Section 1400.3520  Contract Provisions

a)         Mandatory Provisions

The following provisions are required for all contracts entered into by the Treasurer's office, in addition to the requirements of State and federal law and the regulations of the Office of the Comptroller:

1)         Subcontractors.  Any contract granted hereunder must state whether the services of a subcontractor will be used.  The contract must include the names and addresses of all subcontractors and the expected amount of money each will receive under the contract.  The contractor will be required to get approval from the Chief Procurement Officer prior to adding or changing subcontractors.

2)         Subject to Appropriation.  All leases must recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

3)         Right to Audit Books and Records.

A)        Maintenance of books and records.  Every contract and subcontract must require the contractor or subcontractor, as applicable, to maintain books and records relating to the performance of the contract or subcontract and necessary to support amounts charged to the State under the contract or subcontract.  The books and records must be maintained by the contractor or subcontractor for a period of 3 years from the later of the date of final payment under the contract or completion of the contract or subcontract and the 3-year period must be extended for the duration of any audit in progress at the time of that period's expiration.

B)        Audit.  Every contract and subcontract must provide that all books and records required to be maintained under subsection (a) must be available for review and audit by the Auditor General and the Treasurer's office.  Every contract and subcontract must require the contractor and subcontractor, as applicable, to cooperate fully with any audit.

b)         Optional Provision

Any contract entered into by the Treasurer's office under this Part may contain a clause requiring that if more favorable terms are granted by the contractor to any similar governmental agency in any state in a contemporaneous agreement let under the same or similar financial terms and circumstances for comparable supplies or services, the more favorable terms will be applicable under the contract.