FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.7
FAR 32.706-1 Clauses for contracting in advance of funds.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section tells contracting officers when to include two specific funding-availability clauses in solicitations and contracts. It matters to contractors because it signals that a contract may be signed before the money is actually available, so payment can depend on later appropriations.
Applies to: Contracting officers handling contracts chargeable to new fiscal year funds or certain one-year service contracts
What it requires
- Insert the clause at 52.232-18, Availability of Funds, in solicitations and contracts if the contract will be chargeable to funds of the new fiscal year and the contract action will be initiated before the funds are available.
- Insert the clause at 52.232-19, Availability of Funds for the Next Fiscal Year, in solicitations and contracts if a one-year indefinite-quantity or requirements contract for services is contemplated and the contract is funded by annual appropriations and is to extend beyond the initial fiscal year.
Key terms: Availability of Funds · Availability of Funds for the Next Fiscal Year · indefinite-quantity contract · requirements contract · annual appropriations
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Insert the clause at 52.232-18, Availability of Funds, in solicitations and contracts if the contract will be chargeable to funds of the new fiscal year and the contract action will be initiated before the funds are available.
(b) The contracting officer shall insert the clause at 52.232-19, Availability of Funds for the Next Fiscal Year, in solicitations and contracts if a one-year indefinite-quantity or requirements contract for services is contemplated and the contract—
(1) Is funded by annual appropriations; and
(2) Is to extend beyond the initial fiscal year (see 32.703-2(b)).
Sections it refers to
← 32.706 Contract clauses. · 32.706-2 Clauses for limitation of cost or funds. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.