PRIA, Government Policy, Made Personal

Summary

The State Department and the Foreign Service can sign contracts paid from yearly congressional funding that last up to 5 years. That is allowed only if money is available to pay the first fiscal year and any possible cancellation costs, and the Secretary of State decides three things: the need for the goods or services is reasonably steady for the contract period, a multi-year contract will encourage fair competition or save money in how things are done, and it will not block small businesses from participating. If money is not provided to continue the contract in a later year, the contract must be canceled. Cancellation costs must be paid from the original contract funds, other available funds for similar purchases that are not already used, or from funds provided to pay those cancellation costs.

Title 22, §2679a

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Funding for periods not in excess of five years; conditions

Any contract for the procurement of property or services, or both, for the Department of State or the Foreign Service which is funded on the basis of annual appropriations may nevertheless be made for periods not in excess of 5 years when—

(1)appropriations are available and adequate for payment for the first fiscal year and for all potential cancellation costs; and

(2)the Secretary of State determines that—

(A)the need of the Government for the property or service being acquired over the period of the contract is reasonably firm and continuing;

(B)such a contract will serve the best interests of the United States by encouraging effective competition or promoting economies in performance and operation; and

(C)such a method of contracting will not inhibit small business participation.

(b)Cancellation of contracts

In the event that funds are not made available for the continuation of such a contract into a subsequent fiscal year, the contract shall be cancelled and any cancellation costs incurred shall be paid from appropriations originally available for the performance of the contract, appropriations currently available for the acquisition of similar property or services and not otherwise obligated, or appropriations made for such cancellation payments.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2679a, acts Aug. 1, 1956, ch. 841, § 14, as added Oct. 26, 1974, Pub. L. 93–475, § 10(a)–(d), 88 Stat. 1441; amended Nov. 29, 1975, Pub. L. 94–141, title IV, § 407(a), 89 Stat. 771; Aug. 17, 1977, Pub. L. 95–105, title IV, § 410(a), 91 Stat. 854, set forth provisions respecting death guaranties for certain Foreign Service personnel, prior to repeal by Pub. L. 96–465, title II, § 2205(10), Oct. 17, 1980, 94 Stat. 2160. Repeal effective Feb. 15, 1981, except as otherwise provided, see section 2403 of Pub. L. 96–465, set out as an

Effective Date

note under section 3901 of this title. See section 3973 of this title. Another prior section 14 of act Aug. 1, 1956, was classified to section 170s of former Title 5, Executive Departments and Government Officers and Employees, prior to repeal by Pub. L. 86–707, title V, § 511(a)(2), Sept. 6, 1960, 74 Stat. 800. See section 5922(b) of Title 5, Government Organization and Employees.

§2679a Procurement Contracts