Section 22-B9805. MULTIYEAR/OPTION CONTRACTS

 

9805.1Multiyear contracting is a special method used to acquire known requirements extending over more than one (1) year but not to exceed five (5) years.

 

9805.2Unless prohibited by the provisions of an appropriations act, a CO may issue the following types of contracts on a multiyear basis:

 

(a)Firm fixed-price contracts;

 

(b)Fixed-price contracts with economic adjustments; and

 

(c)Fixed-price incentive contracts.

 

9805.3If sufficient budget authority is not made available to fund any fiscal year after the first fiscal year of a multiyear contract, the contract shall be cancelled.

 

9805.4For purpose of this section, an “option” is a unilateral right in a contract by which, for a specified time, the Hospital may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract.

 

9805.5The CO may include an option in a contract when the option is in the best interests of the Hospital.

 

9805.6Contract provisions, setting forth the cost of the option may include, but are not limited to, the following:

 

(a)A specific dollar amount;

 

(b)An amount to be determined by applying provisions (or a formula) provided in the basic contract, but not including renegotiation of the price for work in a fixed-price type contract;

 

(c)In a cost-type contract, a stated fixed or maximum fee, or a fixed or maximum fee amount determinable by applying a formula contained in the basic contract;

 

(d)A specific price that is subject to an economic price adjustment provision; or

 

(e)A specific price that is subject to change as a result of changes to the prevailing labor rates provided by the U.S. Department of Labor.

 

9805.7When awarding the basic contract, the CO shall evaluate offers for any options contained in a solicitation when it has been determined prior to soliciting offers that the Hospital is likely to exercise the options.

 

9805.8The CO shall not evaluate offers for any option when it is determined that evaluation would not be in the best interests of the Hospital.

 

9805.9The CO may determine not to evaluate options due to circumstances including, but not limited to, the following:

 

(a)There is not a reasonable certainty that sufficient budget authority will be available to permit the exercise of the option, and

 

(b)The option would not be exercisable at a price specified in, or reasonably determinable from, the terms of the basic contract.

 

9805.10Except as provided in this section, in order to meet the requirements of this title for maximum competition, each option shall be evaluated as part of the initial competition and be exercisable at an amount specified from the terms of the basic contract.

 

9805.11When exercising an option, the CO shall provide written notice to the contractor within the time period specified in the contract.

 

9805.12When a contract provides for economic price adjustment and the contractor requests a revision of the price, the CO shall determine the effect of the adjustment on prices under the option before the option is exercised.

 

9805.13The CO shall exercise an option only after determining the following:

 

(a)That sufficient budget authority is available;

 

(b)That the requirement covered by the option fulfills existing Hospital needs; and

 

(c)That the exercise of the option will be the most advantageous method of fulfilling the Hospital’s need when price and other factors are considered.

 

source

Final Rulemaking published at 41 DCR 4508, 4544 (July 8, 1994).