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(A) General authority. Subject to the limitations of this subchapter, any type of contract which is appropriate to the procurement and which will promote the best interests of the city may be used, provided said procurement conforms with A.R.S. § 41-2544.
(B) Multi-term contracts.
(1) Determination and 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 city, 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 therefore. The Chief Procurement officer will determine that a multi-term contract is in the best interests of the city.
(2) Cancellation; unavailability of funds in succeeding fiscal periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any nonrecurring 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 the 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 city's actual requirements is limited by the provisions of A.R.S. § 47-2306(A), the Arizona Uniform Commercial Code.
(2) Limitations on use. A multiple source award may be made when awarded 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 §§ 39.11, 39.12, 39.14, and 39.16 of this chapter, as applicable, and shall be procured under the provisions of A.R.S. § 34-603. 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 the bids.
(3) Contract and solicitation provisions. All eligible users, i.e., departments, divisions, and cooperative provisions, if any, of the contract shall be named in the solicitation. It shall be mandatory that the actual requirements of the users that can be met under the contract be obtained in accordance with Arizona State Law.
(4) Intent to use. If a multiple source award is anticipated prior to issuing a solicitation, the city shall indicate its intent within the solicitation documents, along with the criteria for award.
(5) Determination required. The Chief Procurement Officer will make a determination setting forth the reasons for a multiple source award, which shall be made a part of the procurement file.
('76 Code, § 3-8-3) (Ord. 903, passed 7-23-92; Am. Ord. 2008-012, passed 6-12-08; Am. Ord. 2016-008, passed 12-8-16)