The Department of Defense has issued a new class deviation authorizing contracting officers to obligate contracts in advance of fiscal year 2026 appropriations.
DOD said John Tenaglia, principal director of defense pricing, contracting and acquisition policy, signed on Wednesday the class deviation, which was issued by the Office of the Under Secretary of Defense for Acquisition and Sustainment.
Under the class deviation, the Pentagon directs contracting officers to include the clause “Obligations in Advance of Fiscal Year 2026 Funding” when awarding contracts, modifications, task orders, options or delivery orders for services and supplies supporting excepted activities.
According to the department, the deviation does not cover contract actions using appropriations that are currently available for obligation and liquidation of obligations, including prior-year funds.
Compliance With DOD Guidance & Directives
Each contract action awarded in advance of appropriations must comply with existing DOD guidance, including the deputy secretary of defense’s Sept. 30 memo on continuation of operations during a funding lapse and applicable component-level guidance related to the award of contracts in the absence of appropriations.
Authorization Requirements
For DOD components or military components without separate guidance, approvals for contract actions under this deviation must come from no lower than the head of the contracting activity. The department requires contracting officers to include a copy of such authorization in the contract file.
All contract actions executed under the class deviation must be bilateral, reflecting mutual agreement between the government and contractors.
The class deviation is effective immediately and remains in place until rescinded.
