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CFOP 75-2

STATE OF FLORIDADEPARTMENT OF

CF OPERATING PROCEDURE CHILDREN AND FAMILIES NO. 75-2 TALLAHASSEE, October 31, 2008

Procurement and Contract Management

CONTRACT MANAGEMENT SYSTEM FOR CONTRACTUAL SERVICES

1. Purpose. This document provides the operating procedure to ensure that the Department, through its contracting process, protects the funds it disburses, derives the maximum return of services from those funds, and is in compliance with applicable state and federal laws, rules, and regulations governing contracts for services.

2. Scope. While the Department of Children and Families’ (hereinafter Department) intent has been to cover the procurement and contract management system thoroughly, it is not feasible to write procedures that cover every possible situation. This operating procedure applies to all levels of management and supervision in varying degrees, but a thorough knowledge of the provisions contained herein is required on the part of all Department personnel directly or indirectly associated with the purchase or provision of contractual services. This operating procedure applies to all procurements for the provision of social services, consultant services, and certain other administrative services. Contracts for the provision of commodities are governed by CFOP 75-1 (Purchasing Policy and Procedures). Contracts for the provision of data processing services are governed by CFOP 50-2 (Security of Data and Information Technology Resources). This operating procedure interacts with or complements various other directives from the Department, but supersedes any extant provisions in conflict therewith.

3. Legislative Direction. Section 20.19, and Chapters 287 and 402, F.S., require the Department, whenever possible in accordance with established program objectives and performance criteria, to contract for the provision of services by counties, municipalities, not-for-profit corporations, for-profit corporations, and other entities capable of providing needed services, if services so provided are more cost-efficient than those provided by the Department. The Department shall review the time period for which the Department executes contracts and shall execute multi-year contracts to make the most efficient use of the resources devoted to contract processing and execution. Whenever the Department chooses not to use a multiyear contract, a justification for that decision must be contained in the contract. Chapter 287, F.S., provides procurement procedures, specifies certain contract terms and conditions, and specifies legislative intent.

The legislative intent is that: a) fair and open competition be recognized as a basic tenet of public procurement; b) such competition reduces the appearance of and opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically; and c) documentation of the acts taken and effective monitoring mechanisms are important means of curbing any improprieties and establishing public confidence in the process by which contractual services are procured.

It is essential to the effective and ethical procurement of contractual services that there be a system of uniform procedures to be utilized by state agencies in managing and procuring contractual services, that detailed justification of agency decisions in the procurement of contractual services be maintained, and that adherence by the agency and the contractor to specific ethical considerations be required.

This operating procedure supersedes CFOP 75-2 dated March 1, 2007.OPR: ASCDISTRIBUTION: X: OSES; OSLS; OSIG; AS; ASC; ASG; ASFM; ASHR; ITS; PDAS; PDCD; PDDV; PDES; PDFS; PDHO; PDRS; PDMH; PDSA; DASGS(C1-20); Contract Manager, as needed.

October 31, 2008 CFOP 75-2

4. Application. Good judgment requires that the Department utilize the resources allocated by the legislative process to the fullest extent possible to provide mandated and needed services to the constituency it serves. These resources are a balanced mixture of people, equipment, facilities, and money. It is the responsibility of the Department to ensure that the expenditure of these resources responds to legislative direction in a balanced fashion. Proper application of the provisions of this operating procedure will aid in accomplishing this objective and ensure compliance with applicable state procurement requirements.

BY DIRECTION OF THE SECRETARY:

(Signed original copy on file)

MELISSA P. JAACKS, CPAAssistant Secretary for Administration

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Preface

HOW TO USE CFOP 75-2

Purpose and ScopeThis preface provides the user with information designed to make CFOP 75-2 a user-friendly document and reference tool. CFOP 75-2 provides the Department’s policies and procedures that govern the procurement of contractual services, starting with the purchasing process and proceeding through writing the contract document, executing, and managing it. The scope of this preface is limited to outlining the organization of the operating procedure along with a brief overview of the content of each chapter.

Table of Contents, Glossary and Appendices. CFOP 75-2 is organized with a Table of Contents that divides the document by chapter and topic within the chapter. The Table of Contents notes the location of the topic by chapter and paragraph number. References are made throughout the document to chapter and paragraph numbers, e.g., Paragraph 4-4. This method of reference was chosen because paragraph numbers remain more constant over time than page numbers.

A very extensive Glossary is located at http://ewas.dcf.state.fl.us/asc/glossary/glossary.asp. Its entries provide at-a-glance contract related definitions. A list of the appendices included in this operating procedure follows the Table of Contents. CFOP 75-2 includes appendices containing contract-related items, including examples of many contract related forms and other informational documents. These appendices are catalogued by alphabetical character, such as “C.” If the appendix has more than one page it is catalogued with an alphanumeric code, such as “C-2.” The contents of the appendices will be referenced many times throughout the text. It is highly beneficial to develop a familiarity with and knowledge of these required forms and procedures. The very last entry in the document is an expanded Index that references topics in alphabetical order and provides the paragraph number of the reference.

CFOP 75-2 Chapters. The body of CFOP 75-2 is arranged into chapters that present the basic steps of the Contract Management System in the order of the chain of events occurring in the contract process. There are twelve chapters that have been organized below into six primary groups.

Purpose and Scope Statements. Each chapter of CFOP 75-2 begins with a statement of its purpose and scope. The purpose of this short paragraph is to provide the reader with a preview of the chapter while qualifying its focus and depth.

Organization of the CFOP 75-2 Chapters:

Overview of Procurement and Method of Procurement Decision (Chapter 1). This chapter of CFOP 75-2 provides the reader an overview of the document and a short summary of the Methods of Procurement for contractual services used by the Department.

Chapter 2. This chapter has been reserved for future use.

Procurement Requirements (Chapters 3 - 6). These chapters of CFOP 75-2 contain a discussion of procurement methods and requirements. These chapters provide the reader a fundamental understanding of each Method of Procurement used for the procurement of contractual services. Knowledge of these chapters is essential in the steps of the

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procurement decision-making processes. The procurement methods and activities in these chapters are:

a. Small Purchase Procedures. Chapter 3 contains these informal, competitive procurement requirements.

b. Emergency Procurement, Single Source, Purchases From Other Governmental Agency Contracts, and Regulated Exemptions. These are methods of procuring contractual services the value of which exceeds Category Two on Appendix A that are not subject to the competitive sealed bid procedures of Chapter 287, F.S. Chapter 4 contains these procurement requirements.

c. Competitive Procurement Requirements. Chapter 5 addresses competitive procurements the value of which will be greater than Category Two on Appendix A. It includes Requests For Proposals, Invitations To Bid and Invitations to Negotiate processes. Additional procedures for competitive procurements can be found in CFOP 75-10, Guide to Competitive Procurement – ITB/RFP/ITN.

d. Protests. Chapter 6 is a chapter on protests that addresses the procedures to follow when a protest is filed.

Contract Documents and Clauses (Chapters 7 - 9). These chapters address contract document requirements and will be extremely important to Contract Managers when preparing the actual contract.

a. Contract Documents. The Department’s contract documents, the Standard Contract, and the Attachment I are thoroughly discussed in Chapter 7.

b. Rate Contracts. Chapter 8 reviews the procedures to follow when the Department negotiates a contract that establishes a rate of payment for a specified unit of service (unit cost). A contract using this method of payment is known as a Rate Contract.

c. Contract Clauses. Chapter 9 includes contract clauses that have been approved for use in the Attachment I/Program Specific Model Attachment (PSMA)I. As these clauses are pre-approved model Special Provisions clauses, they must be used verbatim. Any revision/alteration of a model clause cancels its model status and requires that it receive full review and approval prior to use.

Contract Review and Approval Process (Chapter 10). This chapter addresses concise but thorough procedures to be followed in the contract review process. The following procedures are covered: transmittal, legal review, financial review, amendments, extensions, and renewals. This chapter will prove extremely important to the Contract Manager when preparing a contract.

Contract Administration (Chapters 11 - 12). These chapters of CFOP 75-2 address the recurring maintenance and administration of existing contracts. Such requirements include management and invoice processing.

a. Contract Management. Chapter 11 of CFOP 75-2 provides procedures and guidance regarding: Contract Manager’s files, recurring maintenance of a contract, duties of a Contract Manager, standards for contract staff, and activities related to monitoring.

b. Contract Administration Reporting Requirements. Chapter 12 of CFOP 75-2 discusses the FLAIR Contracts and Grants Subsystem which is part of the Florida Accounting Information Resource System (FLAIR). The FLAIR subsystem was designed with the capability to maintain accounting and other informational contract data.

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Distribution of CFOP 75-2. As of July 1, 2000, CFOP 75-2 is distributed electronically. CFOP 75-2 is also available on the Department’s Intranet at the following address: http://ewas.dcf.state.fl.us/asc/managing_contracts/Policies%20&%20Procedures.asp.

Summary. CFOP 75-2 is a compilation of the Department’s contractual services policies and procedures. It is the Contract Manager’s textbook to be used in conjunction with circuit/region-specific operating procedures. It is recommended that you familiarize yourself thoroughly with CFOP 75-2. When questions arise, it is suggested that you first check CFOP 75-2 for the answer. If after searching CFOP 75-2 you still cannot locate the answer, it is recommended you consult your supervisor and/or the Contract Administrator. Often the Contract Administrator knows of other circuit/region-specific situations relative to your question. Work may already be in process to remedy the situation and the Contract Administrator can link you to this. The Contract Administrator is kept abreast of the latest interpretation of CFOP 75-2 and the Florida Statutes by the Office of Contracted Client Services (ASC). The Contract Administrator will call ASC if questions or need of further interpretation arises.

