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FAR and DFARS › FAR Part 43: Contract Modifications › Subpart 43.1

FAR 43.105 Availability 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 says a contracting officer cannot issue a contract modification that increases funds unless they first certify that funds are available, with exceptions for certain contracts. It also prohibits providing funds or making payments to higher education institutions that hinder ROTC or military recruiting, with exceptions for small purchases and commercial items.

Applies to: Contracting officers and contractors receiving contract modifications or payments

What it requires

  • Contracting officer must obtain a certification of fund availability before executing a modification that increases funds, unless an exception applies.
  • Do not provide funds or make payments to an institution of higher education that has a policy or practice of hindering Senior Reserve Officer Training Corps units or military recruiting on campus, as described in the section.

Key terms: certification of fund availability · contract modification · limitation of cost or funds clause · simplified acquisition threshold · commercial products

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The contracting officer shall not execute a contract modification that causes or will cause an increase in funds without having first obtained a certification of fund availability, except for modifications to contracts that—

(1) Are conditioned on availability of funds (see 32.703-2); or

(2) Contain a limitation of cost or funds clause (see 32.704).

(b) The certification required by paragraph (a) above shall be based on the negotiated price, except that modifications executed before agreement on price may be based on the best available estimate of cost.

(c) In accordance with 10 U.S.C. 983, do not provide funds by contract or contract modification, or make contract payments, to an institution of higher education that has a policy or practice of hindering Senior Reserve Officer Training Corps units or military recruiting on campus as described at 9.110. The prohibition in this paragraph (c) does not apply to acquisitions at or below the simplified acquisition threshold or to acquisitions of commercial products, including commercially available off-the-shelf items, and commercial services.

Sections it refers to

  • 32.703-2 Contracts conditioned upon availability of funds.
  • 32.704 Limitation of cost or funds.
  • 9.110 Reserve Officer Training Corps and military recruiting on campus.

← 43.104 Notification of contract changes. · 43.106 [Reserved] →

Rule changes for FAR Part 43

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 43.105 Availability of funds · SpendQuery