# Class Deviation 2026-O0001
# Class Deviation 2026-O0001 – Contract Obligations in Advance of Fiscal Year 2026 Funding

Status: Archived
Date Issued: October 2025
Signed By: John M. Tenaglia, Principal Director, Defense Pricing, Contracting, and Acquisition Policy
Scope: All DoD contracting officers awarding contracts, modifications, task orders or delivery orders to support excepted activities in advance of fiscal year 2026 appropriations

## Summary

This class deviation requires contracting officers to include clause 252.232-7998 in contract actions awarded before fiscal year 2026 funds are available, covering contracts, modifications, task orders and delivery orders supporting excepted activities. The clause acknowledges that DoD has authority to obligate the Government in advance of appropriations but that payment will occur only once appropriated funds become available, with interest paid as applicable under the Prompt Payment Act. The deviation does not apply to actions using existing appropriations currently available for obligation.

## Required Contracting Officer Actions

1. Include clause 252.232-7998, Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0001), in all applicable contract actions awarded before FY2026 funds are available.
2. Ensure each contract action complies with the Deputy Secretary of War memorandum on Continuation of Operations During a Lapse of Appropriations (September 30, 2025), the DoW Contingency Plan Guidance (September 2025) and applicable military department or DoW component guidance.
3. Obtain authorization at a level not lower than the head of the contracting activity for any action using this deviation clause if the relevant military department or DoW component has not issued separate guidance.
4. Place a copy of the required authorization in the contract file.
5. Ensure that any contract action using this deviation clause is bilateral, reflecting the mutual agreement of both parties.

## Affected Provisions and Clauses

### 252.232-7998, Obligations in Advance of Fiscal Year 2026 Funding (DEVIATION 2026-O0001) (Clause)
- Change type: NEW
- Action: New DFARS deviation clause to be included in contracts, modifications, task orders and delivery orders awarded in advance of fiscal year 2026 appropriations to support excepted activities.

## Notes

Scope exclusion: This deviation does not apply to contract actions using existing appropriations that are currently available for obligation and liquidation, such as prior year funds.

Duration: This class deviation remains in effect until rescinded.

Inquiries: Questions regarding this class deviation may be directed to osd.pentagon.ousd-a-s.mbx.dpc-cp@mail.mil.

## Suggested Questions

You can ask your AI assistant:
- What actions do I need to take for this deviation?
- Does this deviation affect commercial acquisitions under Part 12?
- Which clauses need to be removed from my existing contracts?
- How does this deviation change 252.232-7998 specifically?
- Are there any SAM registration implications?

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Source: https://part52.dev
Generated: 2026-03-20
Memorandum: https://web.archive.org/web/20251217094928id_/https://www.acq.osd.mil/dpap/policy/policyvault/USA002140-25-DPCAP.pdf