(a) Unless otherwise provided in the statute making appropriations therefor, multi-year
contracts for supplies and services may be entered into for periods extending beyond
the end of the fiscal year in which the contract was made, if funds for the first
fiscal year of the contemplated contract are available at the time of contracting
and the contract states that payment and performance obligations for succeeding fiscal
years shall be subject to the availability of funds therefor.
(b) Prior to the utilization of a contract as described in subsection (a) of this
section, it shall be determined, in writing, by the chief purchasing officer:
(1) That estimated requirements cover the period of the contract, are reasonably firm,
and continuing; and
(2) That the contract will serve the best interests of the state by encouraging effective
competition or otherwise promoting economics in state procurement.
(c) When funds are not appropriated or otherwise made available to support continuation
of performance in a subsequent year of a contract as described in subsection (a) of
this section, the contract for the subsequent year may be cancelled and the contractor
shall be reimbursed for the reasonable value of any nonrecurring costs incurred but
not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from:
(1) Appropriations currently available for performance of the contract;
(2) Appropriations currently available for procurement of similar supplies or services
and not otherwise obligated; or
(3) Appropriations made specifically for the payment of cancellation costs.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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