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http://ewas.dcf.state.fl.us/asc/managing_contracts/Policies%20&%20Procedures.asp


Preface HOW TO USE CFOP 75-2....................................................................................................................... iii

Chapter 1 OVERVIEW OF PROCUREMENT AND METHOD OF PROCUREMENT DECISION........................1-1

1-1. Purpose and Scope.................................................................................................................................... 1-1

1-2. The Department’s Decision to Contract and Assignment of Contract Management Responsibilities.........1-1

1-3. MyFloridaMarketPlace Rule 60A-1.030, Florida Administrative Code (F.A.C.) – Vendor Registration.......1-1

1-4. MyFloridaMarketPlace (MFMP) – Transaction Fee Implementation...........................................................1-2

1-5. Documentation/File Requirements.............................................................................................................1-4

1-6. Definition of Contractual Services...............................................................................................................1-4

1-7. Procurement............................................................................................................................................... 1-4

1-8. Methods of Procurement............................................................................................................................ 1-4

1-9. Method of Procurement Decision...............................................................................................................1-5

1-10. Public Meetings........................................................................................................................................ 1-7

1-11. State and Federal Procurement Statutes and Regulations.......................................................................1-7

1-12. Employee Ethics....................................................................................................................................... 1-7

1-13. Prohibited Transactions and Procedures..................................................................................................1-8

1-14. Additional Procurement Requirements for Specific Services....................................................................1-9

Chapter 2.............................................................................................................................................................. 2-1

Chapter 3 SMALL PURCHASE PROCEDURES.................................................................................................3-1


3-2. Procurements Less Than or Equal to $2,500 (Rule 60A-1.002, Florida Administrative Code (F.A.C.).......3-1

3-3. Procurements Greater Than $2,500 but not exceeding the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.)............................................................3-1

3-4. Small Purchases Approaching the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.)......................................................................................................3-1

Chapter 4 OTHER THAN COMPETITIVE PROCUREMENTS.............................................................................4-1


4-2. Intent........................................................................................................................................................... 4-1

4-3. Documentation Required............................................................................................................................ 4-1

4-4. Single Source Procurement........................................................................................................................ 4-1

4-5. Emergency Procurement............................................................................................................................ 4-3

4-6. State Purchasing Office State Term Contracts...........................................................................................4-5

4-7. Contracts with Other Governmental Agencies............................................................................................4-5

4-8. Contractual Services Subject to Regulated Exemptions.............................................................................4-6

4-9. Additional Department Requirements for Non-competitive Contracts with Colleges/Universities...............4-8

4-10. Non-Competitive Negotiation Meetings....................................................................................................4-9

4-11. Additional Requirements for Non-Client Services Contracts.....................................................................4-9

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Chapter 5 COMPETITIVE PROCUREMENT REQUIREMENTS..........................................................................5-1


5-2. Intent of the Legislature.............................................................................................................................. 5-1

5-3. Use of Competitive Procedures.................................................................................................................. 5-1

5-4. Competitive Procurement Procedures........................................................................................................5-1

5-5. Selecting the Appropriate Competitive Procurement Type.........................................................................5-1

5-6. Procurement Manager................................................................................................................................ 5-2

5-7. Contract Negotiators (For ITN’s Only)........................................................................................................5-2

5-8. Competitive Negotiation Meetings..............................................................................................................5-2

5-9. General Instructions to Respondents – PUR 1001 Form............................................................................5-3

5-10. General Contract Conditions – PUR 1000 Form.......................................................................................5-3

5-11. Approvals.................................................................................................................................................. 5-3

Chapter 6 PROTESTS......................................................................................................................................... 6-1


6-2. Issues Causing Protest............................................................................................................................... 6-1

6-3. Filing the Protest......................................................................................................................................... 6-1

6-4. Posting Bond for Protest Filed.................................................................................................................... 6-2

6-5. Content of Formal Written Notice of Protest...............................................................................................6-2

6-6. Department’s Response to Protest.............................................................................................................6-3

6-7. Resolution of the Protest............................................................................................................................ 6-3

Chapter 7 CONTRACT DOCUMENTS................................................................................................................. 7-1


7-2. The Contract............................................................................................................................................... 7-1

7-3. Contract Document Profile.......................................................................................................................... 7-1

7-4. Standard Contract...................................................................................................................................... 7-2

7-5. Exceptions to the Mandated Use of the Department’s Standard Contract..................................................7-3

7-6. Attachment I Design................................................................................................................................... 7-4

7-7. Statement of Work Format.......................................................................................................................... 7-5

7-8. Other Attachments/Exhibits........................................................................................................................ 7-8

7-9. Duration of Contract.................................................................................................................................... 7-8

Chapter 8 RATE CONTRACTS............................................................................................................................ 8-1


8-2. Introduction................................................................................................................................................. 8-1

8-3. Rate Contract Management Procedures....................................................................................................8-1

8-4. Rate Contract Payment.............................................................................................................................. 8-1

8-5. Multi-Circuit Rate Contracts........................................................................................................................ 8-2

8-6. Multi-Circuit Rate Contract Processing Procedures....................................................................................8-2

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8-7. Development and Assignment of a Contract Number for Multi-Circuit Rate Contracts...............................8-3

Chapter 9 CONTRACT CLAUSES....................................................................................................................... 9-1


9-2. Method of Payment Clauses....................................................................................................................... 9-1

9-3. Advance Payments – Discussion...............................................................................................................9-5

9-4. Fees for Services........................................................................................................................................ 9-7

9-5. Subcontractors........................................................................................................................................... 9-7

9-6. Medicaid Billing........................................................................................................................................... 9-8

9-7. Miscellaneous Clauses............................................................................................................................... 9-9

9-8. Required Special Provisions Clauses for Contracts Funded by Federal Funds........................................9-18

9-9. Required Special Provisions Clauses for Subcontracts Paid from Contracts Funded by Federal Funds..9-18

9-10. MyFloridaMarketPlace Clauses..............................................................................................................9-16

9-11. Provision for Possible Disclosure of Protected Health Information.........................................................9-17

9-12. Justification for Contracts Less Than One Year.....................................................................................9-17

Chapter 10 CONTRACT REVIEW AND APPROVAL PROCESS......................................................................10-1

10-1. Purpose and Scope................................................................................................................................ 10-1

10-2. Transmittal.............................................................................................................................................. 10-1

10-3. Preparation for Review...........................................................................................................................10-1

10-4. Initiator Review....................................................................................................................................... 10-1

10-5. Financial Review..................................................................................................................................... 10-2

10-6. Legal Review.......................................................................................................................................... 10-2

10-7. Other Review.......................................................................................................................................... 10-2

10-8. Contract Execution................................................................................................................................. 10-2

10-9. Contract Revisions.................................................................................................................................. 10-3

10-10. Contract Amendments, Extensions, and Price-Level Increases...........................................................10-3

10-11. Contract Renewals............................................................................................................................... 10-5

10-12. Retroactive Payment Situations............................................................................................................10-6

10-13. Settlement Agreements........................................................................................................................10-6

Chapter 11 CONTRACT MANAGEMENT..........................................................................................................11-1


11-2. Introduction............................................................................................................................................. 11-1

11-3. Contract Manager Assignment/Requirements........................................................................................11-1

11-4. Contract Manager’s File.......................................................................................................................... 11-4

11-5. Invoice Processing, Inspection, Review, and Approval...........................................................................11-6

11-6. Contract Monitoring – The Role of the Contract Manager......................................................................11-7

11-7. Financial Penalties for a Provider’s Failure to Comply With a Requirement for Corrective Action..........11-8

11-8. Provider Failure to Perform.....................................................................................................................11-9

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11-9. Contract Default...................................................................................................................................... 11-9

11-10. Breach of Contract.............................................................................................................................. 11-10

11-11. Contract Termination.......................................................................................................................... 11-10

Chapter 12 FLAIR CONTRACTS AND GRANTS SUBSYSTEM.......................................................................12-1


12-2. The Contract Review Form..................................................................................................................... 12-1

12-3. Access to FLAIR and C&G Subsystem...................................................................................................12-1

12-4. Payment Inquiry...................................................................................................................................... 12-1

12-5. Contract Information Inquiry................................................................................................................... 12-1

12-6. Contract Information File........................................................................................................................ 12-1

12-7. Reports................................................................................................................................................... 12-2

12-8. Enhancements........................................................................................................................................ 12-2

12-9. HRS Menu.............................................................................................................................................. 12-2

12-10. Report Distribution System (RDS)........................................................................................................12-3

12-11. Information Delivery System (IDS)........................................................................................................12-3

12-12. References........................................................................................................................................... 12-3

Chapter 13 Contract Administration................................................................................................................13-1

13-1. Purpose and Scope:............................................................................................................................... 13-1

13-2. Introduction:............................................................................................................................................ 13-1

13-3. Authority:................................................................................................................................................ 13-1

13-4. Responsibilities:...................................................................................................................................... 13-1

Glossary (at the following link). http://ewas.dcf.state.fl.us/asc/glossary/glossary.asp.

Appendices:Appendix A Purchasing Category Threshold AmountsAppendix B Notice of Intent to Participate in a Multi-District Rate ContractAppendix C Sample Project Budget DetailAppendix D Sample Letter to Request Purchase of PropertyAppendix E Amendment FormatAppendix F One Page Renewal Form and Sample Renewal LetterAppendix G Settlement Agreement Instructions and FormatAppendix H Cost or Price AnalysisAppendix I Sample SAC/LAC Letter

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http://ewas.dcf.state.fl.us/asc/glossary/glossary.asp


Chapter 1

OVERVIEW OF PROCUREMENT AND METHOD OF PROCUREMENT DECISION

1-1. Purpose and Scope . Chapter 1 gives an overview of the contract procurement process used by the Department of Children and Families, hereinafter “Department”. This chapter describes processes that are common across multiple methods of procurement. Finally, it addresses topics of a general contracting nature that might not be otherwise covered in the ensuing chapters.

1-2. The Department’s Decision to Contract and Assignment of Contract Management Responsibilities .

a. The decision to contract for services rather than providing them in-house is a part of the Department’s planning and budgeting process. In some cases, the decision to use contractual services is made outside of the Department, such as the Legislature. After the Department makes the decision to contract, a member of the Department’s Senior Management or Select Exempt Service must assign, in writing, the contract management responsibilities to a trained Contract Manager. Contract management responsibilities should be assigned to Career Service employees. However, if a Career Service employee is unavailable, the Department may assign contract management responsibilities to an employee in Other Personnel Services (OPS) status.

b. The Contract Manager assignment must be documented in the contract file and be present during the review process. The Contract Manager is responsible for enforcing compliance with administrative and programmatic terms and conditions of the contract. The Contract Manager is the person through which all contracting information flows between the Department and the contractor.

