The bona fide needs rule provides an analytical framework for analyzing an agency’s financial transactions to determine the period of time to which a transaction relates. Bona fide needs questions arise in many forms.
Full Answer
What is the bona fide need rule?
The Bona Fide Need rule ( 31 USC, Section 1502) requires appropriated funds to be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation. Definition: The bona fide needs rule is a rule of appropriations law.
What is the bona fide need for appropriation?
It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made
Does the bona fide needs rule apply to an IDIQ contract?
bona fide needs rule because it did not have a bona fide need for the guaranteed minimum quantities specified in the IDIQ contract during the FY in which the IDIQ was awarded. The case also illustrates the relationship of the bona fide needs rule with the recording statute. GAO ex- plains: From an appropriations law standpoint, the recording
What is a bona fide need when transferring funds between agencies?
there must be a bona fide need for the supplies/services transferred from one agency to another, which means agency’s funds are considered obligated when they are ferring funds between agencies. As with a contract, an Yes, the bona fide needs rule applies even when trans-
What does bona fide need mean?
Definition: The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year's appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.
At what point must the bona fide need exist?
The contract must satisfy a bona fide need that exists in the fiscal year of the appropriation to be charged. In addition, contracts awarded near the end of the fiscal year must contain a specific requirement that work begins before January 1 of the following calendar year.
What is a bona fide need for government contracting?
§ 1502(a), commonly referred to as the bona fide needs rule, which provides that fixed period appropriations are only available for the legitimate needs of the period of availability for which they were made. The bona fide needs rule applies to cost-reimbursement contracts, just as it does to other contract types.
What are the exceptions to the bona fide needs rule?
Two GAO recognized exceptions to the Bona Fide Needs Rule, specific to supplies, are the lead- time exception (for both delivery and production) and the stock-level exception.
Does bona fide need apply to all appropriations?
Page 5-11, first paragraph: “The bona fide needs rule is one of the fundamental principles of appropriations law: A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to exist in, the fiscal year for which the ...
What is the necessary expense rule?
In the absence of specific statutory authority, the “necessary expense rule” must be applied. Under this rule, appropriated funds may be used for an expenditure that is necessarily incident to accomplishing an authorized agency function so long as the expenditure is not otherwise prohibited by law.
What is an Antideficiency Act violation?
The Antideficiency Act prohibits Federal Employees from obligating funds unless both the amount and purpose of such spending has been approved by Congress in the form of enacted law. An Antideficiency Act Violation occurs when this prohibition is violated, and which includes both administrative and criminal penalties.
What contract type puts the full performance risk on the contractor?
firm-fixed-price contractA firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.
What is a government service contract?
(a) A personal services contract is characterized by the employer-employee relationship it creates between the Government and the contractor's personnel. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws.
What can O&M funds be used for?
Operation & Maintenance (O&M) Appropriations funds the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.
What is severable vs non severable?
"Severable" describes an action that can be divided into two or more parts that are not necessarily dependent upon each other. "Non-severable" describes an action that cannot be divided into two or more parts without negatively effecting performance of the task.
What are the two techniques used to select a contractor with the best value continuum?
BEST VALUE CONTINUUM As per FAR, best value can be obtained in negotiated acquisitions through the application of prescribed source selection approaches: Trade-off process (TO) and the Lowest Price Technically Acceptable (LPTA).
What are the two techniques used to select a contractor with the best value continuum?
BEST VALUE CONTINUUM As per FAR, best value can be obtained in negotiated acquisitions through the application of prescribed source selection approaches: Trade-off process (TO) and the Lowest Price Technically Acceptable (LPTA).
What is severable vs non severable?
"Severable" describes an action that can be divided into two or more parts that are not necessarily dependent upon each other. "Non-severable" describes an action that cannot be divided into two or more parts without negatively effecting performance of the task.
What is an independent government estimate?
Definition. The government's estimate of the resources and its projected costs that a contractor would incur in the performance of a contract.
What is a line item appropriation?
: an appropriation that is itemized on a separate line in a budget.
