108 STAT. 3270 PUBLIC LAW 103-355—OCT. 13, 1994 Subpart C—Kinds of Contracts SEC. 1071. REPEAL OF AGENCY HEAD DETERMINATION REGARDING USE OF COST TYPE OR INCENTIVE CONTRACT. Section 304(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254(b)) is amended by striking out the second sentence. SEC. 1072. MULTIYEAR CONTRACTING AUTHORITY. Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section 304 the following new section: 41 USC 254c. "SEC. 304B. MULTIYEAR CONTRACTS. "(a) AUTHORITY.—An executive agency may enter into a multiyear contract for the acquisition of property or services if— "(1) funds are available and obligated for such contract, for the full period of the contract or for the first fiscal year in which the contract is in efiect, and for the estimated costs associated with any necessary termination of such contract; and "(2) the executive agency determines that— "(A) the need for the property or services is reasonably firm and continuing over the period of the contract; and "(B) a multiyear contract will serve the best interests of the United States by encouraging full and open competition or promoting economy in administration, performance, and operation of the agency's programs. "(b) TERMINATION CLAUSE. —^A multiyear contract entered into under the authority of this section shall include a clause that provides that the contract shall be terminated if funds are not made available for the continuation of such contract in any fiscal year covered by the contract. Amounts available for paying termination costs shall remain available for such purpose until the costs associated with termination of the contract are paid. "(c) CANCELLATION CEILING NOTICE.— Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $10,000,000 may be awarded, the executive agency shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the Congress, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification. "(d) MULTIYEAR CONTRACT DEFINED.— For the purposes of this section, a multiyear contract is a contract for the purchase of property or services for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made. "(e) RULE OF CONSTRUCTION. — Nothing in this section is intended to modify or affect any other provision of law that authorizes multiyear contracts.**.