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Multi-year vs. Multiple year Contracts
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Multiple year vs. Multi-year Contracts
Scenario
Multi-year Contracts
Multiple year
Contracts
John McCain Proposes:
Multi-year Contracts
allow Pentagon to issue multi-year contracts that save at least 10 % of total cost of contract - limit to best performing/most stable programs
FAR Part 17.103
a “multi-year contract means a contract for the purchase of supplies or services for more than one, but not more than five, program years.”
Widget/ship Example for 3 years
Multiple Year Contracts
if the multi-year saves from 8-10%,
put in requirements - at least $500
million in total savings
FAR Part 22.10
“Contracts having a term of more than one year regardless of fiscal year funding. The term includes multi-year contracts.”
Regular contracts with a base year and options
Forgo multi-year contracts
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