2026-O0001 TAB A Deviation Memo.pdf
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About this file
This document is a Class Deviation memorandum from the Office of the Under Secretary of Defense addressing contract obligations in advance of Fiscal Year 2026 funding. The memorandum directs contracting officers across multiple military commands and defense agencies to use a specific deviation clause (252.232-7998) when awarding contracts, contract modifications, task orders, or delivery orders for supplies and services supporting excepted activities before Fiscal Year 2026 funds become available. The deviation does not apply to contracts using existing appropriations.
Key requirements include ensuring contract actions are bilateral, authorized at an appropriate level (at least the head of the contracting activity), and compliant with guidance from the Deputy Secretary of War memorandum and Department of War contingency plans dated September 2025. Contracting officers must place authorization documentation in the contract file. The deviation clause stipulates that while the Department of Defense can enter into contractual actions and obligate the government in advance of appropriations, actual payment will occur when appropriated funds become available, in accordance with contract terms and the Prompt Payment Act.
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Text version
OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301-3000
ACQUISITION
AND SUSTAINMENT
In reply refer to DARS Tracking Number: 2026-O0001
MEMORANDUM FOR COMMANDER, UNITED STATES CYBER
COMMAND (ATTN: ACQUISITION EXECUTIVE)
COMMANDER, UNITED STATES SPECIAL OPERATIONS
COMMAND (ATTN: ACQUISITION EXECUTIVE)
COMMANDER, UNITED STATES TRANSPORTATION
COMMAND (ATTN: ACQUISITION EXECUTIVE)
DEPUTY ASSISTANT SECRETARY OF THE ARMY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE NAVY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
(CONTRACTING)
DEFENSE AGENCY AND DOD FIELD ACTIVITY DIRECTORS
SUBJECT: Class Deviation—Contract Obligations in Advance of Fiscal Year 2026 Funding
Effective immediately, contracting officers shall use the attached deviation clause 252.232-7998, Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026- O0001), 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. This deviation does not apply to contract actions using existing appropriations that are currently available for obligation and liquidation of obligations, such as prior year funds.
Contracting officers shall ensure that each contract action awarded in advance of appropriations includes the attached deviation clause and complies with the following:
(1) Deputy Secretary of War memorandum, Guidance for Continuation of Operations During a Lapse of Appropriations, dated September 30, 2025;
(2) Department of War (DoW) Contingency Plan Guidance for Continuation of Operations in the Absence of Available Appropriations, dated September 2025; and
(2) Applicable military department or other DoW component guidance pertaining to the award of contracts in the absence of appropriations.
All contract actions including deviation clause 252.232-7998, Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0001), must be appropriately authorized in accordance with Departmental or DoW component guidance. For those military departments or other DoW components that have not issued separate guidance, all actions that include this
Class Deviation 2026-O0001 Contract Obligations in Advance of Fiscal Year 2026 Funding deviation clause must be authorized at a level not lower than the head of the contracting activity.
Contracting officers shall place a copy of such authorization in the contract file.
Contracting officers shall ensure that any contract action using the attached deviation clause is bilateral, reflecting the mutual agreement of the parties.
This class deviation remains in effect until rescinded. Inquiries regarding this class deviation can be addressed to osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil.
John M. Tenaglia Principal Director, Defense Pricing, Contracting, and Acquisition Policy
Attachment:
As stated
Attachment Class Deviation 2026-O0001
Contract Obligations in Advance of Fiscal Year 2026 Funding
252.232-7998 Obligations in Advance of Fiscal Year 2026 Funding
(DEVIATION 2026-O0001)
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:
OBLIGATIONS IN ADVANCE OF FISCAL YEAR 2026 FUNDING
(OCT 2025) (DEVIATION 2026-O0001)
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.
(End of clause)
John M. Tenaglia
| 2025-10-01T09:56:31-0400 | |
| TENAGLIA.JOHN.M.1154945926 |
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