FAR 17.101—Authority.
Plain-English Summary
FAR 17.101 is the authority statement for the FAR subpart on multi-year contracting. It explains that the subpart implements 41 U.S.C. 3903 and 10 U.S.C. 3501 and establishes the policy and procedures governing when and how agencies may use multi-year contracts. In practical terms, this section does not itself set the detailed approval, funding, or contract-structure rules; instead, it tells users that the following provisions are grounded in specific statutory authority and are intended to control the use of multi-year contracting across civilian and defense acquisitions. For contracting officers, program offices, and acquisition planners, this matters because multi-year contracting is a specialized contracting approach with legal limits, budget implications, and procedural requirements that must be followed carefully. The section signals that the subpart is not optional guidance but binding policy implementing statute, so users must look to the rest of the subpart for the actual requirements and to the cited statutes for the underlying legal framework.
Key Rules
Statutory authority identified
This section states that the subpart implements 41 U.S.C. 3903 and 10 U.S.C. 3501. Those statutes provide the legal basis for multi-year contracting, so the FAR provisions in this subpart must be read and applied consistently with them.
Policy and procedures established
The section confirms that the subpart provides the policy and procedures for using multi-year contracting. In practice, this means the subpart is the controlling FAR guidance for deciding whether multi-year contracting is available and how it must be handled.
Scope limited to multi-year contracting
The authority statement is limited to multi-year contracting and does not itself authorize every long-term or extended contract arrangement. Users must distinguish multi-year contracting from other contract types or funding approaches that may have different rules.
Implementation framework only
This section is an implementation provision, not a detailed operational rule. It tells readers that the substantive requirements appear in the rest of the subpart, while this section establishes the legal and policy framework for those requirements.
Responsibilities
Contracting Officer
Recognize that multi-year contracting must be used only under the authority and procedures of this subpart and the cited statutes. The contracting officer must apply the later provisions of the subpart when planning, awarding, and administering any multi-year contract.
Agency
Ensure acquisition policies and internal procedures for multi-year contracting align with the statutory authority identified here and with the FAR subpart that implements it. Agencies must treat multi-year contracting as a regulated acquisition method, not a general-purpose contracting option.
Program/Acquisition Officials
Plan requirements with awareness that multi-year contracting is governed by specific legal authority and procedural constraints. They must coordinate early with contracting personnel to determine whether the contemplated acquisition fits within the multi-year contracting framework.
Contractor
Understand that any multi-year contracting opportunity is subject to the statutory and FAR framework referenced here. Contractors should not assume a multi-year arrangement is available or guaranteed unless the government follows the applicable authority and procedures.
Practical Implications
This section is a gateway provision: it tells you where the legal authority comes from, but you must read the rest of the subpart to know the actual rules.
A common pitfall is treating multi-year contracting like a simple extension of a one-year contract; it is a distinct acquisition method with its own statutory basis and procedural requirements.
Contracting teams should verify early whether the contemplated procurement truly qualifies as multi-year contracting under the governing authority, especially before building funding, pricing, or schedule assumptions around it.
Because the section cites both civilian and defense statutes, users should be alert to agency-specific or defense-specific nuances in the later FAR provisions and related agency supplements.
For contractors, the practical takeaway is that multi-year opportunities may offer stability, but they also come with government-side approval and compliance steps that can affect timing and award structure.
Official Regulatory Text
This subpart implements 41 U.S.C. 3903 and 10 U.S.C. 3501 and provides policy and procedures for the use of multi-year contracting.