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<br />1 <br />,I, <br />,I <br />~I <br />,I <br />;1 <br />i . <br /> <br />..1 <br />r <br /> <br />i...,. <br /> <br /> <br />~I <br />~, .. <br /> <br />11 <br />\ . <br />t .' <br /> <br />:1 <br /> <br />~. . <br /> <br />i.1 <br />l .-< <br /> <br />rl <br /> <br />, . <br />~..: <br /> <br />rl <br />:1 <br /> <br />\ 0' <br /> <br /> <br />il <br /> <br />\. <br /> <br />;1 <br />I <br />I <br />I <br /> <br />\. . <br /> <br />CHAPTER 7 - TYPES OF CONTRACTS AND CONTRACT <br />ADMINISTRATION <br /> <br />SECTION 1 - TYPES OF CONTRACTS <br /> <br />1. General Authority: Subject to the limitations of this section, any type of contract <br />which is appropriate to the procurement and which will promote the best interests of <br />the City may be used, provided that the use of a cost-plus-a-percentage-of-cost <br />contract (cost plus) is prohibited unless a not to exceed clause is induded. A cost <br />plus contract may be used only when a determination is made in writing that such <br />contract is likely to be less costly to the City than any other type or that is <br />impracticable to obtain the supply, service, or construction item required except <br />under such a contract. <br /> <br />2. Multi-term Contracts <br />A. Specified Period: Unless otherwise provided by law, a contract for supplies or <br />services may be entered into for any period of time deemed to be in the best <br />interest of the City, provided the term of the contract and conditions of renewal or <br />extension, if any, are included in the solicitation and funds are available for the <br />first fiscal period at the time of contracting. Payment and performance obligations <br />for succeeding fiscal periods shall be subject to the availability and appropriation <br />of funds therefore. . <br /> <br />B. Determin::ltion Priorto Use: Prior to the utilization of a multi-term contract, it shall <br />be determined: <br />i. That estimated requirements cover the period of the contract and are <br />reaso nably finn and continuing; and <br />ii. That such a contract will serve the best interests of the City by encouraging <br />effective competition or otherwise. promoting economies in City <br />procurement. <br /> <br />C. Cancellation Due to Unavailability of Funrls in Succeeding Fiscal Periods: When <br />funds are not appropriated or otherwise made available to support continuation <br />of performance in a subsequent fiscal period, the contract shall be canceled. <br /> <br />3. Multiple Source Contracting (Contingenr.y) <br />A. Geoernl: A multiple source award is an award of an inqefinite quantity contract for <br />one or more similar supplies or services to more than one bidder or offeror. The <br />obligation to order the City's actual requirements is limited by the provision of <br />Uniform Commercial Code Section 2-306(1). <br /> <br />16 <br />