CHAPTER 1

Funding: The Availability of Appropriations and the Bona Fide Needs Rule

(FAR 32.7; Government Accountability Office, Principles of Federal Appropriations Law, Volumes I and II)

The first phase of the federal acquisition process is known as the acquisition planning phase. Understanding the rules that apply to federal appropriations is an important part of the planning phase—one that is too often neglected. Acquisition audit reports have identified many violations of the rules that pertain to federal appropriations. The audit reports indicate that some federal agencies do not adhere to the limitations on purpose, amount, and time. For example, an acquisition organization violated the purpose limitation by using a contract for computers ...

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