Availability of Funds Clause.docx

This file is an Availability of Funds Clause template document for federal contracting purposes. The clause is a standard provision used in government contracts to establish the legal framework regarding the availability and obligation of appropriated funds for contract performance. This clause typically addresses the contractor's right to continue performance only when funds have been appropriated or otherwise made available by Congress, protecting the government from liability for continued performance when funding is unavailable. The clause defines the government's obligation to provide notice to the contractor if funds become unavailable and establishes procedures for contract termination or suspension under such circumstances. It serves as a protective mechanism for both parties by clearly delineating financial responsibilities and contingencies related to government appropriations, ensuring that contractors understand the conditional nature of government contracts dependent upon Congressional budget allocations.