517.204 Contracts.
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(a) Telecommunication contracts may not exceed 10 years per GSA Order ADM P 5450.39D, GSA Delegations of Authority Manual.
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(b) Public utility contracts are limited to 10 years (40 U.S.C. 501(b)(1)(B).
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(c) Requests to exceed 5-year limitation. A deviation request to exceed the 5-year limitation specified in FAR 17.204(e) must provide all the following information:
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(1) Clearly explain the contract(s) and organization(s) covered by the request.
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(2) Support the need for and reasonableness of the extension. Consider factors such as the following:
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(i) The results of market research.
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(ii) Stability of the requirement(s).
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(iii) Benefits to the Government.
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(iv) Use of a performance-based contracting approach.
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(v) Availability of funds to cover estimated cancellation costs as well as costs for the first contract period.
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(vi) Customary commercial practice.
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(vii) Mechanisms to adjust for economic fluctuations.
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(d) Approval authority. Deviation requests to exceed the 5-year limitations specified in FAR 17.204(e) must be approved by–
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(1) The head of the contracting activity for individual contracts; and
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(2) GSA’s Senior Procurement Executive for classes of contracts.
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