What need must be documented to establish a bona fide need when awarding contracts at the end of a fiscal year?

To establish a bona fide need when awarding contracts at the end of a fiscal year, it is essential to document proof of performance within that fiscal year. This requirement is rooted in federal acquisition regulations that dictate that agencies must have a legitimate need for the goods or services being procured at the time of the award.

By demonstrating proof of performance within the fiscal year, agencies can justify that the need arises from actual requirements, making it clear that the procurement is not simply a way to spend remaining funds. This adherence to the bona fide need rule helps ensure that the federal budget is utilized appropriately and aligns resources with real operational demands.

Ensuring that the need is documented in this manner is crucial, especially at the end of a fiscal year when there may be pressure to utilize allocated funds. This practice prevents wasteful spending and supports accountability in government contracting.