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45A.145 Multiyear contracts.

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45A.145 Multiyear contracts. (1) Unless otherwise provided in the statute making appropriations therefor, multiyear contracts for supplies and services may be entered into for periods not extending <br>beyond the end of the biennium in which the contract was made, if funds for the <br>first fiscal year of the contemplated contract are available at the time of contracting. <br>Payment and performance obligations for succeeding fiscal years shall be subject to <br>the availability of funds therefor. (2) Prior to the utilization of a contract as described in subsection (1) of this section, it shall be determined in writing by the chief purchasing officer: <br>(a) That estimated requirements cover the period of the contract and are reasonably firm and continuing; and (b) That such contract will serve the best interests of the Commonwealth by encouraging effective competition or otherwise promoting economies in state <br>procurement. (3) When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent year of a contract as described in <br>subsection (1) of this section, the contract for such subsequent year may be canceled <br>and the contractor shall be reimbursed for the reasonable value of any nonrecurring <br>costs incurred but not amortized in the price of the supplies or services delivered <br>under the contract. The cost of cancellation may be paid from: <br>(a) Appropriations currently available for performance of the contract; or <br>(b) Appropriations currently available for procurement of similar supplies or services and not otherwise obligated; or (c) Appropriations made specifically for the payment of such cancellation costs. Effective: January 1, 1979 <br>History: Created 1978 Ky. Acts ch. 110, sec. 30, effective January 1, 1979.