1-3. MyFloridaMarketPlace Rule 60A-1.030, Florida Administrative Code (F.A.C.) – Vendor Registration.

a. Rule 60A-1.030, F.A.C . Each vendor, with few exceptions, that would like to use the on-line procurement system to sell commodities or contractual services must be pre-qualified to do so and shall register in the MyFloridaMarketPlace (MFMP) system. Vendors can read about the registration process and complete their registration using the MFMP web site at: http://dms.myflorida.com/mfmp. Vendors or persons without Internet access can request help from MFMP at 1-866-352-3776.

b. Agencies shall not enter into an agreement for the sale of commodities or contractual services with any vendor not registered in the MFMP system, unless the vendor is exempted under Rule 60A-1.030(3), F.A.C.

c. Exempt Vendor in Accordance With Rule 60A-1.030(3), F.A.C . The Department may enter into a contract with an unregistered vendor if one or more of the conditions exempting the vendor from registration under Rule 60A-1.030(3), F.A.C., are met. Before contracting, the Contract Manager must make sure that disbursements to this vendor can be completed in the Florida Accounting Information Resource (FLAIR) system.

d. Unregistered Vendor (willing) . In certain time-critical situations, the Department may need to contract with a vendor who has not registered in the MFMP system. In these cases, the Regional Support Manager (for regions) or Deputy Director (for Headquarters) must make the decision, in writing, that contracting with this vendor is needed to avoid any disruption in the Department’s mission. The Procurement/Contract Manager shall file the written decision in the official file and continue with the procurement. The clause in Chapter 9, paragraph 9-10b of this operating procedure shall be put in contracts with unregistered vendors (willing).

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e. Unregistered Vendor (reluctant) . If the Department must contract with a vendor who will not register in the MFMP system, the Procurement/Contract Manager shall explain the MFMP system to the vendor. The explanation shall include the benefits of the system and a request that the vendor register. If the vendor still will not register, the Regional Support Manager (for regions) or Deputy Director (for Headquarters) must make the decision, in writing, that contracting with this vendor is needed to avoid any disruption in the Department’s mission. In addition, the Procurement/Contract Manager shall complete form PUR 3779, Reluctant Vendor Registration, and send it to the Customer Service Help Desk at [email protected]. The Customer Service Help Desk will partially register the vendor in the MFMP system. The requester will receive an email within 24 hours to acknowledge the partial registration. The partial registration is for administrative use only. It does not permit the vendor to have any of the benefits given with regular registration (e.g., electronic notification of business opportunities, participation in the e-quotes process, ability to view solicitations and notifications electronically, and ability to manage their vendor profile). Partially registered vendors are not required to pay the transaction fee.

1-4. MyFloridaMarketPlace (MFMP) – Transaction Fee Implementation .

a. Contract Level Exemptions . Contract Managers must decide if the transaction fee applies to their particular contract. Only the potential exemptions that the Department contracts will encounter are discussed below. Whether or not the fee applies to unique transactions must be decided on a case by case basis.

b. Vendor Level Exemptions . This exemption deals with the status of the vendor rather than the work done by the vendor. If the vendor is a not for profit entity, governmental entity, or is not required to register in accordance with Rule 60A-1.030, Florida Administrative Code (F.A.C.), the vendor will be considered exempt from the transaction fee on all work they do.

(1) The system will make a default setting of “exempt from fee” when the vendor’s status is entered into the MFMP system. A PUR 3777, Notice of Transaction Fee Exemption, must be prepared for the file to document the setting is correct.

(2) If the default setting needs to be changed (i.e., the entities become fee eligible because of a competition with a fee eligible entity), PUR 3780, Notice of Fee Eligible Contract Exception to Vendor Exemption, must be prepared. After approving the PUR 3780, the Contract Administrator (CA) will change the MFMP system flag to show the correct status.

(3) NOTE: The CA will not be able to change the status within the system until after the Department has fully implemented the use of the MFMP system. Until that time, CAs will request changes to the flag through the MFMP Customer Service Desk at: [email protected].

c. Item Level Exemptions . This exemption deals with the type of work to be done and the monies used to buy the work. In general, contract expenditures dealing with administrative expenses will have a transaction fee. Programmatic expenditures supporting clients will be exempt from the fee.

(1) Appropriation categories were chosen as the way to decide whether the transaction fee should be paid. Appropriation categories are an easy, useful way of deciding whether monies should fall under administrative or programmatic. The following is a list of the appropriation categories the Department uses that are considered administrative in nature:

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mailto:[email protected]



Category Short Title Category Long Title040000 EXPENSES EXPENSES060000 OCO OPERATING CAPITAL OUTLAY070000 FOOD PRODU FOOD PRODUCTS080000 FIXED CAPI FIXED CAPITAL OUTLAY080050 FCO STWD RPR & MNT, CENT MGD, STW080064 D6/ADM FAC DIST 6 HQ PASSTHRU HILLSBO080163 FCO PRESVN HISTORIC PRESERVATION GRNT080751 FCO/C.M.F. HRS/CAP NEEDS/CEN MGD FACS080753 DEP/CHLD/F DEP/CHLD/FAM SRV SPC NEEDS080869 FCO/INSTIT FCO NEEDS FOR INSTITUTIONS100644 COMPUTER R COMPUTER RELATED EXPENSES

(2) A review must be done on each line-item (service unit) to determine if the transaction fee applies to each line item of the expenditure. If the line item uses one of the eleven administrative categories, the transaction fee applies. If not, the transaction will be reviewed further to determine if it meets other exemption criteria listed in Rule 60A-1.032, F.A.C.

(3) If the review determines that the fee applies, the Contract Manager will enter the MFMP clause in the contract. (See Chapter 9, paragraph 9-10a(1) of this operating procedure.)

(4) Medical services that are provided at or below the Medicaid rate are not required to pay the transaction fee.

d. Results of Analysis . If the review shows that the contract or item (service unit) meets any of the criteria listed in Rule 60A-1.032(1), F.A.C., the Procurement/Contract Manager will prepare the PUR 3777, Notice of Transaction Fee Exemption. The PUR 3777 will include an explanation as to the reason for the exemption. Following approval by the CA, the PUR 3777 will be filed in the contract file. The CA will then set the MFMP transaction fee status flag within the contract or item’s accounting data (training on this procedure will be given in the MFMP on-line training). The clause in Chapter 9, paragraph 9-10a(2) of this operating procedure shall be put in the Method of Payment section of the contract.

e. Exemption for Recipients of State or Federal Financial Assistance . An exemption is allowed for recipients of state or federal financial assistance (60A-1.032(1)(i), F.A.C.). This exemption is available for Providers who are determined to be “recipients” using the recipient vs. vendor checklist. The recipient vs. vendor checklist was developed by the Executive Office of the Governor (EOG) to implement the Florida Single Audit Act, s. 215.97, F.S. When considering the use of this exemption, the following criteria must apply:

(1) 100% of the monies used under the item (service unit) being considered are classified as State Financial Assistance and have been given a CSFA Number; or,

(2) 100% of the monies used under the item (service unit) being considered are paid to a Provider who is classified as a subrecipient of federal awards in accordance with Office of Management and Budget (OMB) Circular A-133 and have been given a CFDA Number; or,

(3) 100% of the item (service unit) being considered is paid with state monies set aside for Maintenance of Effort, or federal matching requirements.

NOTE: If any of the monies used for this item (service unit) do not meet the standards listed above, and are not exempt from the fee, the item shall be charged the transaction fee.

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f. Special Exemptions . The Contract Manager may request an exemption from the fee by completing the PUR 3778, Request for Transaction Fee Exemption located at: http://ewas.dcf.state.fl.us/asc/forms/documents.asp. The request must include a complete explanation that is in accordance with Rule 60A-1.032(2), Florida Administrative Code (F.A.C.). The PUR 3778 must be approved by the Agency Head or designee (Assistant Secretary for Administration). The form must be sent to the Director of State Purchasing, Department of Management Services (DMS) for approval. The Director of State Purchasing has 14 calendar days to approve the PUR 3778 or request more information. If the PUR 3778 is approved, DMS will tell the Department Contract Administrator (CA) to update the MyFloridaMarketPlace (MFMP) system. If the 14 days pass without action by the Director of State Purchasing, the CA will note the PUR 3778 to show the passed time and shall update the MFMP system to show the approval of the exemption. If approved, the Contract Manager will enter the clause, found in Chapter 9, paragraph 9-10a(2) of this operating procedure, into the Method of Payment section of the contract. The PUR 3778 shall be kept in the contract file.

1-5. Documentation/File Requirements . Every contract must have a contract file that contains documentation showing that all phases of contract activity have been done. All information related to the contract must be kept in the contract file regardless of the method of procurement used. The files maintained by the Contract Manager are the official files of record and must be kept for a minimum of six (6) years after the termination of the contract. If an audit has been started and audit findings have not been resolved at the end of six (6) years, the records must be kept until the audit has been resolved, or longer if required by law.

1-6. Definition of Contractual Services . According to s. 287.012(9), F.S., contractual service means the rendering by a contractor of its time and effort rather than the furnishing of specific commodities. The term applies only to those services rendered by individuals and firms who are independent contractors. Such services may include, but are not limited to: evaluations, consultations, maintenance, accounting, security, management systems, management consulting, educational training programs, research and development studies or reports on the findings of consultants engaged thereunder, and professional, technical, and social services. Contractual service does not include any contract for the furnishing of labor or materials for the construction, renovation, repair, modification, or demolition of any facility, building, portion of building, utility, park, parking lot, or structure or other improvement to real property entered into pursuant to Chapter 255, F.S., and rules adopted thereunder.

1-7. Procurement . For purposes of this operating procedure, procurement is defined as the acquisition of goods or services by the State of Florida in exchange for money. The type of service, the type of vendor, and the estimated dollar value of the contract are some of the factors used in deciding which state procurement regulations apply. (NOTE: The actual dollar amounts and corresponding purchasing category threshold amounts used throughout this document may be found in Appendix A.) All documentation that is related to the procurement of services, regardless of method used, is gathered, put together, and filed by the Procurement Manager. Upon award, the file is turned over to the Contract Manager. These files maintained by the Contract Manager are the files of record and must be kept for a period of six (6) years after the closeout of the contract or longer if required by law.

