1. The office of management and budget, in coordination with the state board of higher education and the information technology department, shall develop guidelines for establishing multiple award vendor pool contracts, including cooperative purchasing contracts under section 54-44.4-13. Multiple award vendor pool contracts establish indefinite-delivery, indefinite-quantity primary contracts with service providers including hourly rates for various services, unit prices for deliverable products, and provisions for price adjustments. The guidelines must establish thresholds at which a purchasing agency or institution may purchase directly from a service provider within the vendor pool or must obtain secondary competition by soliciting bids or proposals limited to service providers within the vendor pool. A purchasing agency or institution establishing a multiple award vendor pool contract or making a purchase from a vendor pool contract shall comply with guidelines established under this section.

2. A multiple award vendor pool primary contract term may not exceed a total contract length of five years, including renewals and extensions, unless prior written approval is obtained as set forth in the guidelines. The work performed under an awarded secondary contract must be completed within the contract term of the primary vendor pool contract.

3. The purchasing agency or institution making a purchase from a vendor pool contract shall prepare a statement of work for the entire project describing the needed services to determine the level of competition required. The purchasing agency or institution may not artificially fragment requirements or make serial noncompetitive purchases from service providers within the vendor pool to circumvent competition requirements.