ALCOAST 429/18 - DEC 18 CG CONTRACTING PROCEDURAL AND POLICY GUIDANCE DURING A LAPSE IN APPROPRIATIONS

R 211717 DEC 18
FM COMDT COGARD WASHINGTON DC//CG-91//
TO ALCOAST
UNCLAS //N07500//
ALCOAST 429/18
COMDTNOTE 7500
SUBJ:  CG CONTRACTING PROCEDURAL AND POLICY GUIDANCE DURING A LAPSE IN APPROPRIATIONS
A. ALCOAST 423/18 PREPARATION FOR A POTENTIAL LAPSE IN APPROPRIATION 
B. ALCGFINANCE 050/18 FINANCIAL POLICY GUIDANCE DURING A LAPSE IN APPROPRIATIONS
C. FINANCIAL RESOURCE MANAGEMENT MANUAL (FRMM), COMDTINST M7100.3 (series)
1. This ALCOAST provides guidance along with REFs (A) through (C) for the CG Procurement and
Contracting Community related to all contingencies in the event of an actual lapse in
appropriations.
2. Office of Procurement Policy and Oversight (CG-913) recommends that the Coast Guard Procurement
and Contracting Community prepare for the possibility of a lapse in appropriations and subsequent
government shutdown which may become effective after midnight on 21 DEC 2018.
3. This guidance is particularly applicable to contracting functions. In accordance with the DHS
prepared plan for operations during a funding lapse, "Department of Homeland Security Procedures
Relating to a Lapse in Appropriations" https://www.dhs.gov/publication/lapse-funding-dhs which was
developed and issued in accordance with OMB Circular A-11, Preparation, Submission, and Execution
of the Budget, Section 124 requirements. To the extent it conflicts with the DHS guide, the OMB
Circular must be followed.
4. In the event of a lapse in appropriations, contracts may be only be awarded for functions
and activities that are exempted from work restrictions. Exempted functions are those that are:
   A. Funded by Sources Other than Annual Appropriated Funds
   B. Authorized to Continue Even Without Funding
   C. Necessary for Safety of Human Life or Protection of Property
   D. Necessary for the Orderly Cessation of Functions
5. There is NO requirement to stop, delay or terminate a contract during the period of a funding
lapse if that contract was awarded and funded prior to the onset of the funding lapse or that are
funded with “no year”, multiple year, or any other type of funds that have not lapsed.
6. Based upon guidance from DHS, if the contract is to continue performance, contractors should
receive no further guidance. General notice to industry partners will be posted by DHS. Further
guidance will be provided by USCG as necessary.
7. Additionally, only military members and those civilians deemed “exempt personnel” with
warranted Contracting Officer authority may issue contractual direction and obligate funds during
a lapse in appropriations, if funds are available for that purpose per para 4 above. Please seek
guidance from your chain of command if unsure of your status.
8. Contracts may only be executed from non-lapsed appropriations which have been authorized by the
Funds Manager and prior approval is received by the Requiring Office Supervisor. If the Requiring
Office Supervisor is inactive due to the lapse in appropriations, then approval must be obtained
from the requiring office’s alternate designated authorized approving officials (supervisor and
Funds Manager).
9. Any contracting obligation of O&S funding during a lapse requires coordination and approval
for the Chief of Contracting Office (COCO) and your resident attorney. DCO will issue specific
guidance SEPCOR on continued operations authorized by law that will continue for national
security, or that protect life and property.
10. Each CG COCO has "exempt personnel" available to assist requiring offices.
11. Mr. Michael W. Derrios, Head of Contracting Activity, sends.
12. Internet release authorized.