What are two ways to issue an obligation?

What are two ways to issue an obligation?

• A. Purchase Order & Warrant
• B. MIPR & Contract
• C. Interagency Agreement & MIPR
• D. Grant & Cooperative Agreement

Answer: (B)

An obligation is recorded when the government commits funds to a definite purpose, and in the DoD context there are two common ways this happens: through a contract or a Military Interdepartmental Purchase Request (MIPR). A contract is the standard procurement instrument used to obtain goods or services from outside the government; once the contract is awarded, funds are obligated to the vendor. A MIPR, on the other hand, is used to place an order or request work from another DoD component or another federal agency; when the receiving activity accepts the MIPR and the arrangement is set up, an obligation against appropriations is established. Purchase orders and warrants aren’t typical DoD instruments for incurring formal obligations in the same way, and while interagency agreements or grants/cooperative agreements involve other types of financial actions, the two most direct and widely applicable methods for issuing obligations in this context are a contract and a MIPR.

An obligation is recorded when the government commits funds to a definite purpose, and in the DoD context there are two common ways this happens: through a contract or a Military Interdepartmental Purchase Request (MIPR). A contract is the standard procurement instrument used to obtain goods or services from outside the government; once the contract is awarded, funds are obligated to the vendor. A MIPR, on the other hand, is used to place an order or request work from another DoD component or another federal agency; when the receiving activity accepts the MIPR and the arrangement is set up, an obligation against appropriations is established. Purchase orders and warrants aren’t typical DoD instruments for incurring formal obligations in the same way, and while interagency agreements or grants/cooperative agreements involve other types of financial actions, the two most direct and widely applicable methods for issuing obligations in this context are a contract and a MIPR.