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

FAR 17.105-2 Objectives.

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 the objectives the Government hopes to achieve by using multiyear contracting. It encourages agencies to use multiyear contracting when it can deliver one or more of the listed benefits, such as lower costs, reduced administrative burden, or a more stable contractor workforce. For contractors, it signals the kinds of advantages the Government is looking for when deciding whether to use this contracting approach.

Applies to: Government use of multiyear contracting

Key terms: multiyear contracting · lower costs · standardization · administrative burden · startup costs

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

The text

Use of multiyear contracting is encouraged to take advantage of one or more of the following:

(a) Lower costs.

(b) Enhancement of standardization.

(c) Reduction of administrative burden in the placement and administration of contracts.

(d) Substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phaseout costs.

(e) Stabilization of contractor work forces.

(f) Avoidance of the need for establishing quality control techniques and procedures for a new contractor each year.

(g) 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.

(h) Providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology.

Sections that refer to it

  • 17.106-3 Special procedures applicable to DoD, NASA, and the Coast Guard.

← 17.105-1 Uses. · 17.106 Procedures. →

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 17.105-2 Objectives · SpendQuery