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B-332430 Sep 28, 2021 1 (2021-09-28)

handle is hein.gao/gaomft0001 and id is 1 raw text is: 441 G St. N.W. Washington, DC 20548 OO 0 U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work Decision Matter of: File: Date: Department of the Army, Fort Carson-Application of Bona Fide Needs Rule to Contract Modification B-332430 September 28, 2021 DIGEST A modification to a firm-fixed-price contract that is within the scope of the original contract may result in an increase to the contract price. Where such a price increase arises from and is enforceable under a provision in the original contract, the agency must obligate the price increase against appropriations available when the contract was originally executed, not against appropriations available when it made the modification. Therefore, a modification to a firm-fixed-price contract to reconnect four buildings to a new water main at Fort Carson, Colorado must be obligated against Operations and Maintenance, Army appropriations for fiscal year 2019, when the contract was executed, rather than against amounts appropriated for fiscal year 2020, when the modification was made. DECISION A certifying officer for the United States Army Garrison, Fort Carson (Fort Carson) has requested our decision under 31 U.S.C. § 3529 regarding the application of the bona fide needs rule to a contract modification.1 Specifically, the certifying officer questions whether Fort Carson should obligate either fiscal year 2019 or fiscal year 2020 Operations and Maintenance, Army appropriations for the price increase resulting from a modification to a contract to replace a water main at Fort Carson.2 As explained below, a modification to a firm-fixed-price contract that is within the scope of the original contract may result in an increase to the contract price. Where 1 Letter from Garrison Resource Management Officer, Fort Carson, to Comptroller General, GAO (Aug. 11, 2020) (Request Letter). 2 Id.