ALL DoD
Applies to all DoD contracting officers
Army
Navy
Air Force
Marines
Space Force
Defense Agencies
COCOMs
Summary
This deviation requires contracting officers (COs) to use new clause 252.232-7998 when awarding contracts in advance of fiscal year 2026 appropriations. The clause covers contracts, modifications, task orders and delivery orders supporting excepted activities during a lapse of appropriations. It does not apply to contract actions using currently available prior-year funds.
Contracting Officer Actions
1
Include clause 252.232-7998, Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0044), in all contracts, modifications, task orders and delivery orders awarded in advance of fiscal year 2026 appropriations.
2
Ensure each contract action using this clause complies with the Deputy Secretary of War memorandum on Continuation of Operations During a Lapse of Appropriations, dated January 30, 2026.
3
Ensure each contract action using this clause complies with the Department of War (DoW) Contingency Plan Guidance for Continuation of Operations in the Absence of Available Appropriations, dated January 2026.
4
Ensure each contract action using this clause complies with applicable military department or DoW component guidance on awarding contracts without appropriations.
5
Obtain authorization at a level no lower than the head of the contracting activity for all actions using this deviation clause when the relevant DoW component has not issued separate guidance.
6
Place a copy of the required authorization in the contract file.
7
Ensure all contract actions using this deviation clause are bilateral, reflecting mutual agreement of the parties.
8
Do not use this deviation clause for contract actions using existing appropriations currently available for obligation and liquidation, such as prior-year funds.
Duration
This deviation remains in effect until rescinded.
Payment obligation
The clause commits the Government to pay, including interest under the Prompt Payment Act, when appropriated funds become available.
Supersession
Clause 252.232-7998 supersedes any conflicting contract payment or financing terms until funds are made available to the CO.
Inquiries
Direct questions to osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil.
Affected Provisions and Clauses
252.232-7998
deviation-created
Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0044)
CLAUSE
New deviation clause created for use in contracts awarded in advance of fiscal year 2026 appropriations.
NEW
Clause Text
CLAUSE
252.232-7998 Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0044)
Prescription
When awarding contracts, modifications to existing contracts including those
exercising options, task orders, or delivery orders to obtain supplies and services
necessary to carry out or support excepted activities in advance of the availability of
fiscal year 2026 funds, use the following clause:
Clause
OBLIGATIONS IN ADVANCE OF FISCAL YEAR 2026 FUNDING (FEB 2026) (DEVIATION 2026-O0044) The Department of Defense has the authority to enter into this contractual action and to obligate the Government in advance of appropriations; however, appropriated funds are not currently available to make payments under this contract to liquidate this obligation. When appropriated funds become available, the Government will make payment in accordance with the terms of this contract, including the payment of interest where applicable under the Prompt Payment Act. This clause supersedes conflicting terms of any other provision in this contract dealing with contract payment or financing until funds are made available to the Contracting Officer for this contractual action.