106 
(e) CONTINGENCY
CLAUSE
FOR
APPROPRIATION
OF
AMOUNTS.—A 
multiyear contract may provide that performance under the contract after 
the first year of the contract is contingent on the appropriation of amounts 
and (if the contract does so provide) that a cancellation payment shall be 
made to the contractor if the amounts are not appropriated. 
(f) OTHER LAW NOT AFFECTED.—This section does not modify or affect 
any other provision of law that authorizes multiyear contracts. 
§ 3904. Contract authority for severable services contracts 
and multiyear contracts 
(a) COMPTROLLER GENERAL.—The Comptroller General may use avail-
able amounts to enter into contracts for the procurement of severable serv-
ices for a period that begins in one fiscal year and ends in the next fiscal 
year and to enter into multiyear contracts for the acquisition of property 
and nonaudit-related services to the same extent as executive agencies under 
sections 3902 and 3903 of this title. 
(b) LIBRARY OF CONGRESS.—The Library of Congress may use available 
amounts to enter into contracts for the lease or procurement of severable 
services for a period that begins in one fiscal year and ends in the next fis-
cal year and to enter into multiyear contracts for the acquisition of property 
and services pursuant to sections 3902 and 3903 of this title. 
(c) CHIEF ADMINISTRATIVE OFFICER OF THE HOUSE OF REPRESENTA-
TIVES.—The Chief Administrative Officer of the House of Representatives 
may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(d) CONGRESSIONAL BUDGET OFFICE.—The Congressional Budget Office 
may use available amounts to enter into contracts for the procurement of 
severable services for a period that begins in one fiscal year and ends in 
the next fiscal year and may enter into multiyear contracts for the acquisi-
tion of property and services to the same extent as executive agencies under 
the authority of sections 3902 and 3903 of this title. 
(e) SECRETARY AND SERGEANT AT ARMS AND DOORKEEPER OF THE 
SENATE.—Subject to regulations prescribed by the Committee on Rules and 
Administration of the Senate, the Secretary and the Sergeant at Arms and 
Doorkeeper of the Senate may enter into— 
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(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent and under the same conditions as the head of an executive 
agency under the authority of section 3902 of this title; and 
(2) multiyear contracts for the acquisition of property and services 
to the same extent and under the same conditions as executive agencies 
under the authority of section 3903 of this title. 
(f) CAPITOL POLICE.—The United States Capitol Police may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(g) ARCHITECT OF THE CAPITOL.—The Architect of the Capitol may 
enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(h) SECRETARY OF THE SMITHSONIAN INSTITUTION.—The Secretary of 
the Smithsonian Institution may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year under 
the authority of section 3902 of this title; and 
(2) multiyear contracts for the acquisition of property and services 
under the authority of section 3903 of this title. 
§ 3905. Cost contracts 
(a) COST-PLUS-A-PERCENTAGE-OF-COST CONTRACTS DISALLOWED.— 
The cost-plus-a-percentage-of-cost system of contracting shall not be used. 
(b) COST-PLUS-A-FIXED-FEE CONTRACTS.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), the 
fee in a cost-plus-a-fixed-fee contract shall not exceed 10 percent of the 
estimated cost of the contract, not including the fee, as determined by 
the agency head at the time of entering into the contract. 
(2) EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK.—The 
fee in a cost-plus-a-fixed-fee contract for experimental, developmental, 
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108 
or research work shall not exceed 15 percent of the estimated cost of 
the contract, not including the fee. 
(3) ARCHITECTURAL
OR
ENGINEERING
SERVICES.—The fee in a 
cost-plus-a-fixed-fee contract for architectural or engineering services 
relating to any public works or utility project may include the contrac-
tor’s costs and shall not exceed 6 percent of the estimated cost, not 
including the fee, as determined by the agency head at the time of en-
tering into the contract, of the project to which the fee applies. 
(c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts shall pro-
vide for advance notification by the contractor to the procuring agency of 
any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price sub-
contract or purchase order which exceeds in dollar amount either the sim-
plified acquisition threshold or 5 percent of the total estimated cost of the 
prime contract. 
(d) RIGHT TO AUDIT.—A procuring agency, through any authorized rep-
resentative thereof, has the right to inspect the plans and to audit the books 
and records of a prime contractor or subcontractor engaged in the perform-
ance of a cost or cost-plus-a-fixed-fee contract. 
CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS 
Sec. 
4101.
Definitions. 
4102.
Authorities or responsibilities not affected. 
4103.
General authority. 
4104.
Guidance on use of task and delivery order contracts. 
4105.
