Page 51 - CONTRACT POLICY MANUAL

§3.3-105 Term of Contract

(1) The duration of a service contract will depend upon the County’s need, prevailing market
conditions, contract start-up costs, and the County’s best economic interest.

(2) With respect to Board awarded contracts, the initial term of a service contract shall not exceed three
(3) years, unless otherwise approved by the Board.

(3) In no case shall a service contract exceed five (5) years in duration unless the contract is
specifically approved by the Board of Supervisors, or is extended from the original contract term
by twelve (12) months in accordance with Section 3.3-106 in this manual.

(4) Prior to recommending renewal or extension of an existing contract, the department will
document that performance of the contractor has been satisfactory.

§3.3-106 Contract Extensions

(1) Service 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.

(2) Service Contract extensions that exceed $100,000 per year require approval by the Board of
Supervisors.

3.3-107 Contract Renewals

(1) Applicable to all service contracts with a value that exceeds $100,000 per year.

a) All renewals are subject to Board of Supervisors approval. For renewals already approved
by the Board prior to the fourth year of a contract, the Deputy Purchasing Agent or Board
authorized designee may execute the renewals of service contract, under the same scope,
pricing, terms and conditions without further Board of Supervisors action. Contracts
renewals for years four and five must return to the Board for approval, regardless of prior
Board actions.
b) In the event the total service contract amount for all contract years exceeds $750,000, the
Agenda Staff Report (ASR) shall be filed on the Board’s “Discussion Calendar”.

§3.3-108 Contract Pricing

(1) Service contracts will be written with one of the following methods of pricing:
a) Cost per Task or Total Fixed Price: This is the preferred method of pricing service
contracts.

47