Congressional notification
Before awarding a multi-year contract with a high cancellation ceiling, agencies must notify Congress and wait 30 days, ensuring transparency and oversight for significant financial commitments.
Overview
FAR 17.108 establishes the requirement for Congressional notification before awarding certain multi-year contracts with high cancellation ceilings. Specifically, it mandates that agencies (excluding DoD, NASA, and the Coast Guard) must notify relevant Congressional committees if a multi-year contract includes a cancellation ceiling exceeding $20 million. For DoD, NASA, and the Coast Guard, the threshold is $200 million. The notification must be in writing and include details about the proposed contract and its cancellation ceiling. The contract cannot be awarded until 30 days after the notification has been sent. Agencies are responsible for ensuring contracting officers have access to information about the appropriate committees, typically through internal regulations.
Key Rules
- Notification Requirement for High-Value Multi-Year Contracts
- Agencies must notify Congress before awarding multi-year contracts with high cancellation ceilings.
- Thresholds Differ by Agency
- Non-DoD/NASA/Coast Guard: $20 million; DoD/NASA/Coast Guard: $200 million.
- 30-Day Waiting Period
- Contracts cannot be awarded until 30 days after notification.
- Internal Guidance
- Agencies must provide contracting officers with committee information via internal regulations.
Responsibilities
- Contracting Officers: Ensure required notifications are made and observe the 30-day waiting period before award.
- Contractors: Be aware of potential delays in contract award due to Congressional notification requirements.
- Agencies: Provide internal guidance on committee contacts and ensure compliance with notification and waiting period requirements.
Practical Implications
- This regulation ensures Congressional oversight of significant financial commitments in multi-year contracts.
- Contractors should anticipate possible delays in award for contracts with high cancellation ceilings.
- Agencies must have robust internal processes to identify when notification is required and to facilitate timely compliance.