OAR 125-247-0296: Price Agreements and Mandatory Use Contracts

(1) Mandatory Use Contracts, for the purposes of this Rule and including Department Price Agreements, service agreements, and sales agreements, may be established for the purposes of minimizing paper work, achieving continuity of product, securing a source of supply, reducing inventory, combining Agency requirements for volume discounts, standardization among Agencies, and reducing lead time for ordering. A Mandatory Use Contract requires the Authorized Agency to purchase Supplies and Services for an anticipated need at a predetermined price, provided the Mandatory Use Contract is let by a competitive Procurement Process according to the requirements of ORS 279ABC and these Rules. (2) Authorized Agencies may purchase the Supplies and Services from a Contractor awarded a Mandatory Use Contract without first undertaking additional competitive Solicitation. (3) Authorized Agencies must use Mandatory Use Contracts established by the Department unless otherwise specified in the Contract, allowed by law or these Rules, or specifically authorized by the Chief Procurement Officer. (4) Despite section (3) above, Authorized Agencies are exempted from Mandatory Use Contracts for acquisition of the following, regardless of dollar amount: (a) Supplies and Services from another Oregon Public Agency provided that a formal, Written agreement is entered into between the parties; (b) Personal property for resale through student stores operated by public educational Agencies; and (c) Emergency purchases declared by an Authorized Agency according to ORS 279B. (5) Authorized Agencies may be exempted from a Mandatory Use Contract upon a request to and approval by the Contract Administrator of the Mandatory Use Contract. (6) The term of the Contract, including renewals, must not exceed the maximum term stated in the original Solicitation.