Section 12-6-3.118.03.3 - Cancellation(1)"Cancellation," as used in multi-term contracting, means the cancellation of the total requirements for the remaining portion of the contract because funds were not appropriated or otherwise made available. The contract for the first fiscal period shall not be canceled. Cancellation results when the Agency Procurement Officer: (a) Notifies the contractor of nonavailability of funds for contract performance for any fiscal period subsequent to the first; or(b) Exercises cancellation provision of the original contract.(2) These provisions on cancellation of multi-term contracts do not limit the rights of the State or the contractor under any termination clause of the contract if the contract is terminated pursuant to that clause rather than canceled as provided in this subsection. If a contract is canceled for lack of funding, all obligations due the contractor for the period during which funding was available shall be paid. Cancellation for reasons of nonavailability of funding relieves the purchaser of all contractual obligations for any contract period subsequent to the date of cancellation. No contract shall be canceled for lack of funds during a fiscal year period when funds were allocated for such contract.Commentary
Multi-term contracts as set forth in this section should be interpreted to mean a contract having effective dates that would span two fiscal years or two appropriation periods and would obligate the purchasing entity to purchase a specified quantity of supplies over that period. It does not refer to a term contract that only establishes a price for which an unspecified quantity of supplies may be purchased.
12 Miss. Code. R. 6-3.118.03.3