Question

Severable services are those for which in the period of performance, the government receives something useful immediately upon the expenditure of funds (or by the end of the fiscal year). Examples of a severable service include routine maintenance, housekeeping services, and trash collection.

The rule is that the government will obligate for no more than 12 months of a severable service since it will receive something useful at the end of the fiscal year.

The qualification to the rule on severable services is that the 12-month contract can cross fiscal years as long as it is for no more than 12 months.

Under PL 103-355, the Federal Acquisition Streamlining Act of 1994, an agency may enter into a 12-month service contract, using funds current at the time the service was entered into to fund the entire 12-month period of the contract."

a) PL 103-355 rule
b) Severable service rule
c) Fiscal year rule
d) 12-month contract rule

Answer 1

Federal contracting regulations allow agencies to enter into 12-month contracts for severable services using current funds. The federal budget supports various services through taxes and requires a Continuing Resolution to avoid a shutdown if no budget is agreed upon.The correct option is: b) **Severable service rule**

Step-by-step explanation:

In the context of federal government contracting, a severable service is one where the service provided can be separated into components that are independently useful, and the government receives immediate benefit from the services as they are provided.

According to the Federal Acquisition Streamlining Act of 1994 (PL 103-355), a specific rule allows agencies to enter into contracts for severable services using funds that are current at the time the service contract is entered, to fund the entire 12-month period. This is commonly referred to as the 12-month contract rule, and it significantly influences how the federal government budgets for and procures severable services.

When discussing the budget, it is essential to understand that the federal government's budget is vital for funding numerous services and programs, which are financed through taxes collected by the government. Additionally, the budgeting process is designed in a way that if Congress and the president cannot reach an agreement on a budget, a Continuing Resolution must be passed to avoid a government shutdown. This demonstrates the importance of proper budgeting and funding mechanisms in maintaining government operations.The correct option is: b) **Severable service rule**