18-4-313. Contracts -- terms, extensions, and time limits.
18-4-313. Contracts -- terms, extensions, and time limits. (1) Except as provided in subsection (2) or unless otherwise provided by law, a contract, lease, or rental agreement for supplies or services may not be made for a period of more than 7 years. A contract, lease, or rental agreement may be extended or renewed if the terms of the extension or renewal, if any, are included in the solicitation, if funds are available for the first fiscal period at the time of the agreement, and if the total contract period, including any extension or renewal, does not exceed 7 years. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of funds for the fiscal periods.
(2) The contract term limit specified in subsection (1) does not apply to:
(a) a contract for hardware, software, or other information technology resources, which may be made for a period not to exceed 10 years;
(b) a department of revenue liquor store contract governed by the term specified in 16-2-101;
(c) a department of corrections contract governed by the term specified in 53-1-203, 53-30-505, or 53-30-608; and
(d) the department of administration state employee group benefit plans contracts governed by the term specified in 2-18-811, including group benefit plan contracts made in partnership with the Montana university system group benefit plan.
(3) Prior to the issuance, extension, or renewal of a contract, it must be determined that:
(a) estimated requirements cover the period of the contract and are reasonably firm and continuing; and
(b) the contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.
(4) If funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract must be canceled.
History: En. Sec. 24, Ch. 519, L. 1983; amd. Sec. 1, Ch. 121, L. 1985; amd. Sec. 3, Ch. 228, L. 1993; amd. Sec. 12, Ch. 130, L. 1995; amd. Sec. 63, Ch. 546, L. 1995; amd. Sec. 22, Ch. 181, L. 2001; amd. Secs. 40, 46, Ch. 313, L. 2001; amd. Sec. 8, Ch. 289, L. 2005; amd. Sec. 2, Ch. 127, L. 2007.