232.703-1  General.

(1)  A fixed-price contract may be incrementally funded only if-

(i)  The contract (excluding any options) or any exercised option-

(A)  Is for severable services;

(B)  Does not exceed one year in length; and

(C)  Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or

(ii)  The contract uses funds available from multiple (two or more) fiscal years and-

(A)  The contract is funded with research and development appropriations; or

(B)  Congress has otherwise authorized incremental funding.

(2)  An incrementally funded fixed-price contract shall be fully funded as soon as funds are available.