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What is a multi-year contract?

Screen Name: Multi Year Contract. Definition: A multi-year contract means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years. Such contracts are issued under specific congressional authority for specific programs.

How long is a multi-year contract?

In simple terms, a multi-year contract is a contract for a product or service that lasts for more than twelve months. Multi-year contracts might make provisions that continued performance of the contract into the second and any subsequent years of that contract will be contingent on the appropriation of funds.

How many years is a multi-year contract?

Multiyear Contract. Definition: A multi-year contract means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years. Such contracts are issued under specific congressional authority for specific programs.

How long can the government extend a contract?

This decision is an important reminder that pursuant to FAR § 52.217-8, the government is entitled to unilaterally extend your contract up to six months, in any increment, before all option years have been exercised and at the rates in effect in the contract.

What are the three contracting methods in the far?

The primary contracting methods used by the government are: micro-purchases; simplified acquisition procedures; sealed bidding; contract by negotiations; and, consolidated purchasing programs, such as the use of GSA schedules, Government Wide Acquisition Contracts and other multiple award vehicles.

What is an option year on a government contract?

Option years are a common feature of service contracts with the federal government. Many such contracts provide for a base period of performance and then allow the Government to exercise one or more options to extend the contract term.

When can a contract option be exercised?

The option may be exercised only if funds become available within the 60-day period. In the event that sufficient funding is not available within the 60-day period, the Government waives the right to exercise the option, thereby rendering any additional requirements subject to full and open competition requirements.

What is an option clause?

An Option Clause is an effective tool for addressing the consequences of a subject clause that tends to be too subjective. An option is a legally enforceable agreement by which a seller promises the buyer to keep an offer open for acceptance until a specified time.

What is a federal procurement contract?

Contracts for federal government procurement usually involve appropriated funds spent on supplies, services, and interests in real property by and for the use of the Federal Government through purchase or lease, whether the supplies, services, or interests are already in existence or must be created, developed, ...

What type of contracts are interagency acquisitions commonly conducted?

(a) Interagency acquisitions are commonly conducted through indefinite-delivery contracts, such as task- and delivery-order contracts.

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