Full and Open Acquisition, in practice

FAR clauses/Part 32/Checked 15 Sep 2026

FAR 52.232-18
Availability of Funds

Clause date
APR 1984
Prescribed at
FAR 32.706-1(a). Insert 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.
Applies to
Contract actions initiated before the fiscal-year funds they will be charged to are available.
Flowdown
No flowdown required
52.232-18 contains no subcontract flowdown paragraph; it conditions only the Government's liability to the prime. It is not listed in 52.244-6(c)(1) or 52.212-5(e)(1).
Full text
FAR 52.232-18 on Acquisition.gov

… Funds are not presently available for this contract. The Government's obligation under this contract 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 until funds are made available to the Contracting Officer for this contract and until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer. …

From the clause · Codified FAR · FAC 2026-01

Why it matters: Until the CO confirms in writing that funds are available, the Government has no payment liability, so any work the contractor performs before then is at its own risk.

This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.

Know your clauses?

Clause & Effect is the daily game: five passages of real clause text with the giveaway words blacked out. Name the clause, then the section that prescribes it.

Play today’s Clause & Effect

More Part 32 clauses

5

This Week, in your inbox every Monday.

One email a week: what changed, what got decided, and what it means for the file on your desk. Written by practitioners, for the people who run the competitions.

Mondays · no vendor pitches · one-press unsubscribe

We email you a link to confirm the address is yours. It is used for the weekly issue and nothing else.