Multi-term contracts are those contracts which (1) have a period of performance lasting more than one year; (2) have a period of performance which spans two or more state fiscal years; and/or (3) have renewal clauses which, if exercised, would make the period of performance more than one year or make the period of performance span two or more state fiscal years. (The state fiscal year runs from July 1 to the following June 30.)
A multi-term contract is appropriate when it is in the Agency's best interest to obtain uninterrupted services, where performance of such services involves high start-up costs, or where implementation of a new service contractor involves high transition costs to the incumbent vendor, the new vendor, or both.
Any such contract shall contain the Availability of Funds clause found in Appendix E.
Unless otherwise provided by law, a contract for personal and professional services may be entered into for a maximum period of performance of five years. This limitation does not apply to contracts for contract workers.
The original period of performance and conditions for renewal, if any, shall be included in the solicitation. Funds shall be available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds.
If an Agency believes it is in the Agency's best interest for a specific contract to have a period of performance which is longer than the maximum period described above, the Agency may petition PPRB to approve a longer period of performance. It shall be in PPRB's sole discretion to grant or deny the petition. Such approval shall occur prior to issuance of the solicitation and the period of performance approved by PPRB shall be included in the solicitation. Such a request shall be signed by the Agency Head and submitted to the Director of OPSCR pursuant to the deadlines established by PPRB for contract approval.
Multi-term contracts should only be used when the Agency's need for personal and professional services is reasonably firm and continuing, when use of a multi-term contract would encourage effective competition and promote economies in public procurement, and when use of a multi-term contract is in the Agency's best interest.
Factors which an Agency may consider in deciding whether to use a multi-term contract include:
* whether the vendor would need to recover high startup costs;
* whether continuity of performance would result in lower pricing or better quality;
* whether continuity of performance would stabilize the contractor's workforce;
* the administrative burden of the procurement process may be reduced.
Any other relevant factors may also be considered. It is presumed that an Agency using a multi-term contract has made this determination by choosing to use a multi-term contract.
The solicitation for a multi-term contract shall state the term of the contract the Agency is soliciting and instruct potential offerors as to how the Agency intends for the offerors to submit pricing for the life of the contract. The Agency may require pricing which will remain firm and fixed throughout the life of the contract, but if the Agency will allow a price adjustment, the price adjustment allowed shall be adequately defined in the solicitation such that all pricing is known at the time of contracting. The Availability of Funds clause in Appendix E shall also be included in the solicitation. Award shall be made as stated in the solicitation and permitted under the source selection method utilized.
12 Miss. Code. R. 9-14.3