Current through Register Vol. 48, No. 38, September 20, 2024
a)
General
1) A multi-term contract for a term
of up to 10 years is authorized when determined by the CPO to be in the best
interest of the State, inclusive of proposed contract renewals.
2) A software license may have a term longer
than 10 years, including for a perpetual term, provided the payment term is
limited to no more than 10 years.
3) The length of the payment terms of the
bonds issued by or on behalf of the IOC shall be limited as provided in the
statute authorizing the issuance of bonds.
b) The contractual obligation of both parties
in each fiscal period succeeding the first is subject to the appropriation and
availability of funds. The contract shall provide that, in the event that funds
are not available for any succeeding fiscal period, the remainder of the
contract shall be canceled without penalty to, or further payment being
required by, the IOC. This provision applies to only those contracts that are
funded in whole or in part by funds appropriated by the Illinois General
Assembly or other governmental entity.
c) Conditions for Use of Multi-Year Contracts
A multi-year contract may be used when:
1) special production of definite quantities
or the furnishing of long-term services are required to meet IOC needs;
or
2) a multi-year 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:
A) firms that are not willing or able to
compete because of high start-up costs or capital investment in facility
expansion will be encouraged to participate in the competition when they are
assured of recouping those costs during the period of contract
performance;
B) lower production
costs because of larger quantity of service requirements, and substantial
continuity of production or performance over a longer period of time, can be
expected to result in lower unit prices;
C) stabilization of the contractor's work
force over a longer period of time may promote economy and consistent quality;
or
D) the cost and burden of
contract solicitation, award and administration of the procurement may be
reduced.
d)
Multi-Year Contract Procedure
The solicitation shall state:
1) the proposed term;
2) the amount of supplies or services
required for the proposed contract period;
3) the type of pricing requested (e.g., firm
or term); and
4) how the award will
be determined.
e)
Renewals
1) When the original procurement
specifically called for an initial term plus renewals, the renewals may be
exercised without further procurement activity, provided the initial term and
the exercised renewals may not exceed 10 years, the terms and conditions do not
change except as provided in the contract (such as price escalations tied to an
index) and the option to renew is reserved solely to the IOC or to mutual
agreement of the parties.
2) When a
renewal will result in the total term, counting the initial term and any
previous renewals, exceeding 10 years, the renewal must be procured using one
of the methods of source selection authorized by the Code and this Part. This
renewal will start a new term that shall not exceed 10 years.
