2011 Hawaii Code
DIVISION 1. GOVERNMENT
TITLE 9. PUBLIC PROPERTY, PURCHASING AND CONTRACTING
103D. Hawaii Public Procurement Code
§103D-315 Multi-term contracts.

[§103D-315] Multi-term contracts. (a) Unless otherwise provided by law, a contract for goods or services may be entered into for any period of time deemed to be in the best interests of the governmental body, provided 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.

(b) Prior to the utilization of a multi-term contract, it shall be determined in writing:

(1) That estimated requirements cover the period of the contract and are reasonably firm and continuing;

(2) That such a contract will serve the best interests of the governmental body by encouraging effective competition or otherwise promoting economies in procurement; and

(3) That sufficient funds to pay for the initial term of the contract are available and the funds necessary for the remaining terms of the contract are likely to be available from sources which are identified in writing.

(c) When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of goods or services delivered under the contract. The cost of cancellation may be paid from any appropriations available for such purposes. [L Sp 1993, c 8, pt of §2]