US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 3531

Multiyear contracts: acquisition of services

(a)

Authority .—

Subject to subsections (d) and (e), the head of an agency may enter into contracts for periods of not more than five years for services described in subsection (b), and for items of supply related to such services, for which funds would otherwise be available for obligation only within the fiscal year for which appropriated whenever the head of the agency finds that—
(1)
there will be a continuing requirement for the services consonant with current plans for the proposed contract period;
(2)
the furnishing of such services will require a substantial initial investment in plant or equipment, or the incurrence of substantial contingent liabilities for the assembly, training, or transportation of a specialized work force; and
(3)
the use of such a contract will promote the best interests of the United States by encouraging effective competition and promoting economies in operation.
(b)

Covered Services .—

The authority under subsection (a) applies to the following types of services:
(1)
Operation, maintenance, and support of facilities and installations.
(2)
Maintenance or modification of aircraft, ships, vehicles, and other highly complex military equipment.
(3)
Specialized training necessitating high quality instructor skills (for example, pilot and air crew members; foreign language training).
(4)
Base services (for example, ground maintenance; in-plane refueling; bus transportation; refuse collection and disposal).
(5)
Environmental remediation services for—
(A)
an active military installation;
(B)
a military installation being closed or realigned under a base closure law; or
(C)
a site formerly used by the Department of Defense.
(c)

Applicable Principles .—

In entering into multiyear contracts for services under the authority of this section, the head of the agency shall be guided by the following principles:
(1)
The portion of the cost of any plant or equipment amortized as a cost of contract performance should not exceed the ratio between the period of contract performance and the anticipated useful commercial life of such plant or equipment. Useful commercial life, for this purpose, means the commercial utility of the facilities rather than the physical life thereof, with due consideration given to such factors as location of facilities, specialized nature thereof, and obsolescence.
(2)
Consideration shall be given to the desirability of obtaining an option to renew the contract for a reasonable period not to exceed three years, at prices not to include charges for plant, equipment and other nonrecurring costs, already amortized.
(3)
Consideration shall be given to the desirability of reserving in the agency the right, upon payment of the unamortized portion of the cost of the plant or equipment, to take title thereto under appropriate circumstances.
(d)

Restrictions Applicable Generally .—

(1)
The head of an agency may not initiate under this section a contract for services that includes an unfunded contingent liability in excess of $20,000,000 unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
(2)
The head of an agency may not initiate a multiyear contract for services under this section if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided by law.
(3)
The head of an agency may not terminate a multiyear procurement contract for services until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.
(4)
Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the congressional defense committees, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
(5)
In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (4), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall give written notification to the congressional defense committees of—
(A)
the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;
(B)
the extent to which costs of contract cancellation are not included in the budget for the contract; and
(C)
a financial risk assessment of not including budgeting for costs of contract cancellation.
(e)

Cancellation or Termination for Insufficient Funding After First Year .—

In the event that funds are not made available for the continuation of a multiyear contract for services into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from—
(1)
appropriations originally available for the performance of the contract concerned;
(2)
appropriations currently available for procurement of the type of services concerned, and not otherwise obligated; or
(3)
funds appropriated for those payments.
(f)

Multiyear Contract Defined .—

For the purposes of this section, a multiyear contract is a contract for the purchase of 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.
[(g)
Pub. L. 108–136, div. A, title VIII, § 843(a)117 Stat. 1553 Repealed. , , .]
(h)

Military Installation Defined .—

section 2801(c)(4) of this titleIn this section, the term “military installation” has the meaning given such term in .

Pub. L. 116–283, div. A, title XVIII, § 1822(c)134 Stat. 4203Pub. L. 117–81, div. A, title XVII, § 1701(k)(3)(A)(ii)135 Stat. 2143Pub. L. 116–283, div. A, title XVIII, § 1822(d)Pub. L. 117–81, div. A, title XVII, § 1701(k)(3)(D)135 Stat. 2143Pub. L. 117–81, div. A, title XVII, § 1701(k)(3)(C)135 Stat. 2143(Added , formerly § 1822(m), , , as renumbered and amended , (B), , ; amended , as added , , ; , , .)

