IndyCar director of operations and competition Jay Frye says that the contract extension with chassis supplier Dallara is good for the sport as they prepare and plan for the next four seasons.
The series announced the deal today, along with a relaxation of the Italian company's previous monopoly on the supply of certain components.
"As a team, in 2017 you have the freeze, then you have a three-year program, so you're going to have continuity in the chassis from today going forward for 2020," said Frye.
"You can plan where you're going, and you know what you've got. So it's a very efficient approach for the teams. Now, part of this is knowing we can deregulate part of this."
"The new Dallara deal ... there were some price breaks, there were some parts that were completely deregulated that we took back. There was another group of parts that now the teams are able to buy direct from the manufacturers. So the product has become more efficient, but it's also become much better."