1-8. Methods of Procurement . There are three basic methods of procurement. They are: Competitive Procurements; Non-Competitive Procurements; and Small Purchases. Methods of Competitive Procurements include: Invitation to Bid (ITB), Request for Proposal (RFP), and Invitation to Negotiate (ITN). Non Competitive Procurements include: Exceptional Purchases, Regulated Exemptions, and Other Governmental Agency Contracts. Factors to consider when determining the appropriate method of procurement include: complexity of the services to be contracted, type of services for which the contract will be awarded, sources of monies and dollar amount anticipated for the services, type of vendor (if possible), and how the amount of payment is decided. The flowchart located at 1-9 of this chapter is given as a

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http://ewas.dcf.state.fl.us/asc/forms/documents.asp


quick reference to help in spotting the minimum procurement requirements named in Chapter 287, F.S. Regardless of the method of procurement used, all procurements should be in the best interest of the Department and state, and individuals should always be encouraged to practice the greatest degree of competition possible. (The procurement methods will be discussed in greater detail later in this operating procedure.)

1-9. Method of Procurement Decision . The flowchart on the next page is given as a visual aid. The left side of the chart is meant to help in spotting the best method of procurement pursuant to requirements named in s. 287.057, F.S., and Chapter 60A-1, Florida Administrative Code (F.A.C.). The right side of the chart is a simplified (does not include all possibilities) flowchart, which shows some of the major steps and how they are related to the competitive procurement process.

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1-10. Public Meetings . Section 286.011, F.S., and Section 24(b) Article I of the Florida Constitution require that all State agency meetings to be open to the public when official acts are to be taken or public business of such agency is to be transacted or discussed. The following information is given on how to conduct meetings in light of the open meeting requirements:

a. Public meetings involved with the procurement of a commodity or service shall be electronically posted on the MyFlorida.com web site.

b. Non-procurement related public meetings shall be posted in the Florida Administrative Weekly.

c. Reasonable notice must be given to the public of the time, place of the meeting, and subject matter, unless the meetings are exempt. Meetings that are exempt are not open to the public.

d. Advertised notice of at least seven (7) calendar days is considered reasonable notice. If the seven day notice period cannot be met due to an emergency or other unforeseen circumstance, notice should be given as quickly as possible by the most appropriate and effective means. For any meetings that were advertised less than (7) calendar days prior to the meeting, supporting documentation, including an explanation and the steps taken to prevent reoccurrence, must be kept in the Procurement Manager’s or Contract Manager’s file. If multiple meetings are anticipated, the advertisement must include any extended scheduling.

e. Emergency sessions should be given the most appropriate and effective notice under the situation. Special meetings, when possible, should have at least 24 hours reasonable notice to the public.

f. A record of each meeting shall be kept with the Procurement Manager’s or Contract Manager’s file. Such records shall be open to the public.

1-11. State and Federal Procurement Statutes and Regulations .

a. State . General procurement requirements for Florida’s state agencies are found in Chapter 287, F.S., and in Chapter 60A-1, Florida Administrative Code (F.A.C.).

b. Federal .

(1) Federal Common Rule . Volume 45 Code of Federal Regulations Part 92 allows states to follow their own regulations governing procurements involving federal monies (e.g., 45 CFR Part 92.36 is for procurements paid in whole or part by monies from the Department of Health and Human Services).

(2) Grant Specific Requirements . Whenever procurements involve federal monies, it is advisable to identify any additional procurement requirements included as conditions of the grant award. To best accomplish this, Contract Managers are encouraged to work with the grant Project Director/Manager regarding issues involving federal grant requirements. The grant Project Director/Manager should in turn work with the Office of Revenue Management.

1-12. Employee Ethics . Employee ethics, as related to contracting activities, are below.

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a. Section I. T. of the Standard Contract prohibits a Provider or subcontractor from offering or giving a gift to a Department employee.

b. Employees are prohibited by Chapter 112, Part III, F.S., from soliciting or accepting anything of value that would cause them to be influenced in the discharge of their responsibilities. Examples of ethics violations include, but are not limited to, the following:

(1) Deliberately not disclosing a conflict of interest in the course of one’s duties;

(2) Engaging in or carrying on a business enterprise with a client or person doing business with the Department; or,

(3) Accepting or requesting gifts or gratuities from contractors, vendors, or clients in violation of the Public Employees’ Code of Ethics.

c. Employees are prohibited from revealing client names or other confidential information from Department or vendor records to unauthorized persons. Examples include, but are not limited to, the following:

(1) Releasing HIV/AIDS client names; or,

(2) Releasing information from the Florida Abuse Hotline Information System or Florida Safe Families Network (FSFN) to the media.

d. Employees are expected to conduct themselves in a manner that favorably reflects upon the State, the Department, and themselves. The Department states that certain employee conduct will not be tolerated. Examples of employee conduct the Department will not tolerate include, but are not limited to:

(1) Conviction for a crime that relates to employees’ ability to perform their job;

(2) Using or selling illegal drugs or controlled substances on or off duty; or,

(3) Failing to report that one has been arrested or is the subject of any action that could result in criminal prosecution.

e. See the following publications for more information: Children and Families Operating Procedure (CFOP) 60-5, Chapters 3, 5, 10 and 11 (Standards of Conduct and Standards for Disciplinary Action for All Employees in the State Personnel System, Code of Ethics for Public Officers and Employees, Additional Employment Outside State Government, Employee Relationships with Regulated Entities); CFOP 60-1, Employee Handbook; and CFOP 60-52, Employees as Guardians Ad Litem.

1-13. Prohibited Transactions and Procedures . The Department is prohibited from transacting business with anyone convicted of a public entity crime or debarred or suspended from receiving federal monies.

a. Individuals Found Guilty of a Public Entity Crime .

(1) Sections. 287.132, and 287.133, F.S., require the Department of Management Services (DMS) to keep a convicted vendor list, which includes persons and affiliates who can no longer participate in public contracting and purchasing processes because they have been found guilty of a public entity crime. Such a person or affiliate may not bid on a public contract or transact business

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in excess of the threshold amount for Category Two with any public entity for 36 months after being placed on the list. The list is published quarterly in the Florida Administrative Weekly (FAW). Any public entity which receives information that a person has been convicted of a public entity crime shall give that information to DMS in writing within 10 days of receipt.

(2) In order to comply with the requirements of s. 287.133, F.S., the Department has incorporated a Public Entity Crime clause in the Standard Contract. This clause must also be included in all departmental solicitations and contracts/purchases that do not use the Standard Contract.

(3) This prohibition also applies to subcontractors.

b. Debarred or Suspended Vendors .

(1) Federal regulations (45 CFR Part 74) prohibit the Department from contracting with a potential vendor for $25,000 or more in federal monies if that vendor is debarred, suspended, declared ineligible, or voluntarily excluded from receiving federal monies. A vendor’s status can be verified at the following location:

http://www.epls.gov.

This prohibition is also true of vendors who audit federal programs, regardless of the amount of federal monies in their contracts.

(2) These potential vendors must sign a Certification Regarding Debarment and Suspension Form (CF 1125, which can be found in DCF Forms on the Intranet or Internet) whereby they attest that they are not debarred, suspended, or otherwise excluded from federal financial assistance programs and activities.

(3) This rule and certification requirement also applies to subcontractors.

1-14. Additional Procurement Requirements for Specific Services .

a. Legal Service Contracts . Notwithstanding their exclusion from competitive requirements, contracts for private legal services require Agency Head approval. Contracts and amendments to these contracts must also be approved by the State Attorney General’s Office (AG) (s. 287.059 F.S.) prior to execution of the contract. To request approval to use private legal services, the form Request for Attorney General Approval of Private Attorney Services, OAG-001(12/93 [rev. 9/2001] must be completed and submitted to the Office of the General Counsel for authorization and forwarded to the Office of the AG. This form may be found in DCF Forms on the Intranet or Internet. After receiving the written response from the AG, the Office of the General Counsel will forward the response to the requesting party. The letter of approval from the AG must be included with the contract or amendment when submitting the first voucher for payment to the Chief Financial Officer. Attorney General approval is not required for the following services: legal services provided by legal services organizations to indigent clients, paralegal, expert witness, appraisal, or mediator services. Prior to execution of the contract, the Office of the General Counsel shall review the form and legality of the contract for private attorney services. Approval shall be indicated on the contract. (Note that as of July 1, 1994, court reporter services were placed on state contract. Court reporter services must be purchased in accordance with the rules and fee schedule outlined in Chapter 2-39, Florida Administrative Code (F.A.C.).

b. Training Contracts . The Chief Financial Officer requires that all invoices for training services have an attached list of all persons who received training and their position titles. This includes all situations in which the Department has a contract (or other method of billing) specifically for training of Department staff, vendor staff, clients, etc.

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http://www.epls.gov/


c. Health Care Practitioners .

(1) The Secretary of the Department or designee may extend the Other Personal Services (OPS) employment of physicians, osteopaths, and health care practitioners licensed pursuant to Chapters 458, 459, 460, 461, 463, 464, 466, 468, 483, 486, or 490, F.S., beyond the 2,080 hour limit, and employ them on an hourly or other basis. In the event these health care practitioners choose employment on other-than-hourly basis, contact the Office of Human Resources for the appropriate procedures.

(2) Health care professionals who choose to be paid as independent contractors under object code 13000, must provide their own liability risk coverage. Documentation of liability coverage must be provided to the Department. The State of Florida usually does not consider these professionals agents of the Department covered by the state’s sovereign immunity.

d. Information Technology Resource Contracts . Information technology resources (ITR) are defined in Children and Families Operating Procedure (CFOP) 50-9 as data processing hardware, software, services, supplies, maintenance, training, personnel, and facilities (see Chapter 9, paragraph 9-7g of this operating procedure for a copy of the approved clause required in contracts procuring ITRs). Additional approvals must be obtained prior to executing any contract which gains (an) ITR(s) that the State of Florida will eventually hold title, will be connected to the Department’s data communications network, or will produce data in electronic form that will be processed on the Department computers.

(1) Written approval of all ITR purchases must be obtained in accordance with CFOP 50-9, Policy on Information Resource Requests, prior to the purchase of any ITR. Approval is documented on the Information Resource Request (IRR) Form. Complete instructions for using the IRR form can be found in CFOP 50-9.

(2) Additional requirements for ITR purchases:

(a) All ITR purchases must comply with s. 282.3031, F. S.

