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Chapter 34 - IT Contract Administration

34.3 Modification processing and administration

34.3.2 Term or termination

The contract administrator will process all modifications due to term extension, option exercise or renewal of the contract and/or related agreements; i.e. software license, escrow agreement.

The contract administrator will want to ensure that any modification to extend the term of the contract, or to exercise a term or renewal option, should be completed no later than 30 days before the current expiration date. This is also critical for any escrow agreement, software license or maintenance renewals. Any lapse may create risks for the agency and Commonwealth. The same timely action should be taken if the contract includes a “Transition of Services” provision where the supplier agrees to provide assistance to the agency should the contract effort be transitioned to another supplier or to the agency due to self-sufficiency.

The contract administrator will process any termination documentation—for breach, default, non-appropriation of funds or if the agency terminates for convenience. When termination occurs for any reason except the end of the contract term, notices must be given to the supplier in accordance with the contractual requirements. If termination for default occurs as a result of the cure and remedy provisions of the contract, be sure that the allotted time for the notice, the cure period and the re-acceptance period by the agency have occurred and that all relevant supporting documentation is in the contract file. All termination actions shall be done in accordance with the contractual requirements (including Administrative Appeals Procedure and disputes resolution provisions) and the agency’s processes and procedures. Refer to subsection 34.2.10, above, for more information on termination for breach or default.

Upon any termination, neither the Commonwealth, nor the agency, nor any authorized user shall have any future liability except for deliverables accepted by the agency or the authorized user or services rendered by supplier and accepted by the agency or authorized user prior to the termination date. The contract administrator will then begin the contract closeout process. Additionally, VITA statewide contracts should be removed from the VITA web site and any supplier catalogues, associated with the contract, removed from eVA by notifying for assistance.