Implications and Constraints of Fiscal Laws in Contingency Contracting

Abstract

When contracting officers procure goods and services to meet the needs of government agencies and programs, they seek best value and manage risk. Those government agencies must comply with fiscal laws while fulfilling their needs. Fiscal laws and regulations were originally designed for peacetime environments, processes, and systems. When unforeseen events occur and require an immediate response such as a contingency environment mission the regulatory framework is stressed. In a contingency environment, the constraints of fiscal laws and Federal Acquisition Regulations (FAR) put contracting officers in the position of compromising mission results or compliance with the rules. This study examines cases where fiscal law constraints lead to either violation of the Antideficiency Act or impact to missions. We find that different contingency environments and phases of the contingency present different risks to mission effectiveness and compliance. We provide recommendations for more flexible funding and regulatory models in contingency environments.