What is the maximum contract length for severable services that can cross a fiscal year?

What is the maximum contract length for severable services that can cross a fiscal year?

• A. Twelve Months
• B. Six Months
• C. Eighteen Months
• D. Thirty Six Months

Answer: (A)

Severable services are work that can be broken into distinct, deliverable increments and paid for as each increment is completed. When a contract for severable services spans more than one fiscal year, the portion that crosses into the next year is limited to 12 months. This keeps funding aligned with the annual appropriations process, ensuring each year’s work is covered by that year’s budget. So the maximum contract length that can cross a fiscal year is 12 months. Shorter durations wouldn’t cross into the next year, while longer durations would require separate awards or a different funding/structure.

Severable services are work that can be broken into distinct, deliverable increments and paid for as each increment is completed. When a contract for severable services spans more than one fiscal year, the portion that crosses into the next year is limited to 12 months. This keeps funding aligned with the annual appropriations process, ensuring each year’s work is covered by that year’s budget. So the maximum contract length that can cross a fiscal year is 12 months. Shorter durations wouldn’t cross into the next year, while longer durations would require separate awards or a different funding/structure.