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Multiterm contracts - 62 Pa. Cons. Stat. § 542

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     § 542.  Multiterm contracts.
        (a)  Specified period.--A contract for supplies, construction
     or services may be entered into for a period of time deemed to
     be in the best interests of the Commonwealth. The term of the
     contract and conditions of renewal or extension, if any, shall
     be included in the solicitation, and funds shall be available
     for the first fiscal period at the time of contracting. Payment
     and performance obligations for succeeding fiscal periods shall
     be subject to the availability and appropriation of funds.
        (b)  Cancellation for unavailability of funds in succeeding
     fiscal periods.--When funds are not appropriated or otherwise
     made available to support continuation of performance in a
     subsequent fiscal period, the contract shall be canceled, and
     the contractor shall be reimbursed for the reasonable value of
     any nonrecurring costs incurred but not amortized in the price
     of the supplies, services or construction delivered under the
     contract. Such reimbursement shall not include loss of
     anticipated profit, loss of use of money or administrative or
     overhead costs. The cost of cancellation may be paid from any
     appropriations available for that purpose. The contractor shall
     not be entitled to any reimbursement where the Commonwealth
     elects not to exercise a renewal or extension option provided
     for in the contract.

Last modified: November 27, 2007