TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM

CHAPTER 1 - FEDERAL ACQUISITION REGULATION

SUBCHAPTER C - CONTRACTING METHODS AND CONTRACT TYPES

PART 17 - SPECIAL CONTRACTING METHODS

17.105 - 2 - Objectives.

Use of multiyear contracting is encouraged to take advantage of one or more of the following: (a) Lower costs.

  (b) Enhancement of standardization.

  (c) Reduction of administrative burden in the placement and administration of contracts.

  (d) Substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phaseout costs.

  (e) Stabilization of contractor work forces.

  (f) Avoidance of the need for establishing quality control techniques and procedures for a new contractor each year.

  (g) Broadening the competitive base with opportunity for participation by firms not otherwise willing or able to compete for lesser quantities, particularly in cases involving high startup costs.

  (h) Providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology.