52.232-19
Availability of Funds for the Next Fiscal Year
Contractors must not perform or expect payment for work beyond the specified date unless and until they receive written notice of available funds from the Contracting Officer.
Overview
FAR 52.232-19, "Availability of Funds for the Next Fiscal Year," is a contract clause used when funds for contract performance in future fiscal years are not yet appropriated. This clause notifies contractors that the government is not currently obligated to pay for work performed beyond a specified date unless and until funds become available and the contractor is formally notified. The clause protects the government from incurring financial liability for future work if appropriations are not made, and it requires contractors to await written confirmation of funding before proceeding with work beyond the stated date.
Key Rules
- No Obligation Beyond Stated Date
- The government is not legally liable for payments for contract performance beyond the specified date unless funds are appropriated and the contractor is notified.
- Contingency on Appropriations
- Performance beyond the specified date is contingent upon the availability of appropriated funds and written notice from the Contracting Officer.
Responsibilities
- Contracting Officers: Must insert this clause when required, specify the applicable date, and provide written notice to the contractor when funds become available.
- Contractors: Must not perform work beyond the specified date unless they receive written confirmation of funding from the Contracting Officer.
- Agencies: Must ensure compliance with appropriations law and proper notification procedures.
Practical Implications
- This clause exists to prevent unauthorized government spending and to ensure contractors do not assume the government is liable for unfunded work.
- Contractors should carefully monitor funding notifications and avoid incurring costs for work not yet funded.
- Common pitfalls include performing unauthorized work or misunderstanding the government's liability limitations.