Season 11: Episode 12: FAR Facts

Hello and thank you for joining us for Episode 11 of Fun with the FAR Season 11! In our next session, we will cover FAR Part 17 (Special Contracting Methods) and Part 18 (Emergency Acquisitions). As we prepare for our 12th episode of Season 11, here are a few Episode 12 FAR Facts for us to think about:
  • The key distinguishing difference between multi-year and multiple year contracts is that multi- year contracts buy more than one year’s requirement of a product or service without establishing and having to exercise options for each subsequent contract year after the first. FAR 17.103.
  • The term of a “multi-year” contract may not be longer than 5 years, unless otherwise authorized by statute. FAR 17.103 and FAR 17.104(a).
  • The use of multi-year contracting is encouraged to take advantage of one or more of the following:
    • lower costs;
    • enhancement of standardization;
    • reduction of administrative burden in the placement and administration of contracts;
    • substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phase-out costs;
    • stabilization of contractor work forces;
    • avoidance of the need for establishing quality control techniques and procedures for a new contractor each year;
    • broadening the competitive base with opportunity for participation by firms not otherwise willing or able to compete for lesser quantities, particularly in cases involving high startup costs; and/or
    • providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology.
      FAR 17.105-2.
  • All “multi-year” contracts are required to include an agreed upon cancellation ceiling. FAR 17.106-1.
  • The Economy Act (31 U.S.C. 1535) authorizes agencies to enter into agreements to obtain supplies or services from another agency, and it applies when more specific statutory authority does not exist. FAR 17.502-2.
  • Management and operating contract means an agreement under which the Government contracts for the operation, maintenance, or support, on its behalf, of a Government-owned or-controlled establishment. FAR 17.601. FAR 17.603(a) lists the limitations on the use management and operating contracts.
  • Emergency acquisition flexibilities may only be used: (a) In support of a contingency operation as defined in 2.101; (b) to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the United States; or (c) when the President issues an emergency declaration, or a major disaster declaration. FAR 18.001. Available acquisition flexibilities are listed in FAR Subpart 18.1.
  • The current and prior versions of the FAR can be found online at

    We look forward to you joining us for our Episode 12 FAR Facts, Included here is the link to our Fun with the FAR program:

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