As is customary, many of the City’s agreements resulting from competitive solicitations include renewal clauses that allow for the extension of Agreement terms for a certain number of renewal periods beyond the original term, as may be stipulated in the solicitation or resulting agreement. The renewal periods allow the City to continue acquiring the necessary goods and services from reputable contractors at prices established through competitive solicitations. In some cases, the City may require extending agreements, on a month to month basis, beyond the terms stated in the solicitation to ensure continuous operations until such time replacement agreements can be executed. Said extensions shall be upon the same terms, compensation and payment stated in these agreements.
In its due diligence process for consideration of agreement renewal/or extension options, the Administration has considered: cost considerations, including any increases to the CPI-U index by the Bureau of Labor Statistics indicating changes in the supply market pricing conditions, contractor performance and risk management considerations (e.g., insurance and bonds, as applicable). Additionally, the agreement renewals are only applicable to the contracted period and do not alter other terms and conditions of the agreement or the scope of the procurement.
The purpose of this item is to request authority to extend the competitively solicited agreements for routine operational requirements listed in Attachment A. The justification for extending each is included with the agreement’s information.