HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance
Non-severable Services — Multi-Year Contracting
Multi-year contracting is a special contracting method (see FAR Subpart 17.1) that may be used to acquire planned requirements (for supplies or services) for up to 5 years without establishing or having to exercise options. A multi-year contract using annual appropriations may provide that performance after the initial year is contingent on the appropriation of funds, as long as the funds obligated at award are sufficient to fund the initial year of performance plus a cancellation ceiling payable to the contractor if future appropriations are not sufficient to fund continuation of the contract. MORE…
See also HHSAR Subpart 317.1, Multi-year Contracting, for policies, required determination and approval levels, and related requirements.