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

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

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

(2)  That such a contract will serve the bestinterests of the governmental body by encouraging effective competition orotherwise promoting economies in procurement; and

(3)  That sufficient funds to pay for the initial termof the contract are available and the funds necessary for the remaining termsof the contract are likely to be available from sources which are identified inwriting.

(c)  When funds are not appropriated orotherwise made available to support continuation of performance in a subsequentfiscal period, the contract shall be cancelled and the contractor shall bereimbursed for the reasonable value of any non-recurring costs incurred but notamortized in the price of goods or services delivered under the contract.  Thecost of cancellation may be paid from any appropriations available for suchpurposes. [L Sp 1993, c 8, pt of §2]