Ch. 48                                          LAWS OF MARYLAND

A MULTI-YEAR CONTRACT MAY NOT BE APPROVED UNLESS EACH UNIT
REVIEWING THE MULTI-YEAR CONTRACT DETERMINES THAT:

(1)  THE ESTIMATED REQUIREMENTS OF THE STATE:

(I)  COVER THE PERIOD OF THE MULTI-YEAR
CONTRACT; AND

(II)  ARE CONTINUING AND REASONABLY FIRM; AND

(III)  ARE CONTINUING; AND

(2)  THE MULTI-YEAR CONTRACT WILL SERVE THE BEST
INTERESTS OF THE STATE BY ENCOURAGING EFFECTIVE COMPETITION OR
OTHERWISE PROMOTING ECONOMY IN STATE PROCUREMENT.

(D)  AUTOMATIC TERMINATION.

(1)  IF MONEY SUFFICIENT FOR THE CONTINUED PERFORMANCE
OF A MULTI-YEAR CONTRACT IS NOT APPROPRIATED FOR ANY YEAR-AFTER
THE FIRST FISCAL YEAR, THE MULTI-YEAR CONTRACT TERMINATES
AUTOMATICALLY ON THE EARLIER OF:

(I)  THE LAST DAY OF THE FISCAL YEAR FOR WHICH
MONEY LAST WAS APPROPRIATED; OR

(II)  THE DATE PROVIDED IN THE TERMINATION
CLAUSE OF THE PROCUREMENT CONTRACT.

(2)  IF THE MULTI-YEAR CONTRACT IS TERMINATED UNDER
THIS SUBSECTION, THE UNIT SHALL REIMBURSE THE CONTRACTOR FOR THE
REASONABLE VALUE OF ANY NONRECURRING COSTS THAT WERE:

(I)  INCURRED AS A RESULT OF THE MULTI-YEAR
CONTRACT; BUT

(II)  NOT AMORTIZED IN THE PRICE OF THE SUPPLIES
OR SERVICES DELIVERED UNDER THE MULTI-YEAR CONTRACT.

(3)  THE COST OF TERMINATION UNDER THIS SUBSECTION MAY
BE PAID FROM ANY APPROPRIATION AVAILABLE FOR THAT PURPOSE.

(E)  REQUIRED CONTRACT CLAUSE.

EACH MULTI-YEAR CONTRACT, INCLUDING A LEASE OF REAL
PROPERTY, SHALL INCLUDE AN AUTOMATIC TERMINATION CLAUSE THAT:

(1)  IS NOT INCONSISTENT WITH THE REQUIREMENTS OF
SUBSECTION (D) OF THIS SECTION; AND

(2)  DISCHARGES BOTH PARTIES TO THE MULTI-YEAR
CONTRACT FROM FUTURE PERFORMANCE OF THAT CONTRACT, BUT NOT FROM
THEIR EXISTING OBLIGATIONS.

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