Skip to main content

Section 24: Multiyear Contracts


(1) Except as provided in the subsequent section, Utah State University may enter into a multiyear contract resulting from an invitation for bid or a request for proposal, if: 

(A) the Director of Purchasing and Contract Services determines that entering into a multiyear contract is in the best interest of Utah State University; and

(B) the invitation for bid or request for proposal:

(i) states the term of the contract, including all possible renewals of the contract;

(ii) states the conditions for renewal of the contract; and

(iii) includes the provisions of following sections that are applicable to the contract.

(2) In making the determination described, the Director of Purchasing and Contract Services shall consider whether entering into a multiyear contract will:

(A) result in significant savings to Utah State University, including:

(i) reduction of the administrative burden in procuring, negotiating, or administering contracts;

(ii) continuity in operations of Utah State University; or

(iii) the ability to obtain a volume or term discount;

(B) encourage participation by a person who might not otherwise be willing or able to compete for a shorter term contract; or

(C) provide an incentive for a bidder or offeror to improve productivity through capital investment or better technology.

(3) The determination described in the previous section is discretionary and is not required to be in writing or otherwise recorded.

(4) A multiyear contract may not continue or be renewed for any year after the first year if adequate funds are not appropriated or otherwise available to continue or renew the contract.

(5) A multiyear contract that is funded solely by federal funds may be continued or renewed for any year after the first year of the multiyear contract if:

(A) adequate funds to continue or renew the contract have not been, but are expected to be appropriated by, and received from, the federal government;

(B) continuation or renewal of the contract before the money is appropriated or received is permitted by the federal government; and

(C) the contract states that it may be cancelled, without penalty, if the anticipated federal funds are not appropriated or received.

(6) A multiyear contract that is funded in part by federal funds may be continued or renewed for any year after the first year of the multiyear contract if:

(A) the portion of the contract that is to be funded by funds of a public entity are appropriated;

(B) adequate federal funds to continue or renew the contract have not been, but are expected to be, appropriated by, and received from, the federal government;

(C) continuation or renewal of the contract before the federal money is appropriated or received is permitted by the federal government; and

(D) the contract states that it may be cancelled, without penalty, if the anticipated federal funds are not appropriated or received.

(7) Utah State University may not continue or renew a multiyear contract after the end of the multiyear contract term or the renewal periods described in the contract, unless Utah State University engages in a new standard procurement process or complies with an exception, described in this chapter, to using a standard procurement process.

(8) A multiyear contract, including any renewal periods, may not exceed a period of five years, unless:

(A) the Director of Purchasing and Contract Services determines, in writing, that:

(i) a longer period is necessary in order to obtain the procurement item;

(ii) a longer period is customary for industry standards; or

(iii) a longer period is in the best interest of Utah State University; and

(iv) the written determination described in the afore section is included in the file relating to the procurement.

(9) This section does not apply to a contract for the design or construction of a facility, a road, a public transit project, or a contract for the financing of equipment.

(1) Utah State University may enter into multiple award contracts with bidders or offerors.

(2) Multiple award contracts may be in Utah State University's best interest if award to two or more bidders or offerors for similar procurement items is needed or desired for adequate delivery, service, availability, or product compatibility.

(3) Utah State University shall:

(A) exercise care to protect and promote competition among bidders or offerors when seeking to enter into multiple award contracts;

(B) name all eligible users of the multiple award contracts in the invitation for bid or request for proposal; and

(C) if Utah State University anticipates entering into multiple award contracts before issuing the invitation for bid or request for proposal, state in the invitation for bid or request for proposal that Utah State University may enter into multiple award contracts at the end of the procurement process.

(4) Utah State University shall:

(A) obtain, under the multiple award contracts, all of its normal, recurring requirements for the procurement items that are the subject of the contracts until the contracts terminate; and

(B) reserve the right to obtain the procurement items described in the previous section separately from the contracts if:

(i) there is a need to obtain a quantity of the procurement items that exceeds the amount specified in the contracts; or

(ii) the Director of Purchasing and Contract Services makes a written finding that the procurement items available under the contract will not effectively or efficiently meet a nonrecurring special need of Utah State University.