10 U.S.C. § 3501 (ARMED FORCES)
§ 3501. Multiyear contracts: acquisition of property
(a) In General.—
To the extent that funds are otherwise available for obligation, the head of an agency may enter into multiyear contracts for the purchase of property whenever the head of that agency finds each of the following:
(1) That the use of such a contract will result in—
(A) savings of the total anticipated costs of carrying out the program through annual contracts; or
(B) necessary defense industrial base stability not otherwise achievable through annual contracts.
(2) That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.
(3) That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation.
(4) That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.
(5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic.
(6) In the case of a purchase by the Department of Defense, that the use of such a contract will promote the national security of the United States.
(7) In the case of a contract in an amount equal to or greater than $500,000,000, that the conditions required by subparagraphs (C) through (F) of subsection (i)(3) will be met, in accordance with the Secretary’s certification and determination under such subsection, by such contract.
(b) Regulations.—
(1) Each official named in paragraph (2) shall prescribe acquisition regulations for the agency or agencies under the jurisdiction of such official to promote the use of multiyear contracting as authorized by subsection (a) in a manner that will allow the most efficient use of multiyear contracting.
(2)
(A) The Secretary of Defense shall prescribe the regulations applicable to the Department of Defense.
(B) The Secretary of Homeland Security shall prescribe the regulations applicable to the Coast Guard, except that the regulations prescribed by the Secretary of Defense shall apply to the Coast Guard when it is operating as a service in the Navy.
(C) The Administrator of the National Aeronautics and Space Administration shall prescribe the regulations applicable to the National Aeronautics and Space Administration.
(c) Contract Cancellations.—
The regulations may provide for cancellation provisions in multiyear contracts to the extent that such provisions are necessary and in the best interests of the United States. The cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract.
(d) Participation by Subcontractors, Vendors, and Suppliers.—
In order to broaden the defense industrial base, the regulations shall provide that, to the extent practicable—
(1) multiyear contracting under subsection (a) shall be used in such a manner as to seek, retain, and promote the use under such contracts of companies that are subcontractors, vendors, or suppliers; and
(2) upon accrual of any payment or other benefit under such a multiyear contract to any subcontractor, vendor, or supplier company participating in such contract, such payment or benefit shall be delivered to such company in the most expeditious manner practicable.
(e) Protection of Existing Authority.—
The regulations shall provide that, to the extent practicable, the administration of this section, and of the regulations prescribed under this section, shall not be carried out in a manner to preclude or curtail the existing ability of an agency—
(1) to provide for competition in the production of items to be delivered under such a contract; or
(2) to provide for termination of a prime contract the performance of which is deficient with respect to cost, quality, or schedule.
(f) Cancellation or Termination for Insufficient Funding.—
In the event funds are not made available for the continuation of a contract made under this section into a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid from—
(1) appropriations originally available for the performance of the contract concerned;
(2) appropriations currently available for procurement of the type of property concerned, and not otherwise obligated; or
(3) funds appropriated for those payments.
(g) Contract Cancellation Ceilings Exceeding $100,000,000.—
(1) Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the congressional defense committees, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
(2) In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (1), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall, as part of the certification required by subsection (i)(1)(A),1 give written notification to the congressional defense committees of—
(A) the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;
(B) the extent to which costs of contract cancellation are not included in the budget for the contract; and
(C) a financial risk assessment of not including budgeting for costs of contract cancellation.
(h) Defense Acquisitions of Weapon Systems.—
In the case of the Department of Defense, the authority under subsection (a) includes authority to enter into the following multiyear contracts in accordance with this section:
(1) A multiyear contract for the purchase of a weapon system, items and services associated with a weapon system, and logistics support for a weapon system.
(2) A multiyear contract for advance procurement of components, parts, and materials necessary to the manufacture of a weapon system, including a multiyear contract for such advance procurement that is entered into in order to achieve economic-lot purchases and more efficient production rates.
(i) Defense Acquisitions Specifically Authorized by Law.—
(1) In the case of the Department of Defense, a multiyear contract in an amount equal to or greater than $500,000,000 may not be entered into under this section unless the contract is specifically authorized by law in an Act other than an appropriations Act.
