Section R7-2-1093. Multiterm Contracts

A.      Unless otherwise provided by law, multiterm contracts for materials or services and contracts for job-order-contracting construction services may be entered into if the duration of the contract and the conditions of renewal or extension, if any, are included in the invitation for bids or the request for proposals and if monies are available for the first fiscal period at the time the contract is executed. The duration of contracts for materi- als or services and contracts for job-order-contracting con- struction services shall be limited to no more than five years unless the governing board determines in writing before the

procurement solicitation is issued that a contract of longer duration would be advantageous to the school district. Pay- ment and performance obligations for succeeding fiscal peri- ods are subject to the availability and appropriation of monies.

B.       Before the use of a multiterm contract, it shall be determined in writing by the governing board that:

1.        Estimated requirements cover the period of the contract and are reasonable and continuing.

2.        Such a contract will be advantageous to the school district by encouraging effective competition or otherwise pro- moting economies in school district procurement.

C.      The school district shall include in all multiterm contracts a clause specifying that the contract shall be canceled if monies are not appropriated or otherwise made available to support the continuation of performance in a subsequent fiscal year.

D.      If monies are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled and the contractor may only be reimbursed for the reasonable value of any nonrecur- ring costs incurred but not amortized in the price of the materi- als or services delivered under the contract or which are otherwise not recoverable. The cost of cancellation may be paid from any appropriations available for such purposes.

E.       A contract for specified professional services shall have a term not exceeding five years after the date of contract award by the school district of the first contract under the procurement, except that the contract may continue in effect after the five year term for projects on which the rendering of specified pro- fessional services commences within the five year term.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Sec- tion amended by final exempt rulemaking at 21 A.A.R.

1525, effective July 1, 2015 (Supp. 15-3).