Section 0690-03-01-.16 - GENERAL REQUIREMENTS OF CONTRACTS(1) The purpose of a written contract is to reduce the parties' agreement to writing. No unwritten terms, conditions or understandings of the parties shall form the basis of a contract or an alteration of or amendment to a contract. All contracts shall be explicit and clearly state the rights and duties of each party. The terms and conditions of a contract subject to these Rules shall be written, in form and content, in accordance with Central Procurement Office Policy. Except as otherwise provided by these Rules, all contracts shall meet the following requirements:(a) The Contracting Party's duties shall be clearly and specifically defined and detailed in such a manner as to ensure accountability. The Contracting Party's duties may include, but are not limited to type, scope, duration, form, quality, quantity, place, time, and purpose of goods or services.(b) The State's duties shall be clearly defined and detailed in accordance with Central Procurement Office Policy. Contract terms shall clearly indicate the maximum liability , as applicable, to the State under the contract. The State's duties shall also include, but are not limited to, the method, timing and conditions of payment and the term of the contract.(c) Where appropriate, additional provisions, necessary to specify the particulars of a contract and protect the interests of the State shall be written in accordance with Central Procurement Office Policy.(d) If the Contracting Party is a corporation, its name shall be stated in the contract as it appears in its charter. The person signing on behalf of the corporation shall have authority to do so, and his or her position with the corporation shall be shown on the signature page. The Chief Procurement Officer may require that the Contracting Party provide a copy of its corporate charter or certificate of authority prior to contract approval.(e) In circumstances deemed appropriate by the Chief Procurement Officer, the State may require a potential contractor to provide a performance bond or surety deposit prior to entering a contract subject to these Rules.(f) As deemed appropriate, the State may require a potential contractor to provide proof of insurance prior to entering a contract subject to these Rules.(g) Any reimbursement to a contractor for travel, meals, or lodging shall be subject to the amounts, limitations, and Rules set forth in the State Comprehensive Travel Regulations as amended. The limits and Rules set forth in the State Comprehensive Travel Regulations shall be construed to provide for the reimbursement of travel expenses incurred within the State of Tennessee at "in-State rates" and for the reimbursement of travel expenses incurred outside the State of Tennessee at "out-of-State rates."(h) The State shall utilize Energy Star prescribed energy efficiency standards for all procurements involving the purchase of energy consuming products. Such procurements shall be made in accordance with these Rules and Central Procurement Office Policy.Tenn. Comp. R. & Regs. 0690-03-01-.16
Original rule filed October 22, 2013; effective January 20, 2014.Authority: T.C.A. §§ 4-56-102, 4-56-105, 12-3-905, and 12-3-906.