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 Procurement Officer to
be in the best interest of the State.
2) The length of the payment term of bonds
issued by or on behalf of a State agency shall be limited as provided in the
statute authorizing the issuance of the bonds.
3) 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.
b) The contractual obligation of both parties
in each fiscal period succeeding the first is subject to 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 such
contract shall be canceled without penalty to, or further payment being
required by, the State. 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-Term Contracts
A multi-term contract may be used when:
1) special production of definite quantities
or the furnishing of long-term services is required to meet State needs;
or
2) a multi-term contract will
serve the best interests of the State by encouraging effective competition or
otherwise promoting economies in State procurement.
d) Multi-Term 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
for term);
4) 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 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 is reserved solely to the State or is by mutual agreement. A renewal
option that requires modification to a material term or condition of the
contract shall be treated as a new contract and shall be subject to competitive
procurement procedures established by the Code and this Part.
2) When the original procurement was silent
as to renewals, the renewal must be procured using one of the methods of source
selection authorized by the Code and this Part. This renewal shall start a new
term not to exceed 10 years.
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 the Code and this Part. This
renewal will start a new term that shall not exceed 10 years.
