Section 3-149-302 - Multi-term contract use, requirements and procedures(a) Multi-term contracts may be awarded in accordance with the terms of this section in order to advance the interests of the state through greater economy or efficiency in the provision of health and human services.(b) Multi-term contract defined. A multi-term contract is any contract that covers a term of more than two years, or that provides for extension beyond a two-year term.(c) Required determination for the use of multi-term contracts. In order to use a multi-term contract, a purchasing agency must make a determination that funds are available for the first fiscal period of the contract, and that a multi-term contract is in the best interest of the purchasing agency such as the following: (1) Provision of the required services involves high start-up costs that only have to be paid once over the life of the contract;(2) Where a changeover of providers would involve both high phase-in and high phase-out costs during the transition period;(3) When stabilization of the provider's workforce over a longer period of time would promote economy and consistent quality;(4) Where there is a compelling clinical reason for continuity in services from a provider, as applicable; or(5) Where the benefit to be gained from normal competitive practices is substantially outweighed by the costs associated with repeated competitive purchases of services.(d) Additional contract content requirements. Every multi-term contract awarded under chapter 103F, HRS, shall contain an express provision that the multi-term contract is subject to the appropriation and availability of funds for each and every fiscal year, and may be terminated without liability to either the purchasing agency or the provider in the event that funds are not appropriated or available, as provided in sections 3-149-201 and 3-149-202.(e) Construction of section. Nothing in this section shall be construed to limit the rights of the state or the provider under any termination clause of any contract awarded under chapter 103F, HRS.(f) A multi-term contract may extend for any period of time to which the provider and purchasing agency agree, provided that for any proposed period of more than six years, the head of the purchasing agency submits a written request to and receives approval from the chief procurement officer. The written request shall include the following; (1) A determination that a period of more than six years is necessary in order to secure a substantial economic benefit for the state, or a substantial clinical benefit to a service recipient;(2) A brief factual description of the circumstances that justify a period of more than six years, including reference to economic or clinical studies that support the determination in paragraph (1);(3) A determination that there is no motive of frustrating the purposes of chapter 103F, HRS, underlying the proposed award of a contract for a period of more than six years; and(4) A statement that all the information and determinations in the request are true and correct to the best of the requestor's knowledge.[Eff 6/19/99; am and comp JAN 23 2006] (Auth: HRS § 103F-106) (Imp: HRS § 103F-410)