17.108 Congressional notification
Source: FAR 17.108 on acquisition.gov
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.
(a) Except for DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of $20 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on appropriations of the House of Representatives and Senate and the appropriate oversight committees of the House and Senate for the agency in question. Information on such committees may not be readily available to contracting officers. Accordingly, agencies should provide such information through its internal regulations. The contract may not be awarded until the thirty-firstday after the date of notification.
(b) For DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of $200 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on armed services and appropriations of the House of Representatives and Senate. The contract may not be awarded until the thirty-firstday after the date of notification.