§50503 Anchor Tenancy and Termination Liability

Summary

NASA or NOAA may sign multiyear "anchor tenancy" contracts to buy a good or service if Congress provides money and six conditions are met: the purchase fits the agency’s mission, is cost-effective, was awarded competitively, has non‑Government customers identified, does not rely on ongoing unpaid Government support, and has private money at risk. Those contracts may allow payments if the Government cancels for convenience, but the payments must follow a fixed schedule and cannot be more than what the Government would have paid after cancellation. Money set aside for cancellation can be used to buy delivered goods if enough remains to cover any leftover cancellation payments. Contracts can run no more than 10 years, must be fixed‑price, use reasonable performance specs, and the agency can cancel without payment if the contractor fails or will fail to perform.