17.108
Congressional notification
Before awarding multi-year contracts with high cancellation ceilings, agencies must notify Congress and observe a 30-day waiting period, with thresholds and committees varying by agency.
Overview
FAR 17.108 establishes the requirement for Congressional notification before awarding certain multi-year contracts with high cancellation ceilings. The regulation distinguishes between contracts for DoD, NASA, and the Coast Guard, and those for other agencies, setting different monetary thresholds and notification procedures. Its purpose is to ensure Congressional oversight of significant financial commitments in multi-year contracting.
Key Rules
- Non-DoD/NASA/Coast Guard Contracts
- If a multi-year contract (excluding DoD, NASA, and Coast Guard) has a cancellation ceiling over $15 million, the agency head must notify the relevant Congressional committees in writing at least 30 days before award.
- DoD, NASA, and Coast Guard Contracts
- For these agencies, the threshold is $150 million, and notification must be sent to the armed services and appropriations committees of both the House and Senate at least 30 days before award.
- Internal Guidance
- Agencies must provide contracting officers with information on the appropriate Congressional committees through internal regulations, as this information may not be readily available.
Responsibilities
- Contracting Officers: Ensure compliance with notification requirements and confirm that the 30-day waiting period has elapsed before award.
- Contractors: Be aware of potential delays in contract award due to Congressional notification requirements.
- Agencies: Issue internal guidance on committee contacts and ensure timely notifications are made.
Practical Implications
- This section exists to provide Congressional oversight of large, multi-year financial commitments.
- It can delay contract awards, so planning and communication are critical.
- Failure to comply can result in contract award delays or legal challenges.