Current through Register Vol. 48, No. 38, September 20, 2024
a)
General
The term of a contract, including potential renewals, may not
exceed 10 years.
1) A software license
designated as a perpetual license is not considered a multi-term contract; it
is instead a one-time purchase.
2)
The length of a lease for real property or capital improvements shall be in
accordance with Section 40-25 of the Code.
3) The length of an energy conservation
program contract or energy savings contract or leases shall be in accordance
with Section 25-45 of the Code and the Public University Energy Conservation
Act [ 110 ILCS 62 ].
4) The length
of a lease for State-owned dark fiber networks shall be in accordance with
Section 20-60 of the Code.
b) Subject to Appropriation
Each contract is contingent upon and subject to the
availability of funds. The State, at its sole option, may terminate or suspend
a contract, in whole or in part and 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 or insufficiency
of funding. A vendor will be notified in writing by the university of a failure
or reduction or decrease of appropriation affecting a 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 is required to meet State 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 startup costs or capital investment in facility
expansion will be encouraged to participate in the competition when they are
assured of recouping costs during the period of contract performance;
B) lower production costs because of a 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 vendor'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-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); and
4) how award will be
determined.
e) Renewals
1) The initial term of a contract plus
available renewals may not exceed 10 years. When the original contract
specifically calls for an initial term plus renewals, the renewals may be
exercised without further procurement activity, except for the publication of
the renewal in the Bulletin as required by
30 ILCS 575/8i, Section
15-25 of the Code and Section
4.1525 of this
Part, and review by the PPB under Section 5-30 of the Code. The renewal terms
and conditions shall not change except as provided in the contract (such as
price escalations tied to an index) and as provided by in
30 ILCS 575/8i. Renewal
options may be exercised by the university or by mutual agreement of the
vendor, but may not be exercised solely at the option of the vendor. Except as
provided by
30 ILCS 575/8i, any
renewal that requires modification to a material term or condition of the
contract shall be treated as a new contract and shall be subject to appropriate
procurement procedures established by the Code and this Part.
2) A renewal may only be entered into if
authorized by the original contract.
3) At least 6 months prior to exercising a
renewal, a university shall review the vendor's performance to determine if
good faith efforts toward meeting contract goals identified in the vendor's
utilization plan are being met by the vendor. Except for construction and
construction-related services, no renewal shall be authorized if the university
determines good faith efforts were not exercised in meeting the contract goals
agreed to in the utilization plan.
4) All renewals must be in conformance with
the underlying contract. The procurement/contract file must contain any renewal
justification form prescribed by the CPO-HE.
5) When a renewal will result in the total
term, counting the initial term and any previous renewals, exceeding 10 years,
the university's need must be procured using one of the methods of source
selection authorized by the Code and this Part.
6) Renewals must be fully executed on or
before expiration of the current contract term. If the renewal is not exercised
prior to expiration of the current contract term, the supplies or services must
be procured anew using one of the methods of source selection authorized by the
Code and this Part.
f)
Filing of Proposed Renewals and Extensions Exceeding $249,999
1) Prior to executing a renewal or extension
with a cost estimated to exceed $249,999, the proposed renewal or extension
must be submitted to the PPB. The PPB shall have up to 30 days to review and
comment on the proposal. The SPO assigned to the university may request a
waiver of the review for reasons set forth in Section 20-60(c) of the
Code.
2) This subsection does not
apply to any:
A) emergency
procurement;
B) procurement
conducted under Article 40 of the Code; or
C) procurement exempted by Sections 1-10(b),
1-12 and 1-13 of the Code.
3) A contract is exempt from this subsection
if it is paid for in whole or in part with federal-aid funds, grants or loans
and where the provisions of this subsection would result in loss of those
federal funds. A university shall file notice of this exemption with the PPB
prior to entering the proposed renewal or extension.
