§ 37-2-33 - Multi-year contracts.
SECTION 37-2-33
§ 37-2-33 Multi-year contracts. – (a) Unless otherwise provided in the statute making appropriations therefor,multi-year contracts for supplies and services may be entered into for periodsextending beyond the end of the fiscal year in which the contract was made, iffunds for the first fiscal year of the contemplated contract are available atthe time of contracting and the contract states that payment and performanceobligations for succeeding fiscal years shall be subject to the availability offunds therefor.
(b) Prior to the utilization of a contract as described insubsection (a) of this section, it shall be determined, in writing, by thechief purchasing officer:
(1) That estimated requirements cover the period of thecontract, are reasonably firm, and continuing; and
(2) That the contract will serve the best interests of thestate by encouraging effective competition or otherwise promoting economics instate procurement.
(c) When funds are not appropriated or otherwise madeavailable to support continuation of performance in a subsequent year of acontract as described in subsection (a) of this section, the contract for thesubsequent year may be cancelled and the contractor shall be reimbursed for thereasonable value of any nonrecurring costs incurred but not amortized in theprice of the supplies or services delivered under the contract. The cost ofcancellation may be paid from:
(1) Appropriations currently available for performance of thecontract;
(2) Appropriations currently available for procurement ofsimilar supplies or services and not otherwise obligated; or
(3) Appropriations made specifically for the payment ofcancellation costs.