34-607 Multiterm contracts for
job-order-contracting construction services
A. A contract for construction services using the job-order-contracting method may
be entered into for a period of up to five years, as deemed to be in the best interest of
the agent, if the term of the contract and conditions of renewal or extension, if any,
are included in the solicitation and monies are available for the first fiscal period at
the time of contracting. Payment and performance obligations for succeeding fiscal
periods are subject to the availability and appropriation of monies.
B. Before the use of a multiterm contract, the agent shall determine in writing
that:
1. Estimated requirements cover the period of the contract and are reasonable and
continuing.
2. Such a contract will serve the best interests of the agent by encouraging
effective competition or otherwise promoting economies in the agent's procurement.
C. If monies are not appropriated or otherwise made available to support the
continuation of performance in a subsequent fiscal period, the contract shall be
cancelled and the contractor may only be reimbursed for the reasonable value of any
nonrecurring costs that are incurred but not amortized in the price of the construction
services delivered under the contract or that are otherwise not recoverable. The cost of
cancellation may be paid from any appropriations available for these purposes.
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