Reference no: EM131823615

Today is 27 September 2013, and Congress passed the FY2014 DoD Authorization Act. The FY2014 Appropriations Act has not been passed yet. Your installation's base support services contract (for security, recreation activities, vehicle maintenance, janitorial services, and the like) currently held by Doall, Inc. is of utmost concern to Brigadier General Combat. She wonders why we have not exercised Doall's two options for services beginning 1 October 2013 through 30 September, 2014. BG Combat remarks that Mr. Einstein, Director of the U.S. Special Operations Test and Evaluation Command (USSOTEC) has $250,000 of unobligated FY2013 Research, Development, Test, and Evaluation (RDT&E) funds available because of delays in one of its programs. Doall provides support services (for operation and maintenance of USSOTEC facilities) directly to USSOTEC under a separate line item in the contract. There were two options in the contract: one for installation services for the base and one for the USSOTEC services. BG Combat wants the FY2014 options exercised and the $250,000 obligated. Which of the following statements is correct based on this scenario? 

Which answer is correct:

• RDT&E funding may be spent only for the direct costs of research and development; operations and maintenance of USSOTEC must be funded with O&M funding.
• The contracting officer may use FY2013 RDT&E funds to exercise the FY2014 Doall contract option for USSOTEC support services.
• FY2013 RDTE funds can only be obligated for services to be performed in FY2013.
• FY2014 RDT&E funds are available to exercise the FY2014 Doall contract option.