Multi-year contracting for goods and services

Why enter into a multi-year contract?

Commodities and General Services: Commodities and general services can be procured using stand-alone purchase orders with City's standard PO terms or they can be purchased through a multi-year contract. Recurring purchases of commodities and general services over $10,000 generally result in a contract issued by OCA. This is because it is generally more efficient and cost effective to put recurring transactions on a multi-year contract than buy them one by one. OCA is generally responsible for purchasing commodities and general services on behalf of City departments. However, OCA may at its option delegate this authority to departments. Additionally, under Admin Code Sections 21.04, 21A and 21.42, departments have the authority to purchase certain goods and services without OCA's approval. Such transactions, however, must still comply with all City laws and programs.

Professional Services, Software Licenses or Online Content: Unlike commodities and general services, purchases for professional services, software licenses or online content, regardless of amount, generally require a contract because they can pose a higher element of risk and liability to City relative to the purchase of simple commodities and general services. Departments may, however, ask their City attorney to waive this requirement and allow them to issue a stand-alone purchase order using City's standard purchase order terms and conditions. OCA has delegated City departments with the authority to solicit and negotiate contracts professional services, software licenses or online content. However, the resulting contract must generally be approved by OCA.

Where can I learn more about City's multi-year contracting requirements?

Use the resources below to enter into a multi-year contract for goods or services.