123 
(3) NONAPPLICATION.—Paragraph (1) does not apply to a contract 
for an amount that is not greater than the simplified acquisition 
threshold or to a contract for the acquisition of commercial items. 
§ 3902. Severable services contracts for periods crossing fis-
cal years 
(a) AUTHORITY TO ENTER INTO CONTRACT.—The head of an executive 
agency may enter into a contract for the procurement of severable services 
for a period that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the contract) the 
contract period does not exceed one year. 
(b) OBLIGATION OF FUNDS.—Funds made available for a fiscal year may 
be obligated for the total amount of a contract entered into under the au-
thority of this section. 
§ 3903. Multiyear contracts 
(a) DEFINITION.—In this section, a multiyear contract is a contract for 
the purchase of property or services for more than one, but not more than 
5, program years. 
(b) AUTHORITY TO ENTER INTO CONTRACT.—An executive agency may 
enter into a multiyear contract for the acquisition of property or services 
if— 
(1) funds are available and obligated for the contract, for the full 
period of the contract or for the first fiscal year in which the contract 
is in effect, and for the estimated costs associated with a necessary ter-
mination of the contract; and 
(2) the executive agency determines that— 
(A) the need for the property or services is reasonably firm and 
continuing over the period of the contract; and 
(B) a multiyear contract will serve the best interests of the Fed-
eral Government by encouraging full and open competition or pro-
moting economy in administration, performance, and operation of 
the agency’s programs. 
(c) TERMINATION CLAUSE.—A multiyear contract entered into under the 
authority of this section shall include a clause that provides that the con-
tract shall be terminated if funds are not made available for the continu-
ation of the contract in a fiscal year covered by the contract. Funds avail-
able for paying termination costs shall remain available for that purpose 
until the costs associated with termination of the contract are paid. 
(d) CANCELLATION CEILING NOTICE.—Before a contract described in 
subsection (b) that contains a clause setting forth a cancellation ceiling in 
excess of $10,000,000 may be awarded, the executive agency shall give writ-
ten notification of the proposed contract and of the proposed cancellation
124 
ceiling for that contract to Congress. The contract may not be awarded until 
the end of the 30-day period beginning on the date of the notification. 
(e) CONTINGENCY
CLAUSE
FOR
APPROPRIATION
OF
FUNDS.—A 
multiyear contract may provide that performance under the contract after 
the first year of the contract is contingent on the appropriation of funds 
and (if the contract does so provide) that a cancellation payment shall be 
made to the contractor if the funds 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 funds 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 to enter into multiyear contracts for the acquisition of property and 
nonaudit-related services to the same extent as executive agencies under sec-
tions 3902 and 3903 of this title. 
(b) LIBRARY OF CONGRESS.—The Library of Congress may use available 
funds to enter into contracts for the lease or 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 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 funds to enter into contracts for the procurement of sev-
erable 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 acquisition 
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