(1) Specified Period. Unless otherwise provided by law, a contract for supplies or services shall not be entered into for any period of more than one year unless approved in a manner prescribed by regulation of the board; provided, that the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor.
(2) Determination Prior to Use. Prior to the utilization of a multi-term contract, it shall be determined in writing by the appropriate governmental body:
(a) that estimated requirements cover the period of the contract and are reasonably firm and continuing;
(b) that such a contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economies in state procurement.
(3) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled.
(4) The maximum time for any multi-term contract is five years. Contract terms of up to seven years may be approved by the Director of the Office of General Services. Contracts exceeding seven years must be approved by the Budget and Control Board.