[§103D-315]  Multi-term contracts.  (a) 
Unless otherwise provided by law, a contract for goods or services may be
entered into for any period of time deemed to be in the best interests of the
governmental body, provided the term of the contract and conditions of renewal
or extension, if any, are included in the solicitation and funds are available
for the first fiscal period at the time of contracting.  Payment and
performance obligations for succeeding fiscal periods shall be subject to the
availability and appropriation of funds therefor.



(b)  Prior to the utilization of a multi-term
contract, it shall be determined in writing:



(1)  That estimated requirements cover the period of
the contract and are reasonably firm and continuing;



(2)  That such a contract will serve the best
interests of the governmental body by encouraging effective competition or
otherwise promoting economies in procurement; and



(3)  That sufficient funds to pay for the initial term
of the contract are available and the funds necessary for the remaining terms
of the contract are likely to be available from sources which are identified in
writing.



(c)  When funds 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 shall be
reimbursed for the reasonable value of any non-recurring costs incurred but not
amortized in the price of goods or services delivered under the contract.  The
cost of cancellation may be paid from any appropriations available for such
purposes. [L Sp 1993, c 8, pt of §2]