(A) Term.
(1) Subject to the limitations of this subchapter, any type of contract, which will promote the best interest of the town, may be used with the exception of cost plus a percentage of cost which shall be prohibited. A cost reimbursement, or a cost reimbursement plus a fixed fee, may be used when it is determined that such a contract would be less costly to the town than any other type or that it is impracticable to obtain the supplies, services or construction required except under such a contract.
(2) Whatever the contract document selected, the town’s best interest shall be served by contracts originated by using competitive prices obtained by:
(a) Itemized unit measurement with cost;
(b) Itemized project description breakdown with cost itemized; and
(c) Lump sum project cost.
(B) Multi-term. Multi-term contracts are for products, goods and or services of such nature that an ongoing annual requirement exists. Where and when such conditions exist, multi-term contracts should be used as much as possible.
(1) Multi-term contracts for supplies and services may be entered into for specified periods of time, not to exceed five years; provided the term of the contract and the conditions for renewal or extension, if any, are included and so specified in the invitation and that funds are provided and available for the first fiscal period at the time of contracting.
(2) As specified within the invitation, multi-term contracts may be firm fixed pricing for one or more years. Contracts limited to annual first year pricing may be extended or renewed for the second and subsequent years when prices, having been evaluated, are determined to be fair and reasonable to the town in writing. Validity or justification shall be requested from and provided by the supplier in writing addressing any requests, which are considered unreasonable.
(3) Multi-term contracts shall not cause undue hardship on either party. Either party may submit in writing a request for re-evaluation of the contract in whole or in part due to extreme verifiable conditions or circumstances.
(4) All multi-term contracts shall contain a municipality termination clause whereby all such type contracts may be terminated by the town, and at no cost to the town should funds sufficient to support continuation of performance not be appropriated or otherwise made available for subsequent fiscal period.
(5) Whereas, some multi-term contracts may be established upon estimated needs and/or usage the contract liability shall be limited to actual products, goods or services received and accepted by the town. Contract liability shall not be predicated on any estimated or minimum requirements.
(Ord. 001-3, passed 3-1-2001)