Pre-Lapse in Appropriations Notice to Contractors
The Judiciary contractor community should read the following notice in case of a lapse in appropriations for FY 2024.
Updated Oct. 3, 2023
The Administrative Office of the U.S. Courts is issuing this notice to apprise the Judiciary contractor community of Judiciary-wide plans regarding contract actions that may be necessary if contract funding is affected by a lapse in appropriations, better known as a Federal Government Shutdown.
When appropriations lapse, the Judiciary cannot purchase supplies or services by contract and several government activities cease, including, in some cases, performance under existing contracts. Because funds are not available and because the Judiciary’s capacity to administer contracts is reduced, many planned procurements are cancelled and certain existing contracts are stopped, reduced in scope, terminated, or partially terminated. In other cases, neither contractors nor the Judiciary can fulfill their contractual obligations due to circumstances created by the lapse in appropriations, a sovereign act of the government.
Should Judiciary contracting officers determine that any of these actions is necessary or that it or contractors will be unable to fulfill their contractual obligations, a contracting officer will provide prompt notice and instructions to contractors for each affected contract. If a contract will not be affected by the lapse in appropriations, the Judiciary will not provide a separate notification to that effect.
During a lapse in appropriations, unless a contracting officer provides the contractor a formal notification to the contrary, all contractors must continue to fulfill their contractual obligations to the Judiciary. In other words, unless notified otherwise, during a lapse in appropriations contractors must continue to comply with all terms, conditions, requirements, and delivery requirements specified in their contracts.
The Judiciary appreciates your continued support.