Advisory and assistance services. 
4106.
Orders. 
§ 4101. Definitions 
In this chapter: 
(1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order con-
tract’’ means a contract for property that— 
(A) does not procure or specify a firm quantity of property 
(other than a minimum or maximum quantity); and 
(B) provides for the issuance of orders for the delivery of prop-
erty during the period of the contract. 
(2) TASK
ORDER
CONTRACT.—The term ‘‘task order contract’’ 
means a contract for services that— 
(A) does not procure or specify a firm quantity of services 
(other than a minimum or maximum quantity); and 
(B) provides for the issuance of orders for the performance of 
tasks during the period of the contract. 
§ 4102. Authorities or responsibilities not affected 
This chapter does not modify or supersede, and is not intended to impair 
or restrict, authorities or responsibilities under sections 1101 to 1104 of 
title 40. 
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§ 4103. General authority 
(a) AUTHORITY TO AWARD.—Subject to the requirements of this section, 
section 4106 of this title, and other applicable law, the head of an executive 
agency may enter into a task or delivery order contract for procurement of 
services or property. 
(b) SOLICITATION.—The solicitation for a task or delivery order contract 
shall include— 
(1) the period of the contract, including the number of options to 
extend the contract and the period for which the contract may be ex-
tended under each option; 
(2) the maximum quantity or dollar value of the services or property 
to be procured under the contract; and 
(3) a statement of work, specifications, or other description that rea-
sonably describes the general scope, nature, complexity, and purposes 
of the services or property to be procured under the contract. 
(c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE PRO-
CEDURES.—The head of an executive agency may use procedures other than 
competitive procedures to enter into a task or delivery order contract under 
this section only if an exception in section 3303(a) of this title applies to 
the contract and the use of those procedures is approved in accordance with 
section 3303(d) of this title. 
(d) SINGLE AND MULTIPLE CONTRACT AWARDS.— 
(1) EXERCISE OF AUTHORITY.—The head of an executive agency 
may exercise the authority provided in this section— 
(A) to award a single task or delivery order contract; or 
(B) if the solicitation states that the head of the executive agen-
cy has the option to do so, to award separate task or delivery 
order contracts for the same or similar services or property to 2 
or more sources. 
(2) DETERMINATION NOT REQUIRED.—No determination under sec-
tion 3302 of this title is required for an award of multiple task or de-
livery order contracts under paragraph (1)(B). 
(3) REGULATIONS.—Regulations implementing this subsection shall 
establish— 
(A) a preference for awarding, to the maximum extent prac-
ticable, multiple task or delivery order contracts for the same or 
similar services or property under paragraph (1)(B); and 
(B) criteria for determining when award of multiple task or de-
livery order contracts would not be in the best interest of the Fed-
eral Government. 
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(e) CONTRACT MODIFICATIONS.—A task or delivery order may not in-
crease the scope, period, or maximum value of the task or delivery order 
contract under which the order is issued. The scope, period, or maximum 
value of the contract may be increased only by modification of the contract. 
(f) INAPPLICABILITY TO CONTRACTS FOR ADVISORY AND ASSISTANCE 
SERVICES.—Except as otherwise specifically provided in section 4105 of this 
title, this section does not apply to a task or delivery order contract for the 
acquisition of advisory and assistance services (as defined in section 1105(g) 
of title 31). 
(g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Nothing in 
this section may be construed to limit or expand any authority of the head 
of an executive agency or the Administrator of General Services to enter 
into schedule, multiple award, or task or delivery order contracts under any 
other provision of law. 
§ 4104. Guidance on use of task and delivery order contracts 
(a) GUIDANCE IN FEDERAL ACQUISITION REGULATION.—The Federal 
Acquisition Regulation issued in accordance with sections 1121(b) and 
1303(a)(1) of this title shall provide guidance to agencies on the appropriate 
use of task and delivery order contracts in accordance with this chapter and 
sections 2304a to 2304d of title 10. 
(b) CONTENT OF REGULATIONS.—The regulations issued pursuant to 
subsection (a) at a minimum shall provide specific guidance on— 
(1) the appropriate use of Government-wide and other multiagency 
contracts entered into in accordance with this chapter and sections 
2304a to 2304d of title 10; and 
(2) steps that agencies should take in entering into and admin-
istering multiple award task and delivery order contracts to ensure 
compliance with the requirement in— 
(A) section 11312 of title 40 for capital planning and invest-
ment control in purchases of information technology products and 
services; 
(B) section 4106(c) of this title and section 2304c(b) of title 10 
to ensure that all contractors are afforded a fair opportunity to 
be considered for the award of task and delivery orders; and 
(C) section 4106(d) of this title and section 2304c(c) of title 10 
for a statement of work in each task or delivery order issued that 
clearly specifies all tasks to be performed or property to be deliv-
ered under the order. 
