Current through Register Vol. 48, No. 38, September 20, 2024
a) General
1) A multi-year contract for a term up to 10
years is authorized when it is in the best interest of the State.
2) A license agreement or other agreement may
have a term longer than 10 years, including a perpetual term, provided the
payment term is limited to no more than 10 years.
b) Each contract is contingent upon and
subject to the availability of funds. The Treasurer, at his or her sole option,
may terminate or suspend a contract, in whole or in part, without penalty or
further payment being required, if the Illinois General Assembly or the federal
funding source fails to make an appropriation sufficient to pay that obligation
or if funds needed are insufficient for any reason. Each contract payable in
whole or in part by any funds appropriated by the Illinois General Assembly
shall recite that the contract is subject to termination and cancellation for
lack of, or insufficiency in, funding. A vendor will be notified in writing by
the Chief Procurement Officer of a failure to receive or a reduction or
decrease in any appropriation affecting the contract. 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 State needs;
or
2) it is determined by the Chief
Procurement Officer that a multi-year contract will serve the best interest of
the State by encouraging effective competition or otherwise promoting economies
in State procurement. The following factors must be considered by the Chief
Procurement Officer before making the determination:
A) firms that are not willing or able to
compete because of high start-up costs or capital investment in facility
expansion and will be encouraged to participate in the competition when they
are assured of recouping the 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 must state:
1) the proposed term;
2) the amount of supplies or services
required for the proposed contract period;
3) whether offerors may submit prices for:
A) the first fiscal period only;
B) the entire time of performance only;
or
C) both the first fiscal period
and the entire time of performance.
4) that a multi-year contract may be awarded
and how 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 that both: the initial term and the
exercised renewals may not exceed 10 years and is by mutual agreement or the
option is reserved solely to the State.
2) When the original procurement was silent
as to renewals, a renewal without a new procurement must meet the requirements
of Section
1400.2020(small),
1400.2025
(sole source) or
1400.2030(emergency)
procurements.
3) When a renewal will result in the total
term, counting the initial term and any previous renewals, to exceed 10 years,
the renewal must be procured using one of the methods of source selection
authorized by this Part. This renewal will start a new term that shall not
exceed 10 years.
