Can a Government contract be longer than 5 years?
Background: Paragraph 17.204(e) of the Federal Acquisition Regulation (FAR) establishes a maximum of five years, which includes the basic and all option periods, for contracts for services as well as for supplies.
How many option years can a contract have?
217.204 Contracts. (C) Shall not exceed 10 years unless the head of the agency determines in writing that exceptional circumstances require a longer ordering period.
What is the maximum period of time that a task order contract can cover?
(1) Except as provided for in paragraphs (c)(2) and (3) of this section, the ordering period of a task-order contract for advisory and assistance services, including all options or modifications, normally may not exceed 5 years.
How long is a multi-year contract?
In simple terms, a multi-year contract is a contract for a product or service that lasts for more than twelve months. Multi-year contracts might make provisions that continued performance of the contract into the second and any subsequent years of that contract will be contingent on the appropriation of funds.
What is a multi-year contract in Government contracting?
A multiyear contract is a commitment by the Government to purchase services or supplies from a contractor for a period extending beyond the fiscal year in which the contract is made.
What is a multi-year contract far?
Multi-year contract means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years.
What is the difference between a multi-year contract and a multiple year contract?
The key distinguishing difference between multi-year contracts and multiple year contracts is that multi-year contracts buy more than 1 year’s requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.
When should you use an IDIQ contract?
An IDIQ allows the government to streamline the procurement process and reduce costs for agencies that are looking to procure the same/similar services across various agencies. This can include network upgrades, migrating from legacy systems, infrastructure, cybersecurity, logistics, and many more.
What is IDIQ CAGE Code?
held a multiple-award Indefinite Delivery, Indefinite Quantity (IDIQ) contract, which identified the contractor by the Commercial and Government Entity (CAGE) code 8D014.
What is the difference between multi-year and multiple year?
The key distinguishing difference between multi-year contracts and multiple year contracts is that multi-year contracts , defined in the statutes cited at 17.101, buy more than 1 year’s requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.
When can an agency enter into a multi-year contract for supplies?
(b) For DoD, NASA, and the Coast Guard, the head of the agency may enter into a multi-year contract for supplies if- (1) The use of such a contract will result in significant savings of the total estimated costs of carrying out the program through annual contracts;
What is a multi year contract in government contracting?
17.104 General. (a) Multi-year contracting is a special contracting method to acquire known requirements in quantities and total cost not over planned requirements for up to 5 years unless otherwise authorized by statute, even though the total funds ultimately to be obligated may not be available at the time of contract award.
Is there a five-year limitation on the duration of a contract?
The statute makes no other mention of a five-year limitation. The limitation in 10 U.S.C. 2306b (k) is not a limitation on the duration of the contract, but only on the number of years’ worth of requirements that the contract can buy. However, an agency can buy supplies with the funds of one year and specify delivery in a subsequent year.
What is a supplier supply contract?
Supply Contract A Supply Agreement is a document between two parties, a Supplier and a Purchaser. The Supplier can be an individual or business and is the party that ” supplies,” or sells, the goods to the Purchaser.