Department of Corrections and Rehabilitation - Operations Manual

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Chapter 2 – Fiscal Management

Article 13 – Contracts

Revised July 30, 2010

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22040.11 Term of Contract

  • Contracts for services should normally not exceed two years, unless there is statutory authority for a longer term or a substantial written justification demonstrates a business need for a longer term.

  • Contracts for more than one fiscal or calendar year shall be bid on a multiyear basis; that is, a twoyear contract shall include a total dollar amount for the two years which is not subject to yeartoyear increases or negotiation.

  • Contracts bid or written on a multiyear basis to secure a rate/cost for the entire period of the contract shall have a termination clause for the State only.