(f) EXCEPTIONS TO THE FUNDING RULES.
(1) The previous sections explained the general rules for funding multi-year contracts. But, as with most rules, exceptions can be made. Since the DoD Comptroller and the Congress review multi-year candidates and their funding requirements, it is possible to have them provide waivers or exceptions you may need to their policies and laws.
(2) FAR 1.403 authorizes agencies to grant one-time deviations to FAR policies, procedures, or clauses if it makes good business sense to tailor them to your situation; however, you will need Congressional approval for deviations to MYC funding requirements. The Congress can consider such requests either in conjunction with its evaluation of your multi-year candidate or after it has approved your multi-year candidate.
Example Congressional Exception One example is the Air Defense Aircraft, which was a potential FY 87 multi-year candidate. Section 108 of the FY 87 Authorization Act authorized the Secretary of the Air Force to award a multi-year contract for the purchase of Air Defense Aircraft, and included the following provision: "(b) CANCELLATION CEILING. Subject to provisions of Appropriations Acts, the cancellation ceiling associated with the first year of a multi-year contract under subsection (a) may be carried as an unfunded contingent liability subject to section 2306c(d)(1) of title 10, United States Code." This language was included because the Air Force had let Congress know that the funding level expected for FY 87 would not be adequate to fund the cancellation ceiling for the first year of the multi-year contract. |