Current through Register Vol. 50, No. 9, September 20, 2024
A. Upon
completion of the evaluation and mutual acceptance of all terms of the proposal
by the corporation and the contractor, the corporation shall prepare the
contract. The contract shall contain, at a minimum, the following:
1. the name and address of the
contractor;
2. the goods to be
delivered or the services to be performed under the contract;
3. the term of the contract and a statement
giving the corporation the right to terminate the contract unilaterally upon 30
days written notice;
4. a provision
giving the corporation the right to audit those financial records of the
contractor which relate to the contract;
5. a provision that the contractor shall not
transfer any interest in the contract without the prior written consent of the
corporation (except that claims for money due or to become due to the
contractor from the corporation under the contract may be assigned to a bank,
trust company or other financial institution but that the corporation shall not
be bound by the assignment unless furnished sufficient notice of it);
6. a provision that the contractor shall bear
responsibility for paying any taxes which become due as a result of payments to
the contractor under the contract;
7. a provision that upon termination of the
contract all records, reports, worksheets or any other materials related to the
contract shall become the property of the corporation;
8. a provision obligating the contractor to
provide the corporation with notice of any material adverse change in its
condition, financial or otherwise;
9. a provision requiring the payment of
liquidated damages to the corporation upon a material breach of the contract by
the contractor; and
10. Louisiana
laws will govern the contract.
B. A procurement contract shall not obligate
the corporation for an initial term in excess of three years without the
approval of the board. A contract may contain two optional periods for
extensions of the contract by the corporation, provided that any individual
option period or extension shall not exceed one year in duration, and any
individual option period or extension may become effective only upon the
specific, affirmative exercise of the option, or the specific, affirmative
agreement to the extension, by the corporation.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
47:9001 et
seq.
