§3903 Multiyear Contracts

Summary

Allows executive agencies to enter multiyear contracts for buying goods or services that last more than one but no more than 5 program years. The agency must have money available and obligated either for the whole contract or at least for the first fiscal year, plus money estimated to cover ending the contract if needed. The agency must also decide the need is steady and that a multiyear deal is best for the government because it promotes fair competition or saves money and helps run programs better. Each contract must let the agency stop the work if funds are not provided for a covered fiscal year, and money set aside for ending the contract stays available until termination costs are paid. If the contract’s cancellation ceiling is over $10,000,000, the agency must notify Congress in writing and wait 30 days before awarding the contract. Contracts may also say work after the first year depends on future funding and may include a cancellation payment if funds are not appropriated. This does not change other laws that allow multiyear contracts.