Recapturing Prior Year Money from a Cancelled Purchase Order
Started by RollerQueen · Apr 8, 2025 · 5 replies
- ROriginal post
RollerQueen
Apr 8, 2025 · 1y ago
FAR 13.302-4 Termination or Cancellation of Purchase Orders
Can prior year money be recaptured from a cancelled Purchase Order?
We recently discovered that a Purchase Order for computers executed in FY24 was never distributed to the contractor. The PO was unilaterally signed by the Contracting Officer. The contract is not able to fulfil the order. Since the PO was never provided to the contractor if we cancel the PO, can we recapture the FY24 money or is it lost?
Thank you!
- D
Don Mansfield
Apr 8, 2025 · 1y ago
Was it 1-year money?
- j
joel hoffman
May 1, 2025 · 1y ago
On 4/8/2025 at 4:51 PM, Don Mansfield said:
Was it 1-year money?
It appears to be.
- N
Neil Roberts
May 5, 2025 · 1y ago
@RollerQueen , as described, the "contract" appears to be void, since it was never issued to the contractor. A cancellation implies to me that a contract was issued, enforceable to begin with and must be cancelled in accordance with the cancellation process in the contract. It sounds more like the using function decided it no longer needed the computers? If they did need it, wasn't the money committed to another contract for procurement of the computers?
- R
Retreadfed
May 5, 2025 · 1y ago
What do you mean by recapture? Do you mean can you use the funds for a new requirement?
- j
joel hoffman
May 5, 2025 · 1y ago
Retreadfed said:
What do you mean by recapture? Do you mean can you use the funds for a new requirement?
I would think that you have access to a finance and accounting office but generally, funding sources that are expired (e.g. prior fiscal year) are not available for “new requirements” that are independent of the de-committed funds. Also, not sure there was an obligation if it wasn’t presented to the intended contractor. If you have legal counsel, consult with them.