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FAR and DFARS › FAR Part 17: Special Contracting Methods › Subpart 17.1

FAR 17.105-1 Uses.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains when an agency may use a multiyear contract instead of annual contracts. For most agencies, the contracting officer needs a determination that the need is firm and continuing and that a multiyear contract serves the best interests of the United States. For DoD, NASA, and the Coast Guard, the head of the agency must meet additional conditions, including expected significant savings and stable requirements and design.

Applies to: Contracting officers and agency heads using multiyear contracts

What it requires

  • If funds are not appropriated to support the succeeding years' requirements, the agency must cancel the contract.

Key terms: multiyear contract · head of the contracting activity · head of the agency · full and open competition · contract cancellation

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Except for DoD, NASA, and the Coast Guard, the contracting officer may enter into a multiyear contract if the head of the contracting activity determines that—

(1) The need for the supplies or services is reasonably firm and continuing over the period of the contract; and

(2) 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) For DoD, NASA, and the Coast Guard, the head of the agency may enter into a multiyear 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;

(2) The minimum need to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities;

(3) There is a stable design for the supplies to be acquired, and the technical risks associated with such supplies are not excessive;

(4) There is a reasonable expectation that, throughout the contemplated contract period, the head of the agency will request funding for the contract at a level to avoid contract cancellation; and

(5) The estimates of both the cost of the contract and the cost avoidance through the use of a multiyear contract are realistic.

(c) The multiyear contracting method may be used for the acquisition of supplies or services.

(d) If funds are not appropriated to support the succeeding years' requirements, the agency must cancel the contract.

Sections that refer to it

  • 217.172 Multiyear contracts for supplies.

← 17.105 Policy. · 17.105-2 Objectives. →

Rule changes for FAR Part 17

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 17.105-1 Uses · SpendQuery