(c) HOW TO OBTAIN THE NEEDED APPROVAL
(1) In Category I and Category II situations, you can request approval of the Validation Findings in conjunction with satisfying Congressional notification requirements. Do this by following the guidance in paragraph E of this chapter entitled "How to Ensure that Congress is Notified."
(2) In some Category II situations, the program manager and contracting officer may not consider validated savings or savings percentage to be high enough to make the MYC approach worthwhile. This is a subjective business judgment and there are no written guidelines. In these circumstances, officially coordinate with the appropriate staff office explaining that the multi-year contract will not be awarded with supporting rationale. Also, attach a copy of the Savings Validation Package.
(3) In a Category III situation, approval of Validation Findings is not necessary because the present value of the multi-year savings is negative. In these circumstances, officially coordinate with the appropriate staff office explaining that the multi-year contract will not be awarded and attach a copy of the Savings Validation Package. You should proceed to negotiate a contract on an annual-buy basis.
Note: The decision not to award a contract as a multi-year applies even though Congress may have already approved use of the multi-year contract in an Appropriations Act. Congress views its approval as permissive, not directive.