Authorize Multi-Year Contracts

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.