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FAR and DFARS › DFARS Part 217: Special Contracting Methods › Subpart 217.1

DFARS 217.174 Multiyear contracts for electricity from renewable energy sources.

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 lets the head of a contracting activity award a contract of up to 10 years to buy electricity from renewable energy sources. For any contract longer than 5 years, that official must first rely on a business case analysis showing the purchase is cost effective and that a longer term is needed to buy the electricity economically.

Applies to: DoD contracting activities buying electricity from renewable energy sources

What it requires

  • For a contract period over 5 years, obtain a business case analysis prepared by the requiring activity
  • For a contract period over 5 years, determine that the proposed electricity purchase is cost effective
  • For a contract period over 5 years, determine that buying the electricity economically would not be possible without a contract longer than 5 years

Key terms: renewable energy · business case analysis · requiring activity · multiyear contracting authority

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

The text

(a) The head of the contracting activity may enter into a contract for a period not to exceed 10 years for the purchase of electricity from sources of renewable energy, as that term is defined in section 203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2)).

(b) Limitations. The head of the contracting activity may exercise the authority in paragraph (a) of this section to enter into a contract for a period in excess of 5 years only if the head of the contracting activity determines, on the basis of a business case analysis (see PGI 217.174 for a business case analysis template and guidance) prepared by the requiring activity, that—

(1) The proposed purchase of electricity under such contract is cost effective; and

(2) It would not be possible to purchase electricity from the source in an economical manner without the use of a contract for a period in excess of 5 years.

(c) Nothing in this section shall be construed to preclude the DoD from using other multiyear contracting authority of DoD to purchase renewable energy.

Sections that refer to it

  • 241.103 Statutory and delegated authority.

← 217.173 Multiyear contracts for military family housing. · 217.202 Use of options. →

Rule changes for DFARS Part 217

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

DFARS 217.174 Multiyear contracts for electricity from renewable energy sources · SpendQuery