Purchasing Home

504.01

Northern Arizona University
Purchasing Policy and Procedure

Contract Time Span


POLICY:

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 (1) period with options to renew for a stated number of additional years, generally not to exceed four (4). The term of the contract and the conditions of renewal must be included in the Request for Quotation.

CONTRACTS FOR FIVE (5) YEARS OR LESS

Contracts may be written for a period of time not to exceed five (5) years if:

  1. the Director of Procurement 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 accounts;


  3. funds are not obligated beyond the expiration date of the grant or contract for sponsored program accounts;

    - or -


  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 (5) YEARS

Purchasing contracts for a period of time exceeding five (5) years require the written approval of the University President or his/her designee. The President has designated the Associate Provost of Academic Affairs for academic area contracts exceeding five (5) years and the Vice President of Business Affairs has authority for all other areas. (See Section 203, Contract Authority.)