Which statement correctly describes non-severable versus severable service contracts in terms of funding and period of performance?

Which statement correctly describes non-severable versus severable service contracts in terms of funding and period of performance?

• A. Non-severable services may be funded in full at award with the execution potentially crossing fiscal years; severable services may be funded for up to 12 months under a DoD exception.
• B. Non-severable services may cross fiscal years only if funded in separate actions; severable services require funding entirely in the first year.
• C. Both non-severable and severable services must be funded within a single fiscal year.
• D. Non-severable services require annual funding actions; severable services cannot cross fiscal years.

Answer: (A)