(2) In submitting a request for a specific authorization by law to carry out a defense acquisition program using multiyear contract authority under this section, the Secretary of Defense shall include in the request a report containing preliminary findings of the agency head required in paragraphs (1) through (6) of subsection (a), together with the basis for such findings.
(3) A multiyear contract may not be entered into under this section for a defense acquisition program that has been specifically authorized by law to be carried out using multiyear contract authority unless the Secretary of Defense certifies in writing, not later than 30 days before entry into the contract, that each of the following conditions is satisfied:
(A) The Secretary has determined that each of the requirements in paragraphs (1) through (6) of subsection (a) will be met by such contract and has provided the basis for such determination to the congressional defense committees.
(B) The Secretary’s determination under subparagraph (A) was made after completion of a cost analysis conducted on the basis of section 3226(b) of this title, and the analysis supports the determination.
(C) The system being acquired pursuant to such contract has not been determined to have experienced cost growth in excess of the critical cost growth threshold pursuant to section 4374 of this title within 5 years prior to the date the Secretary anticipates such contract (or a contract for advance procurement entered into consistent with the authorization for such contract) will be awarded.
(D) A sufficient number of end items of the system being acquired under such contract have been delivered at or within the most current estimates of the program acquisition unit cost or procurement unit cost for such system to determine that current estimates of such unit costs are realistic.
(E) During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program for such fiscal year will include the funding required to execute the program without cancellation.
(F) The contract is a fixed price type contract.
(G) The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities.
(4) If for any fiscal year a multiyear contract to be entered into under this section is authorized by law for a particular procurement program and that authorization is subject to certain conditions established by law (including a condition as to cost savings to be achieved under the multiyear contract in comparison to specified other contracts) and if it appears (after negotiations with contractors) that such savings cannot be achieved, but that significant savings could nevertheless be achieved through the use of a multiyear contract rather than specified other contracts, the President may submit to Congress a request for relief from the specified cost savings that must be achieved through multiyear contracting for that program. Any such request by the President shall include details about the request for a multiyear contract, including details about the negotiated contract terms and conditions.
(5)
(A) The Secretary may obligate funds for procurement of an end item under a multiyear contract for the purchase of property only for procurement of a complete and usable end item.
(B) The Secretary may obligate funds appropriated for any fiscal year for advance procurement under a contract for the purchase of property only for the procurement of those long-lead items necessary in order to meet a planned delivery schedule for complete major end items that are programmed under the contract to be acquired with funds appropriated for a subsequent fiscal year (including an economic order quantity of such long-lead items when authorized by law).
(6) The Secretary may make the certification under paragraph (3) notwithstanding the fact that one or more of the conditions of such certification are not met, if the Secretary determines that, due to exceptional circumstances, proceeding with a multiyear contract under this section is in the best interest of the Department of Defense and the Secretary provides the basis for such determination with the certification.
(7) The Secretary may not delegate the authority to make the certification under paragraph (3) or the determination under paragraph (6) to an official below the level of Under Secretary of Defense for Acquisition and Sustainment.
(j) Defense Contract Options for Varying Quantities.—
The Secretary of Defense may instruct the Secretary of the military department concerned to incorporate into a proposed multiyear contract negotiated priced options for varying the quantities of end items to be procured over the period of the contract.
(k) Multiyear Contract Defined.—
For the purposes of this section, a multiyear contract is a contract for the purchase of property for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.
(l) Various Additional Requirements With Respect to Multiyear Defense Contracts.—
(1)
(A) The head of an agency may not initiate a contract described in subparagraph (B) unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
(B) Subparagraph (A) applies to the following contracts:
(i) A multiyear contract—
(I) that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract; or
(II) that includes an unfunded contingent liability in excess of $20,000,000.
(ii) Any contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year.
(2) The head of an agency may not initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability.
(3) The head of an agency may not initiate a multiyear procurement contract for any system (or component thereof) if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided in an appropriations Act.