(b) All IRRs valued at $500,000 or more must be approved by the Secretary of the Department through a decision memorandum in accordance with CFOP 50-9, Policy on Information Resource Requests.

(c) All ITRs for consulting services, regardless of cost, must be approved by the Secretary of the Department through a decision memorandum.

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Chapter 2

RESERVED

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Chapter 3

SMALL PURCHASE PROCEDURES

1-15. Purpose and Scope . Chapter 3 provides Small Purchase procedures and documentation requirements for procurements that do not exceed the threshold amount for Category Two.

1-16. Procurements Less Than or Equal to $2,500 (Rule 60A-1.002, Florida Administrative Code (F.A.C.).The Department of Management Services recommends that the state purchasing card be used for all purchases with a value less than or equal to $2,500. Other purchases with a value less than or equal to $2,500 shall be carried out using good purchasing practices which may include, but not be limited to, quotations or written records of telephone quotations.

1-17. Procurements Greater Than $2,500 but not exceeding the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.).

a. These purchases shall be accomplished using, at a minimum, two written quotations or written records of telephone quotations or informal bids to be opened upon receipt, whenever practical. Should oral quotations be received, the name and address of the company and the amount quoted shall be a part of the written documentation. If only one quotation is received, a written statement as to why more quotations were not received must be prepared and filed in the Contract Manager’s file in order to document the vendor selection.

b. Written material documenting Small Purchase procedures must be maintained in the Contract Manager’s file. At a minimum, the file must include the following: names of the individuals taking part in the development or selection of criteria for evaluating persons or firms, the names of the persons or firms contacted, the date of contact, the prices or rates quoted, a statement as to why the quotation selected represents the most advantageous offer to the state in terms of service and price, and a Conflict of Interest Questionnaire from all individuals involved in making the procurement decision. A copy of this documentation must accompany the contract through the review and approval process and must be maintained in the Contract Manager’s file. (Refer to Chapter 7, paragraph 7-3 of this operating procedure for appropriate contract document requirements.)

1-18. Small Purchases Approaching the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.).When purchasing services of an ongoing or potentially extensive nature (e.g., temporary services), the use of competitive sealed procedures should be considered. The State Chief Financial Officer will refuse payment once a purchase exceeds Category Two in the aggregate for a given budget entity/circuit/region if the appropriate procurement procedures were not followed.

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Chapter 4

OTHER THAN COMPETITIVE PROCUREMENTS

Single Source, Emergency Procurement, State Purchasing Office State Term Contracts, Other Governmental Agency Contracts, and Regulated Exemptions.

1-19. Purpose and Scope .Chapter 4 provides a detailed examination of the methods of procurement of contractual services in excess of Category Two which are not subject to the competitive bid procedures of Chapter 287, F.S. These alternative purchasing mechanisms are provided for in recognition of specific unusual and/or extraordinary situations. This chapter will present a brief discussion of each of these alternative mechanisms, the circumstances under which their use is applicable, and the procedures to be followed.

1-20. Intent . The Legislature recognizes in s. 287.001, F.S., that fair and open competition is a basic tenet of public procurement, because such competition reduces the appearance of and opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically.

1-21. Documentation Required . Written material documenting the vendor selection process must be maintained in the Procurement Manager’s file. At a minimum it must include the following: the names of individuals taking part in the development or selection of criteria for evaluating persons or firms, a description of the circumstances necessitating the use of other than competitive procurement procedures including a discussion as to why competitive procedures were not appropriate, a statement as to why the selection of a person or firm represents the most advantageous decision for the state in terms of service and price, when less than two responses are received, a detailed price and cost analysis to support the vendor’s response, and any documentation specifically required by any of the procurement procedures addressed in this chapter, approvals required, and a Conflict of Interest Questionnaire from all individuals involved in making the procurement decision. A copy of this documentation must accompany the contract through the review and approval process and be maintained in the contract file. A copy should also be maintained in the Contract Administrator’s file.

1-22. Single Source Procurement . Single Source procurement is defined as the purchase of a contractual service or commodity that is available from only one vendor. Single Source procurement justification must be thorough and complete. Simply stating that there would be an adverse impact on clients is not an adequate justification for Single Source procurement. This applies to any Single Source justification. Examples of conditions under which purchases may be processed as Single Source procurements include, but are not limited to, the following: the item or service is available from only one source within a geographic area, the item or service is protected by patents or copyright, or a court or federal entity has specified the source.

a. Posting Description of Services . When the Department believes that commodities or contractual services are available only from a single source, and the total cost is in excess of Category Two on Appendix A, the Contract/Procurement Manager will prepare a PUR 7776, Description of Intended Single Source Purchase. The Contract Administrator (CA) will electronically post, in accordance with s. 287.057(5)(c), F.S., the PUR 7776 for a period of at least 7 business days, which includes a description of the commodities or contractual services sought, at the following web site location:

http://vbs.dms.state.fl.us/vbs/main_menu

All sections of the PUR 7776 must be completed by the Contract/Procurement Manager. The

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information required on the PUR 7776 includes a request that prospective vendors provide information regarding their ability to supply the commodities or contractual services described. If any information is received from prospective vendors as a result of the posted PUR 7776, the Department’s written determination must address each prospective vendor’s submission and explain why it does not meet the Department’s requirement(s). After reviewing any information received from prospective vendors, the Department shall make its determination in writing that the commodities or contractual services are available only from a Single Source. The Single Source procurement will be completed in accordance with the procedures in paragraphs b and c below. The posting should include the statement that the Department is aware of only one source for the services sought.

b. Single Source Procurement(s) Which Do Not Exceed Category Four . For those purchases which do not exceed Category Four, approval/disapproval is accomplished at the Department level. At the time of this approval/disapproval, and after the PUR 7776 has been posted for at least 7 business days, the CA shall provide notice of the Department’s decision to enter into a Single Source purchase by electronically posting the PUR 7778, Notice of Intended Decision to Enter into a Single Source Contract. The PUR 7778 shall be posted by the CA for 72 hours, not including Saturdays, Sundays, or state holidays, in accordance with Rule 1.090, Florida Rules of Civil Procedure and the provisions of s. 120.57(3), F.S. The determination that a service is available only from a single source and the total cost does not exceed Category Four must be documented and maintained in the Contract Manager’s file.

c. Single Source Procurement Greater Than Category Four . Single Source procurements for an amount greater than the threshold amount for Category Four require the filing of a PUR 7777, Single Source Certification and Request for Approval, when approved, posting of the PUR 7778, Notice of Intended Decision, and compliance with the proper invoice/voucher requirements. The PUR forms are available at the following web site:

http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources/purchasing_forms

(1) PUR 7777, Single Source Certification and Request for Approval . The PUR 7777 must be signed by the appropriate departmental delegated authority and approved by the State Purchasing Office, Department of Management Services (DMS), prior to execution of the contract.

(a) The Contract/Procurement Manager prepares a separate PUR 7777 for each Single Source procurement and sends it to the CA for review. All sections of the PUR 7777 must be completed by the Procurement/Contract Manager. A copy of the completed PUR 7776 must be attached to the PUR 7777. The PUR 7777 must include the narrative to support (justify) the procurement as a Single Source by setting forth its purpose and the need and explaining in detail why the selected vendor is the only source for the item or service. The DMS catalog number, vendor's name, and estimated price are also to be included on the PUR 7777.

(b) The CA will review the completed PUR 7777 for compliance with Chapter 60A-1, Florida Administrative Code (F.A.C.), and prepare a memorandum to the appropriate departmental signer in accordance with current delegation of contracting authority, recommending approval or disapproval. The authority to sign Single Source procurement requests has been delegated in accordance with the established Delegation of Authority.

(c) Once the request, PUR 7777, is signed by the appropriate departmental authority, and after the PUR 7776 has been posted for at least 7 business days, the CA will send, electronically, the PUR 7777 to DMS at [email protected]. (NOTE: The CA’s recommendation memorandum is not included in the electronic package sent to DMS.)

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(d) The failure of DMS to approve or disapprove a Single Source request within 21 days after receiving the request will constitute approval by DMS. If a protest is filed, the running of the 21-day period is stopped until the protest is resolved by final agency action.

(e) A copy of the approved PUR 7777 from DMS will be maintained by the CA and a copy provided to the Contract Manager. The Contract Manager must place a copy of the approved PUR 7777 in the Contract Manager’s file.

(2) PUR 7778, Notice of Intended Decision . Upon receipt of the approved Single Source request from DMS, the CA will electronically post on the MyFlorida.com web site the approved PUR 7778 for 72 hours, not including Saturdays, Sundays, or state holidays, the notice of its intended decision to enter into a Single Source contract. If the posted notice is protested, see Chapter 6 of this operating procedure.

(3) Invoice/Voucher Requirements . The Contract Manager will forward a copy of the DMS approval letter or evidence to support prior approval by default to the Administrative Services Support Center (ASSC) with the first invoice for submission to the State’s Chief Financial Officer.

d. Contract Considerations .

(1) Single Source approval may be granted by DMS for multiple year contracts; however, the Department must clearly demonstrate, through written justification in the Single Source request that a multiple year Single Source contract is in the State’s best interest. Factors to be considered are:

(a) Circumstances pertaining to the needed services;

(b) Proposed contractual terms, conditions, and pricing; and,

(c) Whether there is evidence or likelihood that other vendors will enter the market in the future.

(2) The initial approval from DMS for a Single Source multiple year contract remains valid for the entire term as approved. Extensions do not require additional approval. See Chapter 10, paragraph 10-10 of this operating procedure.

(3) Subsection 287.057(14), F.S., precludes the inclusion of renewal clauses in Single Source contracts.

