(A) General authority. Subject to the limitations of this section, any type of contract which is appropriate to the procurement and which will promote the best interests of the town may be used, provided that the use of a cost-plus-a-percentage-of-cost contract is prohibited. A cost reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the town than any other type or that it is impracticable to obtain the supply, service, or construction item required except under such a contract.
(B) Multi-term contracts.
(1) Specified period. Unless otherwise provided by law, a contract for supplies or services may be entered into for any period of time deemed to be in the best interests of the town, provided the term 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 thereof.
(2) Determination prior to use. Prior to the utilization of a multi-term contract, it shall be determined in writing:
(a) That estimated requirements cover the period of the contract and are reasonably firm and continuing; and
(b) That such a contract will serve the best interests of the town by encouraging effective competition or otherwise promoting economies in town procurement.
(3) Cancellation due to unavailability of funds in succeeding fiscal periods. When funds are not appropriated or otherwise made available to support continuation of performance in subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from any appropriations available for such purposes.
(C) Multiple source contracting.
(1) General. A multiple source award is an award of an indefinite quantity contract for one or more similar supplies or services to more than one bidder or offeror. The obligation to order the town's actual requirements is limited by the provision of Uniform Commercial Code Section 2-306(1).
(2) Limitations on use. A multiple source award may be made when award to two or more bidders or offerors for similar products is necessary for adequate delivery, service, or product compatibility. Any multiple source award shall be made in accordance with the provisions of § 33A.030 (Competitive Sealed Bidding), § 33A.031 (Competitive Sealed Proposals), § 33A.033 (Small Purchases), and § 33A.035 (Emergency Procurements), as applicable. Multiple source awards shall not be made when a single award will meet the town's needs without sacrifice of economy of service. Awards shall not be made for the purpose of dividing the business, making available product or supplier selection to allow for user preference unrelated to utility or economy, or avoiding the resolution of tie bids. Any such awards shall be limited to the least number of suppliers necessary to meet the valid requirements.
(3) Contract and solicitation provisions. All eligible users of the contract shall be named in the solicitation, and it shall be mandatory that the requirements of such users that can be met under the contract be obtained in accordance with the contract, provided that:
(a) The town shall reserve the right to take bids separately if a particular quantity requirement arises which exceeds its normal requirement or an amount specified in the contract; and
(b) The town shall reserve the right to take bids separately if the purchasing agent approves a finding that the supply or service available under the contract will not meet a nonrecurring special need of the town.
(4) Intent to use. If a multiple source award is anticipated prior to issuing a solicitation, the town shall reserve the right to make such an award and the criteria for award shall be stated in the solicitation.
(5) Determination required. The purchasing agent shall make a written determination setting forth the reasons for a multiple source award, which shall be made a part of the procurement file.
(Ord. passed 9-19-05)