Section 5-E3710. DURATION AND CANCELLATION OF CONTRACTS  


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    3710.1Unless otherwise provided in an appropriations act or approved by the Council pursuant to law, a contract for supplies or services may be entered into for a period of not more than five (5) years, if funds for the first fiscal year of the contemplated contract are available at the time of contracting.

     

    3710.2Any contract in excess of three (3) years shall be approved by the Superintendent.

     

    3710.3Payment and performance obligations for fiscal years succeeding the initial year shall be subject to the availability of funds.

     

    3710.4Prior to the utilization of a multi-year contract, the following shall be determined in writing:

     

    (a)Estimated resources over the period of the contract are reasonably firm and continuing; and

     

    (b)The contract will serve the best interests of the school system by encouraging effective competition or by otherwise promoting economies in procurement.

     

    3710.5When funds are not appropriated or otherwise made available to support a continuation of performance in a subsequent year of a multi-year contract, the contractor, for that subsequent year, shall be reimbursed for the reasonable value of non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract.

     

    3710.6The cost of cancellation may be paid from the following:

     

    (a)Appropriations currently available for performance of the contract;

     

    (b)Appropriations currently available for procurement of similar supplies or services and not otherwise obligated; or

     

    (c)Appropriations made specifically for the payment of the cancellation costs.

     

    3710.7Negotiated services contracts may be terminated for default upon written recommendation by the contract manager to the procurement officer, who shall ultimately determine whether to approve the termination prior to forwarding the notice to the contractor.

     

    3710.8The notice under § 3710.7 shall describe, with specificity, the acts or omissions and the extent of the resultant delay constituting the default, state the effective date of termination, and state the right to appeal set forth in § 3713.

     

source

Final Rulemaking published at 30 DCR 3771, 3780 (July 29, 1983).