Contracts & Legal

Bona Fide Need Rule

The Bona Fide Need rule (31 USC, Section 1502) requires appropriated funds to be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation.

The three (3) major legal provisions that concern funds execution are the: [1]

31 USC Section 1502 – Bona Fide Need
(a) The balance of an appropriation or fund limited for obligation to a definite period is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period of availability and obligated consistent with section 1501 of this title. However, the appropriation or fund is not available for expenditure for a period beyond the period otherwise authorized by law.
(b) A provision of law requiring that the balance of an appropriation or fund be returned to the general fund of the Treasury at the end of a definite period does not affect the status of lawsuits or rights of action involving the right to an amount payable from the balance.

AcqLinks and References:

Updated: 6/1/2018

Print Friendly, PDF & Email

Leave a Reply

Scroll to Top