Period of Availability

The period of availability is the statutory timeframe, established by the appropriating legislation, during which funds from a specific appropriation may be legally obligated for new contracts and commitments.

What is the Period of Availability?

The period of availability (also called the "obligational availability" or "fiscal year availability") is the window during which an appropriation may be used to incur new legal obligations. It varies by appropriation type:

After the period of availability ends, the appropriation enters an "expired" phase. During the two-year expired phase, the funds can still be used to adjust prior-year obligations (paying invoices against existing contracts, making contract modifications that reduce scope) but cannot fund new obligations. After the expired phase ends (the account is "cancelled"), the funds are returned to the Treasury and cannot be used for any purpose.

Why availability periods matter:

• A contracting officer cannot obligate FY2025 O&M funds after September 30, 2025.
• Expired funds (FY2025 O&M in the period FY2026-FY2027) can pay invoices for work already contracted but cannot fund new contracts.
• Cancelled funds (after FY2027) cannot be accessed at all.

Why Period of Availability matters for government contractors

Contractors invoicing against federally-funded contracts must submit invoices before the applicable funds enter the cancelled period. Late invoice submission (submitting invoices more than two fiscal years after the year of obligation) may result in payment from more current appropriations through a "replacement appropriation" process, which is administratively burdensome. Timely invoicing within the period of availability protects both the contractor and the government.

Example

A training contractor provides services in FY2025 under an O&M-funded contract. Due to an administrative oversight, the contractor does not submit final invoices until November 2027 - more than two years after the FY2025 O&M funds expired. The FY2025 O&M account has been cancelled. The agency must use a replacement appropriation (current-year O&M) to pay the invoice, a process that requires additional approvals and delays payment. The contractor should have submitted invoices before the FY2025 O&M was cancelled in September 2027.

Frequently Asked Questions

What is the "expired period" and what can be done with expired funds?

The expired period begins when the period of availability ends and lasts for two years. During the expired period, the appropriation's unobligated balance is no longer available for new obligations, but the obligated balance (amounts tied to existing contracts) can still be used to pay invoices, make price adjustments, and process contract modifications that do not increase scope. After the expired period, the account is cancelled.

Can appropriations be extended beyond their statutory availability?

Congress can extend the availability of specific appropriations through supplemental legislation. Emergencies, multi-year programs, and specific legislative situations may warrant such extensions. Absent specific legislation, the statutory availability periods cannot be extended by administrative action.

Does the period of availability affect the contractor's performance timeline?

The period of availability constrains when the government can obligate funds but does not directly limit when the contractor must perform. A three-year Procurement appropriation obligated in year one can fund performance extending well beyond the three-year availability period - what matters is that the obligation was created while funds were available. Performance under existing obligations is not affected by funds entering the expired or cancelled phases.

What happens if an agency needs to pay a contractor but the funds are cancelled?

When the applicable funds are cancelled but a valid claim exists against those funds, the agency must pay from a current appropriation. This "replacement appropriation" process requires the agency to reduce current-year spending elsewhere to cover the liability. Both the agency and contractor incur administrative burden from late payment situations, which is why timely invoicing within appropriation availability periods is important.