What is the Bona Fide Need Rule?
Bona Fide Need. The three major legal provisions that concern funds execution are the Anti-deficiency Act, Purpose Statute (also known as the "Misappropriation Act"), and the Bona Fide Need Rule (also known as the “time statute”). US Code, Title 31, Section 1502 (a) states that, "The balance of an appropriation or fund limited for obligation ...
What is the FMR for project orders?
Project Orders: The DoD Financial Management Regulation (FMR) (Vol 11A, 020510) provides for a year-end exception for project orders. This exception applies only to DoD and states that a project will be considered to have met the bona fide need of the prior fiscal year (FY) if work is started by the end of the calendar year (CY). As per the FMR:
When are appropriations obligated for maintenance and repair contracts?
Current fiscal year appropriations may be obligated for those maintenance and repair contracts awarded near the end of the fiscal year, even though contractor performance may not begin until the following fiscal year. The contract must satisfy a bona fide need that exists in the fiscal year of the appropriation to be charged.
What is BONA FIDE NEED?
BONA FIDE NEED means a specified requirement with an identified deliverable and required delivery date, with the cost of the requirement to be encumbered in the current fiscal year with delivery/ performance completed in the following fiscal year.
What happens if a board member is unable to fulfill the responsibilities of that position?
If, in the opinion of the Board, any Board member is unable or unwilling to fulfill the responsibilities of that position, that person may be removed by a majority of the voting members of the Board.
What is substantial and compelling reason?
Substantial and Compelling Reason in the Public Interest means a reason that is justified by an important, specific, and articulated public interest goal that is within ICANN's mission and consistent with a balanced application of ICANN's core values as defined in ICANN's Bylaws.
What is a proposal bid?
Proposal / Bid means the Technical and Commercial bids submitted for this project against this RFP.
What is a bona fide purchase in Florida?
A bona fide purchase is one in good faith belief of right, without fraud or deceit, after sufficient inquiry under the circumstances. Broche v.
When conflicting inferences can be drawn from the circumstances, or questions as to the credibility of witnesses exist, the?
Where conflicting inferences can be drawn from the circumstances, or questions as to the credibility of witnesses exist, the issue of notice should be determined by a trier of fact upon trial examination of witnesses, not at summary judgment. Joseph Bucheck Const. Corp. v. W.E. Music, 420 So. 2d 410, 413 (Fla. 1st DCA 1982) ( aff’ing finding that buyer did not have sufficient notice of contract by recorded lien, so as to overcome status as bona fide purchaser, despite actual notice ).
How to contact Bernhard Law Firm?
If you have any questions about status as a bona fide purchaser, please contact Bernhard Law Firm at www.bernhardlawfirm.com, [email protected], 786-871-3349.
Is notice sufficient to overcome status and rights of a bona fide purchaser?
Some notice may not be sufficient to overcome status and rights of a bona fide purchaser. Florida Masters Packing, Inc. v. Craig, 739 So. 2d 1288, 1290 (Fla. 4th DCA 1999) (holding buyers were bona fide purchasers, where original parties had made mutual mistake in legal description, and buyers had searched records but could not have discovered the error or intentions of original parties, and thus did not have sufficient notice to overcome bona fide purchase). A claimant’s mistakes in the record do not overcome a buyer’s status as a bona fide purchaser. Id.
Can a buyer claim a bona fide purchaser?
Even after notice of a potential claim, a buyer can retain entitlement to bona-fide-purchaser status where there is no evidence of fraud or bad faith on the part of the purchaser, and the purchaser had taken steps to clarify the potential claim and eliminate it as a sustainable claim, or the claim itself is ultimately not viable.
Do limited disclosures create a duty on part of purchaser of pursuing investigations extrinsic to public records?
Limited disclosures do not always create a duty on part of purchaser of pursuing investigations extrinsic to public records in order to discovery negligently maintained documents, and thus a party is estopped then from asserting title against those that have relied on the record. Chatlos v.
Is there a presumption that a purchaser acquires his title in good faith?
McCahill v.
