La. Admin. Code tit. 34 § I-5517

Current through Register Vol. 50, No. 9, September 20, 2024

Section I-5517 - Master Agreements; Clauses; Approval

A.R.S. 39:198(E)authorizes the state director of purchasing to enter into master agreements with vendors with which the state conducts substantial business over a period of time and sets forth the uses to which such master agreements may be put. Master agreements may be approved in accordance with the following requirements.

B. Master agreements submitted for approval shall, at a minimum, contain the following provisions:

1. any contract based on the master agreement shall be governed by the laws of the state of Louisiana;

2. the unilateral right of the state to order in writing changes in the work within the general scope of the contract in any one or more of the following:

a. drawings, designs, or specifications, if the supplies to be furnished are to be specially manufactured for the state in accordance therewith;

b. method of shipment or packing; or

c. place of delivery;

3. the unilateral right of the state to order in writing temporary stopping of the work or delaying of performance;

4. variations between estimated quantities of work in a contract and actual quantities;

5. liquidated damages as appropriate;

6. specified excuses for delay or nonperformance;

7. termination of the contract for vendor's default;

8. termination of the contract in whole or in part for the convenience of the state;

9. the vendor shall agree to indemnify the state and hold the state harmless without limitation of liability;

10. the vendor shall agree to secure and maintain insurance in such types and amounts as approved by the director of state purchasing;

11. the vendor agrees continuation of contracts in effect during more than one fiscal year is contingent upon the appropriation of funds to fulfill the requirements of the contract by the legislature. If the legislature fails to appropriate sufficient monies to provide for the continuation of the contract or if such appropriation is reduced by the veto of the governor or by any means provided in the appropriations act or Title 39 of the Louisiana Revised Statutes of 1950 to prevent the total appropriation for the year from exceeding revenues for that year, or for any other lawful purpose, and the effect of such reduction is to provide insufficient monies for the continuation of the contract, the contract shall terminate on the date of the beginning of the first fiscal year for which funds are not appropriated;

12. a ny changes mandated by state or federal law, whether legislative or judicial, will be incorporated into the master agreement; however, if such a change is not acceptable to either party, the affected term or terms of the contract shall be renegotiated and, if agreement cannot be reached, shall be stricken from the contract.

C. The director of purchasing may approve a master agreement only after the agreement has been negotiated with the vendor by the procurement support team.

D. In the event any vendor fails to fulfill or comply with the terms of any contract, the director of purchasing may rescind approval of the vendor's master agreement.

La. Admin. Code tit. 34, § I-5517

Promulgated by the Office of the Governor, Division of Administration, Office of State Purchasing, LR 39:309 (February 2013).

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:200(F).