7.6.3. Contract Extensions and Bridge Contracts
When an existing contract is set to expire but the follow-on contract is not ready to be awarded, it may be necessary for the state entity to extend the existing contract or award a short-term sole-source contract to avoid a gap in service. These have been referred to as “bridge contracts.” Extensions of existing contracts and bridge contacts may be necessitated by several different factors, such as delays in the procurement process, unexpected changes to program requirements or supplier protests. Bridge contracts awarded through the sole source process must comply with Section 2.3.2 Sole Source Purchases. Contract extensions shall comply with the processes outlined below.
Contract extension generally refers to the continuation of a contract outside of the contract renewal process.
All contract extensions must occur in writing and require the supplier’s consent. SPD’s prior consent to the contract extension may also be required depending on the type of extension as further described in Table 7.6:
If the state entity’s contract is as follows… | Then, the state entity may process contract extensions as follows… |
Scenario One: The contract has no renewal options OR all renewal options have been exercised. |
If the state entity must have a continuous source of supply, then the state entity may exercise a contract extension for no more than six months (if the supplier consents) provided the state entity has already posted a solicitation to resource the contract. If the state entity has not yet posted a solicitation or desires a longer contract extension, then the contract administrator must first request and receive permission from SPD
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Scenario Two: The contract has one or more renewal options remaining. |
If the state entity determines it is best to forgo a one-year renewal option and only extend the contract for a shorter period of time, the state entity may extend the contract (if the supplier consents) without requesting SPD
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The extension is processed using SPD-CP010 Contract Renewal Template. The amendment numbering remains sequential for an extension.