FAR 52.232-19—Availability of Funds for the Next Fiscal Year.
Plain-English Summary
FAR 52.232-19, Availability of Funds for the Next Fiscal Year, is a funding-availability clause used when a contract may extend beyond the current fiscal year but the Government does not yet have appropriated funds for the later period. It addresses the specific topics of conditional Government obligation, the absence of present funds for performance after a stated date, the requirement that future performance depends on future appropriations, the rule that no legal liability arises for work beyond the stated date until funds are made available, and the requirement that the contractor receive notice of availability confirmed in writing by the contracting officer. In practice, the clause protects the Government from creating an unfunded commitment for work in a later fiscal year while still allowing the parties to plan for continued performance if Congress appropriates funds. It is especially important in multi-year or incrementally funded arrangements where performance may cross fiscal-year boundaries. For contractors, the clause means they cannot assume the Government has committed to pay for work beyond the stated date until the funding condition is satisfied and written notice is issued. For contracting officers, it creates a clear administrative trigger for when the contract may continue into the next fiscal year and when liability can attach.
Key Rules
No funds beyond stated date
The clause states that funds are not presently available for performance beyond a specified date. That date must be inserted in the blank and marks the point after which the Government has not yet committed available appropriations for performance.
Future funding is conditional
The Government’s obligation to continue performance past the stated date depends on the availability of appropriated funds. If Congress does not appropriate funds, the Government is not obligated to fund or continue the work beyond that point.
No liability before notice
No legal liability arises for performance beyond the stated date until funds are made available to the contracting officer and the contractor receives notice of that availability. This prevents the contractor from relying on an implied promise of payment before the funding condition is satisfied.
Written confirmation required
The contractor’s notice of funding availability must be confirmed in writing by the contracting officer. Oral assurances or informal communications are not enough to create the Government’s payment obligation under this clause.
Applies to next fiscal year
This clause is designed for situations where performance may continue into the next fiscal year, but funding for that later period is not yet available at award or during the current fiscal year. It is a fiscal-law control to avoid obligating the Government beyond available appropriations.
Responsibilities
Contracting Officer
Insert the correct date in the clause, monitor whether appropriated funds become available for the next fiscal year, and issue written notice to the contractor when funding is available. The contracting officer must not allow performance beyond the stated date to create liability unless the funding condition has been satisfied.
Contractor
Track the stated funding cutoff date, avoid assuming continued performance is funded until written notice is received, and manage staffing, materials, and schedule risk accordingly. The contractor should not rely on verbal statements or expectations of future funding as a basis for incurring unrecoverable costs.
Agency
Seek and obtain appropriations or other authorized funding if it wants performance to continue beyond the stated date. The agency must ensure its contracting actions comply with fiscal law and do not commit the Government to unfunded future performance.
Practical Implications
This clause is a warning that work beyond the stated date is not automatically funded, so contractors should treat the cutoff date as a real stop point unless and until written funding notice arrives.
A common pitfall is assuming that a continuing relationship or prior-year performance means the next year’s work is guaranteed; under this clause, it is not.
Contracting officers should document the funding availability determination and the written notice carefully, because liability for post-date performance depends on that administrative step.
Contractors should plan for possible pause, demobilization, or delayed start costs if funding is not enacted on time, especially for services or operations that span fiscal years.
Oral assurances, emails without proper authority, or informal “we expect funds soon” statements should not be treated as authorization to continue performance beyond the stated date.
Official Regulatory Text
As prescribed in 32.706-1 (b) , insert the following clause: Availability of Funds for the Next Fiscal Year (Apr 1984) Funds are not presently available for performance under this contract beyond ________ . The Government’s obligation for performance of this contract beyond that date is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise for performance under this contract beyond _____ , until funds are made available to the Contracting Officer for performance and until the Contractor receives notice of availability, to be confirmed in writing by the Contracting Officer. (End of clause)