Multiyear Contract Law and Legal Definition

Multiyear contract means “a contract for the purchase of supplies or services for more than 1, but not more than 5, program years. A multiyear 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 appropriations are not made.” [48 CFR 17.103; Title 48-Federal Acquisition Regulations System; Chapter 1-Federal Acquisition Regulation; Subchapter C-Contracting Methods And Contract Types; Part 17-Special Contracting Methods; Subpart 17.1-Multiyear Contracting]