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(e)(1) The 5-year limitation (basic plus option periods) applies to all NASA contracts regardless of type and other procurement award instruments, except as stated in (e)(2). This includes agreements (e.g. basic ordering agreements, blanket purchase agreements), interagency acquisitions, and orders placed under agreements or awarded under a Federal Supply Schedule or other indefinite delivery/indefinite quantity contracts awarded by other agencies. See 1816.505-71 for limitations on the ordering period of task and delivery order contracts.
(2) The 5-year limitation in paragraph (e)(1) does not apply to acquisitions for the design, development, test, and evaluation (DDT&E) of end-item systems development or hardware production. The period of performance for DDT&E should be consistent with the time needed to complete system development or hardware production efforts to perform Phase A (concept studies, concept & technology development phase), Phase B (preliminary design & detailed engineering/technology completion phase), Phase C (final design, components/systems fabrication and testing phase), and Phase D (system assembly, integration, testing, and launch phase). The 5-year limitation in paragraph (e)(1) applies to acquisitions involving Phase E (systems and mission operations, sustaining engineering, maintenance support) , and Phase F(close-out/decommissioning efforts). Contracting officers shall procure Phase E and F efforts separately to allow for the maximum number of industry opportunities for competition so long as awards to different contractors will not pose critical integration risks to NASA. If Phase A through F are acquired in a combined acquisition and the period of performance is expected to exceed 5 years then a request for deviation shall be required in accordance with NFS 1817.2(e)(4).
(3) When the performance period exceeds 5 years (exclusive of options), the program/project office and the contracting officer shall review the requirement at the mid-point of the performance period to ensure that the products or services continue to fulfill NASA’s mission needs and that the procurement award instrument continues to provide the best means of satisfying the requirement.
(4) Requests for deviations from the 5-year limitation policy shall be sent to the Assistant Administrator for Procurement, Program Operations Division, and shall include justification for exceeding five years. At a minimum, the justification shall discuss planned future assessment of continued performance either prior to exercise of options or at the mid-term of a basic contract with no options. Evidence shall also be included showing that the extended years can be reasonably priced. The justification shall explain why longer than a 5-year period of performance is the most prudent business course of action. The justification shall also address how the longer period of performance will result in obtaining the best value for the Government if the supply or service is readily available in the open market by considering the current market and the uncertainties in future market conditions and by explaining why competition, which acts as a primary guarantor of best value to the Government, is not operative to the acquisition.