§ 2–355.04. Multiyear contracts.

(a) Unless otherwise provided in an appropriations act, or approved pursuant to § 1-204.51, a contract for goods or services shall not be entered into for periods which extend beyond 12 months.

(b) Before entering into a multiyear contract, the CPO shall determine in writing that:

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

(2) The contract would serve the best interests of the District, encourage effective competition, or otherwise promote economies in District procurement.

(c) If funds are not appropriated or otherwise made available for the continued performance in a subsequent year of a multiyear contract, the contract for the subsequent year shall be terminated, either automatically or in accordance with the termination clause of the contract, if any. Unless otherwise provided for in the contract, the effect of termination shall be to discharge both the District and the contractor from future performance of the contract, but not from their existing obligations. The contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the goods or services delivered under the contract.