1-23. Emergency Procurement .

a. Conditions . Chapter 287, F.S., states that for a valid emergency to exist the Department is required to determine, in writing, that an immediate danger to the public health, safety or welfare, or substantial loss to the state, necessitated by an unexpected turn of events (e.g., acts of God, riot, fires, floods, accidents, or any circumstances or cause beyond the control of the Department in its normal conduct of business) requires emergency action. The agency may proceed with the procurement of the contractual services in excess of Category Two, necessitated by the immediate danger without competition. Department Procurement Managers who are contemplating an emergency procurement must obtain, and retain in the contract file, pricing information from at least two prospective vendors prior to conducting the emergency procurement. The pricing information can be obtained via telephone or other means of contact and must be documented in writing in the contract file. Any determination that the time required to follow this procedure would increase the immediate danger to the public health, safety, or welfare or cause other substantial loss to the state, must be certified under oath and furnished along with any other documents relating to the emergency procurement to the Department of

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Management Services (DMS). All emergency procurements shall be made with such competition as is practicable under the circumstances. The agency shall furnish copies of the written determination certified under oath and any other documents relating to the emergency action to DMS. Under no circumstance is an emergency procurement eligible for renewal.

b. Preparation and Procedure . The Secretary of the Department, or designee, must file with the State Purchasing Office, DMS, a statement under oath certifying the conditions and circumstances surrounding the emergency procurement. The Notice of Emergency Purchase, PUR 7800, must be signed by the Secretary of the Department, or designee, and notarized before submission to DMS. PUR forms are available at the DMS web site at the following location: http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources/purchasing_forms. PUR forms are also available on the Office of Contracted Client Services web site at the following location: http://ewas.dcf.state.fl.us/asc/forms/forms2.asp.

(1) All sections of the PUR 7800 must be completed by the Procurement Manager. The information required on the PUR 7800 will describe and document the conditions and circumstances surrounding the emergency procurement.

(2) After completion, the Procurement Manager shall forward the PUR 7800 to the Contract Administrator (CA) who shall review it for compliance with the law. NOTE: Routing of the Notice of Emergency Purchase, PUR 7800, may be handled electronically (email, fax, or telephonic) or in the most expedient manner possible under the circumstances of the emergency. After review, the CA will take the following actions:

(a) Transmit the emergency procurement package for review and approval, or disapproval, to the Circuit Legal Counsel or Office of the General Counsel (for Headquarters) prior to transmitting it to the appropriate signer for the Department. Prepare a transmittal memorandum to the appropriate signer for the Department for the final package recommending approval or disapproval of the Emergency Certification.

(b) Transmit the emergency procurement package to the signer for the Department. NOTE: All Notices of Emergency Purchase, PUR 7800, documents are to be signed according to the appropriate Delegation of Authority and notarized pursuant to s. 287.057(5)(a), F.S.

(3) The emergency procurement package, including the notarized PUR 7800, will be returned to the CA. Upon its return, the CA will make three copies of the emergency procurement package and distribute the documents as follows:

(a) The original will be returned to the Procurement/Contract Manager for inclusion in the Contract Manager’s file.

(b) One copy will be maintained by the CA in a file specifically for emergency procurements.

(c) The CA is responsible for transmitting a copy of the completed, signed and notarized PUR 7800 to the State Purchasing Office, DMS, within 30 days of contract execution. A separate transmittal letter is not required for the PUR 7800 when sending to DMS. The documents may be scanned and sent electronically to [email protected] or the documents can be mailed to:

(d) DMS State Purchasing Attn: Notice of Emergency Purchase 4050 Esplanade Way Tallahassee, Fl 32399

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(e) The Contract Manager will forward a copy of the completed, signed and notarized PUR 7800 to the Administrative Services Support Center (ASSC) with the first invoice for submission to the State Chief Financial Officer.

(4) Where appropriate, a single Certification of Emergency document, PUR 7800, may be used to meet the DMS emergency procurement notification and the Department of Financial Services (DFS) Emergency Certification for Retroactive Payment requirements. (See Chapter 10, paragraph 10-12 of this operating procedure, Retroactive Payment Situations.)

1-24. State Purchasing Office State Term Contracts .

a. Subsection 287.057(23), F.S., authorizes the State Purchasing Office, Department of Management Services (DMS), to establish state contractual service term contracts. Any Florida agency, county, municipality, or local public entity may use such contracts. Section 287.056, F.S., requires purchase from a term contract executed by the State Purchasing Office anytime the circuit/region or Headquarters is purchasing the exact or similar services or goods as those on State Term Contracts. Such purchasing practices are more cost efficient, less labor intensive, e.g., the procurement instrument has already been developed, and provides increased assurance that the vendor is reliable.

b. Currently, the majority of term contracts are for commodities. Contact your Contract Administrator (CA) or Circuit/Region Purchasing Manager for information regarding current contracts and procedures for making procurements off a State Purchasing Office State Term Contract.

c. A Request for Quote (RFQ) may be used to obtain written pricing or services information from a State Term Contract Vendor for contractual services available on State Term Contract from that vendor. The RFQ is used to obtain more favorable pricing information from vendors when there are two (2) or more vendors on the State Term Contract. Use of a RFQ does not constitute a decision or intended decision that is subject to protest under s. 120.57(3), F.S. The agency, at a minimum, should request quotes from at least two (2) prospective vendors on the State Term Contract list for that service unless otherwise stated in the State Term Contract.

d. Information Technology Purchases . The Department shall not purchase from Alternate Contract Sources goods or services that are on State Term Contract, unless justified under Rule 60A-1.044(3), Florida Administrative Code (F.A.C). Under specific guidelines, the DMS pre-approves State agencies’ use of the U.S. General Services Administration’s (GSA) supply schedule for General Purpose Commercial Information Technology, Equipment, Software and Services, commonly referred to as “Schedule 70”. When a commodity or service is not available on a State Term Contract, the GSA has been deemed the preferred method when purchasing Information Technology. All Information Technology purchases, however, must be made in accordance with Memorandum No. 02 (2006-07) ACS for Technology, which may be viewed at http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources/purchasing_memos_rules_and_statutes/state_purchasing_numbered_memoranda/2006_2007.

1-25. Contracts with Other Governmental Agencies .

a. A State of Florida agency may purchase contractual services and commodities from contracts of other governmental entities (e.g., the federal government, another state, or a political subdivision) which have been certified by the State Purchasing Office, Department of Management Services (DMS).

b. Per s. 287.042(16), F.S., the State Purchasing Office, DMS, has the authority to evaluate contracts let by the federal government, another state, or a political subdivision for the provision of

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http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources/purchasing_memos_rules_and_statutes/state_purchasing_numbered_memoranda/2006_2007

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contractual services and commodities. Only contracts including a provision allowing other entities to use that contract may be considered for Other Governmental Agency Contracts. Certification of a contract as an Other Governmental Agency Contract is determined by its cost effectiveness and whether it is in the best interest of the State of Florida.

c. Information Technology Purchases . The Department shall not purchase from Alternate Contract Sources goods or services that are on State Term Contract, unless justified under Rule 60A-1.044(3), Florida Administrative Code (F.A.C.). Under specific guidelines, the DMS pre-approves State agencies’ use of the U.S. General Services Administration’s (GSA) supply schedule for General Purpose Commercial Information Technology, Equipment, Software and Services, commonly referred to as “Schedule 70”. When a commodity or service is not available on a State Term Contract, the GSA has been deemed the preferred method when purchasing Information Technology. All Information Technology purchases, however, must be made in accordance with Memorandum No. 02 (2006-07) ACS for Technology, which may be viewed at: http://dms.myflorida.com/business_operations/state_purchasing/documents_forms_references_resources/purchasing_memos_rules_and_statutes/state_purchasing_numbered_memoranda/2006_2007

1-26. Contractual Services Subject to Regulated Exemptions .Per s. 287.057(5)(f), F.S., and Rule 60A-1.002(4), Florida Administrative Code (F.A.C.), Regulated Exemptions to the competitive process are provided for in recognition of the special characteristics present when purchasing certain services. NOTE: Notwithstanding the exemptions present in s. 287.057(5)(f), F.S., competition in the procurement of services covered by Regulated Exemptions may be advantageous to the Department and is recommended whenever practicable. In the event a service which is exempt from the competitive solicitation requirements of Chapter 287, F.S., is procured competitively, all State competitive solicitation requirements are applicable.

a. Selection Process Documentation Requirements . If a formal sealed competitive solicitation is not used, the Contract Manager must, at a minimum, document the key decisions regarding the vendor selection process including:

(1) Evidence to show why formal sealed competitive purchasing practices were not practicable and/or in the best interest of the Department;

(2) Evidence to show action taken to be competitive to the greatest extent possible;

(3) Evidence showing reasons for selection of the vendor to which the contract will be awarded;

(4) A completed Children and Families form CF 1117, Documentation for Use of Regulated Exempt Procurement Method, which shall be maintained in the Contract Manager’s file; and,

(5) Other documentation described in Chapter 4, paragraph 4-3 of this operating procedure, including the Conflict of Interest Questionnaire.

b. Exempt Services . Subsection 287.057(5)(f), F.S., specifically exempts the services listed in (1) through (12) below from the competitive sealed bid requirements. The service exemptions listed in (13) through (20) below are based on other Florida Statutes, other subsections of Chapter 287, F.S., and Chapter 60A-1, F.A.C. Contracts for services and conditions included in the following list are still subject to all other provisions of Chapter 287, F.S., and the laws relating to the State Financial Officer’s authority to audit expenditures for contractual services. Contact the Contract Administrator (CA) for further clarification. The CA should contact the Office of Contracted Client Services if further assistance is required.

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(1) Artistic Services . Per Rule 60A-1.002(4)(c), F.A.C., artistic services include any artistic work performed by an artist, as defined in s. 287.012(3), F.S., including cases in which the acquisition requires that the artist furnish a commodity created through the artistic work.

(2) Academic Program Reviews . Per Rule 60A-1.002(4)(d), F.A.C., an academic program review is a structured evaluation of the relative merits of an established university or secondary educational program or program component conducted by recognized experts in the field of study and resulting in a written report with specific recommendations.

(3) Lectures by Individuals . Per Rule 60A-1.002(4)(e), F.A.C., a lecture is a formal or methodical reading or presentation on any subject, but lecture is not intended to be used for the purpose of, or in connection with, training of personnel. Training services are not exempt.

(4) Auditing Services . Per Rule 60A-1.002(4)(f), F.A.C., these auditing services must be provided by a licensee under Chapter 473, F.S., in which the licensee attests as an expert in accountancy to the reliability or fairness of presentation of financial information or uses any form of disclaimer of opinion which is intended or conventionally understood to convey an assurance of reliability as to matters not specifically disclaimed.

(5) Legal Services . Per s. 287.057(5)(f)5, F.S., legal services, include attorney, paralegal, expert witness, appraisal, or mediator services. NOTE: Legal services from attorneys are subject to the requirements of s. 287.059, F.S. See Chapter 1, paragraph 1-14a of this operating procedure for additional requirements to follow in the procurement of legal services.

