This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0027, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
(b) The head of the agency must consider the following principles when entering into a multiyear contract for services:
(1) The portion of the cost of any plant or equipment amortized as a cost of contract performance should not exceed the ratio between the period of contract performance and the anticipated useful commercial life of the plant or equipment. As used in this section, "useful commercial life" means the commercial utility of the facilities rather than the physical life, with due consideration given to such factors as the location, specialized nature, and obsolescence of the facilities.
(2) The desirability of obtaining an option to extend the term of the contract for a reasonable period not to exceed 3 years at prices that do not include charges for plant, equipment, or other nonrecurring costs already amortized.
(3) The desirability of reserving the right to take title, under the appropriate circumstances, to the plant or equipment upon payment of the unamortized portion of the cost (10 U.S.C. 3531(c)).
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0027, signed February 1, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0027
- Class Deviation 2026-O0027 memorandum (PDF)
- Class Deviation 2026-O0027 on part52.dev
Codified PGI
No codified counterpart is tracked for PGI 217.103-171. This section exists only in the Class Deviation.