(4) Each report required by paragraph (5) with respect to a contract (or contract extension) shall contain the following:
(A) The amount of total obligational authority under the contract (or contract extension) and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(B) The amount of total obligational authority under all multiyear procurements of the agency concerned (determined without regard to the amount of the multiyear contract (or contract extension)) under multiyear contracts in effect at the time the report is submitted and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(C) The amount equal to the sum of the amounts under subparagraphs (A) and (B), and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(D) The amount of total obligational authority under all Department of Defense multiyear procurements (determined without regard to the amount of the multiyear contract (or contract extension)), including any multiyear contract (or contract extension) that has been authorized by the Congress but not yet entered into, and the percentage that such amount represents of the procurement accounts of the Department of Defense treated in the aggregate.
(5) The head of an agency may not enter into a multiyear contract (or extend an existing multiyear contract), the value of which would exceed $500,000,000 (when entered into or when extended, as the case may be), until the Secretary of Defense submits to the congressional defense committees a report containing the information described in paragraph (4) with respect to the contract (or contract extension).
(6) The head of an agency may not terminate a multiyear procurement contract until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.
(7) The execution of multiyear contracting authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.
(8) This subsection does not apply to the National Aeronautics and Space Administration or to the Coast Guard.
(9) In this subsection:
(A) The term “applicable procurement account” means, with respect to a multiyear procurement contract (or contract extension), the appropriation account from which payments to execute the contract will be made.
(B) The term “agency procurement total” means the procurement accounts of the agency entering into a multiyear procurement contract (or contract extension) treated in the aggregate.
(m) Increased Funding and Reprogramming Requests.—
Any request for increased funding for the procurement of a major system under a multiyear contract authorized under this section shall be accompanied by an explanation of how the request for increased funding affects the determinations made by the Secretary under subsection (i).
(Added and amended Pub. L. 116–283, div. A, title XVIII, §§ 1822(a), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4197, 4294; Pub. L. 116–283, div. A, title XVIII, § 1822(b), as added Pub. L. 117–81, div. A, title XVII, § 1701(k)(2)(B), Dec. 27, 2021, 135 Stat. 2143; Pub. L. 117–81, div. A, title XVII, § 1701(k)(1)(B), (2)(A), Dec. 27, 2021, 135 Stat. 2143; Pub. L. 117–263, div. A, title VIII, § 815, Dec. 23, 2022, 136 Stat. 2707; Pub. L. 118–31, div. A, title VIII, § 820, Dec. 22, 2023, 137 Stat. 326; Pub. L. 119–60, div. A, title VIII, § 804(c), Dec. 18, 2025, 139 Stat. 944.)
heading: Editorial Notes
heading: References in Text
text: Subsection (i)(1)(A), referred to in subsec. (g)(2), related to certification of full funding of support costs in multiyear contracts, prior to the general amendment of subsec. (i) by Pub. L. 113–291, div. A, title VIII, § 816(a), Dec. 19, 2014, 128 Stat. 3430. As amended, subsec. (i) no longer contains a par. (1)(A).
heading: Codification
text: Pub. L. 116–283, § 1822(b)–(l), which had initially directed the transfers of various subsections of section 2306b of this title to sections 3501 to 3511, was amended by Pub. L. 117–81, § 1701(k)(2), by striking out subsecs. (b) to (l) and adding a new subsec. (b). After that amendment, such transfers were no longer directed. Instead, Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, directed the transfer of section 2306b of this title in its entirety to this section, thereby omitting what would have been sections 3502 to 3511 of this title. The transfer of section 2306b to this section was executed by transferring the text only of section 2306b, as the section designation and catchline had already been enacted by Pub. L. 116–283, § 1822(a), as amended by Pub. L. 117–81, § 1701(k)(1)(B).
