In what situation can a contracting officer initiate a contract for the new fiscal year before funds are available?

Study for the DAU Contracting Certification Exam. Prepare with multiple choice questions featuring hints and explanations. Boost your readiness and confidence for the exam!

A contracting officer can initiate a contract for the new fiscal year before funds are available when it involves operation and maintenance with existing appropriated funding. This is because existing appropriated funds that have not yet been fully utilized can be applied to contracts for services or supplies that are essential to the ongoing operations of the agency. Such actions are permissible under certain regulations which allow agencies to use available funds to ensure continuity and efficiency in their operations.

Utilizing existing funding ensures that agencies can maintain critical services and activities without interruptions, even if new fiscal year funding has not yet been allocated or made available. This reflects a broader understanding of prudent financial management within federal contracting practices, enabling agencies to fulfill their obligations and maintain operational readiness.

In contrast, the other scenarios are not typically supported by federal acquisition regulations. For services deemed non-urgent, initiating contracts before funds are available often isn't justified, as this could lead to unnecessary financial commitments. Contracts not exceeding $10,000 may be subject to different regulations, but the absence of available funds typically restricts such actions. Finally, while emergency contracts may afford some flexibility, they usually pertain to urgent situations requiring immediate attention, rather than routine operational needs based on existing appropriated funds.

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