48 CFR § 332.703-71 - 332.703-71 Incrementally funded cost-reimbursement contracts.

---
identifier: "/us/cfr/t48/s332.703-71"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 332.703-71 - 332.703-71   Incrementally funded cost-reimbursement contracts."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "332.703-71"
section_name: "332.703-71   Incrementally funded cost-reimbursement contracts."
chapter_number: 3
chapter_name: "HEALTH AND HUMAN SERVICES"
subchapter_number: "E"
subchapter_name: "GENERAL CONTRACTING REQUIREMENTS"
part_number: "332"
part_name: "CONTRACT FINANCING"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 40 U.S.C. 121(c)(2)."
regulatory_source: "80 FR 72151, Nov. 18, 2015, unless otherwise noted."
cfr_part: "332"
---


# 332.703-71 332.703-71   Incrementally funded cost-reimbursement contracts.

Incremental funding may be used in cost-reimbursement contracts for severable services only when all of the following circumstances are present:

(a) Funding of increments after the initial increment of performance is provided from the appropriation account available for obligation at that time;

(b) The project represents a *bona fide* need of the fiscal year in which the contract is awarded and initially funded (*i.e.,* the initial increment of performance) and is also a *bona fide* need of each subsequent fiscal year whose appropriation will be used; and

(c) The project's significance provides reasonable assurance that subsequent year appropriations will be made available to fund the project's continuation and completion.