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  • Question

    In what scenarios can a contract exceed 5 years (including options) and where in the FAR is this stated?


    Answer

    FAR 17.204(e) states, Unless otherwise approved in accordance with agency procedures, the total of the basic and option periods shall not exceed 5 years in the case of services, and the total of the basic and option quantities shall not exceed the requirement for 5 years in the case of supplies. These limitations do not apply to information technology contracts. However, statutes applicable to various classes of contracts, for example, the Service Contract Act (see 22.1002-1), may place additional restrictions on the legnth of contracts.

    One exception is, Clause 52.217-8, Option to Extend Services, may require continued performance up to 6 months after the 5 years if required.  FAR 16.505 has an exception for ordering periods on advisory and assistance services.  There are also many articles concerning the 5 year rule and exceptions that can be found on the internet.

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