10 U.S. Code § 2306c - Multiyear contracts: acquisition of services

(a) Authority.— Subject to subsections (d) and (e), the head of an agency may enter into contracts for periods of not more than five years for services described in subsection (b), and for items of supply related to such services, for which funds would otherwise be available for obligation only within the fiscal year for which appropriated whenever the head of the agency finds that—
(1) there will be a continuing requirement for the services consonant with current plans for the proposed contract period;
(2) the furnishing of such services will require a substantial initial investment in plant or equipment, or the incurrence of substantial contingent liabilities for the assembly, training, or transportation of a specialized work force; and
(3) the use of such a contract will promote the best interests of the United States by encouraging effective competition and promoting economies in operation.
(b) Covered Services.— The authority under subsection (a) applies to the following types of services:
(1) Operation, maintenance, and support of facilities and installations.
(2) Maintenance or modification of aircraft, ships, vehicles, and other highly complex military equipment.
(3) Specialized training necessitating high quality instructor skills (for example, pilot and air crew members; foreign language training).
(4) Base services (for example, ground maintenance; in-plane refueling; bus transportation; refuse collection and disposal).
(5) Environmental remediation services for—
(A) an active military installation;
(B) a military installation being closed or realigned under a base closure law; or
(C) a site formerly used by the Department of Defense.
(c) Applicable Principles.— In entering into multiyear contracts for services under the authority of this section, the head of the agency shall be guided by the following principles:
(1) The portion of the cost of any plant or equipment amortized as a cost of contract performance should not exceed the ratio between the period of contract performance and the anticipated useful commercial life of such plant or equipment. Useful commercial life, for this purpose, means the commercial utility of the facilities rather than the physical life thereof, with due consideration given to such factors as location of facilities, specialized nature thereof, and obsolescence.
(2) Consideration shall be given to the desirability of obtaining an option to renew the contract for a reasonable period not to exceed three years, at prices not to include charges for plant, equipment and other nonrecurring costs, already amortized.
(3) Consideration shall be given to the desirability of reserving in the agency the right, upon payment of the unamortized portion of the cost of the plant or equipment, to take title thereto under appropriate circumstances.
(d) Restrictions Applicable Generally.—
(1) The head of an agency may not initiate under this section a contract for services that includes an unfunded contingent liability in excess of $20,000,000 unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
(2) The head of an agency may not initiate a multiyear contract for services under this section if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided by law.
(3) The head of an agency may not terminate a multiyear procurement contract for services until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.
(4) Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the congressional defense committees, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
(5) In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (4), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall give written notification to the congressional defense committees of—
(A) the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;
(B) the extent to which costs of contract cancellation are not included in the budget for the contract; and
(C) a financial risk assessment of not including budgeting for costs of contract cancellation.
(e) Cancellation or Termination for Insufficient Funding After First Year.— In the event that funds are not made available for the continuation of a multiyear contract for services into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from—
(1) appropriations originally available for the performance of the contract concerned;
(2) appropriations currently available for procurement of the type of services concerned, and not otherwise obligated; or
(3) funds appropriated for those payments.
(f) Multiyear Contract Defined.— For the purposes of this section, a multiyear contract is a contract for the purchase of services for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.
[(g) Repealed. Pub. L. 108–136, div. A, title VIII, § 843(a),Nov. 24, 2003, 117 Stat. 1553.]
(h) Military Installation Defined.— In this section, the term “military installation” has the meaning given such term in section 2801 (c)(4) of this title.

Source

(Added Pub. L. 106–398, § 1 [[div. A], title VIII, § 802(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–203; amended Pub. L. 107–314, div. A, title VIII, §§ 811(a), 827,Dec. 2, 2002, 116 Stat. 2608, 2617; Pub. L. 108–136, div. A, title VIII, § 843(a), title X, § 1043(c)(1),Nov. 24, 2003, 117 Stat. 1553, 1611; Pub. L. 108–375, div. A, title VIII, § 814(b),Oct. 28, 2004, 118 Stat. 2014; Pub. L. 111–84, div. A, title X, § 1073(a)(22),Oct. 28, 2009, 123 Stat. 2473.)
Amendments

2009—Subsec. (h). Pub. L. 111–84substituted “section 2801 (c)(4)” for “section 2801 (c)(2)”.
2004—Subsec. (d)(1), (3), (4). Pub. L. 108–375, § 814(b)(1), substituted “congressional defense committees” for “committees of Congress named in paragraph (5)”.
Subsec. (d)(5). Pub. L. 108–375, § 814(b)(2), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The committees of Congress referred to in paragraphs (1), (3), and (4) are as follows:
“(A) The Committee on Armed Services and the Committee on Appropriations of the Senate.
“(B) The Committee on Armed Services and the Committee on Appropriations of the House of Representatives.”
2003—Subsec. (g). Pub. L. 108–136, § 843(a), struck out heading and text of subsec. (g). Text read as follows:
“(1) The authority and restrictions of this section, including the authority to enter into contracts for periods of not more than five years, shall apply with respect to task order and delivery order contracts entered into under the authority of section 2304a, 2304b, or 2304c of this title.
“(2) The regulations implementing this subsection shall establish a preference that, to the maximum extent practicable, multi-year requirements for task order and delivery order contracts be met with separate awards to two or more sources under the authority of section 2304a (d)(1)(B) of this title.”
Subsec. (h). Pub. L. 108–136, § 1043(c)(1), substituted “Military Installation Defined.—In this section, the term” for “Additional Definitions.—In this section:
“(1) The term ‘base closure law’ has the meaning given such term in section 2667 (h)(2) of this title.
“(2) The term”.
2002—Subsec. (b)(5). Pub. L. 107–314, § 827(a), added par. (5).
Subsec. (g). Pub. L. 107–314, § 811(a), added subsec. (g).
Subsec. (h). Pub. L. 107–314, § 827(b), added subsec. (h).
Effective Date of 2002 Amendment

