La. Admin. Code tit. 34 § XIII-1906

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

Section XIII-1906 - Multiyear Contracts

A. Term. Except as otherwise provided in this section, no contract for goods or services may be entered into for periods of more than ten years. Payment and performance obligations for fiscal years after the initial year shall be subject to the availability and appropriation of funds therefor. No contract shall be entered into for more than one year unless the length of the contract was clearly stated in the specifications included in the solicitation. With respect to all multiyear contracts, there shall be no provisions for a penalty to the university for the cancellation or early payment of the contract.

B. Sponsored Agreements or Joint Agreements. Contracts or amendments to existing or future agreements or amendments issued under the authority of sponsored agreements or joint agreements between the Board of Regents and federal agencies for research, educational, or infrastructure development activities, and contracts or amendments to existing contracts issued by university under the authority of sponsored agreements or joint agreements issued by federal agencies or private sponsored agreements, may be entered into for a period corresponding to the performance period of the contract or agreement.

C. Capital Investments/Gifts. A nonexclusive contract with a vendor who has made a gift to the university of equipment utilized for promoting products and university activities at a substantial cost to the vendor, and which covers products for resale within the institution, may be entered into for a period not to exceed 10 years.

D. Term of Revenue Generating Contracts. Nothing in this Section shall limit the term of revenue generating contracts.

E. Exceptions. Notwithstanding the limitations set forth in this section, contracts of any type may be entered into for a longer term upon the express authorization of the management board, based on the written recommendation of the CPO and the chancellor that:

1. estimated, requirements cover the period of the contract and are reasonably firm and continuing; and

2. such a contract will serve the best interests of the university by encouraging effective competition or otherwise promoting economies in university procurement, which recommendation shall also state the estimated savings to be obtained by entering into a multiyear contract.

La. Admin. Code tit. 34, § XIII-1906

Promulgated by the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, Office of Procurement and Property Management, LR 41552 (3/1/2015).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3139-3139.7 as amended by Act 749 of 2014.