P.R. Laws tit. 3, § 9113
Pursuant to the public policy set forth in this subchapter, the Entities of the Executive Branch shall have the authority to reduce on their own motion purchased or professional service rates within the effective term of an agreement or other acquisition document. To exercise said authority, the appointing authority or the authorized representative of the Entity of the Executive Branch shall notify the contractor or supplier, in writing, within at least ten (10) days in advance, about the following: its intent to modify the financial terms, the effective date, and the modifications to be made. The contractor or supplier shall have ten (10) calendar days to accept the modifications or terminate the agreement in writing. Once such term elapses, the appointing authority or the authorized representative of the Entity of the Executive Branch at his/her discretion may make the reduction so notified. If, once said term has elapsed, the contractor or supplier continues providing services, it shall be deemed that the contractor or supplier has accepted the proposed reduction and shall not be required to submit a written acceptance or take additional steps. The modification of the terms of the contractual obligation shall be notified, once it takes effect, by letter and signed only by the appointing authority or the authorized representative of the Entity of the Executive Branch, to the Office of the Comptroller, which shall attach the same to the contractor’s hard copy and electronic files. In addition, a copy thereof shall be sent to the contractor or supplier, the Governor or the person to whom he/she delegates, and the Director of the Office of Management and Budget. Reductions under this Section shall not require an additional authorization of the Governor, the person to whom he/she delegates, or the Office of Management and Budget; however, said reduction shall not be deemed to waive, relieve, or exempt from, the filing of the initial authorization of the agreement or other document subject to the modification.
Reductions authorized under this section shall not be retroactive, that is, applicable to services that have already been rendered on the effective date of the modification. The provisions of this Section do not provide the contractor or supplier with the unilateral, independent, and separate right to terminate an agreement. Notices to contractors or suppliers in accordance with this Section shall be delivered by certified mail return receipt requested or personally to an agent of the contractor or supplier or to the address of record included in the agreement or acquisition document.
The provisions of this section shall also apply to the State Election Commission, the Office of Government Ethics, the Office of the Special Independent Prosecutor’s Panel, and the Office of the Election Comptroller.
The Office of Management and Budget shall implement regulatory provisions as are necessary to enforce the provisions of this section.
Nothing provided in this section shall apply to purchased and/or professional services defrayed by Federal funds, including the matching thereof with State funds.
History —June 17, 2014, No. 66, § 7.