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Severable vs. non-severable CLINs

Started by Nicole1986 · Sep 17, 2020 · 9 replies

  1. N

    Nicole1986

    Sep 17, 2020 · 5y ago

    Original post

    I am struggling to understand the difference from a funding perspective between severable and nonseverable CLINs. I always thought if funding was allocated by CLIN in the agreement expenditures must remain within the funding amount allocated for each CLIN and expended within the period defined for that CLIN, but I learned from my latest read of an agreement I might be wrong about that!

    If there are multiple, separately priced nonseverable CLINs under a CPFF contract, can the funds allocated for one CLIN be used for activities/tasks under other CLINs? And would the funds also rollover to other CLINs if the CLIN has ended and there are unexpended funds? 

    Any thoughts or resources I can reference to learn more would be appreciated. I do not find the FAR definition to be entirely clear. 

    Thanks!

  2. R

    Retreadfed

    Sep 17, 2020 · 5y ago

    What do you mean by "severable and non-severable CLINS" and funding allocated by CLIN?

  3. f

    formerfed

    Sep 17, 2020 · 5y ago

    Nicole, your use of “allocated” isn’t clear as Retreadfed mentioned.  Allocation is a budget/financial term that doesn’t seem to apply here.  Another question is are you talking about funding that has expired or still current funding?

  4. J

    Jamaal Valentine

    Sep 17, 2020 · 5y ago

    You might want to start with the DoD FMR if you are DoD. (See pages 8-13 and 8-14 for definitions)

    https://comptroller.defense.gov/Portals/45/documents/fmr/current/03/03_08.pdf

    Principles of Federal Appropriations Law, also known as the Red Book, is a good place to look for civilian agency employees. (Chapter 5?)

    https://www.gao.gov/mobile/legal/appropriations-law-decisions/red-book

  5. N

    Nicole1986

    Sep 22, 2020 · 5y ago

    Thanks, everyone. 

    May I ask what I should clarify? I was using allocated to refer to the payment amounts for each CLIN in the Consideration and Payment Section (maybe obligated is the right word?).

    To elaborate though, we have a contract that states:

    Estimated Cost:                          $XXX,XXX
    Fixed Fee:                                     $XX,XXX
    Estimated Cost Pus Fixed Fee: $XXX,XXX

    And then (I could not get a good screen grab, sorry):

    CLIN 6 - Optional Services Component 6 (12 Months) (Severable)

    Estimated Cost:                         $XXX,XXX
    Fixed Fee:                                     $XX,XXX
    Estimated Cost Pus Fixed Fee: $XXX,XXX  

    I hope this helps clarify!

  6. N

    Nicole1986

    Sep 22, 2020 · 5y ago

    Thanks, I am going to check these links out!

  7. C

    C Culham

    Sep 23, 2020 · 5y ago

    My thoughts...as you read Jaamal's references remember that the important information with regard to the CLINS and the identification of severable versus nonseverable is the specific accounting classification that is associated with each CLIN as well.  Whether that accounting classification represents a no year fund/appropriation or a time limited fund/appropriation such as a one year fund/appropriation.   Sharing of funds between CLINS in one case might be okay and not in another, it depends on the accounting classification applicable to that CLIN.

    For more about CLIN accounting classification you might take a look at the simple instructions of FAR 4.1005-1 as you read the references.

  8. R

    Retreadfed

    Sep 23, 2020 · 5y ago

    Nicole, the CLINs are not severable or non-severable.  They are CLINs for severable and non-severable services.

  9. N

    Nicole1986

    Sep 25, 2020 · 5y ago

    Thanks, that is helpful!

  10. N

    Nicole1986

    Sep 25, 2020 · 5y ago

    On 9/23/2020 at 9:37 AM, C Culham said:

    My thoughts...as you read Jaamal's references remember that the important information with regard to the CLINS and the identification of severable versus nonseverable is the specific accounting classification that is associated with each CLIN as well.  Whether that accounting classification represents a no year fund/appropriation or a time limited fund/appropriation such as a one year fund/appropriation.   Sharing of funds between CLINS in one case might be okay and not in another, it depends on the accounting classification applicable to that CLIN.

    For more about CLIN accounting classification you might take a look at the simple instructions of FAR 4.1005-1 as you read the references.

    Thanks, this was helpful!

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