1994 US Code
Title 41 - PUBLIC CONTRACTS
CHAPTER 4 - PROCUREMENT PROCEDURES
SUBCHAPTER IV - PROCUREMENT PROVISIONS
Sec. 254c - Multiyear contracts
View MetadataPublication Title | United States Code, 1994 Edition, Title 41 - PUBLIC CONTRACTS |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 41 - PUBLIC CONTRACTS CHAPTER 4 - PROCUREMENT PROCEDURES SUBCHAPTER IV - PROCUREMENT PROVISIONS Sec. 254c - Multiyear contracts |
Contains | section 254c |
Date | 1994 |
Laws in Effect as of Date | January 4, 1995 |
Positive Law | No |
Disposition | standard |
Source Credit | June 30, 1949, ch. 288, title III, §304B, as added Oct. 13, 1994, Pub. L. 103-355, title I, §1072, 108 Stat. 3270. |
Statutes at Large Reference | 108 Stat. 3270 |
Public Law References | Public Law 103-355 |
§254c. Multiyear contracts (a) Authority
An executive agency may enter into a multiyear contract for the acquisition of property or services if—
(1) funds are available and obligated for such contract, for the full period of the contract or for the first fiscal year in which the contract is in effect, and for the estimated costs associated with any necessary termination of such contract; and
(2) the executive agency determines that—
(A) the need for the property or services is reasonably firm and continuing over the period of the contract; and
(B) a multiyear contract will serve the best interests of the United States by encouraging full and open competition or promoting economy in administration, performance, and operation of the agency's programs.
(b) Termination clauseA multiyear contract entered into under the authority of this section shall include a clause that provides that the contract shall be terminated if funds are not made available for the continuation of such contract in any fiscal year covered by the contract. Amounts available for paying termination costs shall remain available for such purpose until the costs associated with termination of the contract are paid.
(c) Cancellation ceiling noticeBefore any contract described in subsection (a) of this section that contains a clause setting forth a cancellation ceiling in excess of ,000,000 may be awarded, the executive agency shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the Congress, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
(d) Multiyear contract definedFor the purposes of this section, a multiyear contract is a contract for the purchase of property or 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.
(e) Rule of constructionNothing in this section is intended to modify or affect any other provision of law that authorizes multiyear contracts.
(June 30, 1949, ch. 288, title III, §304B, as added Oct. 13, 1994, Pub. L. 103–355, title I, §1072, 108 Stat. 3270.)
Effective DateFor effective date and applicability of section, see section 10001 of Pub. L. 103–355, set out as an Effective Date of 1994 Amendment note under section 251 of this title.
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