{
  "node_id": "us-far-part-17-special-contracting-methods",
  "title": "FAR Part 17 - Special Contracting Methods (Multi-Year Contracts, Options, Interagency Acquisitions / Economy Act, Management and Operating Contracts, Reverse Auctions)",
  "domain": "Public Sector & Government Procurement",
  "version": "1.0.0",
  "last_updated": "2026-06-02",
  "bluf": "Federal Acquisition Regulation (FAR) Part 17 governs special contracting methods used when standard award structures are inappropriate. Subpart 17.1 (Multi-Year Contracting) implements 41 USC 3903 (civilian) and 10 USC 3501 (DoD) authorising contracts covering more than 1 but not more than 5 program years without separate option exercises; nondefense agencies must determine the need is reasonably firm and continuing and the approach serves the best interests of the United States, while DoD, NASA, and Coast Guard require cost savings, stable design, minimal technical risk, reasonable expectation of continued funding, and realistic estimates. Each program year except the first remains cancellable and the contracting officer establishes a cancellation ceiling excluding amounts for prior years' requirements with nonrecurring costs amortised across program years. Congressional notification thresholds under FAR 17.108 are USD 20 million (nondefense) and USD 200 million (DoD/NASA/Coast Guard) with a 31-day wait period. Clause 52.217-2 (Cancellation Under Multi-year Contracts) is required. Subpart 17.2 (Options) governs unilateral option exercise: the option must be exercised in writing within the period specified in the contract; before exercise the contracting officer must determine in writing that funds are available, the option fulfils an existing Government need, exercise is the most advantageous method considering price and other factors, the option was synopsised under FAR Part 5 (unless exempt), the contractor is not on the SAM exclusion list, past performance has been considered, and current performance is acceptable. Total basic plus option periods for services are limited to 5 years under FAR 17.204(e). Clauses 52.217-3 through 52.217-9 cover evaluation and exercise of options. Subpart 17.5 (Interagency Acquisitions) governs acquisitions where one agency uses another agency's contract or contracting services; the Economy Act at 31 USC 1535 is the default authority requiring a determination and findings (D&F) that interagency acquisition is in the best interest, supplies cannot be obtained as conveniently or economically by direct contracting, and one of three specific circumstances applies; assisted acquisitions require a written interagency agreement before solicitation while direct acquisitions do not. Multi-agency contracts and Government-wide Acquisition Contracts (GWACs) require a business-case analysis by the servicing agency. Subpart 17.6 (Management and Operating Contracts) governs M&O contracts for Government-owned, contractor-operated (GOCO) facilities with prohibited functions specified at 17.603 and 5-year review cycles at 17.605. Subpart 17.7 governs interagency acquisitions for DoD requiring nondefense agency compliance certification under 17.703. Subpart 17.8 (Reverse Auctions) authorises reverse auctions for clearly-defined commercial requirements with multiple offerors and prohibits use for design-build construction, architect-engineer services, sealed bidding, and personal protective equipment per NDAA limits.",
  "paywall": {
    "status": "LOCKED",
    "unlock_cost_usd": "0.01",
    "skyfire_id": "41779894-ece2-4163-9761-b3b1b76e19b0"
  },
  "crosswalks": {
    "_available_keys": [
      "statutory_basis",
      "key_clauses_taxonomy",
      "multi_year_thresholds",
      "option_exercise_determinations_required",
      "economy_act_d_and_f_requirements",
      "management_operating_contract_indicators",
      "reverse_auction_use_constraints",
      "industry_mapping"
    ],
    "_note": "Full crosswalk values included in vault response"
  },
  "dependencies": [
    "us-far-part-7-acquisition-planning",
    "us-far-part-16-types-of-contracts",
    "us-far-part-15-contracting-by-negotiation",
    "us-far-part-39-acquisition-information-technology"
  ],
  "primary_citations_count": 7
}