FAR clauses/Part 32/Checked 15 Sep 2026
FAR 52.232-22
Limitation of Funds
- Clause date
- APR 1984
- Prescribed at
- FAR 32.706-2(b). Insert if an incrementally funded cost-reimbursement contract is contemplated.
- Applies to
- Incrementally funded cost-reimbursement contracts.
- Flowdown
- No flowdown required
52.232-22 contains no subcontract flowdown paragraph. It is not listed in 52.244-6(c)(1) or 52.212-5(e)(1). - Full text
- FAR 52.232-22 on Acquisition.gov
… The parties contemplate that the Government will allot additional funds incrementally to the contract up to the full estimated cost to the Government specified in the Schedule, exclusive of any fee. The Contractor agrees to perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount actually allotted by the Government to the contract. …
From the clause · Codified FAR · FAC 2026-01
Why it matters: The Government is not obligated to reimburse costs above the amount allotted, so a contractor that misses its notice and keeps working can end up performing at its own expense.
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.
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Play today’s Clause & EffectMore Part 32 clauses
5- 52.232-18Availability of FundsFAR 32.706-1(a)
- 52.232-25Prompt PaymentFAR 32.908(c)
- 52.232-33Payment by Electronic Funds Transfer—System for Award ManagementFAR 32.1110(a)(1)
- 52.232-39Unenforceability of Unauthorized ObligationsFAR 32.706-3
- 52.232-40Providing Accelerated Payments to Small Business SubcontractorsFAR 32.009-2