49 U.S.C. § 40112: Multiyear procurement contracts for property

Notwithstanding section 1341(a)(1)(B) of title 31 and to the extent that amounts otherwise are available for obligation, the Administrator of the Federal Aviation Administration may make a contract of more than one but not more than 5 fiscal years to purchase property, except a contract to construct, alter, or make a major repair or improvement to real property. the contract will promote the safety or efficiency of the national airspace system and will result in reduced total contract costs; the minimum need for the property to be purchased is expected to remain substantially unchanged during the proposed contract period in terms of production rate, procurement rate, and total quantities; there is a reasonable expectation that throughout the proposed contract period the Administrator will request appropriations for the contract at the level required to avoid cancellation; there is a stable design for the property to be acquired and the technical risks associated with the property are not excessive; and the estimates of the contract costs and the anticipated savings from the contract are realistic. a contract under this section shall be used to seek, retain, and promote the use under that contract of subcontractors, vendors, or suppliers; and on accrual of a payment or other benefit accruing on a contract under this section to a subcontractor, vendor, or supplier participating in the contract, the payment or benefit shall be delivered in the most expeditious way practicable; and competition in producing items to be delivered under a contract under this section; or ending a prime contract when performance is deficient with respect to cost, quality, or schedule. be used for the advance procurement of components, parts, and material necessary to manufacture equipment to be used in the national airspace system; provide that performance under the contract after the first year is subject to amounts being appropriated; and contain a negotiated priced option for varying the number of end items to be procured over the period of the contract. If feasible and practicable, an advance procurement contract may be made to achieve economic-lot purchases and more efficient production rates. If a contract under this section provides that performance is subject to an appropriation being made, it also may provide for a cancellation payment to be made to the contractor if the appropriation is not made. Before awarding a contract under this section containing a cancellation ceiling of more than $100,000,000, the Administrator shall give written notice of the proposed contract and cancellation ceiling to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. The contract may not be awarded until the end of the 30-day period beginning on the date of the notice. an appropriation originally available for carrying out the contract; an appropriation currently available for procuring the type of property concerned and not otherwise obligated; or amounts appropriated for payments to end the contract.