The text of section 2306b of this title, which was transferred to this section by Pub. L. 116–283, § 1822(b), as amended by Pub. L. 117–81, § 1701(k)(2)(B), was based on Pub. L. 103–355, title I, § 1022(a)(1), Oct. 13, 1994, 108 Stat. 3257; Pub. L. 104–106, div. A, title XV, § 1502(a)(10), div. E, title LVI, § 5601(b), Feb. 10, 1996, 110 Stat. 503, 699; Pub. L. 105–85, div. A, title VIII, § 806(a)(1), (b)(1), (c), title X, § 1073(a)(47), (48)(A), Nov. 18, 1997, 111 Stat. 1834, 1835, 1903; Pub. L. 106–65, div. A, title VIII, § 809, title X, § 1067(1), Oct. 5, 1999, 113 Stat. 705, 774; Pub. L. 106–398, § 1 [[div. A], title VIII, §§ 802(c), 806], Oct. 30, 2000, 114 Stat. 1654, 1654A–205, 1654A–207; Pub. L. 107–296, title XVII, § 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314; Pub. L. 107–314, div. A, title VIII, § 820(a), Dec. 2, 2002, 116 Stat. 2613; Pub. L. 108–136, div. A, title X, § 1043(b)(10), Nov. 24, 2003, 117 Stat. 1611; Pub. L. 108–375, div. A, title VIII, § 814(a), title X, § 1084(b)(2), Oct. 28, 2004, 118 Stat. 2014, 2060; Pub. L. 110–181, div. A, title VIII, § 811(a), Jan. 28, 2008, 122 Stat. 217; Pub. L. 111–23, title I, § 101(d)(2), May 22, 2009, 123 Stat. 1709; Pub. L. 113–291, div. A, title VIII, § 816(a), (b), Dec. 19, 2014, 128 Stat. 3430, 3432; Pub. L. 114–92, div. A, title VIII, § 811, Nov. 25, 2015, 129 Stat. 891; Pub. L. 115–91, div. A, title X, § 1051(a)(14), Dec. 12, 2017, 131 Stat. 1561; Pub. L. 115–232, div. A, title VIII, § 817, Aug. 13, 2018, 132 Stat. 1852; Pub. L. 116–92, div. A, title IX, § 902(48), Dec. 20, 2019, 133 Stat. 1548.
heading: Prior Provisions
text: Prior sections 3501 and 3502 were repealed by Pub. L. 103–337, div. A, title XVI, §§ 1662(f)(2), 1691, Oct. 5, 1994, 108 Stat. 2994, 3026, effective Dec. 1, 1994.
Section 3501, acts Aug. 10, 1956, ch. 1041, 70A Stat. 199; Sept. 29, 1988, Pub. L. 100–456, div. A, title XII, § 1234(a)(1), 102 Stat. 2059, related to period of service and apportionment of members and units of Army National Guard called into Federal service. See section 12407 of this title.
Section 3502, act Aug. 10, 1956, ch. 1041, 70A Stat. 200, related to physical examinations of members of Army National Guard called into Federal service. See section 12408 of this title.
A prior section 3503 was renumbered section 7203 of this title.
Prior sections 3504, 3531, and 3532 were repealed by Pub. L. 96–513, title II, §§ 210, 233(a), 234, title VII, § 701, Dec. 12, 1980, 94 Stat. 2884, 2887, 2955, effective Sept. 15, 1981.
Section 3504, acts Aug. 10, 1956, ch. 1041, 70A Stat. 200; Sept. 2, 1958, Pub. L. 85–861, § 1(83), 72 Stat. 1481, authorized the President to order any retired member of the Regular Army to active duty.
heading: Amendments
text: 2025—Subsec. (a)(1)(A). Pub. L. 119–60 struck out “significant” before “savings”.
2023—Subsec. (a)(1). Pub. L. 118–31 inserted dash after “will result in” and subpar. (A) designation before “significant savings”, substituted “; or” for period at end, and added subpar. (B).
2022—Subsec. (i)(2). Pub. L. 117–263 substituted “shall include in the request a report” for “shall include in the request the following:
“(A) A report” and struck out subpar. (B) which read as follows: “Confirmation that the preliminary findings of the agency head under subparagraph (A) were supported by a preliminary cost analysis performed by the Director of Cost Assessment and Program Evaluation.”
2021—Pub. L. 117–81, § 1701(k)(1)(B), amended Pub. L. 116–283, § 1822(a), which enacted this section, by substituting “Multiyear contracts: acquisition of property” for “Multiyear contracts for acquisition of property: authority; definitions” in section catchline.
Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, § 1701(k)(2)(B), transferred text of section 2306b of this title to this section. See Codification note above.
Subsec. (i)(3)(B). Pub. L. 116–283, § 1883(b)(2), substituted “section 3226(b)” for “section 2334(e)(2)”.
