Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.17.105-1 Uses

(1) The need for the supplies or services is reasonably firm and continuing over the period of the contract;  and

(2) A multiyear contract will serve the best interests of the United States by encouraging full and open competition or promoting economy in administration, performance, and operation of the agency's programs.

(1) The use of such a contract will result in significant savings of the total estimated costs of carrying out the program through annual contracts;

(2) The minimum need 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) There is a stable design for the supplies to be acquired, and the technical risks associated with such supplies are not excessive;

(4) There is a reasonable expectation that, throughout the contemplated contract period, the head of the agency will request funding for the contract at a level to avoid contract cancellation;  and

(5) The estimates of both the cost of the contract and the cost avoidance through the use of a multiyear contract are realistic.