(a) Before exercising a Renewal or seeking an Extension of a Contract as provided in this Section, the Agency shall consider and document in the official file, in accordance with 01 NCAC 05B .1903, the following factors:
- (1) market research that reveals any changes in the industry subject to the Contract;
- (2) the Vendor's past performance under the Contract;
- (3) existence of new risk factors not present at award that increase the risk of unsuccessful contract performance;
- (4) the presence and effectiveness of any performance-based contract provisions and metrics;
- (5) the impact of transitioning to a new Vendor on the Agency's ability to meet the requirements of its programs; and
- (6) any other requirements of State or federal statutes or rules.
- (b) Subject to the limitations in Rule .0319 of this Section, an Agency's decision to renew or extend a Contract Term shall be approved by the Agency's head of Procurement.
- (c) Contracts shall only be extended or renewed prior to the expiration of the last active Contract Term.
(d) An Agency shall obtain SPO approval before exercising a Renewal or seeking an Extension of a Contract when:
- (1) the factors in Paragraph (a) of this Rule do not support a Renewal or Extension; or
- (2) a Renewal or Extension would result in a total contract value that exceeds the Agency's General Delegation or Bid Value Benchmark.
History Note: Authority G.S. 143-49; 143-52; 143-53; 143-135.9;
Eff. March 1, 2022.