TLDR
The award period is the authorized window for grant costs; spending outside the start and end dates is unallowable unless the funder formally extends the period.
The award period — period of performance in federal grant language — is the most fundamental constraint in grant compliance. Every allowable cost question, every expenditure, every compliance obligation is anchored to this window. A cost that is otherwise perfectly allowable is unallowable if incurred outside the award period.
How it works
The period of performance is defined in the Notice of Award by a start date and an end date. These dates establish the boundaries of authorized activity.
The start date is the first day a grantee may incur costs against the award. This is not always the date the award letter is received. Some federal grants specify a project start date that precedes the award date — meaning costs incurred before the letter arrived may be allowable if they fall on or after the authorized start. Some grants specify a start date that follows the award date, requiring the grantee to wait before beginning activity. Read the Notice of Award for the specific authorized start date and enter it into the grant management system before any spending begins.
The end date is the last authorized day of the grant period. After this date, no new obligations may be incurred against the award. An obligation is a commitment to pay for goods or services — a purchase order, a signed contract, a payroll commitment for services to be rendered. Obligations incurred on or before the end date may be liquidated (paid) during a brief post-period window if the award terms include one, typically 90 days.
The liquidation period — sometimes called the liquidation phase or accounts payable period — is a grace period following the end date during which costs incurred before the end date may be paid. An invoice received after the grant period ends for supplies received during the grant period may be allowable during the liquidation window. Costs genuinely incurred after the end date — not just invoiced late — are unallowable regardless of the liquidation period.
Start date vs. project start date
Some awards distinguish between the “award date” (when the Notice of Award was issued) and the “project start date” (when the project period begins). These may be the same date or they may differ by weeks or months.
A grant with a project start date of October 1 and an award letter dated October 15 has a project start of October 1. Costs incurred from October 1 onward — including the two weeks before the letter arrived — are allowable if they were necessary, reasonable, and within the approved scope.
Always use the project start date from the Notice of Award, not the date the letter was received.
Extensions and the end date
When a no-cost extension is approved, the period of performance end date shifts to the new end date established by the extension approval. All deadlines keyed to the end date shift accordingly: the final SF-425 due date, the final programmatic report due date, and any equipment disposition triggers.
If an organization continues spending after the original end date before an extension is approved, those costs are unallowable in the period between the original end date and the extension approval — even if the extension is ultimately granted.
See also
- No-Cost Extension — extending the period of performance without additional funds
- Grant Closeout — the formal process of concluding a grant award after the period of performance ends
Free resource
Get the Award Setup Worksheet
A worksheet for capturing all critical award information in the first week of a new grant: project period, award amount, budget by category, restriction type, reporting schedule, key contacts, and special conditions. Delivered by email.
Q&A
What is a period of performance in a federal grant?
The period of performance is the authorized time window during which a grant recipient may incur costs chargeable to the award. It is defined by a start date and an end date in the Notice of Award. Costs incurred outside this window are unallowable, meaning they cannot be charged to the grant even if they are otherwise legitimate program expenses.
Q&A
Can costs incurred before the start date be charged to the grant?
Generally no. Pre-award costs require specific authorization in the award terms or prior approval from the awarding agency. Some federal agencies allow pre-award costs for a limited period (commonly 90 days before the award date) if they are necessary and would have been allowable if incurred after the award. This must be explicitly authorized — it is not the default.
Q&A
What happens if you incur costs after the award period ends?
Costs incurred after the period of performance ends are unallowable and cannot be charged to the grant. If the award included a liquidation period (typically 90 days), costs incurred before the end date but paid during the liquidation period may be allowable. Costs genuinely incurred after the end date — not just invoiced afterward — are unallowable regardless of a liquidation period.
Q&A
How is the award period different from the fiscal year?
The award period is defined by the grant, not by the organization's fiscal year. A grant running July 1, 2025 to June 30, 2026 spans parts of two of the organization's fiscal years if the organization operates on a calendar year. Expenditure tracking and compliance monitoring are keyed to the grant period, not the fiscal year. This distinction is important for end-of-year accounting and for grant closeout — the final SF-425 is due based on the grant period end date, not the organization's fiscal year end.