TeachMeFinance.com - explain contract authority
contract authority -- Authority in law to enter into contracts
or incur other obligations in advance of, or in excess of, funds available
for that purpose. Although it is a form of budget authority, contract authority
does not provide the funds to make payments. Those funds must be provided
later, usually in a subsequent appropriation act (called a liquidating
appropriation). Contract authority differs from a federal agency's inherent
authority to enter into contracts, which may be exercised only within the
limits of available appropriations.
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