Mississippi Administrative Code › Title 27 - STATE PERSONNEL BOARD › Part 100 › Chapter 3 - SOURCE SELECTION AND CONTRACT FORMATION › Section 27-100-3-502 - MULTI-TERM CONTRACTS

Current through June 25, 2024
(a)
Specified
				Period
Unless otherwise provided by law, a contract for services
				  may be entered into for a period of time
not to exceed four (4) years
				  with an option to renew for one year,
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.
(b)
Determination Prior to
				Use
Prior to the utilization of a multi-term contract, it shall
				  be determined in writing by the agency and maintained in the procurement file:
(1) that estimated requirements cover
				the period of the contract and are reasonably firm and continuing; and,
(2) that such a contract will
				serve the best interests of the State of Mississippi by encouraging effective
				competition or otherwise promoting economies in state procurement.
3-502.01
Multi-Term Contracts -
				General
A multi-term contract is appropriate when it is in the best
				  interest of the State to obtain uninterrupted services extending over more than
				  one fiscal period, where the performance of such services involves high
				  start-up costs, or where a changeover of service contractors involves high
				  phase-in/phase-out costs during a transition period.
Special production refers to production for contract
				  performance which requires alteration of the contractor's facilities or
				  operations involving high start-up costs. The contractual obligation of both
				  parties in each fiscal period succeeding the first is subject to the
				  appropriation and availability of funds therefor. The contract shall provide
				  that in the event that funds are not available for any succeeding fiscal
				  period, the remainder of such contract shall be canceled.
3-502.02
Conditions for Use of
				Multi-Term Contracts
A multi-term contract may be used when it is determined in
				  writing by the Procurement Officer and maintained in the procurement file that:
(a) the furnishing of long-term
				services are required to meet needs of the State; and,
(b) a multi-term contract will serve the best
				interests of the State by encouraging effective competition or otherwise
				promoting economies in state procurement. The following factors are among those
				relevant to such a determination:
(1) firms
				which are not willing or able to compete because of high start-up costs or
				capital are assured of recouping such costs during the period of contract
				performance;
(2) lower production
				costs because of larger quantity or service requirements and substantial
				continuity of production or performance over a longer period of time can be
				expected to result in lower unit prices;
(3) stabilization of the contractor's work
				force over a longer period of time may promote economy and consistent quality;
				or,
(4) the cost and burden of
				contract solicitation, award, and administration of the procurement may be
				reduced.
3-502.03
Multi-Term Contract
				Procedure
3-502.03.1
Solicitation
The solicitation shall state:
(a) the amount of services required for the
				proposed contract period;
(b) that
				a unit price shall be given for each service, and that such unit prices shall
				be the same throughout the contract;
(c) that the multi-term contract will be
				canceled if funds are not appropriated or otherwise made available to support
				the continuation of performance in any fiscal period succeeding the first;
				however, this does not affect either the State's right or the contractor's
				rights under any termination clause in the contract;
(d) that the Procurement Officer must notify
				the contractor on a timely basis that the funds are or are not available for
				the continuation of the contract for each succeeding fiscal period; and,
(e) that a multi-term contract may
				be awarded and how award will be determined.
3-502.03.2
Award
Award shall be made as stated in the solicitation and
				  permitted under the source selection method utilized.
3-502.03.3
Cancellation
(a) "Cancellation," as used in multi-term
				contracting, means the cancellation of the total requirements for the remaining
				portion of the contract because funds were not appropriated or otherwise made
				available. The contract for the fiscal period shall not be canceled.
				Cancellation results when the Procurement Officer:
(1) notifies the contractor of
				non-availability of funds for contract performance for any fiscal period
				subsequent to the first; or,
(2)
				exercises a cancellation provision of the original contract.
(b) These provisions on
				cancellation of multi-term contracts do not limit the rights of the State or
				the contractor under any termination clause of the contract if the contract is
				terminated pursuant to that clause rather than canceled as provided in this
				subsection. If a contract is canceled for lack of funding, all obligations due
				the contractor for the period during which funding was available shall be paid.
				Cancellation for reasons of nonavailability of funding relieves the purchaser
				of all contractual obligations for any contract period subsequent to the date
				of cancellation. No contract shall be canceled for lack of funds during a
				fiscal year period when funds were allocated for such contract.
3-502.03.4
Contract
				Clause
The following clause, or one substantially similar, shall be
				  used by the Purchasing Agency in multi-term contractual agreements:
Availability of Funds
It is expressly understood and agreed that the
				  obligation of the [agency] to proceed under this agreement is conditioned upon
				  the appropriation of funds by the Mississippi State Legislature and the receipt
				  of state and/or federal funds. If the funds anticipated for the continuing
				  fulfillment of the agreement are, at any time, not forthcoming or insufficient,
				  either through the failure of the federal government to provide funds or of the
				  State of Mississippi to appropriate funds or the discontinuance or material
				  alteration of the program under which funds were provided or if funds are not
				  otherwise available to the State, the [agency] shall have the right upon ten
				  (10) working days written notice to the contractor, to terminate this agreement
				  without damage, penalty, cost or expenses to the State of any kind whatsoever.
				  The effective date of termination shall be as specified in the notice of
				  termination.
Note:
Multi-term
				  contracts, as set forth in this section, should be interpreted to mean a
				  contract having effective dates spanning appropriation periods two or more
				  fiscal years and would obligate the agency to purchase a specified quantity of
				  services over that period.