48 CFR § 232.703-1 - 232.703-1 General.

---
identifier: "/us/cfr/t48/s232.703-1"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 232.703-1 - 232.703-1   General."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "232.703-1"
section_name: "232.703-1   General."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "E"
subchapter_name: "GENERAL CONTRACTING REQUIREMENTS"
part_number: "232"
part_name: "CONTRACT FINANCING"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36409, July 31, 1991, unless otherwise noted."
cfr_part: "232"
---


# 232.703-1 232.703-1   General.

(1) A fixed-price contract may be incrementally funded only if—

(i) The contract (excluding any options) or any exercised option—

(A) Is for severable services;

(B) Does not exceed one year in length; and

(C) Is incrementally funded using funds available (unexpired) as of the date the funds are obligated; or

(ii) The contract uses funds available from multiple (two or more) fiscal years and—

(A) The contract is funded with research and development appropriations; or

(B) Congress has otherwise authorized incremental funding.

(2) An incrementally funded fixed-price contract shall be fully funded as soon as funds are available.

[71 FR 18673, Apr. 12, 2006]