Purchasing and Business Services Manual (PUR)

Interim Posting

Note: At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.


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Effective: 3/30/1984

Revised: 11/12/2014

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PUR 504–01: Contract Time Span

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Purpose

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To specify the length of time authorized for procurement contracts

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Source

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Arizona Board of Regents Policy Manual - 3-803

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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 solicitation.


Contracts for Five Years or Less

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

  1. the chief procurement officer 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.

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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