Authority/Reference(s) GAA (86th) Article IX Sec. 17.10 (e)7834.9 Contract Amendments
Revision Date June 1, 2020

POLICY

A contract extension extends a contract beyond the base term and any optional extensions provided in the contract. The procurement and contract documents serve as a guide to determine if the contract manager can modify the base term of the contract.

An optional extension is a provision documented in the original contract to extend the length of a contract for a specified time, typically no longer than 18 months. If the provision does not include a timeframe, then the extension cannot exceed 12 months.

A contract extension is used on rare occasions to extend a contract beyond the base term and any optional extensions to meet immediate operational or service delivery needs. A contract extension:

  • Cannot exceed 12 months, unless specified in the original contract;
  • Requires written justification, including:
    • Cost of the contract;
    • Duration of the contract;
    • Reason for the extension of the contract; and,
    • A plan to ensure that the contractor completes the terms of the contract within the extension period.
  • Requires that contract staff consult with their leadership and Contracts Legal;
  • Requires notification to COS; and,
  • Requires DFPS Commissioner approval.

Contract extensions are not applicable to transactional purchase orders and are not a contract renewal.