§3903 Multiyear contracts

Summary

Allows executive agencies to sign a multiyear contract to buy goods or services for more than one, but not more than 5, program years. The agency may use a multiyear contract only if money is available and obligated either for the whole contract or at least for the first fiscal year and for estimated termination costs. The agency must also decide the need is reasonably firm over the contract period and that a multiyear deal is in the government’s best interest by encouraging competition or saving money and making programs run better. Each multiyear contract must say it will end if funds are not provided for any covered fiscal year, and money for ending the contract must stay available until termination costs are paid. If the contract’s cancellation ceiling is more than $10,000,000, the agency must notify Congress in writing and wait 30 days before awarding the contract. A contract can make performance after year one depend on future appropriations and can promise a cancellation payment if funds are not provided. This law does not change other laws that allow multiyear contracts.