A. A contract for construction services using the job-order-contracting method may be entered into for a period of up to five years, as deemed to be in the best interest of the department, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal year at the time of contracting. Payment and performance obligations for succeeding fiscal years are subject to the availability and appropriation of monies.

Terms Used In Arizona Laws 28-7368

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Construction services: means either of the following for construction-manager-at-risk and job-order-contracting project delivery methods:

    (a) Construction, excluding services, through the construction-manager-at-risk or job-order-contracting project delivery methods. See Arizona Laws 28-7361

  • Contract: means all types of department agreements, regardless of what they are called, for procurements pursuant to this article. See Arizona Laws 28-7361
  • Contract: A legal written agreement that becomes binding when signed.
  • Contractor: means any person who has a contract with the department. See Arizona Laws 28-7361
  • Department: means the department of transportation acting directly or through its duly authorized officers and agents. See Arizona Laws 28-101
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Job-order-contracting: means a project delivery method in which:

    (a) The contract is for indefinite quantities of construction and, at the election of the department, may or may not include a guaranteed minimum amount of work. See Arizona Laws 28-7361

  • Writing: includes printing. See Arizona Laws 1-215

B. Before the use of a multiterm contract, the department shall determine in writing that:

1. Estimated requirements cover the period of the contract and are reasonable and continuing.

2. The contract serves the best interests of the department by encouraging effective competition or otherwise promoting economies in the department’s procurement.

C. If monies are not appropriated or otherwise made available to support the continuation of performance in a subsequent fiscal year, the contract shall be canceled and the contractor may only be reimbursed for the reasonable value of any nonrecurring costs that are incurred but not amortized in the price of the construction services delivered under the contract or that are otherwise not recoverable. The cost of cancellation may be paid from any appropriations available for these purposes. Contractors are not entitled to compensation for a decision to not renew or extend a contract.

 

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