Editorial Notes

Codification

Pub. L. 116–283, § 1822(n)section 2306c of this titlePub. L. 117–81, § 1701(k)(3)(C)Pub. L. 116–283, § 1822(d)Pub. L. 117–81, § 1701(k)(3)(D)section 2306c of this titlePub. L. 116–283, § 1822(c)Pub. L. 117–81, § 1701(k)(3)(A)(ii)–(s), which had initially directed the transfers of various subsections of to sections 3531 to 3535, was struck out by . Instead, , as added by , directed the transfer of in its entirety to this section, thereby omitting what would have been sections 3532 to 3535 of this title. The transfer of section 2306c to this section was executed by transferring the text only of section 2306c, as the section designation and catchline had already been enacted by , formerly § 1822(m), as renumbered and amended by , (B).

section 2306c of this titlePub. L. 116–283, § 1822(d)Pub. L. 117–81, § 1701(k)(3)(D)Pub. L. 106–398, § 1 [[div. A]114 Stat. 1654Pub. L. 107–314, div. A, title VIII116 Stat. 2608Pub. L. 108–136, div. A, title VIII, § 843(a)117 Stat. 1553Pub. L. 108–375, div. A, title VIII, § 814(b)118 Stat. 2014Pub. L. 111–84, div. A, title X, § 1073(a)(22)123 Stat. 2473The text of , which was transferred to this section by , as added by , was based on , title VIII, § 802(a)(1)], , , 1654A–203; , §§ 811(a), 827, , , 2617; , title X, § 1043(c)(1), , , 1611; , , ; , , .

Prior Provisions

Pub. L. 96–513, title II94 Stat. 2884Prior sections 3531 and 3532 were repealed by , §§ 210, 233(a), 234, title VII, § 701, , , 2887, 2955, effective .

act Aug. 10, 1956, ch. 104170A Stat. 201Section 3531, , , related to appointment of a general officer of the Army as the Chief of Staff to the President.

act Aug. 10, 1956, ch. 104170A Stat. 201Section 3532, , , provided that a colonel on the active list of the Regular Army who is detailed as special assistant to the Comptroller of the Department of Defense, has the grade of brigadier general while so serving, unless he is entitled to a higher grade.

Prior sections 3533 and 3534 were renumbered sections 7213 and 7214 of this title, respectively.

act Aug. 10, 1956, ch. 104170A Stat. 201Pub. L. 96–513, title II, § 23594 Stat. 2887A prior section 3535, , , provided that an officer assigned as Assistant to the Chief of Engineers in charge of civil works, including river and harbor and flood control improvements, be entitled to the rank, pay, and allowances of a brigadier general while so serving, prior to repeal by , title VII, § 701, , , 2955, effective .

section 7216 of this titleA prior section 3536 was renumbered .

Pub. L. 90–235, § 4(a)(2)81 Stat. 759Prior sections 3538 and 3539 were repealed by , (b)(1), , , 760.

act Aug. 10, 1956, ch. 104170A Stat. 202Section 3538, , , provided for detail of officers of Ordinance Corps of the Army to serve with the Geological Survey.

act Aug. 10, 1956, ch. 104170A Stat. 202section 711a of this titleSection 3539, , , provided for detail of officers of Army Medical Service for duty with the Service to Armed Forces Division of American National Red Cross and for detail of an officer of Medical Corps of the Army to be in charge of first-aid department of American National Red Cross. See .

act Aug. 10, 1956, ch. 104170A Stat. 202Pub. L. 88–647, title III, § 301(7)78 Stat. 1071section 2111 of this titleA prior section 3540, , , related to detail of members of regular or reserve components as professors and instructors in military science and tactics to educational institutions, prior to repeal by , , . See .

