A characteristic requirement for non-severable contracts is that they must be funded

• A. In its entirety
• B. In installments
• C. Not required to be funded
• D. Only for the first phase

Answer: (A)

Non-severable contracts involve work that must be delivered as one complete end item. Because the deliverable cannot be split into independently usable parts, the government needs funding for the entire contract amount at the time of award to ensure the contractor can finish the full scope without funding gaps. This upfront obligation prevents interruptions and aligns payment with delivering the complete item. Funding in installments fits severable contracts, where payments can be tied to completed milestones. The idea that no funding is required or that funding is only for the first phase doesn’t apply here, since non-severable work requires the full funding to complete the entire deliverable. Therefore, the contract must be funded in its entirety.