Pub. L. 107–314, div. A, title VIII, § 811(b),Dec. 2, 2002, 116 Stat. 2608, as amended by Pub. L. 108–11, title I, § 1315,Apr. 16, 2003, 117 Stat. 570, provided that: “Subsection (g) ofsection 2306c of title 10, United States Code, as added by subsection (a), shall apply to all task order and delivery order contracts entered into on or after January 1, 2004.”
Effective Date

Pub. L. 106–398, § 1 [[div. A], title VIII, § 802(d)], Oct. 30, 2000, 114 Stat. 1654, 1654A–205, provided that: “Section 2306c of title 10, United States Code (as added by subsection (a)), shall apply with respect to contracts for which solicitations of offers are issued after the date of the enactment of this Act [Oct. 30, 2000].”

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10 USCDescription of ChangeSession YearPublic LawStatutes at Large

This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

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32 CFR - National Defense

32 CFR Part 272 - ADMINISTRATION AND SUPPORT OF BASIC RESEARCH BY THE DEPARTMENT OF DEFENSE

33 CFR - Navigation and Navigable Waters

33 CFR Part 210 - PROCUREMENT ACTIVITIES OF THE CORPS OF ENGINEERS

48 CFR - Federal Acquisition Regulations System

48 CFR Part 1 - FEDERAL ACQUISITION REGULATIONS SYSTEM

48 CFR Part 2 - DEFINITIONS OF WORDS AND TERMS

48 CFR Part 3 - IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

48 CFR Part 4 - ADMINISTRATIVE MATTERS

48 CFR Part 5 - PUBLICIZING CONTRACT ACTIONS

48 CFR Part 6 - COMPETITION REQUIREMENTS

48 CFR Part 7 - ACQUISITION PLANNING

48 CFR Part 8 - REQUIRED SOURCES OF SUPPLIES AND SERVICES

48 CFR Part 9 - CONTRACTOR QUALIFICATIONS

48 CFR Part 10 - MARKET RESEARCH

48 CFR Part 11 - DESCRIBING AGENCY NEEDS

48 CFR Part 12 - ACQUISITION OF COMMERCIAL ITEMS

48 CFR Part 13 - SIMPLIFIED ACQUISITION PROCEDURES

48 CFR Part 14 - SEALED BIDDING

48 CFR Part 15 - CONTRACTING BY NEGOTIATION

48 CFR Part 16 - TYPES OF CONTRACTS

48 CFR Part 17 - SPECIAL CONTRACTING METHODS

48 CFR Part 18 19

48 CFR Part 22 - APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

48 CFR Part 23 - ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

48 CFR Part 24 - PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

48 CFR Part 25 - FOREIGN ACQUISITION

48 CFR Part 26 - OTHER SOCIOECONOMIC PROGRAMS

48 CFR Part 27 - PATENTS, DATA, AND COPYRIGHTS

48 CFR Part 28 - BONDS AND INSURANCE

48 CFR Part 29 - TAXES

48 CFR Part 30 - COST ACCOUNTING STANDARDS ADMINISTRATION

48 CFR Part 31 - CONTRACT COST PRINCIPLES AND PROCEDURES

48 CFR Part 32 - CONTRACT FINANCING

48 CFR Part 33 - PROTESTS, DISPUTES, AND APPEALS

48 CFR Part 34 - MAJOR SYSTEM ACQUISITION

48 CFR Part 35 - RESEARCH AND DEVELOPMENT CONTRACTING

48 CFR Part 36 - CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

48 CFR Part 37 - SERVICE CONTRACTING

48 CFR Part 38 - FEDERAL SUPPLY SCHEDULE CONTRACTING

48 CFR Part 39 - ACQUISITION OF INFORMATION TECHNOLOGY

48 CFR Part 41 - ACQUISITION OF UTILITY SERVICES

48 CFR Part 42 - CONTRACT ADMINISTRATION AND AUDIT SERVICES

48 CFR Part 43 - CONTRACT MODIFICATIONS

48 CFR Part 44 - SUBCONTRACTING POLICIES AND PROCEDURES

48 CFR Part 45 - GOVERNMENT PROPERTY

48 CFR Part 46 - QUALITY ASSURANCE

48 CFR Part 47 - TRANSPORTATION

48 CFR Part 48 - VALUE ENGINEERING

48 CFR Part 49 - TERMINATION OF CONTRACTS

48 CFR Part 50 - EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

48 CFR Part 51 - USE OF GOVERNMENT SOURCES BY CONTRACTORS

48 CFR Part 52 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES

48 CFR Part 53 - FORMS

48 CFR Part 5433 - PROTESTS, DISPUTES AND APPEALS

 

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