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HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance

Multi-year Contracting — Cancellation Ceiling

Will the award fund the first program year plus the full amount of the cancellation ceiling from an appropriation source available for obligation on the date the contract action will be executed?


Yes       No

 


Help Notes

Cancellation ceiling is the maximum cancellation charge the contractor can receive in the event that any or all remaining program years of the contract are cancelled. When using multi-year contracting to acquire non-severable services, full funding of the cancellation ceiling is required at the time of contract execution. MORE…

REMINDER: Multi-year contracting requires adherence to the policies in FAR Subpart 17.1, as supplemented by HHSAR Subpart 317.1 (conditions for use, mandatory determination and approval levels, and related requirements).

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