Code of Federal Regulations Title 5. Administrative Personnel § 5.316.301 Purpose and duration

(a) An agency may make a term appointment for a period of more than 1 year but not more than 4 years to positions where the need for an employee's services is not permanent. Reasons for making a term appointment include, but are not limited to:  project work, extraordinary workload, scheduled abolishment, reorganization, contracting out of the function, uncertainty of future funding, or the need to maintain permanent positions for placement of employees who would otherwise be displaced from other parts of the organization. Agencies may extend appointments made for more than 1 year but less than 4 years up to the 4–year limit in increments determined by the agency. The vacancy announcement should state that the agency has the option of extending a term appointment up to the 4–year limit.

(b) OPM may authorize exceptions beyond the 4–year limit when the extension is clearly justified and is consistent with applicable statutory provisions. Requests to make and/or extend appointments beyond the 4–year limit must be initiated by the employing office and sent to the appropriate OPM service center.