7.6.2. Contract Renewals

Some contracts contain renewal clauses describing the conditions under which a contract resulting from a solicitation document may be renewed for an additional period of time. Unless otherwise stated by SPDClosed, all state entities are authorized to renew such contracts without any additional approval from SPDClosed provided the conditions outlined in Table 7.5 are met:

Table 7.5
Steps to Exercise Contract Renewal

Steps Description of Step
Step 1: Review available statewide contracts First, the contract administrator must verify that there are no existing statewide contracts which would meet the state entity’s needs. If a mandatory statewide contract exists, the state entity must request a waiver from SPDClosed in accordance with Section 1.3.1.1. - Waivers and receive SPDClosed’s approval prior to exercising a renewal option. If a convenience statewide contract exists, the state entity is not required to request a waiver; however, the state entity should first ensure that the overall cost and conditions of the state entity’s contract are more favorable than the convenience statewide contract prior to renewing the state entity contract for an additional term.
Step 2: Verify remaining renewal option(s)

Second, the contract administrator must confirm that there is at least one valid renewal option remaining on the contract.

NOTE: Contract renewal options cannot be added through contract amendments. If there are no contract renewal options remaining, the contract administrator may only extend the contract term as permitted by Section 7.6.3. - Contract Extensions.
Step 3: Verify available funds Third, the contract administrator must confirm that the state entity has sufficient funds to exercise a renewal option.
Step 4: Assess supplier’s performance Next, the contract administrator must complete SPD-CP019 Contract Assessment Report and determine that the supplier has performed satisfactorily and met all of the requirements set forth in the contract.
Step 5: Re-verify tax compliance as needed For contracts exceeding $100,000.00, the contract administrator must re-verify the supplier’s tax compliance with Department of Revenue (DORClosed) as defined in Section 3.5.1.2. - Tax Compliance prior to processing a contract renewal.
Step 6: Process renewal option

Finally, the contract administrator must process the contract renewal in accordance with the terms of the contract. The state entity uses SPD-CP010 Contract Renewal Template as appropriate to process renewals. Depending on the terms of the specific contract, the contract administrator’s exercise of a contract renewal may or may not require the supplier’s prior written consent.

In the event the supplier’s prior written consent to the contract renewal is required, the contract administrator should allow ample time to establish a new contract in the event that the supplier is not willing to renew the contract at the terms requested by the state entity. If the contract does not identify a time period for exercising contract renewals, SPDClosed recommends exercising contract renewals no later than 60 days prior to the expiration date of the contract.
Step 7: Request updated documents

At the time of renewal, the contract administrator must also request any updated documents which may be necessary to support the new contract term, including, but not limited to:
Step 8: Execute Bi-Lateral Agreement as necessary If, at the time of renewal, additional changes to the contract are required (change orders, schedule modification, etc.), the Contract Administrator, after executing the SPD-CP010 Contract Renewal Template, will complete and execute the SPD-CP013 Amendment Form.

Throughout the contract lifecycle, the contract and complete executed contract forms, refer to Table 7.1 are to be uploaded into the system.

In lieu of creating a new purchase order, it is mandatory for the state entity to process a change order to the existing purchase order when encumbering funds for a new contract renewal. Effective July 1, 2011, state entities must process a change order to an existing purchase order (in lieu of creating a new purchase order) when encumbering funds for a new contract renewal unless SPDClosed grants a written exception. If the state entity does not have the system capability to copy in the contract renewal from an electronic requisition where the information has already been entered, then this rule regarding modification of the initial purchase order shall not apply. All other requests for exceptions must be submitted in writing to
processimprovement@doas.ga.gov.