-  HHS Acquisition Regulations      -  Part 301—HHS Acquisition Regulation System 
  -  Part 302—Definitions of Words and Terms 
  -  Part 303—Improper Business Practices and Personal Conflicts of Interest 
  -  Part 304—Administrative Matters 
  -  Part 305—Publicizing Contract Actions 
  -  Part 306—Competition Requirements 
  -  Part 307—Acquisition Planning 
  -  Part 308—Required Sources of Supplies and Services 
  -  Part 309—Contractor Qualifications 
  -  Part 310—Market Research 
  -  Part 311—Describing Agency Needs 
  -  Part 312—Acquisition of Commercial Items 
  -  Part 314—Sealed Bidding 
  -  Part 315—Contracting by Negotiation 
  -  Part 316—Types of Contracts 
  -  Part 317—Special Contracting Methods 
  -  Part 319—Small Business Programs 
  -  Part 322—Application of Labor Laws to Government Acquisitions 
  -  Part 323—Renewable Energy Technologies, Occupational Safety 
  -  Part 324—Protection of Privacy and Freedom of Information 
  -  Part 326—Other Socioeconomic Programs 
  -  Part 327—Patents, Data, and Copyrights 
  -  Part 330—Cost Accounting Standards 
  -  Part 331—Contract Cost Principles and Procedures 
  -  Part 332—Contract Financing 
  -  Part 333—Protests, Disputes, and Appeals 
  -  Part 334—Major System Acquisition 
  -  Part 335—Research and Development Contracting 
  -  Part 336—Construction and Architect-Engineer Contracts 
  -  Part 337—Service Contracting—General 
  -  Part 339—Acquisition of Information Technology 
  -  Part 342—Contract Administration 
  -  Part 352—Solicitation Provisions and Contract Clauses 
  -  Part 370—Special Programs Affecting Acquisition 
  -  Subpart 313.3—Simplified Acquisition Methods 

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# Part 317—Special Contracting Methods

## (SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES)

**Sections:**
                          - **Subpart 317.1—Multi-year Contracting**                              - 317.104 General .
                            - 317.105 Policy .		                               - 317.105-1 Uses . 
                            - 317.107 Options .
                            - 317.108 Congressional notification . 
                          - **Subpart 317.2—Options**                              - 317.204 Contracts . 

Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

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## Subpart 317.1—Multi-year Contracting

### 317.104 General.

(b) The Senior Procurement Executive (SPE) is the agency approving official for determinations under Federal Acquisition Regulation (FAR) 17.104(b).

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### 317.105 Policy.

#### **317.105-1 Uses.**

(a) Each head of the contracting activity (HCA) determination to use multi-year contracting, as defined in FAR 17.103, is limited to individual acquisitions where the full estimated cancellation ceiling does not exceed 20 percent of the total contract value over the multi-year term or $12.5 million, whichever is less. Cancellation ceiling provisions shall conform to the requirements of FAR 17.106-1(c)**.**The determination is not delegable and shall address the issues in FAR 17.105-1(a).

(b)(1) SPE approval is required for any—

(i) Individual determination to use multi-year contracting with a cancellation ceiling in excess of the limits in 317.105-1(a); or

(ii) Class determination (see FAR subpart 1.7).

(2) A determination involving a cancellation ceiling in excess of the limits in 317.105-1(a) shall present a well-documented justification for the estimated cancellation ceiling. When the estimated cancellation ceiling exceeds $12.5 million, the determination shall accompany a draft congressional notification letter pursuant to FAR 17.108 and 317.108.

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### 317.107 Options.

When included as part of a multi-year contract, use of options shall not extend the performance of the original requirement beyond 5 years. Options may serve as a means to acquire related services (severable or non-severable) and, upon their exercise, shall receive funding from the then-current fiscal year’s appropriation.

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### 317.108 Congressional notification.

(a) The SPE shall give the approval of the written notification required by FAR 17.108(a). Upon approval of the determination required by 317.105-1(b)(1), the HCA will finalize and sign the congressional notification letter and provide it to the appropriate House and Senate committees.

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## Subpart 317.2—Options

### 317.204 Contracts.

(e)(1) ***Information technology contracts*****.**Notwithstanding FAR 17.204(e), the 5-year limitations apply also to information technology contracts unless a longer period is authorized by statute.

(2) ***Requests to exceed 5-year limitation***. A request to exceed the 5-year limitation specified in FAR 17.204(e) must follow guidance in FAR Part 1.7.

(3) ***Approval authority******.*** All requests to exceed the 5-year limitations specified in FAR 17.204(e) must be supported with a Determination and Finding and approved by:

(i) The HCA; and

(ii) The HHS SPE.

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Other Sections of the HHSAR:
                          - HHS Acquisition Regulations Table of Contents
                          - Previous Part:  Part 316 Types of Contracts
                          - Next Part:  Part 319 Small Business Programs

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Content last reviewed December 18, 2015