Purchasing and Business Services Manual (PUR)

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Effective: 3/30/1984

Revised: 7/1/2018

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PUR 504–01: Contract Time Span

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To specify the length of time authorized for procurement contracts

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Arizona Board of Regents Policy Manual — 3-803

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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 cost centers
  3. funds are not obligated beyond the expiration date of the grant or contract for sponsored project cost centers


  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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