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  • Question

    Can a supply contract exceed one year?


    Answer

    I assume that this is a FFP type of contract, the installation of these commercial items is not complex and that this contract uses FY12 funds to cover the entire price of these supplies and their installation.  Based upon these assumptions, your Bona Fide need exists now (FY12) and awarding this contract in FY12 will start the process for immediate purchase and delivery of your commercial items and their installation.  The installation time is not relevant to determining contract duration or funding timing.
       
    This is not a Multi-year contract:  "Multi-year contract" means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years.  A multi-year contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds, and (if it does so provide) may provide for a cancellation payment to be made to the contractor if appropriations are not made.  You are not buying more than 1 year's requirement of a product or service.  Your Scenario is completely funded with FY12 funds and therefore is not a Multi-year contract.
       
    Your contract is not a multiple year contract:  you are not using multiple year funding.
       
    In summary, you are using one-year funding to purchase a current, bona fide need.  The delivery of the supplies will be within 30 days ARO.  The fact that it will take longer than a year to complete the installation is not relevant to determining contract duration or funding timing.




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