Subsec. (i)(3)(C). Pub. L. 116–283, § 1883(b)(2), substituted “section 4374” for “section 2433(d)”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
heading: Multiyear Procurement Authority for Covered Systems and Certain Munitions
text: Pub. L. 119–60, div. A, title VIII, § 804(a), (b), Dec. 18, 2025, 139 Stat. 942, provided that:
“(a) Multiyear Procurement for Covered Systems.—
“(1) In general.—
Subject to section 3501 of title 10, United States Code, the Secretary of the Defense shall submit to Congress a request for a specific authorization to enter into one or more multiyear contracts for the procurement of a covered system if—
“(A) a decision has been made by the responsible head of agency to proceed to full-rate production for such covered system; and
“(B) such covered system is planned to maintain full-rate production for a period of five or more consecutive years after entering into such a contract.
“(2) Waiver.—
The Secretary of Defense may waive the requirements of paragraph (1) if the Secretary determines that the projected threat environment in which the covered system is to be fielded has changed in a manner such that the procurement of such covered system is no longer necessary.
“(3) Applicability.—
This section and the requirements of this section shall apply with respect to a multiyear contract for the procurement of a covered system entered into on or after the date of the enactment of this Act [Dec. 18, 2025].
“(4) Covered system defined.—
In this subsection, the term ‘covered system’ has the meaning given ‘major system’ in section 3041 of title 10, United States Code.
“(b) Multiyear Procurement for Certain Munitions.—
“(1) In general.—
Except as provided in paragraph (3), subject to section 3501 of title 10, United States Code, the head of an agency is authorized to enter into one or more multiyear contracts, beginning in fiscal year 2026, for the procurement of any of the following:
“(A) Standard Missile-3 (‘SM–3’) Block 1B missile systems (and products, services, and logistics support associated with SM–3 Block 1B systems or a subsystem that performs a critical function of the missile system).
“(B) Standard Missile-6 (‘SM–6’) missile systems (and products, services, and logistics support associated with SM–6 systems or a subsystem that performs a critical function of the missile system).
“(C) Tomahawk Cruise Missile systems, including both Tomahawk Cruise Missile system variants (and products, services, and logistics support associated with Tomahawk Cruise Missile systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(D) Advanced Medium-Range Air-to-Air Missile (‘AMRAAM’) systems (and products, services, and logistics support associated with AMRAAM systems or a subsystem that performs a critical function of the missile system).
“(E) Joint Air-to-Surface Standoff Missile (‘JASSM’) systems (and products, services, and logistics support associated with JASSM systems or a subsystem that performs a critical function of the missile system).
“(F) Long Range Anti-Ship Missile (‘LRASM’) systems (and products, services, and logistics support associated with LRASM systems or a subsystem that performs a critical function of the missile system).
“(G) Terminal High Altitude Area Defense (‘THAAD’) systems (and products, services, and logistics support associated with THAAD systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(H) Patriot Advanced Capability-3 (‘PAC–3’) Missile Segment Enhancement (MSE) systems (and products, services, and logistics support associated with PAC–3 MSE systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(I) Family of Affordable Mass Munitions (‘FAMM’), Extended-Range Attack Munition (‘ERAM’), Enterprise Test Vehicle (‘ETV’), or ground-launched low-cost cruise missile systems (and products, services, and logistics support associated with FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems or a subsystem that performs a critical function of the missile system).
“(J) Low-cost hypersonic strike systems (and products, services, and logistics support associated with low-cost hypersonic strike systems or a subsystem that performs a critical function of the missile system).
“(2) Procurement in conjunction with existing contracts.—
The systems and subsystems described in paragraph (1) may be procured through modifications or extensions to any existing contract for such systems and subsystems.
“(3) Limited applicability of multiyear contracting provision.—
Paragraphs (3)(B), (3)(C), (3)(D), and (4) of subsection (i) of section 3501 of title 10, United States Code, shall not apply with respect to a multiyear contract entered into under this subsection.
“(4) Additional requirements.—
“(A) Design stability.—
Notwithstanding subsection 3501(a)(4) of this title, with respect to a multiyear contract entered into under this subsection that provides, in the terms of such contract included on the date on which such contract is entered into, for the potential insertion of upgraded components or design changes that address obsolescence or producibility requirements, such upgraded components or design changes may be included in the end product if, not later than 180 days before the insertion of such upgraded components or design changes, the head of an agency that is a party to such contract provides to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a briefing on such upgraded components or design changes, including a testing plan to ensure such upgraded components or design changes will meet system requirements.
