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Clauses · FAR · Payment and financing

FAR 52.232-22 Limitation of Funds

Does the regulation require it to flow down?

No

The prime includes it to avoid exposure between installments: the sub works only up to the limit of what the prime has allotted, and gives notice before touching it

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition APR 1984 · base v0.9.3 Read the text ↗

What it makes you produce

3 items for your checklist, slowest first.

  1. Something you write2

    Days to weeks, and nobody outside your company has to agree to it.

    • Written notice when the cost expected over the next 60 days, added to everything already incurred, will pass 75 percent of the funds allotted so far — a different number from the total estimated cost

      FAR 52.232-22(c)

    • Notice 60 days before the end of the period the Schedule sets, with the estimate of the funds needed to continue

      FAR 52.232-22(d)

  2. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • Nothing above the allotted amount is reimbursable, and where no further funds are allotted after the notice, the right to stop work is the protection the clause carries

      FAR 52.232-22(e)

When it is used

The counterpart of 52.232-20 for INCREMENTALLY funded cost-reimbursement contracts: the government allots funds in installments and owes nothing above the total allotted so far. There is no flowdown mandate; the prime mirrors it in incremental cost-type subs to pass down the funding ceiling and the duty to give notice.

Read closely

The 75 to 85 percent band and the 30 to 90 day window vary by contract, so the figures in the copy you hold are the operative ones.

The 7 templates that name it, with the line
155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 276233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1169105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 25212Boeing GP4 — General Provisions, Cost Reimbursement Contract under U.S. Government Prime ContractBoeingline 668168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2361240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 1882273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 874

Source: acquisition.gov, FAR 52.232-22 (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.