Senior Procurement Executive Message to the Department of State Contractor and Financial Assistance Community on the Lapse in Appropriations
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Department of State has issued a Special Notice from its Senior Procurement Executive to the contractor and financial assistance community regarding a lapse in appropriations that occurred on January 31, 2026. This guidance outlines the potential impacts on existing contracts and grants, as well as planned procurements, due to the absence of a full fiscal year 2026 appropriation.
Purpose and Context
This message provides guidance on handling Department of State contracts and federal assistance awards, aligning with Department and Office of Management and Budget (OMB) directives for operations during an appropriations lapse. The Antideficiency Act prohibits obligations without an appropriation, leading to significant operational adjustments.
Potential Impacts
Due to the lapse in funds, the Department's capacity to purchase supplies, services, issue grants, and provide oversight is reduced. Consequently, certain planned procurements and grants may be cancelled or postponed. Existing contracts and grants could be stopped, suspended, reduced in scope, or terminated. Additionally, payments may be delayed.
Guidance for Contractors and Grantees
If a contract or grant is directly affected by the lapse on or about January 31, 2026, the Department's contracting and grant officers will issue a formal notification. Unless a formal notification to the contrary is received, all Department contractors and grantees must continue to comply with all terms, conditions, requirements, and deliveries specified in their agreements. No separate notification will be provided for contracts or grants that are not immediately affected.
Resolution
Once an extension to the Continuing Resolution or a full-year appropriation is signed into law, the Department will implement a plan to orderly resume activities and will notify contractors and grantees at that time.
Notice Details
- Type: Special Notice
- Set-Aside: Not Applicable
- Published: January 31, 2026
- Agency: Department of State