D.C. Mun. Regs. tit. 7, r. 7-1611

Current through Register Vol. 71, No. 43, October 25, 2024

Rule 7-1611 - MULTIYEAR CONTRACTS; EXERCISING OPTION YEARS; CONTRACT MODIFICATION; CONTRACT TERMINATION

1611.1

The Board may enter into multiyear contracts to obtain goods and services for any period of time deemed to be in the best interest of the Board 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 availability and appropriations of funds.

1611.2

The Board may utilize a multiyear contract where:

(a) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(b) The multiyear term would encourage effective competition, promote economies in the Board's procurements, or otherwise be in the best interest of the Board; and

(c) The multiyear term does not exceed a period of more than five (5) years unless, with respect to a particular contract, the Board, by a majority vote of its members present and voting, authorizes the extension of such period for such contract.

1611.3

Budget authority to fund a multiyear contract shall be obligated on an annual basis. The initial obligation of funds shall be for the period between the dates of contract award through the end of the fiscal year in which the contract award occurs. Thereafter, each subsequent obligation of funds shall be made one (1) fiscal year at a time and must cover the contract amount that will be incurred in the fiscal year in which the contract work will be performed. First fiscal year requirements of the contract, and funds for requirements in each subsequent contract term, shall be obligated one (1) fiscal year at a time.

1611.4

At the end of each fiscal year, a multiyear contract shall be canceled if sufficient budget authority is not available to fund the contract during a subsequent fiscal year.

1611.5

If a multiyear contract is canceled due to unavailability of funds, the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the goods delivered and accepted or services delivered and accepted under the contract.

1611.6

If a multiyear contract is terminated for the convenience of the Board, including items subject to cancellation, the Board's obligation shall not exceed the amount specified for contract performance plus the reasonable value of any nonrecurring costs incurred but not amortized in the price of the goods delivered or services performed under the contract.

1611.7

The costs of cancellation or termination may be paid from appropriations available for such purposes.

1611.8

Any solicitation for a multiyear contract shall include:

(a) The goods or services required;

(b) The proposed contract period; and

(c) A clause stating that the multiyear contract will be cancelled if funds are not appropriated or otherwise made available to support the continuation of performance in any fiscal period succeeding the first and a statement that this clause does not affect either the District's rights or the contractor's rights under any termination clause in the contract.

1611.9

Option Years. Exercising an option year requires the written approval of the Chief Contracting Officer.

1611.10

Prior to exercising any option regardless of dollar value:

(a) The Contracting Officer shall ensure that the Board's contract files include an evaluation of the contractor's performance under the contract and that such performance evaluation reasonably supports exercising the option;

(b) The Board's Chief Financial Officer shall certify the availability of funds for the exercise of the option;

(c) When exercising a contract option amount greater than one hundred thousand dollars ($100,000), the Contracting Officer shall confirm that the Board approved such amount; and

(d) The Contracting Officer shall provide written notice to the contractor within the time period specified in the contract.

1611.11

Contract Modifications. The Contracting Officer may modify a contract. All contract modifications must be in writing and submitted electronically.

1611.12

A modification must be within the scope of the original contract. Any requirement for extra work that goes beyond the contract's general scope shall be the subject of a new procurement.

1611.13

A contract modification greater than one hundred thousand dollars ($100,000) shall be approved by the Chief Contracting Officer and made effective by bilateral agreement, unless the contract includes a changes clause permitting the Contracting Officer to make unilateral changes to the contract scope.

1611.14

Contract Terminations. All contracts shall include "Termination for Default" and "Termination for Convenience" clauses specifically defining the Board's termination rights.

1611.15

When exercising the Board's rights under a termination clause in the contract, the Contracting Officer shall provide the contractor with a written notice specifying:

(a) Whether the termination is for default or for convenience;

(b) The effective date of the termination;

(c) Whether the contract is terminated in whole, or in part; and

(d) Any special instructions that apply to the termination, such as the return or disposal of Board property.

1611.16

If terminating a contract for convenience, the Contracting Officer shall request a settlement proposal from the contractor and, with the assistance of the Board's General Counsel, attempt to negotiate a settlement that resolves the parties' rights and liabilities, except those arising from any portion of the contract remaining in effect.

1611.17

If a settlement is negotiated, the Contracting Officer shall prepare a memorandum describing the principal elements of the settlement and include the memorandum, along with the settlement agreement (if applicable) in the contract file.

1611.18

If a settlement is unable to reached within one (1) year from the effective date of termination, the Chief Contracting Officer shall make a final determination of settlement.

1611.19

In determining whether to terminate a contract, the Chief Contracting Officer shall consider the following additional factors:

(a) Extent of contract performance;

(b) Impact of termination on the Board's activities and mission;

(c) Estimated cost to the Board resulting from termination; and

(d) Urgency of need for the goods or services.

1611.20

Contract Closeout. Upon the expiration or termination of a contract, the Contracting Officer shall closeout the contract and ensure that the Board's contract files include:

(a) Notice to the contractor of the expiration or termination of the contract;

(b) The effective date of expiration or termination;

(c) Evidence of the contractor's completion, to the satisfaction of the Board, of the requirements of the contract;

(d) A reconciliation of the contract costs and evidence that the payment obligations of the Board under contract have been satisfied;

(e) Evidence that contractor has returned or disposed of any Board property in the contractor's possession in accordance with these Rules or the particular terms of the contract; and

(f) A final evaluation of the contractor's performance under the contract.

1611.21

Freedom of Information and Privacy and Disclosure. If a contractor collects, retains, or has in its possession any document, record, or other information obtained in the performance of a Board contract which document, record, or information may be exempt or prohibited from disclosure by any District or Federal law or regulation, including the District's Freedom of Information Act (title II of the District of Columbia Administrative Procedure Act, effective March 29, 1977 (D.C. Law 1-96; D.C. Official Code §§ 2-531 et seq. (2012 Repl.)), the contractor shall not disclose the document, record, or other information to any person other than an authorized Board employee or agent. A contractor shall timely report any requests for the Board's information to the Contracting Officer.

D.C. Mun. Regs. tit. 7, r. 7-1611

Notice of Final Rulemaking published at 57 DCR 12594, 12604 (December 31, 2010); amended by Final Rulemaking published at 68 DCR 63 (1/7/2022)

Authority: The District of Columbia Retirement Board (the Board), pursuant to the authority set forth in section 121(i) of the District of Columbia Retirement Reform Act of 1979 ( Pub. L. 96-122, 93 Stat. 866 (Nov. 17, 1979) (codified at D.C. Official Code § 1-711(i) (2001)) (the Reform Act).