The Board of Education may enter a multiple year contract for goods and services permitted by law whenever the extended contract will serve the needs of the district and yield greater return for the expenditure.
The Assistant Superintendent for Business/Board Secretary is directed to investigate the advantage to the district of multiple year contracts. Investigation should include, but need not be limited to, a comparison of the costs of multiple year and single year contracts, an analysis of trends in the costs and availability of the goods or services to be provided, the projected needs of the district, and an inquiry into the reliability and stability of the vendor.
Except for those contracts exempted from the requirement by law, all multiple year contracts will contain a cancelation clause or a clause conditioning annual extension of the contract on the appropriation of sufficient funds to meet the Board’s obligation.
All multiple year contracts must be approved by the Board. When the estimated annual cost of a multiple year contract exceeds the bid threshold established by law and the subject of the contract is not exempt from bidding, the contract shall be advertised in accordance with law and the bidding procedures of this district.
N.J.S.A. 18A:18A-5; 18A:18A N.J.A.C. 6:20-8.2
Adopted: 21 April 2005