A. A multi-term contract for items of tangible personal property, construction or services except for professional services, in an amount under twenty-five thousand dollars ($25,000), may be entered into for any period of time deemed to be in the best interests of the state agency or a local public body not to exceed four years; provided that the term of the contract and conditions of renewal or extension, if any, are included in the specifications and funds are available for the first fiscal period at the time of contracting. If the amount of the contract is twenty-five thousand dollars ($25,000) or more, the term shall not exceed ten years, including all extensions and renewals, except that for a contract entered into pursuant to the Public Facility Energy Efficiency and Water Conservation Act [Chapter 6, Article 23 NMSA 1978], the term shall not exceed twenty-five years, including all extensions and renewals. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor.

B. A contract for professional services may not exceed four years, including all extensions and renewals, except for the following:

(1) services required to support or operate federally certified medicaid, financial assistance and child support enforcement management information or payment systems;

(2) services to design, develop or implement the taxation and revenue information management systems project authorized by Laws 1997, Chapter 125;

(3) a multi-term contract for the services of trustees, escrow agents, registrars, paying agents, letter of credit issuers and other forms of credit enhancement and other similar services, excluding bond attorneys, underwriters and financial advisors with regard to the issuance, sale and delivery of public securities, may be for the life of the securities or as long as the securities remain outstanding;

(4) services relating to the implementation, operation and administration of the Education Trust Act [Chapter 21, Article 21K NMSA 1978];

(5) services relating to measurement and verification of conservation-related cost savings and utility cost savings pursuant to the Public Facility Energy Efficiency and Water Conservation Act; and

(6) services relating to the design and engineering of a state public works project:

(a) for a period not to exceed the requisite time for project completion and a subsequent warranty period; and

(b) upon approval of the secretary of finance and administration.

History: Laws 1984, ch. 65, § 123; 1987, ch. 348, § 14; 1993, ch. 225, § 1; 1993, ch. 231, § 13; 1998, ch. 27, § 1; 2001, ch. 247, § 11; 2001, ch. 270, § 1; 2009, ch. 138, § 5; 2017, ch. 55, § 1; 2018, ch. 43, § 1.

The 2018 amendment, effective May 16, 2018, increased the maximum term for certain multi-term contracts; and in Subsection A, after "the term shall not exceed", deleted "eight" and added "ten".

The 2017 amendment, effective June 16, 2017, provided an exception to the four-year limitation on professional services contracts for services relating to the design and engineering of a state public works project; and added Paragraph B(6).

The 2009 amendment, effective July 1, 2009, in Subsection A, in the second sentence, changed "ten" to "twenty-five" and added Paragraph (5) of Subsection B.

The 2001 amendment, effective June 15, 2001, added the subsection and paragraph designations; inserted the provision that a contract for professional service may not exceed four years, including all extension and renewals in Subsection B; deleted "may not exceed a term of four years, including all extensions and renewals" at the end of Paragraph B(2); and added Paragraph B(4).

The 1998 amendment, effective May 20, 1998, inserted "and Water Conservation" in the second sentence; substituted "therefor" for "therefore" in the third sentence; and inserted the language beginning with "and except for services to design," in the fourth sentence.

The 1993 amendment, effective June 18, 1993, added the language beginning "except that for any such contract" at the end of the second sentence, and inserted the language beginning ", except for services required" and ending "or payment systems," in the fourth sentence.

Professional services contract with bond counsel or financial advisors may not exceed a term of four years, including all extensions and renewals. 1990 Op. Att'y Gen. No. 90-10.