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32.703-2 Contracts conditioned upon availability of funds.

32.703-2 Contracts conditioned upon availability of funds.

  1. (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. (1) Necessary for normal operations; and

    2. (2) For which Congress previously had consistently appropriated funds, unless specific statutory authority exists permitting applicability to other requirements.

  2. (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. (1) Any specified minimum quantities are certain to be ordered in the initial fiscal year (see 37.106) and

    2. (2) The contract includes the clause at 52.232-19, Availability of Funds for the Next Fiscal Year (see 32.706-1(b)).

  3. (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.