PGI 217.104-370

(b)(1) The head of the agency must submit a copy of each notice to the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (DPCAP), Office of the Under Secretary of Defense (Acquisition and Sustainment) (OUSD(A&S)), and to the Deputy Under Secretary of Defense (Comptroller) (Program/Budget) (OUSD(C)(P/B)).

(2)(i) DoD will include the request, for each candidate it supports, as part of the President’s Budget for that year and in the Appendix to that budget as part of proposed legislative language for the appropriations bill for that year (section 8008(b) of Pub. L. 105-56).

(ii) If the advisability of using a multiyear contract becomes apparent too late to satisfy the requirements 217.170(b)(2), the request for authority to use a multiyear contract must be—

(A) Formally submitted by the President as a budget amendment; or

(B) Made by the Secretary of Defense, in writing, to the congressional defense committees (section 8008(b) of Pub. L. 105-56).

(iii) If the budget for a contract that contains a cancellation ceiling in excess of $200 million does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract—

(A) The notification required by paragraph (b)(1) of this section must include—

(1) The cancellation ceiling amounts planned for each program year in the proposed multiyear contract, together with the reasons for the amounts planned;

(2) The extent to which costs of contract cancellation are not included in the budget for the contract; and

(3) A financial risk assessment of not including budgeting for costs of contract cancellation (10 U.S.C. 3501(g) and 10 U.S.C. 3531(d)); and

(B) The head of the agency must provide copies of the notification to the Office of Management and Budget at least 14 days before contract award.