General.

(1) A fixed-price contract may be incrementally funded only if— (i) The contract (excluding any options) or any exercised option— (A) Is for severable services; (B) Does not exceed one year in length; and (C) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or (ii) The contract uses funds available from multiple (two or more) fiscal years and— (A) The contract is funded with research and development appropriations; or (B) Congress has otherwise authorized incremental funding. (2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available. [71 FR 18673, Apr. 12, 2006]