“(B) Certification requirements.—
In applying the requirements of subsection (i)(3) of section 3501 of title 10, United States Code, to a multiyear contract entered into under this subsection, the Secretary of Defense may not make the certification described in such subsection—
“(i) for Tomahawk Cruise Missile systems described in paragraph (1)(C), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I);
“(ii) for JASSM systems described in paragraph (1)(E), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I);and
“(iii) for SM–6 missile systems described in paragraph (1)(B), until the Secretary has provided a certification for low-cost hypersonic strike systems described in paragraph (1)(J).
“(5) Authority for advance procurement.—
The head of an agency may enter into one or more contracts for advance procurement, beginning in fiscal year 2026, associated with a system or subsystem described in paragraph (1) for which authorization to enter into a multiyear procurement contract is provided under such paragraph, which may include procurement of economic order quantities of material and equipment when cost savings are achievable.
“(6) Condition for out-year contract payments.—
A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2026 is subject to the availability of appropriations for that purpose for such later fiscal year.
“(7) Head of an agency defined.—
In this subsection, the term ‘head of an agency’ means—
“(A) the Secretary of Defense;
“(B) the Secretary of the Army;
“(C) the Secretary of the Navy; or
“(D) the Secretary of the Air Force.”
heading: Multiple Program Multiyear Contract Pilot Demonstration Program
text: Pub. L. 114–328, div. A, title VIII, § 853, Dec. 23, 2016, 130 Stat. 2296, provided that:
“(a) Authority.—
The Secretary of Defense may conduct a multiyear contract, over a period of up to four years, for the purchase of units for multiple defense programs that are produced at common facilities at a high rate, and which maximize commonality, efficiencies, and quality, in order to provide maximum benefit to the Department of Defense. Contracts awarded under this section should allow for significant savings, as determined consistent with the authority under section 2306b of title 10, United States Code [see 10 U.S.C. 3501], to be achieved as compared to using separate annual contracts under individual programs to purchase such units, and may include flexible delivery across the overall period of performance.
“(b) Scope.—
The contracts authorized in subsection (a) shall at a minimum provide for the acquisition of units from three discrete programs from two of the military departments.
“(c) Documentation.—
Each contract awarded under subsection (a) shall include the documentation required to be provided for a multiyear contract proposal under section 2306b(i) of title 10 [see 10 U.S.C. 3501(i)].
“(d) Definitions.—
In this section:
“(1) The term ‘high rate’ means total annual production across the multiple defense programs of more than 200 end-items per year.
“(2) The term ‘common facilities’ means production facilities operating within the same general and allowable rate structure.
“(e) Sunset.—
No new contracts may be awarded under the authority of this section after September 30, 2021.”
heading: Multiyear Procurement Contracts
text: Pub. L. 105–56, title VIII, § 8008, Oct. 8, 1997, 111 Stat. 1221, provided that:
“(a) None of the funds provided in this Act [see Tables for classification] shall be available to initiate: (1) a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract or that includes an unfunded contingent liability in excess of $20,000,000; or (2) a contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless the congressional defense committees [Committee on Armed Services and Subcommittee on National Security of the Committee on Appropriations of the House of Representatives and Committee on Armed Services and Subcommittee on Defense of the Committee on Appropriations of the Senate] have been notified at least 30 days in advance of the proposed contract award: Provided, That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability: Provided further, That no part of any appropriation contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees: Provided further, That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.
“Funds appropriated in title III of this Act [111 Stat. 1211] may be used for multiyear procurement contracts as follows:
“Apache Longbow radar;
“AV–8B aircraft; and
“Family of Medium Tactical Vehicles.
“(b) None of the funds provided in this Act and hereafter may be used to submit to Congress (or to any committee of Congress) a request for authority to enter into a contract covered by those provisions of subsection (a) that precede the first proviso of that subsection unless—
“(1) such request is made as part of the submission of the President’s Budget for the United States Government for any fiscal year and is set forth in the Appendix to that budget as part of proposed legislative language for appropriations bills for the next fiscal year; or
“(2) such request is formally submitted by the President as a budget amendment; or
“(3) the Secretary of Defense makes such request in writing to the congressional defense committees.”
