RELATES TO: KRS Chapter 45A
NECESSITY, FUNCTION, AND CONFORMITY:
KRS 45A.210(1) authorizes the
Secretary of the Finance and Administration Cabinet to promulgate
administrative regulations permitting or requiring inclusion in procurement
contracts of clauses enabling the commonwealth to effect changes or
modifications in contracts. This administrative regulation establishes policies
and procedures for modifying contracts issued by state agencies.
Section 1. The purchasing agencies within the
Finance and Administration Cabinet, and any state agency to whom purchasing
authority has been delegated by the Finance and Administration Cabinet, may
provide by appropriate clauses to contracts for supplies or services for
changes and modifications, and for the method of calculating the costs of any
change in the contract price resulting from the modification. In contracts,
other than construction contracts, for the purchase in fixed amounts of
commodities, supplies and equipment, an increase in quantity of more than ten
(10) percent shall not be permitted unless the solicitation informed
prospective bidders or offerors that an increase in quantity might be
forthcoming, nor shall increases in unit prices be permitted except as provided
by a price escalation clause authorized by the solicitation or request for
proposals.
Section 2. All changes
to contracts for the purchase of commodities, supplies, equipment and
construction services shall be effected by a modification to the contract. A
copy of the modification and documentation from the purchasing officer stating
the reason and basis for the modification shall be maintained in the contract
file by the purchasing agency.
