What is the difference between severable and nonseverable RWAs?
A severable service is one in which you receive value as the service is rendered; the services are continuing in nature. A task is severable if it is divisible into components where each component meets a separate customer agency need. A nonseverable service or project is one in which the customer agency receives value only at the completion of the service or project. A task is nonseverable if it is required in its entirety to meet the customer agency need.
Is preventative maintenance considered nonseverable?
No, regular preventative maintenance is a severable service.
Is a repair identified during preventative maintenance also severable?
No, a repair or construction activity is nonseverable.
Can severable service RWAs cross fiscal years?
Yes, but the period of performance cannot exceed 12 months for annually funded RWAs in accordance with 41 U.S.C. § 3902 and the funds have to be obligated prior to the customer funding expiration.
Is firing range cleaning considered a severable or nonseverable RWA?
It depends on the contract’s scope of work:
- Severable: If the contract only includes cleaning services (value received with each cleaning).
- Nonseverable: If the contract includes cleaning that culminates in a report or deliverable (value received only upon completion).
Is pest control/extermination considered a severable or nonseverable RWA?
It depends on the contract’s scope of work:
- Severable: If the contract is for preventative pest control.
- Nonseverable: If the contract is for remediation (eliminating an infestation).