Section 3 AAC 109.530 - Contract term and cancellation(a) Unless otherwise provided by law, a contract for supplies, services, or professional services may be entered into for any period of time considered to be in the best interests of the grantee or authority if 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 grant period at the lime of contracting.(b) Payment and performance obligations for succeeding grant periods shall be subject to the availability and designation of funds for purposes of the contract.(c) Before using a multi-term contract, the procurement officer shall determine in writing that (1) estimated requirements cover the period of the contract and are reasonably firm and continuing; and(2) the contract will serve the best interests of the grantee or authority by encouraging effective competition and efficient contract administration.(d) When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled.(e) Upon cancellation, the contractor may only be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies, services, or professional services delivered under the contract that are not otherwise recoverable.Eff. 7/10/2015, Register 215, October 2015