8.2: Multi-Term
Multiterm contracts are for products, goods, and/or services of such nature that an ongoing annual requirement exists. Where and when such conditions exist, multiterm contracts should be used as much as possible to be in the best interests of the Town, as described below.
   1.   Multiterm contracts for supplies and services may be entered into for specified periods of time, not to exceed five years, provided the terms 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 initial term.
   2.   As specified within the invitation, multiterm 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, in writing, to be fair and reasonable to the Town. Validity or justification shall be requested from and provided by the supplier in writing, addressing any requests which are considered unreasonable.
   3.   Multiterm contracts shall not cause undue hardship on either party. Either party may submit in writing a request for reevaluation of the contract, in whole or in part, due to extreme verifiable conditions or circumstances.
   4.   All multiterm 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 fund sufficient to support continuation of performance not be appropriated or otherwise made available for subsequent fiscal period.
   5.   Whereas, some multiterm 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.
   6.   Multiterm contracts may be extended on a case-by-case basis for when in the best interest of the Town. The Town may require continued performance of any contract within the limits and at the rates specified in the contract. The option provision may be exercised more than once.