Purchasing and Business Services Manual (PUR)

Effective: 3/30/1984

Revised: 7/1/2003

PUR 504–01: Contract Time Span

Purpose

To specify the length of time authorized for procurement contracts

Source

Arizona Board of Regents Policy Manual - 3-803

Policy

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One-Year Contracts with Options to Renew

Contracts generally will not extend beyond the end of the fiscal year.

Contracts may, however, be written for a one-year period with options to renew for a stated number of additional years, generally not to exceed four. The term of the contract and the conditions of renewal must be included in the invitation to bid.

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Contracts for Five Years or Less

Contracts may be written for a period of time not to exceed five years if:

1. the director of Purchasing and Business Services determines it to be advantageous to the university to do so
2. funds are not obligated beyond the end of a fiscal year on state-appropriated agency/orgs
3. funds are not obligated beyond the expiration date of the grant or contract for sponsored project agency/orgs

   and

4. the contract includes a funding-out clause or the ability to cancel without penalty at the end of each fiscal year.

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Contracts for More than Five Years

Contracts for a period of time exceeding five years require the written approval of the president or a designee who determines in writing that such a contract would be advantageous to the university.

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