§50503 Anchor tenancy and termination liability

Summary

NASA or NOAA may sign multiyear contracts to buy a product or service if six findings are met: it fits the agency’s mission, is cost effective, was chosen through competition, has identified non‑government customers, won’t depend on continued government support, and has private money at risk. Those contracts can include a set schedule of payments if the government ends the contract for its convenience. Those payments cannot be more than the total the government would have paid after the termination date. Payments are allowed only if Congress provides the money. If funds are used to buy the product when it is delivered, enough must stay available to cover any remaining termination payments. Contracts cannot exceed 10 years, must use one set price that does not change, use reasonable performance specs when possible, and the agency can end the contract without making those termination payments if the contractor fails or likely will fail to perform.