Rhode Island Code of Regulations
Title 220 - Department of Administration
Chapter 30 - Purchases
Subchapter 00 - N/A
Part 8 - Contracts (220-RICR-30-00-8)
Section 220-RICR-30-00-8.6 - Letter of Authorization
Universal Citation: 220 RI Code of Rules 30 00 8.6
Current through September 18, 2024
A. If the Chief Purchasing Officer determines in writing that it is essential that the vendor be given a binding commitment so that work can be commenced immediately and that negotiation of a definitive contract cannot be accomplished in sufficient time, the Purchasing Agent may issue a Letter of Authorization.
B. A Letter of Authorization (LA) shall mean a written instrument binding only when signed by the Purchasing Agent, which authorizes immediate commencement of delivery of supplies or the performance of services, as set forth within the LA.
C. Such instrument shall:
1. Represent a preliminary authorization
subject to the subsequent issuance of a Purchase Order.
2. Be superseded by a definitive contract at
the earliest practicable date not later than the greater the expiration of 180
days from the date of the LA or delivery of 40% of the contract.
3. Be specifically negotiated and address the
following contractual requirements that:
a.
the vendor will proceed immediately with performance of the LA, including
procurement of necessary materials; and
b. specifies the extent and method of
payments in the event of termination for the convenience of the state or for
default; and
c. the vendor is not
authorized to expend monies or incur obligations in excess of the maximum
liability of the state as set forth in the LA;
d. specifies the type of definitive contract
contemplated; and
e. as many
definitive contract provisions as possible; and
f. requires the vendor to provide such price
and cost information as may reasonably be required by the state; and
g. the vendor and the state enter into
negotiations promptly and in good faith to reach agreement and execute a
definitive contract.
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