|Revision Date||June 1, 2020|
A contract extension extends a contract beyond the base term and any optional extensions provided in the contract. The procurement and contract documents serve as a guide to determine if the contract manager can modify the base term of the contract.
An optional extension is a provision documented in the original contract to extend the length of a contract for a specified time, typically no longer than 18 months. If the provision does not include a timeframe, then the extension cannot exceed 12 months.
A contract extension is used on rare occasions to extend a contract beyond the base term and any optional extensions to meet immediate operational or service delivery needs. A contract extension:
- Cannot exceed 12 months, unless specified in the original contract;
- Requires written justification, including:
- Cost of the contract;
- Duration of the contract;
- Reason for the extension of the contract; and,
- A plan to ensure that the contractor completes the terms of the contract within the extension period.
- Requires that contract staff consult with their leadership and Contracts Legal;
- Requires notification to COS; and,
- Requires DFPS Commissioner approval.
Contract extensions are not applicable to transactional purchase orders and are not a contract renewal.