(6) Health Services . Per s. 287.057(5)(f)6, F.S., health services involving examination, diagnosis, treatment, prevention, medical consultation, or administration.

(7) Services Provided by Not-For-Profits to the Disabled . Per s. 287.057(5)(f)7, F.S., services provided to persons with mental or physical disabilities by not-for-profit corporations that have obtained exemptions under the provisions of s. 501(c)(3) of the United States Internal Revenue Code or when such services are governed by the provisions of Office of Management and Budget (OMB) Circular A-122. However, in acquiring such services, the Department shall consider the ability of the vendor, past performance, willingness to meet time requirements, and price.

(8) Medicaid Services . Per s. 287.057(5)(f)8, F.S., Medicaid services delivered to an eligible Medicaid recipient by a health care provider who has not previously applied for and received a Medicaid provider number from the Agency for Health Care Administration will be exempt for a period not to exceed 90 days after the date of delivery of service to the Medicaid recipient and shall not be renewed by the agency.

(9) Family Placement Services . Subsection 287.057(5)(f)9, F.S., exempts family placement services from the competitive procurement requirements.

(10) Prevention Services . Per s. 287.057(5)(f)10, F.S., prevention services related to mental health, to include drug abuse prevention programs, child abuse prevention programs, and shelters for runaways, operated by not-for-profit corporations are exempt from competitive procurement requirements. However, in acquiring such services, the agency shall consider the ability of the vendor, past performance, willingness to meet time requirements, and price.

(11) Certain Training/Education Services . Per s. 287.057(5)(f)11, F.S., training and education services provided to injured employees pursuant to s. 440.491(6), F.S., are exempt from competitive procurement requirements.

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(12) Governmental Agencies Services/Commodities . Subsection 287.057(5)(f)13, F.S., exempts from the competitive procurement requirements services or commodities provided by governmental agencies.

(13) Examinations . Per Rule 60A-1.002(4)(i), F.A.C., examinations approved by the boards governing professions, trades, and health related services in accordance with s. 455.217(1)(c), F.S., are exempt from competitive procurement requirements.

(14) College/University Services . Per s. 287.057(22), F.S., an agency may contract for services with any independent, nonprofit college or university which is located within the state and is accredited by the Southern Association of Colleges and Schools on the same basis as it may contract with any state university and college. NOTE: Subsection 402.7305(2)(a), F.S., requires the Department to allow all public postsecondary institutions to bid on contracts intended for any public postsecondary institution. (See Chapter 4, paragraph 4-9 of this operating procedure for additional policies concerning Colleges/Universities.)

(15) PRIDE Services/Commodities . Per s. 287.095, F.S., the purchase of contractual services or commodities from the Department of Corrections or Prison Rehabilitative Industries and Diversified Enterprises, Inc., (PRIDE) is exempt from competitive procurement requirements.

(16) Membership Dues . Per Rule 60A-1.002(4)(h), F.A.C., payments for membership dues pursuant to s. 216.345, F.S., are exempt from competitive procurement requirements.

(17) Prescription of Law . Per s. 287.057(11), F.S., contracts for contractual services or commodities may be awarded without competition if state or federal law prescribes with whom the Department must contract.

(18) Appropriations Process Established Rate . Per s. 287.057(11), F.S., contracts for contractual services or commodities may be awarded without competition if the rate of payment is established during the appropriations process.

(19) Continuing Education Events . Per s. 287.057(5)(g), F.S., continuing education events or programs that are offered to the general public and for which fees have been collected that pay for all expenses associated with the event or program are exempt from competitive procurement requirements.

(20) Adoption Placement Services . Per Rule 60A-1.002(4)(j), F.A.C., adoption placement services licensed by the Department are exempt from competitive procurement requirements.

1-27. Additional Department Requirements for Non-competitive Contracts with Colleges/Universities .In accordance with s. 402.7305(2)(a), F.S., state colleges and universities are referred to as any public post secondary institution in the state that is accredited by the Southern Association of Colleges and Schools. Information and a listing are available at the following web site http://www.sacscoc.org.

a. Prior to contracting with a state college or university the Department's Procurement Manager shall take the following actions:

(1) Specifically identify the special knowledge, skill, or capability that is required to meet the needs of the program;

(2) Issue a Request for Information (RFI) to all applicable state colleges and universities to determine whether more than one state college or university possesses the special skill, knowledge or capability that is required to meet program requirements;

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(3) From the information received in response to the RFI, determine the appropriate procurement method; and,

(4) If a non-competitive procedure is selected, describe what actions were taken to determine whether the required special capability, skill or knowledge is unique to the college or university selected for contract award. The procurement file must contain documentation of the above actions and any resulting determinations.

b. In addition to the above required actions, the following restrictions shall apply to the purchase of services from colleges or universities:

(1) Colleges and universities shall not be used for managing other state contracts, evaluating competitive proposals (college or university personnel may serve as procurement advisors, but may not rank bids or proposals) or for evaluating the deliverables of other vendors;

(2) Colleges or universities shall not be used to avoid personnel ceilings, pay limitations, or competitive employment procedures;

(3) Colleges or universities shall not be used to obtain professional or technical advice that is readily available within the Department or another state agency;

(4) If the college or university intends to subcontract for any part of the work, the college or university must use competitive procurement procedures to select the subcontractor;

(5) Colleges or universities must perform at least 51% of the work required rather then use subcontractors;

(6) The principal investigator must be a tenured member of the faculty, or comparable status, if contracting with a university, and a staff member in continuing contract status, or comparable position, if the Department is contracting with a college. Any changes in the principal investigator shall require approval of the Department; and,

(7) The Secretary of the Department can waive some of the restrictions of the above requirements. If the determination is made that a waiver to the restrictions of this policy is necessary, the Procurement Manager will submit the request for waiver to the Office of Contracted Client Services (ASC). Upon receipt of the request, ASC will review and forward the request to the Secretary, or designee, for waiver of the restrictions. The request for waiver should clearly describe the reason for the waiver, explain how the waiver is in the best interest of the state, and describe what actions will be taken to preclude the need for a waiver on future actions.

1-28. Non-Competitive Negotiation Meetings .As a sub-section of public meetings, non-competitive negotiation meetings shall be conducted in accordance with Chapter 1, paragraph 1-10 of this operating procedure. In addition, non-competitive negotiation meetings must be electronically posted on the MyFlorida.com web site.

1-29. Additional Requirements for Non-Client Services Contracts .

a. The Secretary of the Department or designee will approve all proposed Department contracts, other than those for direct client services that will not be competitively procured. For the purposes of this approval, a competitive contract is one, which was procured using an ITB, RFP, ITN, or RFQ against a State Term Contract. When a non-client service is procured from a State Term Contract with only one vendor, the Secretary does not require the Contract Manager to submit that procurement for review and approval as long as the Procurement/Contract Manager has adequately documented the processes followed.

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b. The Secretary’s (or designee’s) approval shall be requested through the DCFTracker system. At a minimum, the request for approval will be coordinated using DCFTracker with the following offices:

(1) Circuit/Region . Program Administrator for the Initiating Office, Contract Administration, Fiscal/Budget, Circuit Legal Counsel, appropriate Assistant Secretary for the Initiating Program, Assistant Secretary for Administration, General Counsel, and the Executive Staff Director

(2) Headquarters . Assistant Secretary for the Initiating Program, Assistant Secretary for Administration, General Counsel, and the Executive Staff Director.

c. The following documents shall be attached to the DCFTracker request:

Emergency Procurement PUR 7800 Single Source PUR 7776 Regulated Exemption CF 1117

d. A copy of this approval shall be maintained with the appropriate Method of Procurement documentation in the official contract file. This approval requirement is in addition to the existing coordination and approval processes. Existing delegations of contract signature authority remain unchanged. In those instances when the Secretary (or designee) is the signer of the contract, this review will take place when the contract is presented for signature.

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Chapter 5

COMPETITIVE PROCUREMENT REQUIREMENTS

1-30. Purpose and Scope . Chapter 5 presents a discussion of the Department’s approach to competitive procurements. While any contract may be procured competitively, all contracts over Category Two which are not exempt from the competitive procurement procedures of Chapter 287, F.S., must be procured by competitive methods. Full and open competition affords all potential vendors an equal opportunity to be selected to provide products or perform services for the Department. An open competitive process instills public trust and confidence in the methods used by the Department in selecting its vendors. As a result, competition is the preferred method of procurement.

1-31. Intent of the Legislature . The Legislature recognizes (s. 287.001, F.S.) that fair and open competition is a basic tenet of public procurement and that competition reduces the appearance and opportunity for favoritism and inspires public confidence.

1-32. Use of Competitive Procedures . The Department is encouraged to competitively procure any contracts whenever possible. The determination not to use competitive procurement must be documented and retained in the contract file.

1-33. Competitive Procurement Procedures . Competitive procurement procedures are established to ensure fair and open competition. Developing the solicitation is a major part of competitive procurement. How clearly the solicitation is written affects every aspect of the procurement and delivery. The Department has three types of competitive solicitations and associated procedures established to ensure fair and open competition: Invitation to Bid (ITB), Request for Proposal (RFP), and Invitation to Negotiate (ITN). Detailed instructions and procedures for conducting each of the three types of procurement are found in the Children and Families Operating Procedure (CFOP) 75-10, Guide to Competitive Procurement – ITB, RFP, ITN.

1-34. Selecting the Appropriate Competitive Procurement Type .

a. Invitation to Bid (ITB) . The ITB is a written solicitation for competitive sealed bids. The ITB is used when the commodities or contractual services sought can be specifically defined and the selection of the vendor is to be based solely on price. ITBs include instructions prescribing all terms and conditions for bidding and shall be distributed to all vendors simultaneously. The requirements of the procurement are defined in sufficient detail to allow the selection of the vendor to be based solely on price. An ITB is most commonly associated with the purchase of commodities.

b. Request for Proposal (RFP) . The RFP is a written solicitation for competitive sealed proposals, used when the Department determines that it is necessary to consider factors other than price when awarding the contract. A proposal is the written response to the RFP. The Department may select the responsible and responsive vendor whose proposal is determined in writing to be the most advantageous to the state, taking into consideration the price and the other criteria set forth in the RFP. When the qualifications of the vendor and the scope of work designed to achieve the goal of the contract are more critical to the success of the contract than the price, an RFP may be used. The RFP process is essentially a means of allowing prospective vendors to propose methods for accomplishing the work in addition to the price. As a result, factors other than price such as experience, organizational capacity, and work methodology may be considered in the selection of vendors.

c. Invitation to Negotiate (ITN) . The ITN is a written solicitation for competitive replies. When neither the ITB nor RFP are practicable, an ITN may be used. Use of the ITN is appropriate when it is

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clear that negotiations surrounding the qualifications of the vendor and the scope of work designed to achieve the goal of the contract are more critical to the success of the contract than the price.

