[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR17.105-1]

[Page 319-320]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 17_SPECIAL CONTRACTING METHODS--Table of Contents
 
                   Subpart 17.1_Multiyear Contracting
 
Sec.  17.105-1  Uses.

    (a) Except for DoD, NASA, and the Coast Guard, the contracting 
officer may enter into a multiyear contract if the head of the 
contracting activity determines that--
    (1) The need for the supplies or services is reasonably firm and 
continuing over the period of the contract; and
    (2) A multiyear contract will serve the best interests of the United 
States by encouraging full and open competition or promoting economy in 
administration, performance, and operation of the agency's programs.

[[Page 320]]

    (b) For DoD, NASA, and the Coast Guard, the head of the agency may 
enter into a multiyear contract for supplies if--
    (1) The use of such a contract will result in substantial savings of 
the total estimated costs of carrying out the program through annual 
contracts;
    (2) The minimum need to be purchased is expected to remain 
substantially unchanged during the contemplated contract period in terms 
of production rate, procurement rate, and total quantities;
    (3) There is a stable design for the supplies to be acquired, and 
the technical risks associated with such supplies are not excessive;
    (4) There is a reasonable expectation that, throughout the 
contemplated contract period, the head of the agency will request 
funding for the contract at a level to avoid contract cancellation; and
    (5) The estimates of both the cost of the contract and the cost 
avoidance through the use of a multiyear contract are realistic.
    (c) The multiyear contracting method may be used for the acquisition 
of supplies or services.
    (d) If funds are not appropriated to support the succeeding years' 
requirements, the agency must cancel the contract.