Section R19-3-545. Multi-term Contracts

A.      Unless otherwise provided by law, a contract may be entered into for a period of time up to five years, if the term of the con- tract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal period at the time of contracting.

B.       A contract may be entered into for a period exceeding five years if the procurement officer makes a written determination that such a contract would be advantageous to the Lottery. The written determination shall include:

1.        The initial and renewal option periods for the contract,

2.        Documentation that the estimated requirements are rea- sonable and continuing, and

3.        Documentation that such a contract will serve the best interests of the Lottery by encouraging effective competi- tion or otherwise promoting economies in Lottery pro- curement.

C.      The procurement officer shall include in all multi-term con- tracts a clause specifying that the contract shall be cancelled if monies are not appropriated or otherwise made available to support the continuation of performance in a subsequent fiscal year. If the contract is cancelled under this Section, the con- tractor may only be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the materials or services delivered under the contract or which are otherwise not recoverable.

Historical Note

Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R19-3-545 renumbered to R19-3-541, new Section R4-37-545 renumbered from R4- 37-549 and amended effective May 7, 1990 (Supp. 90-2). R19-3-545 recodified from R4-37-545 (Supp. 95-1). For- mer Section R19-3-545 renumbered to R19-3-552 and amended; new Section R19-3-545 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495,

effective January 6, 2007 (Supp. 06-4). Amended by final

rulemaking at 19 A.A.R. 1641, effective August 4, 2013

(Supp. 13-2).