(c) FEDERAL SUPPLY SCHEDULES PROGRAM.—The Administrator for 
Federal Procurement Policy shall consult with the Administrator of General 
Services to assess the effectiveness of the multiple awards schedule program 
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111 
of the General Services Administration referred to in section 152(3) of this 
title that is administered as the Federal Supply Schedules program. The as-
sessment shall include examination of— 
(1) the administration of the program by the Administrator of Gen-
eral Services; and 
(2) the ordering and program practices followed by Federal customer 
agencies in using schedules established under the program. 
§ 4105. Advisory and assistance services 
(a) DEFINITION.—In this section, the term ‘‘advisory and assistance serv-
ices’’ has the same meaning given that term in section 1105(g) of title 31. 
(b) AUTHORITY TO AWARD.— 
(1) IN GENERAL.—Subject to the requirements of this section, sec-
tion 4106 of this title, and other applicable law, the head of an execu-
tive agency may enter into a task order contract for procurement of 
advisory and assistance services. 
(2) ONLY UNDER THIS SECTION.—The head of an executive agency 
may enter into a task order contract for advisory and assistance serv-
ices only under this section. 
(c) LIMITATION ON CONTRACT PERIOD.—The period of a task order con-
tract entered into under this section, including all periods of extensions of 
the contract under options, modifications, or otherwise, may not exceed 5 
years unless a longer period is specifically authorized in a law that is appli-
cable to the contract. 
(d) CONTENT OF NOTICE.—The notice required by section 1707 of this 
title and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) shall 
reasonably and fairly describe the general scope, magnitude, and duration 
of the proposed task order contract in a manner that would reasonably en-
able a potential offeror to decide whether to request the solicitation and con-
sider submitting an offer. 
(e) REQUIRED CONTENT OF SOLICITATION AND CONTRACT.— 
(1) SOLICITATION.—The solicitation shall include the information 
(regarding services) described in section 4103(b) of this title. 
(2) CONTRACT.—A task order contract entered into under this sec-
tion shall contain the same information that is required by paragraph 
(1) to be included in the solicitation of offers for that contract. 
(f) MULTIPLE AWARDS.— 
(1) AUTHORITY TO MAKE MULTIPLE AWARDS.—On the basis of one 
solicitation, the head of an executive agency may award separate task 
order contracts under this section for the same or similar services to 
2 or more sources if the solicitation states that the head of the execu-
tive agency has the option to do so. 
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(2) CONTENT OF SOLICITATION.—In the case of a task order con-
tract for advisory and assistance services to be entered into under this 
section, if the contract period is to exceed 3 years and the contract 
amount is estimated to exceed $10,000,000 (including all options), the 
solicitation shall— 
(A) provide for a multiple award authorized under paragraph 
(1); and 
(B) include a statement that the head of the executive agency 
may also elect to award only one task order contract if the head 
of the executive agency determines in writing that only one of the 
offerors is capable of providing the services required at the level 
of quality required. 
(3) NONAPPLICATION.—Paragraph (2) does not apply in the case of 
a solicitation for which the head of the executive agency concerned de-
termines in writing that, because the services required under the con-
tract are unique or highly specialized, it is not practicable to award 
more than one contract. 
(g) CONTRACT MODIFICATIONS.— 
(1) INCREASE IN SCOPE, PERIOD, OR MAXIMUM VALUE OF CONTRACT 
ONLY BY MODIFICATION OF CONTRACT.—A task order may not in-
crease the scope, period, or maximum value of the task order contract 
under which the order is issued. The scope, period, or maximum value 
of the contract may be increased only by modification of the contract. 
(2) USE OF COMPETITIVE PROCEDURES.—Unless use of procedures 
other than competitive procedures is authorized by an exception in sec-
tion 3303(a) of this title and approved in accordance with section 
3303(d) of this title, competitive procedures shall be used for making 
such a modification. 
(3) NOTICE.—Notice regarding the modification shall be provided in 
accordance with section 1707 of this title and section 8(e) of the Small 
Business Act (15 U.S.C. 637(e)). 