Similar provisions were contained in the following appropriation acts:
Pub. L. 118–47, div. A, title VIII, § 8010, Mar. 23, 2024, 138 Stat. 483.
Pub. L. 117–328, div. C, title VIII, § 8010, Dec. 29, 2022, 136 Stat. 4587.
Pub. L. 117–103, div. C, title VIII, § 8010, Mar. 15, 2022, 136 Stat. 175.
Pub. L. 116–260, div. C, title VIII, § 8010, Dec. 27, 2020, 134 Stat. 1304.
Pub. L. 116–93, div. A, title VIII, § 8010, Dec. 20, 2019, 133 Stat. 2337.
Pub. L. 115–245, div. A, title VIII, § 8010, Sept. 28, 2018, 132 Stat. 3000.
Pub. L. 115–141, div. C, title VIII, § 8010, Mar. 23, 2018, 132 Stat. 464.
Pub. L. 115–31, div. C, title VIII, § 8010, May 5, 2017, 131 Stat. 247.
Pub. L. 114–113, div. C, title VIII, § 8010, Dec. 18, 2015, 129 Stat. 2352.
Pub. L. 113–235, div. C, title VIII, § 8010, Dec. 16, 2014, 128 Stat. 2253.
Pub. L. 113–76, div. C, title VIII, § 8010, Jan. 17, 2014, 128 Stat. 105.
Pub. L. 113–6, div. C, title VIII, § 8010, Mar. 26, 2013, 127 Stat. 297.
Pub. L. 112–74, div. A, title VIII, § 8010, Dec. 23, 2011, 125 Stat. 806.
Pub. L. 112–10, div. A, title VIII, § 8010, Apr. 15, 2011, 125 Stat. 57.
Pub. L. 111–118, div. A, title VIII, § 8011, Dec. 19, 2009, 123 Stat. 3428, as amended by Pub. L. 111–212, title I, § 305, July 29, 2010, 124 Stat. 2311.
Pub. L. 110–329, div. C, title VIII, § 8011, Sept. 30, 2008, 122 Stat. 3621.
Pub. L. 110–116, div. A, title VIII, § 8010, Nov. 13, 2007, 121 Stat. 1315.
Pub. L. 109–289, div. A, title VIII, § 8008, Sept. 29, 2006, 120 Stat. 1273.
Pub. L. 109–148, div. A, title VIII, § 8008, Dec. 30, 2005, 119 Stat. 2698.
Pub. L. 108–287, title VIII, § 8008, Aug. 5, 2004, 118 Stat. 970.
Pub. L. 108–87, title VIII, § 8008, Sept. 30, 2003, 117 Stat. 1072.
Pub. L. 107–248, title VIII, § 8008, Oct. 23, 2002, 116 Stat. 1537.
Pub. L. 107–117, div. A, title VIII, § 8008, Jan. 10, 2002, 115 Stat. 2248.
Pub. L. 106–259, title VIII, § 8008, Aug. 9, 2000, 114 Stat. 675.
Pub. L. 106–79, title VIII, § 8008, Oct. 25, 1999, 113 Stat. 1232.
Pub. L. 105–262, title VIII, § 8008, Oct. 17, 1998, 112 Stat. 2298.
Pub. L. 104–208, div. A, title I, § 101(b) [title VIII, § 8009], Sept. 30, 1996, 110 Stat. 3009–71, 3009–89.
Pub. L. 104–61, title VIII, § 8010, Dec. 1, 1995, 109 Stat. 653.
Pub. L. 103–335, title VIII, § 8010, Sept. 30, 1994, 108 Stat. 2618.
Pub. L. 103–139, title VIII, § 8011, Nov. 11, 1993, 107 Stat. 1439.
Pub. L. 102–396, title IX, § 9013, Oct. 6, 1992, 106 Stat. 1903.
Pub. L. 102–172, title VIII, § 8013, Nov. 26, 1991, 105 Stat. 1173.
Pub. L. 101–511, title VIII, § 8014, Nov. 5, 1990, 104 Stat. 1877.
Pub. L. 101–165, title IX, § 9021, Nov. 21, 1989, 103 Stat. 1133.