Pub. L. 103–337, div. A, title XVI108 Stat. 2982Prior sections 3541 and 3542 were repealed by , §§ 1661(c)(2), 1662(g)(2), 1691, , , 2996, 3026, effective .

act Aug. 10, 1956, ch. 104170A Stat. 202section 10507 of this titleSection 3541, , , authorized President to assign regular and reserve Army officers to National Guard Bureau. See .

act Aug. 10, 1956, ch. 104170A Stat. 202section 12502(a) of this titleSection 3542, , , authorized President to detail certain officers as chief and assistant chief of staff of divisions of Army National Guard in Federal service. See .

act Aug. 10, 1956, ch. 104170A Stat. 202Pub. L. 114–328, div. A, title V, § 502(s)(1)130 Stat. 2104A prior section 3543, , , related to number of authorized aides, prior to repeal by , , .

Pub. L. 90–235, § 4(a)(6)81 Stat. 759Prior sections 3544 and 3545 were repealed by , (b)(1), , , 760.

act Aug. 10, 1956, ch. 104170A Stat. 203section 973 of this titleSection 3544, , , restricted performance of civil functions by commissioned officers of Regular Army. See .

act Aug. 10, 1956, ch. 104170A Stat. 203Section 3545, , , provided that cooking for enlisted members of Army should be superintended by officers of organizations to which members belonged.

act Aug. 10, 1956, ch. 104170A Stat. 203Pub. L. 85–861, § 36B(7)72 Stat. 1570A prior section 3546, , , required officers of the Medical Corps and contract surgeons to attend families of members of the Army, prior to repeal by , , .

Prior sections 3547 and 3548 were renumbered sections 7217 and 7218 of this title, respectively.

Amendments

Pub. L. 117–81, § 1701(k)(3)(A)(ii)Pub. L. 116–283, § 1822(c)2021—, (B), amended , formerly § 1822(m), which enacted this section, by renumbering such section 1822(m) as 1822(c) and by substituting “Multiyear contracts: acquisition of services” for “Multiyear contracts for acquisition of services: authority; definitions” in section catchline.

Pub. L. 116–283, § 1822(n)section 2306c of this titlePub. L. 117–81, § 1701(k)(3)(C), which had originally transferred subsecs. (a), (b), (f), and (h) of to this section, was repealed by .

Pub. L. 116–283, § 1822(d)Pub. L. 117–81, § 1701(k)(3)(D)section 2306c of this title, as added by , transferred text of to this section. See Codification note above.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 117–81Pub. L. 116–283section 1701(a)(2) of Pub. L. 117–81section 3001 of this titleAmendment by applicable as if included in the enactment of title XVIII of as enacted, see , set out in a note preceding and Effective Date note below.

Effective Date

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleSection and amendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .

Pilot Program for Longer Term Multiyear Service Contracts

Pub. L. 115–91, div. A, title VIII, § 854131 Stat. 1492

“(a)

Establishment .—

section 2306c of title 1010 U.S.C. 3531The Secretary of Defense shall carry out a pilot program under which the Secretary may use the authority under subsection (a) of , United States Code [see ], to enter into up to five contracts for periods of not more than 10 years for services described in subsection (b) of such section. Each contract entered into pursuant to this subsection may be extended for up to five additional one-year terms.
“(b)

Study.—

“(1)

In general .—

42 U.S.C. 8287c(3)Not later than 90 days after the date of the enactment of this Act [], the Secretary of Defense shall enter into an agreement with an independent organization with relevant expertise to study best practices and lessons learned from using services contracts for periods longer than five years by commercial companies, foreign governments, and State governments, as well as service contracts for periods longer than five years used by the Federal Government, such as energy savings performance contracts (as defined in section to section [sic] 804(3) of the National Energy Conservation Policy Act ().
“(2)

Report .—

Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on the study conducted under paragraph (1).
“(c)

Comptroller General Report .—

Not later than five years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the pilot program carried out under this section.”
, , , provided that: