41-2546. Multiterm contracts
A. Unless otherwise provided by law, a contract for materials or services may be
entered into for a period of time up to five years and a contract for
job-order-contracting construction services may also be entered into for a period of time
up to five years, as deemed to be in the best interest of this state, 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. A
contract may be entered into for materials or services for a period of time exceeding
five years if, under rules adopted pursuant to this chapter, the director determines in
writing that such a contract would be advantageous to this state. 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, it shall be determined 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 this state by encouraging
effective competition or otherwise promoting economies in state procurement.
C. If monies are not appropriated or otherwise made available to support
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 incurred but not amortized in the price of the materials 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.
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