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does not make a multi-year contract an option contract.
* * *
The contract binds the Government to purchase the
entire multi-year procurement quantity and to fund the
successive Program Years.[14] * * * [Beta Systems v.
United States, 16 Cl. Ct. 219, 228 (1989).]
The Claims Court also noted:
Multi-year procurement contracts are, in essence,
single, indivisible entities. As a result, an
equitable adjustment following termination of a multi-
year contract must be based upon the entire contract.
[Id. n.11; citation omitted.]
Respondent argues that the Air Force reserved a unilateral
annual right to procure the next program year's projected
requirements. Respondent's position overstates the Government's
rights with respect to multiyear Contract 2034. The Air Force
did not have the unlimited right to cancel any future year.
Contract 2034 was a multiyear contract which could have ended if
Congress failed to fund the F-16 program or if a Government
determination was made that there was no need to acquire any
remaining F-16's under the contract.
Respondent also focuses and relies upon language in CLIN
0001 of Contract 2034, which states: “ITEMS 0002 THROUGH 0015
ARE NEITHER PRICED NOR FUNDED NOR IS THE GOVERNMENT UNDER ANY
OBLIGATION TO SUBSEQUENTLY ACQUIRE SAID ITEMS.” Petitioner
counters that the CLIN 0001 language denotes that 2034, like all
14 Petitioner also argues that the Government may not
cancel any part of a multiyear contract on the ground that the
terms of the contract are disadvantageous, citing Appeal of Varo,
Inc., 70-1 B.C.A. (CCH) par. 8,099 (1969).
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