Section R2-7-G302. Demonstration Projects

A.      An agency chief procurement officer shall submit a written request to the state procurement administrator to award a con- tract for a demonstration project. The written request shall contain the following:

1.        Name of the agency or agencies;

2.        Name of the contractor;

3.        Description of the project, including unique and innova- tive features of the project;

4.        Statement and explanation that the project is in best inter- est of the state;

5.        Duration of the project; and

6.        Proposed contract terms and conditions.

B.       The agency chief procurement officer shall obtain approval from the state procurement administrator before proceeding with a demonstration project. The state procurement adminis- trator shall either:

1.        Issue written approval, with any conditions or restric- tions;

2.        Request additional information from the agency chief procurement officer; or

3.        Deny the request.

C.      Demonstration projects shall be provided by the contractor at no cost, and the state shall not be obligated to purchase or lease the services or materials from the contractor.

D.      The agency chief procurement officer may submit a written request to the state procurement administrator to purchase or lease from the demonstration contractor. The written request shall be submitted within 12 months after the demonstration project begins or within 12 months after the demonstration project ends and contain the following:

1.        Name of the agency or agencies;

2.        Name of the contractor;

3.        Description of the project, including unique and innova- tive features of the project;

4.        Statement and explanation that lease or purchase is in best interest of the state;

5.        Cost to the state;

6.        Duration of the proposed contract; and

7.        Proposed contract terms and conditions.

E.       The agency chief procurement officer shall obtain approval from the state procurement administrator before proceeding with purchasing or leasing from the demonstration contractor. The state procurement administrator shall:

1.        Issue written approval, with any conditions or restric- tions;

2.        Request additional information from the agency chief procurement officer; or

3.        Deny the request.

F.       The term of the contract resulting from a demonstration proj- ect shall not exceed two years.

Historical Note

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