It’s difficult to remember the differences between multiple year and multi-year contracts. I made these notes and took the picture while studying for my third CON 090 test. It has helped me. Maybe it can help you.
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<p>Thanks, Sterling…love the “back of the napkin” illustration. I might adjust it slightly for ease of read (plus, I just wanted reply with a drawing of my own ;-):
I have a multi-year supply contract , with options. It includes 52.232-7 & 52.232-9 and I am being asked to exercise the option? I would like to know your take on that and your references.
Very nice. More organized than mine as well.
So..if I am reading your nifty napkins right:
A multiple year contact is not contingent on the President’s budget and/or Congress’ approval?
Martha, who tried to draw a Venn diagram on a tissue, but it didn’t work out so well.
@Martha, right. Of course you need money from Congress for both types, but Congress gets specifically involved with approving Multi-Year Contracts.
Unfortunately, the notes are not accurate. A multiyear contract may contain options. For example, an agency could have a multiyear contract that purchases two years worth of supplies or services, then have an option for the third. Something must have been lost in the communication, because as the CON 090 course manager I know the lesson material doesn’t say that.
If you’re looking for an easy way to remember, try this: If a contract meets the definition of multiyear contract at FAR 17.103, it’s a multiyear contract. If the period of a contract is more than one year but does not meet the definition of multiyear contract, then it’s a multiple-year contract.
Thank you for the catch Don. I’ll update my napkin picture.