Section R2-7-605. Multi-term Contracts

A.      The agency chief procurement officer may enter into a con- tract for materials or services for a period exceeding the time identified in A.R.S. § 41-2546(A), if a written approval from the state procurement administrator is issued prior to offer due date and time.

B.       The agency chief procurement officer shall submit a request to the state procurement administrator in writing indicating:

1.        The time period requested for the contract;

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

3.        Documentation to demonstrate why more frequent com- petition is not practicable and that such a contract will serve the best interests of the state.

C.      The agency chief procurement officer shall include in all multi-term contracts 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 sub- sequent fiscal year. If the contract is cancelled under this Sec- tion, the contractor 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 con- tract or which are otherwise not recoverable.

Historical Note

New Section made by final rulemaking at 12 A.A.R. 508, effective April 8, 2006 (Supp. 06-1). Amended by final

rulemaking at 20 A.A.R. 3510, effective February 2, 2015

(Supp. 14-4).