Page 40 - CONTRACT POLICY MANUAL

b) Size, dimensions - Will it fit within the space where it is to be used?
c) Power requirements - Does the County possess the necessary mechanisms for powering
the item as it requires?
d) Safety - Does the item meet all local, state, and federal safety requirements?
e) Pollution - Can the item be used without unnecessarily harming the environment? Does it
require special Air Quality Management District permits?
f) Maintenance - Are service and spare parts readily available? Are maintenance contracts
available?
g) Life cycle cost - What is the total cost of ownership including initial acquisition cost, cost
of operating supplies, cost of maintenance, cost of required space, residual value, etc.?
h) Liability insurance - If the item is being installed by vendor, what is the cost of liability
insurance?

§3.1-103 Term of Contract

(1) The duration of all contracts for commodities shall be based upon the County’s best interest.
Consideration will be given to product availability, price volatility, and expectation of need. Except
for contracts defined under Section 4.7 of this manual, in no case shall a commodity contract exceed
five (5) years in duration, unless the contract is temporarily extended from the original contract
term for a period of up to one year as set out in Section 3.1-104 of this manual.
(2) All contracts will include a provision for cancellation by the County due to lack of funds,
termination of requirement, or prices which no longer reflect reasonable market prices.

§3.1-104 Contract Extensions

(1) Contracts of less than five (5) years duration may be extended for up to one (1) year without
approval by the Board of Supervisors. This extension may be issued by the Deputy Purchasing
Agent, without Board of Supervisors approval provided there are no monetary increases that exceed
the average annual value of the prior year of the contract and if it is determined to be in the best
interest of the County.

§3.1-105 Contract Pricing

(1) Contracts will be written so that pricing is controlled and monitored during the contract period.
This may be done in several ways, including:
a) A contract may show a firm price for the contract period.

b) A contract may show a percentage increase which will occur during the contract period.
c) A contract’s prices may be tied to an index, such as the Consumer Price Index, during the
contract period.

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