La. Admin. Code tit. 42 § XV-319

Current through Register Vol. 50, No. 11, November 20, 2024

Section XV-319 - Preparation of Contract

A. Upon completion of the evaluation and mutual acceptance of all terms of the proposal by the corporation and the contractor, the corporation shall prepare the contract. The contract shall contain, at a minimum, the following:

1. the name and address of the contractor;

2. the goods to be delivered or the services to be performed under the contract;

3. the term of the contract and a statement giving the corporation the right to terminate the contract unilaterally upon 30 days written notice;

4. a provision giving the corporation the right to audit those financial records of the contractor which relate to the contract;

5. a provision that the contractor shall not transfer any interest in the contract without the prior written consent of the corporation (except that claims for money due or to become due to the contractor from the corporation under the contract may be assigned to a bank, trust company or other financial institution but that the corporation shall not be bound by the assignment unless furnished sufficient notice of it);

6. a provision that the contractor shall bear responsibility for paying any taxes which become due as a result of payments to the contractor under the contract;

7. a provision that upon termination of the contract all records, reports, worksheets or any other materials related to the contract shall become the property of the corporation;

8. a provision obligating the contractor to provide the corporation with notice of any material adverse change in its condition, financial or otherwise;

9. a provision requiring the payment of liquidated damages to the corporation upon a material breach of the contract by the contractor; and

10. Louisiana laws will govern the contract.

B. A procurement contract shall not obligate the corporation for an initial term in excess of three years without the approval of the board. A contract may contain two optional periods for extensions of the contract by the corporation, provided that any individual option period or extension shall not exceed one year in duration, and any individual option period or extension may become effective only upon the specific, affirmative exercise of the option, or the specific, affirmative agreement to the extension, by the corporation.

La. Admin. Code tit. 42, § XV-319

Adopted by the Louisiana Lottery Corporation on September 26, 1991 and promulgated in The Advocate on October 8, 1991, repromulgated LR 26:707 (April 2000).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:9001 et seq.