Authorize multiyear contracts. The Federal Property and Administrative Services Act should be amended to authorize agencies to contract for periods not in excess of 10 years when (a) appropriations are available and adequate for payment for the first fiscal year; (b) the agency determines that the government's need for the property or service being acquired is reasonably firm and continuing; and (c) such a contract would serve the best interests of the federal government by encouraging competition or promoting economies in administration, performance, and operation, and will not inhibit small business participation. Agencies should ensure that the multiyear contract would be either fully funded or funded for the first fiscal year plus any estimated cancellation costs. The availability of funds clause should be structured to provide that the contractor would be notified if funds are not appropriated by Congress and made available for payment under the contract. Internal agency procedures must also provide for program offices and/or budget offices to notify contracting offices as to the continued availability of funds. In the event funds are not made available for subsequent fiscal years, the contract would be cancelled and cancellation costs paid from funds originally obligated.
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