Summary: Multiyear contracting is defined and discussed in reference to the studies done by the Commission on Government Procurement and its recommendations to Congress. The historical position of GAO, as it relates to multiyear contracting, is reviewed, and examples of pertinent legislation are given. It is the view of GAO that multiyear contracting is a viable acquisition method that should be pursued and used when applicable. Different criteria that should be satisfied for agencies to use multiyear contracting were listed as necessary guides that should be adhered to. Impediments which severely restrict the use of multiyear contracting were reviewed and advantages and disadvantages weighed. The status of Department of Defense multiyear contracting was discussed, and some legislative changes were urged which would provide general multiyear contracting authority to Federal agencies. Such positive action on the part of Congress would provide the impetus for greater application of multiyear contracting in the Government, particularly if the restrictions on the use of annual appropriations for multiyear contracting were lifted. With adequate assurances that the proper criteria are established for multiyear contracting and the conditions for its use are met, this acquisition method could be beneficial to both the Government and the contractors on whom it relies so heavily to meet its ever increasing needs.
