(c) DRAFTING CONTRACT LANGUAGE TO ESTABLISH FUNDING PARTICULARS

(1) As discussed in Chapter 7, once it has been determined how to fund the contemplated multi-year contract, you should explain the funding approach in contract language that will become the parties' agreement regarding contract funding. The contract language regarding funding will take the form of two clauses. The first establishes the basic, statute-based approach to funding multi-year contracts. The second clause will provide the details of how much will be obligated at what times during the period of performance of the contract.

(2) This section will take you through the following steps to draft appropriate funding clauses for the contemplated multi-year contract:

•  Step One: Draft a "Limitation of Price and Contractor Obligation" SCR.

•  Step Two: Tailor the "Limitation of Price and Contractor Obligation" SCR if an EOQ Multi-year Contract will be used.

•  Step Three: Draft a "Multi-year Contract Funding" SCR.

•  Step Four: Ensure these funding SCRs complement and are consistent with the cancellation clauses.