{"data":{"id":"us/48-cfr-17.103","jurisdiction":"us","citation":"48 CFR 17.103","heading":"17.103 Definitions.","body":"As used in this subpart—\nCancellation means the cancellation (within a contractually specified time) of the total requirements of all remaining program years. Cancellation results when the contracting officer\n(1) Notifies the contractor of nonavailability of funds for contract performance for any subsequent program year, or\n(2) Fails to notify the contractor that funds are available for performance of the succeeding program year requirement.\nCancellation ceiling means the maximum cancellation charge that the contractor can receive in the event of cancellation.\nCancellation charge means the amount of unrecovered costs which would have been recouped through amortization over the full term of the contract, including the term canceled.\nMultiyear contract means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years. A multiyear 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 appropriations are not made. The key distinguishing difference between multiyear contracts and multiple year contracts is that multiyear contracts, defined in the statutes cited at 17.101, buy more than 1 year's requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.\nNonrecurring costs means those costs which are generally incurred on a one-time basis and include such costs as plant or equipment relocation, plant rearrangement, special tooling and special test equipment, preproduction engineering, initial spoilage and rework, and specialized work force training.\nRecurring costs means costs that vary with the quantity being produced, such as labor and materials.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 1—FEDERAL ACQUISITION REGULATION","SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES","PART 17—SPECIAL CONTRACTING METHODS","Subpart 17.1—Multiyear Contracting"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"db9a9478fed80de1c3e4ed5472d289eb6087d924fa2cd05170cd057d829cb362","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-17.102","next":"us/48-cfr-17.104"},"notice":"GroundRules: Original legal text. Not legal advice."}