[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR17.104]



[Page 329-330]

 

            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. 17.104  General.



    (a) Multiyear contracting is a special contracting method to acquire 

known requirements in quantities and total cost not over planned 

requirements for up to 5 years unless otherwise authorized by statute, 

even though the total funds ultimately to be obligated may not be 

available at the time of contract award. This method may be used in 

sealed bidding or contracting by negotiation.



[[Page 330]]



    (b) Multiyear contracting is a flexible contract method applicable 

to a wide range of acquisitions. The extent to which cancellation terms 

are used in multiyear contracts will depend on the unique circumstances 

of each contract. Accordingly, for multiyear contracts, the agency head 

may authorize modification of the requirements of this subpart and the 

clause at 52.217-2, Cancellation Under Multiyear Contracts.

    (c) Agency funding of multiyear contracts shall conform to the 

policies in OMB Circulars A-11 (Preparation and Submission of Budget 

Estimates) and A-34 (Instructions on Budget Execution) and other 

applicable guidance regarding the funding of multiyear contracts. As 

provided by that guidance, the funds obligated for multiyear contracts 

must be sufficient to cover any potential cancellation and/or 

termination costs; and multiyear contracts for the acquisition of fixed 

assets should be fully funded or funded in stages that are economically 

or programmatically viable.

    (d) The termination for convenience procedure may apply to any 

Government contract, including multiyear contracts. As contrasted with 

cancellation, termination can be effected at any time during the life of 

the contract (cancellation is effected between fiscal years) and can be 

for the total quantity or partial quantity (where as cancellation must 

be for all subsequent fiscal years' quantities).



[61 FR 39204, July 26, 1996, as amended at 67 FR 13054, Mar. 20, 2002; 

67 FR 43514, June 27, 2002]