48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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8 sections with “Cancellation ceiling”

  • FAR 52.217-2 Cancellation Under Multiyear Contracts.
    As prescribed in 17.109(a), insert the following clause: Cancellation Under Multiyear Contracts (OCT 1997) (a) Cancellation, as used in this clause, means that the Government is canceling its requirements for all supplies or services in p…
  • FAR 17.103 Definitions.
    As used in this subpart— Cancellation means the cancellation (within a contractually specified time) of the total requirements of all remaining program years. Cancellation results when the contracting officer (1) Notifies the contractor o…
  • FAR 17.106-1 General.
    … and profit objectives commensurate with contractor risk and financing arrangements. (c) Cancellation procedures. (1) All program years except the first are subject to cancellation. For each program year subject to cancellation, the contra…
  • DFARS 217.170 General.
    …L. 105-56 and similar sections in subsequent DoD appropriations acts); or (iv) Include a cancellation ceiling in excess of $200 million (see 10 U.S.C. 3531(d)(4) and 10 U.S.C. 3501(g)(1)). (2) A DoD component must submit a request for aut…
  • DFARS 217.172 Multiyear contracts for supplies.
    …ctivities of aircraft units to be produced in the fiscal year covered by the budget; (3) Cancellation provisions in the contract do not include consideration of recurring manufacturing costs of the contractor associated with the production…
  • FAR 17.108 Congressional notification.
    (a) Except for DoD, NASA, and the Coast Guard, a multiyear contract which includes a cancellation ceiling in excess of $20 million may not be awarded until the head of the agency gives written notification of the proposed contract and of th…
  • FAR 17.106-2 Solicitations.
    …d cost and fee shall consider only the first year. (d) A provision specifying a separate cancellation ceiling (on a percentage or dollar basis) and dates applicable to each program year subject to a cancellation (see 17.106-1 (c) and (d)).…
  • FAR 17.106-3 Special procedures applicable to DoD, NASA, and the Coast Guard.
    …t, the performance of which is deficient with respect to cost, quality, or schedule. (c) Cancellation or termination for insufficient funding. In the event funds are not made available for the continuation of a multiyear contract awarded u…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.