A. A demonstration project may be undertaken if the director determines in writing that the project is innovative and unique. This state shall not be obligated to pay the contractor, or to procure or lease the services or materials supplied by the contractor. However, on the written request and justification by the agency and written determination by the director that it is in the best interest of this state, this state may pay the contractor for the demonstration project. The contract term shall not exceed two years. A request and written determination of the basis for the contract award shall be included in the contract file.

Terms Used In Arizona Laws 41-2556

  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means all types of state agreements, regardless of what they may be called, for the procurement of materials, services, construction, construction services or the disposal of materials. See Arizona Laws 41-2503
  • Contractor: means any person who has a contract with a state governmental unit. See Arizona Laws 41-2503
  • Demonstration project: means a project in which a vendor supplies a service or material to this state for which the state does not pay but for which this state may be obligated to provide routine support such as utility cost and operating personnel. See Arizona Laws 41-2531
  • Director: means the director of the department of administration. See Arizona Laws 41-2503
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Writing: includes printing. See Arizona Laws 1-215

B. A contract to procure or lease services or materials previously supplied during a demonstration project shall be conducted under this article.

C. Except as otherwise provided by law, a contractor for a demonstration project shall not be precluded from participating as a bidder or offeror in a procurement for the services or materials supplied during a demonstration project.