractor is not obligated to incur costs in excess of the estimated cost in the contract, the contracting officer shall ensure availability of funds for directed actions.

3243.5

Under a cost-reimbursement contract, the contracting officer may direct that any increase in the estimated cost or amount allotted to a contract be used for the sole purpose of funding termination or other specified expenses.

D.C. Mun. Regs. r. 27-3243

Final Rulemaking published at 35 DCR 1645 (February 26, 1988)