(h) CONTRACT EXTENSIONS.— 
(1) WHEN
CONTRACT
MAY
BE
EXTENDED.—Notwithstanding the 
limitation on the contract period set forth in subsection (c) or in a so-
licitation or contract pursuant to subsection (f), a contract entered into 
by the head of an executive agency under this section may be extended 
on a sole-source basis for a period not exceeding 6 months if the head 
of the executive agency determines that— 
(A) the award of a follow-on contract has been delayed by cir-
cumstances that were not reasonably foreseeable at the time the 
initial contract was entered into; and 
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(B) the extension is necessary to ensure continuity of the receipt 
of services pending the award of, and commencement of perform-
ance under, the follow-on contract. 
(2) LIMIT OF ONE EXTENSION.—A task order contract may be ex-
tended under paragraph (1) only once and only in accordance with the 
limitations and requirements of this subsection. 
(i) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 
apply to a contract for the acquisition of property or services that includes 
acquisition of advisory and assistance services if the head of the executive 
agency entering into the contract determines that, under the contract, advi-
sory and assistance services are necessarily incident to, and not a significant 
component of, the contract. 
§ 4106. Orders 
(a) APPLICATION.—This section applies to task and delivery order con-
tracts entered into under sections 4103 and 4105 of this title. 
(b) ACTIONS NOT REQUIRED FOR ISSUANCE OF ORDERS.—The following 
actions are not required for issuance of a task or delivery order under a 
task or delivery order contract: 
(1) A separate notice for the order under section 1707 of this title 
or section 8(e) of the Small Business Act (15 U.S.C. 637(e)). 
(2) Except as provided in subsection (c), a competition (or a waiver 
of competition approved in accordance with section 3303(d) of this 
title) that is separate from that used for entering into the contract. 
(c) MULTIPLE AWARD CONTRACTS.—When multiple contracts are award-
ed under section 4103(d)(1)(B) or 4105(f) of this title, all contractors 
awarded the contracts shall be provided a fair opportunity to be considered, 
pursuant to procedures set forth in the contracts, for each task or delivery 
order in excess of $2,500 that is to be issued under any of the contracts, 
unless— 
(1) the executive agency’s need for the services or property ordered 
is of such unusual urgency that providing the opportunity to all of 
those contractors would result in unacceptable delays in fulfilling that 
need; 
(2) only one of those contractors is capable of providing the services 
or property required at the level of quality required because the services 
or property ordered are unique or highly specialized; 
(3) the task or delivery order should be issued on a sole-source basis 
in the interest of economy and efficiency because it is a logical follow- 
on to a task or delivery order already issued on a competitive basis; 
or 
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(4) it is necessary to place the order with a particular contractor to 
satisfy a minimum guarantee. 
(d) STATEMENT OF WORK.—A task or delivery order shall include a 
statement of work that clearly specifies all tasks to be performed or prop-
erty to be delivered under the order. 
(e) PROTESTS.—A protest is not authorized in connection with the 
issuance or proposed issuance of a task or delivery order except for a pro-
test on the ground that the order increases the scope, period, or maximum 
value of the contract under which the order is issued. 
(f) TASK AND DELIVERY ORDER OMBUDSMAN.— 
(1) APPOINTMENT OR DESIGNATION AND RESPONSIBILITIES.—The 
head of each executive agency who awards multiple task or delivery 
order contracts under section 4103(d)(1)(B) or 4105(f) of this title 
shall appoint or designate a task and delivery order ombudsman who 
shall be responsible for reviewing complaints from the contractors on 
those contracts and ensuring that all of the contractors are afforded 
a fair opportunity to be considered for task or delivery orders when re-
quired under subsection (c). 
(2) WHO IS ELIGIBLE.—The task and delivery order ombudsman 
shall be a senior agency official who is independent of the contracting 
officer for the contracts and may be the executive agency’s advocate 
for competition. 
CHAPTER 43—ALLOWABLE COSTS 
Sec. 
4301.
Definitions. 
4302.
Adjustment of threshold amount of covered contract. 
4303.
Effect of submission of unallowable costs. 
4304.
Specific costs not allowable. 
4305.
Required regulations. 
4306.
Applicability of regulations to subcontractors. 
4307.
Contractor certification. 
4308.
Penalties for submission of cost known to be unallowable. 
4309.
Burden of proof on contractor. 
4310.
Proceeding costs not allowable. 
§ 4301. Definitions 
In this chapter: 
(1) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year, 
means the total amount of wages, salary, bonuses, and deferred com-
pensation for the fiscal year, whether paid, earned, or otherwise accru-
ing, as recorded in an employer’s cost accounting records for the fiscal 
year. 
(2) COVERED CONTRACT.—The term ‘‘covered contract’’ means a 
contract for an amount in excess of $500,000 that is entered into by 
an executive agency, except that the term does not include a fixed-price 
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