Days left in FY

Department of Defense Comptroller Guidance Concerning FY06 Funds

On October 16, 2006, the Department of Defense Comptroller issued a memo which changes DoD policy on the use of Franchise Funds and other non-Economy Act entities that perform interagency acquisitions. This new policy states that DoD funds may not be obligated onto contract actions after they have expired.

Department of the Interior management met with DoD officials on February 1, 2007, to clarify the impact of this memo on funding accepted prior to October 16, 2006.

The following is a summary of that meeting, and all acquisition personnel have been directed to accept this as current GovWorks operational policy:

  1. No prior year Department of Defense funds will be used for new awards.
  2. Prior year funds may be used for in-scope modifications and changes to contracts to procure a non-severable deliverable where the change "relates back" to the original contract in accordance with Red Book regulations. This applies to funds remaining after the award was made. Multi-year funds are also available for obligation.
  3. In February, 2007, the DoD will issue a new policy acknowledging FY06 funds that have been used to make FY07 awards prior to the date of the new policy will be deemed proper. However, effective immediately, our contracting personnel will no longer conduct these transactions.
  4. The DoD Comptroller will issue a memo to DoD field personnel regarding their decision not to allow the use FY06 funds and requiring DoD program offices to request deobligation of the funds. When this memo becomes available we will post a copy of it on our website.
  5. The DoD comptroller agreed that returned funds will be assessed the full service charge to compensate GovWorks for expenses incurred by this change.
  6. GovWorks clients affected by this change will be notified directly by email with information on the steps to follow to de-obligate funds submitted prior to September 30, 2006.


We have established a hot-line in order to respond to specific questions and concerns. Please call 703.964.8888. Our support team will research your questions and quickly address issues concerning your specific funding documents and awards.

We genuinely regret the inconvenience this situation may cause our Department of Defense clients and appreciate their cooperation as we work together to comply with this new guidance.

David Sutfin
Assistant Director
Acquisition Services Directorate
National Business Center, GovWorks
Department of the Interior