6.15.420 Multi-year contracts.
(a) Policy. The Chief Procurement Officer is authorized to enter into multi-year contracts when it is in the best interests of WSSC provided WSSC retains the right to cancel such contracts after the first fiscal period (or one year) due to unavailability of funds.
(b) Specified Period. Unless otherwise provided by law, a contract for goods and supplies or services may be entered into for any period of time deemed to be in the best interests of WSSC provided the terms of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are 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 therefor.
(c) Use. A multi-year contract is authorized where:
(1) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and
(2) Such a contract will serve the best interests of WSSC by encouraging effective competition or otherwise promoting economies in WSSC procurement.
(d) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise not made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled and the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the goods and supplies or services delivered under the contract. The cost of cancellation may be paid from any appropriations available for such purposes.
(e) Award. Award shall be made as stated in the solicitation and permitted under the source selection method utilized.
(f) Cancellation.
(1) As used in multi-year contracting, “cancellation” means the cancellation of the total requirements for the remaining portion of the contract because funds were not appropriated or otherwise made available. The contract for the first fiscal period (or one year) shall not be canceled. Cancellation results when the Procurement Officer notifies the contractor in writing of the nonavailability of funds for contract performance for any fiscal period subsequent to the first period or the first year.
(2) These provisions on cancellation of multi-year contracts do not limit the rights of WSSC or the contractor under any termination clause of the contract, if the contract is terminated pursuant to that clause rather than canceled as provided in this subsection. (Procurement regulations § 4-502, dated August 1, 2012)