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                            32.703-2 Contracts conditioned upon availability of funds.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart32.032.132.232.332.432.532.632.732.832.932.1032.11
Section32.70032.70132.70232.70332.70432.70532.706
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32.703-2 Contracts conditioned upon availability of funds.32.703-2 Contracts conditioned upon availability of funds.       (a)                   *Fiscal year contracts.* The contracting officer may initiate a contract action properly chargeable to funds of the new fiscal year before these funds are available, provided that the contract includes the clause at  52.232-18, Availability of Funds (see  32.706-1(a)). This authority may be used only for operation and maintenance and continuing services (*e.g.,* rentals, utilities, and supply items not financed by stock funds)-                                                         (1) 								                Necessary for normal operations; and                                                            (2) 								                For which Congress previously had consistently appropriated funds, unless specific statutory authority exists permitting applicability to other requirements.                                                                             (b)                   *Indefinite-quantity or requirements contracts.* A one-year indefinite-quantity or requirements contract for services that is funded by annual appropriations may extend beyond the fiscal year in which it begins; provided, that-                                                         (1) 								                Any specified minimum quantities are certain to be ordered in the initial fiscal year (see  37.106) and                                                            (2) 								                The contract includes the clause at  52.232-19, Availability of Funds for the Next Fiscal Year (see  32.706-1(b)).                                                                             (c)                   *Acceptance of supplies or services.* The Government shall not accept supplies or services under a contract conditioned upon the availability of funds until the contracting officer has given the contractor notice, to be confirmed in writing, that funds are available.    **Parent topic:**  32.703 Contract funding requirements.
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