Under fixed-price contracts, when is incremental funding permissible?

Under fixed-price contracts, when is incremental funding permissible?

• A. The contract is for non-severable services and lasts more than one year.
• B. The contract is for severable services and does not exceed one year in length.
• C. The contract uses funds available from multiple fiscal years and the project is non-R&D.
• D. The contract is funded with funds from a single fiscal year only.

Answer: (B)