(a) WHAT IT TAKES TO USE A MULTI-YEAR CONTRACT

(1) It is helpful to have an overview of what is likely to be involved from the time you first contemplate using MYC until the time you award a multi-year contract. DFARS 217.171 through 174 cites specific regulations that apply to services, supplies, weapon systems, and EOQ procurements. Before entering into a multi-year contract you should have:

(i) Explicit approval from the Congress (major multi-year programs only);

(ii) Adequate production and advance procurement funds earmarked for the contract for the entire period of the multi-year contract; and

(iii) An established amount of validated savings (or cost avoidance) to be generated by using the MYC approach.