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  • Question

    What FAR/DFAR authority grants this 5 year contract duration (5 year ordering period) without optioned out years? Would the above scenario be considered a multi-year services contract even though firm requirements may not be known at award? These considerations have lacked documentation in the AP's I have researched. Thanks in advance.


    Answer

    The Service Contract Act generally limits service contracts, like A&AS, to a maximum five year period. There is nothing wrong with a 5 year ordering period, versus a one year contract with 4 one year options. 
      
    It is not a multi-year contract- it is a "multiple-year contract". Multi-year contracts must be specifically authorized by Congress and have some special provisions, like cancellation fees, which are reduced every year (through negotiations at the time of the original award). "Multiple-year contracts just cross fiscal years.

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