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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 114-

House Conference Report. 114-270

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would require that significant savings would be achieved before entering into a multiyear contract.

The conferees agree that the government should seek to maximize savings whenever it pursues multiyear procurement. However, the conferees also agree that significant savings (estimated to be greater than $250.0 million), and other benefits, may be achieved even if it does not equate to a minimum of 10 percent savings over the cost of an annual contract. The conferees expect a request for authority to enter into a multiyear contract will include (1) the estimated cost savings, (2) the minimum quantity needed, (3) confirmation that the design is stable and the technical risks are not excessive, and (4) any other rationale for entering into such a contract.

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 806--Amendment Relating to Multiyear Contract Authority for Acquisition of Property

This section would amend section 2306b(a) of title 10, United States Code, to allow the head of an agency to enter into multiyear contracts for the acquisition of property if there is a reasonable expectation that the use of a multiyear contract would result in lower total anticipated costs of carrying out the program than if the program were carried out through annual contracts. This section would strike the existing requirement that the head of an agency must determine that substantial savings would be achieved before entering into a multiyear contract.