Except as provided in Subsection (7), a procurement unit may enter into a multiyear contract resulting from an invitation for bids or a request for proposals, if:
Terms Used In Utah Code 63G-6a-1204
Bidder: means a person who submits a bid or price quote in response to an invitation for bids. See Utah Code 63G-6a-103
Contract: A legal written agreement that becomes binding when signed.
Multiyear contract: means a contract that extends beyond a one-year period, including a contract that permits renewal of the contract, without competition, beyond the first year of the contract. See Utah Code 63G-6a-103
Offeror: means a person who submits a proposal in response to a request for proposals. See Utah Code 63G-6a-103
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
Procurement: means the acquisition of a procurement item through an expenditure of public funds, or an agreement to expend public funds, including an acquisition through a public-private partnership. See Utah Code 63G-6a-103
Procurement item: means an item of personal property, a technology, a service, or a construction project. See Utah Code 63G-6a-103
Procurement official: means :
(a)
for a procurement unit other than an independent procurement unit, the chief procurement officer;
(b)
for a legislative procurement unit, the individual, individuals, or body designated in a policy adopted by the Legislative Management Committee;
(c)
for a judicial procurement unit, the Judicial Council or an individual or body designated by the Judicial Council by rule;
(d)
for a local government procurement unit:
(i)
the legislative body of the local government procurement unit; or
(ii)
an individual or body designated by the local government procurement unit;
(e)
for a special district, the board of trustees of the special district or the board of trustees' designee;
(f)
for a special service district, the governing body of the special service district or the governing body's designee;
(g)
for a local building authority, the board of directors of the local building authority or the board of directors' designee;
(h)
for a conservation district, the board of supervisors of the conservation district or the board of supervisors' designee;
(i)
for a public corporation, the board of directors of the public corporation or the board of directors' designee;
(j)
for a school district or any school or entity within a school district, the board of the school district or the board's designee;
(k)
for a charter school, the individual or body with executive authority over the charter school or the designee of the individual or body;
(l)
for an institution of higher education described in Section 53B-2-101, the president of the institution of higher education or the president's designee;
(m)
for the State Board of Education, the State Board of Education or the State Board of Education's designee;
(n)
for the Utah Board of Higher Education, the Commissioner of Higher Education or the designee of the Commissioner of Higher Education;
(o)
for the Utah Communications Authority, established in Section 63H-7a-201, the executive director of the Utah Communications Authority or the executive director's designee; or
(p)
(i)
for the facilities division, and only to the extent of procurement activities of the facilities division as an independent procurement unit under the procurement authority provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the facilities division or the director's designee;
(ii)
for the attorney general, and only to the extent of procurement activities of the attorney general as an independent procurement unit under the procurement authority provided under Title 67, Chapter 5, Attorney General, the attorney general or the attorney general's designee;
(iii)
for the Department of Transportation created in Section 72-1-201, and only to the extent of procurement activities of the Department of Transportation as an independent procurement unit under the procurement authority provided under Title 72, Transportation Code, the executive director of the Department of Transportation or the executive director's designee; or
(iv)
for any other executive branch department, division, office, or entity that has statutory procurement authority outside this chapter, and only to the extent of the procurement activities of the department, division, office, or entity as an independent procurement unit under the procurement authority provided outside this chapter for the department, division, office, or entity, the chief executive officer of the department, division, office, or entity or the chief executive officer's designee. See Utah Code 63G-6a-103
Public entity: means the state or any other government entity within the state that expends public funds. See Utah Code 63G-6a-103
Request for proposals: means a document used to solicit proposals to provide a procurement item to a procurement unit, including all other documents that are attached to that document or incorporated in that document by reference. See Utah Code 63G-6a-103
Request for proposals process: means the procurement process described in 7. See Utah Code 63G-6a-103
the procurement official determines, in the discretion of the procurement official, that entering into a multiyear contract is in the best interest of the procurement unit; and
(b)
the invitation for bids or request for proposals:
(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 Subsections (3) through (5) that are applicable to the contract.
(2)
In making the determination described in Subsection (1)(a), the procurement official shall consider whether entering into a multiyear contract will:
(a)
result in significant savings to the procurement unit, including:
(i)
reduction of the administrative burden in procuring, negotiating, or administering contracts;
(ii)
continuity in operations of the procurement unit; 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)
(a)
The determination described in Subsection (1)(a) is discretionary and is not required to be in writing or otherwise recorded.
(b)
Except as provided in Subsections (4) and (5), notwithstanding any provision of an invitation for bids, a request for proposals, or a contract to the contrary, a multiyear contract, including a contract that was awarded outside of an invitation for bids or request for proposals process, may not continue or be renewed for any year after the first year of the multiyear contract if adequate funds are not appropriated or otherwise available to continue or renew the contract.
(4)
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 or suspended, without penalty, if the anticipated federal funds are not appropriated or received.
(5)
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 or suspended, without penalty, if the anticipated federal funds are not appropriated or received.
(6)
A procurement unit 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 the procurement unit engages in a new standard procurement process or complies with an exception, described in this chapter, to using a standard procurement process.
(7)
A multiyear contract, including any renewal periods, may not exceed a period of five years, unless:
(a)
the procurement official 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 the procurement unit; and
(b)
the written determination described in Subsection (7)(a) is included in the file relating to the procurement.
(8)
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.
