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  • Question

    Can we exceed the five year limititation or does that limitation even apply to Information Technology contracts? FAR 17.204(e) says that this limitation does not apply to IT contracts, but I can't find an applicable limitation anywhere else, even from FAR Part 39. Does the five year period limitation apply to IT contracts, requiring us to limit the last option year to six months or less to allow for the first six months of installation/implementation? Or can we make the first base period 18 months long to allow for installation/implementation and then begin the first option year after the 12 month warranty expires, for a total of 5 1/2 years?


    Answer

    As you noted, FAR 17.204(e), which limits base contract plus options to 5 years, does not apply to IT contracts. But, it also adds: " However, statutes applicable to various classes of contracts, for example, the Service Contract Act (see 22.1002-1), may place additional restrictions on the length of contracts." Whether any such statutes apply in your case depends on the particulars of your situation and is beyond the scope of this forum.

    You
    should seek help from your legal counsel and contracting officer to determine whether any such statutes or regulations - including agency-specific regulations - apply in your case.
     

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