[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: 48CFR17.105-1]



[Page 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. 17.105-1  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.

    (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.