17.105
Policy
FAR 17.105 establishes that multi-year contracts should only be used when they provide clear benefits and comply with statutory and regulatory requirements.
Overview
FAR 17.105 outlines the policy framework for multi-year contracting, providing guidance on when and how multi-year contracts should be used by federal agencies. The section emphasizes that multi-year contracts are appropriate when they promote economy, efficiency, and ensure the government’s needs are met over an extended period. The policy sets the foundation for agencies to consider multi-year contracting as a strategic tool, but only when it is in the government's best interest and complies with statutory and regulatory requirements.
Key Rules
- Appropriate Use of Multi-Year Contracts
- Multi-year contracts should only be used when they are expected to result in substantial savings or other benefits compared to annual contracting.
- Objectives of Multi-Year Contracting
- The objectives include promoting economy and efficiency in government procurement, reducing administrative costs, and ensuring continuity of operations.
Responsibilities
- Contracting Officers: Must evaluate and justify the use of multi-year contracts, ensuring compliance with policy and statutory requirements.
- Contractors: Should be prepared to demonstrate how their proposals meet the objectives of multi-year contracting and provide cost or performance benefits.
- Agencies: Must oversee and approve the use of multi-year contracts, ensuring alignment with agency goals and legal requirements.
Practical Implications
- This policy exists to ensure that multi-year contracting is used judiciously and only when it provides clear advantages to the government.
- It impacts daily contracting by requiring additional justification and oversight for multi-year awards.
- Common pitfalls include inadequate justification, failure to demonstrate cost savings, or non-compliance with statutory limitations.