2000 MULTIYEAR CONTRACTS

2000.1 Unless prohibited by the provisions of an appropriations act, a contracting officer may issue the following types of contracts on a multiyear basis:

(a) Firm-fixed-price contracts;

(b) Fixed-price contracts with economic adjustments;

(c) Fixed-priced incentive contracts; and

(d) Cost-reimbursement contracts.

2000.2 Multiyear contracting may be used in procurement by competitive sealed bids or competitive sealed proposals, or by sole source procurement.

2000.3 Multiyear procurement may be used for sheltered market solicitations.

2000.4 The term of a multiyear contract shall not be longer than five (5) years.

2000.5 Each multiyear contract shall provide that, after the end of each fiscal year, the contract shall be canceled (pursuant to a multiyear cancellation clause approved by the Director) if sufficient budget authority is not available to fund the contract during the subsequent fiscal year.

2000.6 Before issuing a multiyear contract, the contracting officer shall determine the following in writing:

(a) That the contract requires the special production of definite quantities or the furnishing of long-term services to meet the District's needs;

(b) That there is a reasonable expectation that, throughout the contemplated contract period, the requesting agency will request sufficient budget authority to fund the contract at the level required to avoid contract cancellation;

(c) That any technical risks associated with the item or service is not excessive;

(d) That a multiyear contract will serve the best interests of the District by encouraging competition or otherwise promoting economies in procurement; and

(e) That estimated requirements cover the period of the contract and are reasonably firm and continuing.

2000.7 Budget authority to fund a multiyear contract shall be obligated on an annual basis. The initial obligation of funds shall be for the first fiscal year requirements of the contract, and funds for requirements in each subsequent fiscal year shall be obligated one (1) fiscal year at a time.

2000.8 The contracting officer may use a pre-bid, pre-proposal, or pre-solicitation conference to ensure that all interested sources are informed of the special nature of multiyear contracts, including all cancellation provisions required by this chapter.

AUTHORITY: D.C. Code §§ 2-302.02, -302.04; Mayor's Order 2002-207.

SOURCE: Final Rulemaking published at 35 DCR 1506 (February 26, 1988).