SECTION 20.220. Term Contracts

The comptroller enters into term contracts for the purchase or lease of goods or services used in large quantities by several state agencies. The term of the contract is determined by the comptroller.

(1) Bid invitations.

(A) The comptroller maintains records of the quantities and/or dollar volumes purchased under term contracts during the previous year, and includes this information in bid invitations. Term contracts are established for estimated quantities only, however, and do not guarantee that the state will order any given amount during the contract period.

(B) Term contracts may be either firm price or firm fixed price contracts with escalation and de-escalation.

(2) Awards.

(A) The comptroller will notify a successful bidder of the acceptance of its bid by issuing a notice of award. The successful bidder must review the notice of award and notify the comptroller in writing within 5 days of any error requiring correction.

(B) Performance bonds may be required for each award exceeding $100,000.

(3) Delivery requirements.

(A) All items shipped by a contractor must be new (unless otherwise specified in a purchase document) and received by the agency in first-class condition within the specified time.

(B) All merchandise shipped against the contract order during the term of the contract must be as the contractor originally quoted. If items become unavailable during the term of a contract, the comptroller may require the contractor to furnish acceptable substitutes.

Source Note: The provisions of this §20.220 adopted to be effective January 24, 2017, 42 TexReg 233