48 C.F.R. PART 817—SPECIAL CONTRACTING METHODS
Title 48 - Federal Acquisition Regulations System
Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c).
Source: 49 FR 12608, Mar. 29, 1984, unless otherwise noted.
(a) Pursuant to Title 38, United States Code, Chapter 1, Section 114 (as amended by Pub. L. 101–237), multiyear contracting not exceeding 5 years is authorized for obtaining supplies and services when the Secretary has made the following determinations: (1) Appropriations are available for obligation for the total payments for the fiscal year the contract is entered into plus the estimated amount of any cancellation charges. (2) The contract is in the best interest of the Government due to the effect it would have in: (i) Reducing cost; (ii) Achieving contract administration and other efficiencies; (iii) Increasing quality contract performance; (iv) Encouraging effective competition. (3) During the contract period: (i) There is a continuing need for the supplies or services; (ii) There is little likelihood of substantial changes in need for the supplies and services in terms of quantity or rate of delivery; and (iii) The specifications for the supplies or services are expected to be reasonably stable. (4) The risks relating to a prospective contractor's ability to perform in accordance with the specifications and other contract terms are not excessive; (5) The use of a multiyear contract will not inhibit competition from small business firms; (6) In the case of a pharmaceutical item for which a patent has expired less than 4 years before the solicitation issue date, there is no substantial likelihood that increased competition will occur during the term of the contact that would make the contract prices higher than would be reasonable. (b) The authority of the Secretary to enter into multiyear contracts and to make the determinations specified in 817.102–1(a) of this section is delegated as follows: (1) Heads of contracting activities. For contracts not requiring legal/technical reviews pursuant to 801.602–70 (for purposes of determining applicability of the thresholds, the total dollar amount of the contract over its full multiyear term will be used), and which do not contain a first year cancellation ceiling which exceeds 20 percent of the total dollar amount of the contract over the full multi-year term. (2) Deputy Assistant Secretary for Acquisition and Materiel Management, will approve all proposed uses of multiyear contracts not authorized for approval by heads of contracting activities. For approval purposes, the head of the contracting activity will justify and document the use of a multiyear contract against each of the criteria specified in 817.102–1 (a)(1) through (a)(6) of this section. The justification will additionally delineate the cancellation ceiling and the method used for calculating that ceiling and will specify the advantages of multiyear contracts over other alternative methods, e.g., option year contracts. (c) Cancellation ceilings will be carefully developed in accordance with FAR 17.106–1. [54 FR 980, Jan. 11, 1989, as amended at 57 FR 44129, Sept. 24, 1992. Redesignated and amended at 63 FR 69219, Dec. 16, 1998] All solicitations developed pursuant to Office of Management and Budget Circular A–76 (Revised) cost comparisons will provide for one year renewal options as prescribed in FAR Subpart 17.2. Requests to use less or more than the prescribed contract period for Circular A–76 (Revised) cost comparisons will be forwarded to the Deputy Assistant Secretary for Acquisition and Material Management (90). [49 FR 12608, Mar. 29, 1984, as amended at 54 FR 980, Jan. 11, 1989; 57 FR 44129, Sept. 24, 1992] (a) Except as provided in 817.402(b), no leader company contracts shall be initiated or consummated. (b) The Deputy Assistant Secretary for Acquisition and Materiel Management (90) may designate a contracting officer to enter into a leader company contract when considered beneficial to the Department and the Government. When a contracting officer is designated the authority to enter into a leader company contract, the designation will be by name for a specific contract. The proposed contract with a determination and finding will be submitted for legal review in accordance with 801.602–71. [49 FR 12608, Mar. 29, 1984, as amended at 54 FR 980, Jan. 11, 1989; 54 FR 40064, Sept. 29, 1989]
Title 48: Federal Acquisition Regulations System
PART 817—SPECIAL CONTRACTING METHODS
Section Contents
817.105 Policy.
817.105-1 Uses.
817.202 Use of options.
817.402 Limitations.
Subpart 817.1—Multi-Year Contracting
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817.105 Policy.
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817.105-1 Uses.
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Subpart 817.2—Options
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817.202 Use of options.
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Subpart 817.4—Leader Company Contracting
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817.402 Limitations.
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