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Section 217.174: Multiyear contracts that employ economic order quantity procurement.
(a) The head of the agency must provide written notice to the congressional defense committees at least 30 days before awarding
(1) A multiyear contract providing for economic order quantity procurement in excess of $20 million in any one year (10 U.S.C. 2306b(l)(1)(B)(i)(I)); or
(2) A contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20 million in any one year (10 U.S.C. 2306b(l)(1)(B)(ii); Section 8008(a) of Pub. L. 105-56 and similar sections in subsequent DoD appropriations acts).
(b) Before initiating an advance procurement, the contracting officer must verify that it is consistent with DoD policy (e.g., Chapter 2 of DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and Major Automated Information System (MAIS) Acquisition Programs, and the full funding policy in Volume 2A, Chapter 1, of DoD 7000.14-R, Financial Management Regulation).
(c) See 217.172(e)(6) for additional provisions regarding procurement of economic order quantities of long-lead items.
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