1-35. Procurement Manager . The Procurement Manager is a Department employee appointed in writing by a member of the Department’s Senior Management or Select Exempt Service staff. The Procurement Manager assignment document will be maintained in the official procurement/contract file. The Procurement Manager is responsible for conducting the market research and analysis required for the selection of the appropriate procurement procedures. The Procurement Manager is also responsible for scheduling procurement activities, assembly and maintenance of the procurement file, preparation of the solicitation, preparation of the advertising detail for the MyFlorida.com web site, recording and posting key actions and decisions, and other activities to ensure that the procurement meets all legal requirements. The Procurement Manager shall determine the vendor’s registration status, in the MyFlorida.com web site, prior to entering into any contract with that vendor. The Procurement Manager may be appointed as the Contract Manager when the contract is awarded.

1-36. Contract Negotiators (For ITN’s Only) .

a. Subsection 287.057(17)(b), F.S., requires that ,when the value of a contract is in excess of $1 million in any fiscal year, at least one of the persons conducting negotiations must be certified as a Contract Negotiator.

b. If the value of a contract is in excess of $10 million in any fiscal year, at least one of the persons conducting negotiations must be a Project Management Professional (PMP), as certified by the Project Management Institute.

c. Department of Management Services (DMS) delivers a program to train state agency employees to be certified as Contract Negotiators and also train state agency employees to become Project Management Professionals.

1-37. Competitive Negotiation Meetings . As a sub-section of public meetings, competitive negotiation meetings shall be conducted in accordance with Chapter 1, paragraph 1-10 of this operating procedure. Pursuant to s. 286.0113, F.S., negotiation meetings involved with the Invitation to Negotiate (ITN) process will be protected and a recording of such meetings will be made for the record. In addition, competitive negotiation meetings must be conducted in accordance with the following guidelines:

a. Competitive negotiation meetings, with the exception of a negotiation meeting resulting from an ITN, must be electronically posted on the MyFlorida.com web site.

b. The proposed negotiation methodology and schedule of events including dates for negotiation meetings shall be included in all solicitations issued pursuant to s. 287.057(3), F.S. If scheduled dates for negotiation meetings are changed, the Procurement Manager shall provide notice in accordance with Chapter 1, paragraph 1-10d of this operating procedure. However, the negotiation meetings held with vendors pursuant to s. 287.057(3), F.S., are exempt from s. 286.011, F.S., and s. 24(b) Article I of the Florida Constitution, but shall be recorded.

c. The Chief Negotiator will secure equipment and ensure that each negotiation meeting(s) is recorded in its entirety. No portion of the meeting may be held off record.

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d. A record shall be made by recording the negotiation onto an audiotape, a videotape, or digital medium (e.g., CD, DVD, digital audiotape, computer memory). Recordings must be clear and understandable and made in such a way that a request for a copy may be satisfied.

e. Each recording must be clearly identified and labeled, on the exterior, to include the following:

(1) ITN number;

(2) Entity involved in the negotiation;

(3) Date of the negotiation; and,

(4) If applicable, disc numbers must be listed and kept in chronological order (e.g., one of three, two of three, three of three)

f. Recording(s) must be retained with the Procurement Manager’s or Contract Manager’s file in accordance with departmental policy and the minimum retention requirements set forth in the General Records Schedule that is issued by the Department of State, Division of Library and Information Services. The General Records Schedule includes statutory provisions of Chapters 119 and 257, F.S., and may be viewed at http://dlis.dos.state.fl.us/recordsmgmt/gen_records_schedules.cfm.

g. The required recordings of the negotiation meetings are exempt from s. 119.07(1), F.S., and s. 24(a) Article I of the Florida Constitution until such time as the Department posts a notice of decision or intended decision or until 20 days after the final competitive sealed replies are opened, whichever occurs earlier.

h. If the Department rejects all sealed replies and reissues the ITN, the recordings remain exempt from s.119.07(1), F.S., and s. 24(a) Article I of the Florida Constitution until such time as the Department provides notice of a decision or intended decision by electronic posting in accordance with s. 120.57(3)(a) F.S., concerning the reissued ITN or until the Department withdraws the reissued ITN. A recording is not exempt for longer than 12 months after the initial Department notice rejecting all replies.

i. When less than two responses are received, a detailed price and cost analysis to support the vendor’s response.

1-38. General Instructions to Respondents – PUR 1001 Form . The PUR 1001 contains instructions explaining the solicitation process and the actions necessary to respond to a solicitation. The PUR 1001 must be included in the Instructions to Prospective Vendors section of all solicitations.

1-39. General Contract Conditions – PUR 1000 Form . This form contains standard contract terms and conditions that will apply to the contract that results from the solicitation. In the event of any conflict between the PUR 1000 and any terms or conditions in the Standard Contract or Attachment I, the terms and conditions in the contract shall take precedence over the conflicting term in the PUR 1000. However, if the conflicting term in the PUR 1000 is required by any section of the Florida Statutes, the term contained in the PUR 1000 shall take precedence.

1-40. Approvals .All solicitations must be reviewed and approved by the appropriate legal staff and the Contract Administrator prior to being advertised. The solicitation must be approved pursuant to the current

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delegations of authority. Additionally, the determination to use an Invitation to Negotiate (ITN) must be reviewed by legal counsel and approved in writing by the Secretary of the Department.

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Chapter 6

PROTESTS

1-41. Purpose and Scope . Chapter 6 provides a complete discussion of protests to procurement decisions. While protests are most often associated with competitive procurements, any procurement decision may be protested. The scope of this chapter includes all methods of procurement.

1-42. Issues Causing Protest . Pursuant to s. 120.57(3)(b), F.S., any person or firm who has been adversely affected by a decision or intended decision concerning a solicitation or a notice of contract award may file a written notice intent to protest with the contact person listed in the solicitation document within 72 hours after the posting of the solicitation or of the notice of the Department's decision or intended decision.

1-43. Filing the Protest . Any person who is adversely affected by the terms, conditions and specifications contained in a solicitation, including any provisions governing the methods for ranking bids, proposals, or replies, awarding contracts, reserving rights of further negotiation, or modifying or amending any contract shall file with the agency a notice of intent to protest in writing within 72 hours after the posting of the notice of solicitation or decision or intended decision. The Agency Clerk or other attorney at the Office of the General Counsel shall be notified immediately upon receipt of a notice of intent to protest. When filing the protest the following requirements must be adhered to.

a. In the computation of the 72 hour time frame for filing of a protest, Saturdays, Sundays and state holidays are excluded. The Procurement or Contract Manager must ensure that the date and time of posting are documented in the contract file. (Posting on a Monday or Tuesday eliminates the need for a weekend exclusion.) Failure to timely file a notice of intent to protest shall constitute a waiver of proceedings under Chapter 120, F.S.

b. A formal protest must be filed with the contact person listed in the solicitation (or the Contract Manager if other than competitive procurement), with a copy to the Agency Clerk, located in the Office of the General Counsel, after filing the notice of intent to protest. The formal protest must be:

(1) In writing; and,

(2) Filed within ten (10) days after filing of the notice of protest.

(a) No time will be added to the above time limits for mail service.

(b) The 10 day period includes Saturdays, Sundays, and state holidays, as designated in s. 110.117, F.S.

(c) If the last day of the 10 day period is a Saturday, Sunday, or state holiday, as designated in s. 110.117, F.S., the period shall run until the end of the next day which is neither a Saturday, Sunday, nor state holiday, as designated in s. 110.117, F.S.

(d) Failure to file a protest within the time prescribed shall constitute a waiver of proceedings under Chapter 120, F.S.

(3) In substantially the same form as a petition in accordance with Rule 28-110.004, Florida Administrative Code (F.A.C.), stating with particularity the facts and law upon which the protest is based.

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(4) Accompanied by a bond payable to the Department as described in Chapter 6, paragraph 6-4 of this operating procedure at the time of filing the formal written protest.

(a) In lieu of a bond, a cashier’s check, official bank check, or money order in the amount of the bond may be submitted to the contact person.

(b) Failure to file the proper bond at the time of filing the formal protest will result in a denial of the protest.

1-44. Posting Bond for Protest Filed . Any person who files an action protesting a decision or intended decision pertaining to contracts administered by the Department must comply with the following requirements pursuant to ss. 120.57(3)(b), and 287.042(2)(c), F.S.

a. When protesting a decision or intended decision the protestor must post a bond equal to one percent (1%) of the Department’s estimated contract amount. The estimated contract amount shall be based upon the contract price submitted by the protestor. If no contract price was submitted, the Department shall estimate the contract amount based on factors including, but not limited to, the following:

(1) The price of previous or existing contracts for similar or contractual services.

(2) The amount appropriated by the Legislature for the contract.

(3) The fair market value of similar contractual services.

b. The Department shall provide the estimated contract amount to the protestor within 72 hours (excluding Saturdays, Sundays and state holidays) after the notice of protest has been filed. The estimated contract amount is not subject to protest pursuant to s. 120.57(3), F. S. The bond shall be conditioned upon the payment of all costs and charges that are adjudged against the protestor in the administrative hearing in which action is brought and in any subsequent appellate court proceeding.

c. In lieu of a bond the Department may accept a cashiers check, official bank check, or money order in the amount of the bond.

d. The official hours of office operation for receipt of an intent to protest and/or a petition and bond are 8:00 AM to 4:30 PM local time. Upon receipt of the formal written notice of protest, the contact person must secure the bond, cashier’s check, official bank check or money order until resolution of the protest.

e. See Chapter 6, paragraph 6-7d of this operating procedure for instructions for disposition of the bond after the completion of the administrative hearing process and any appellate court proceedings.

1-45. Content of Formal Written Notice of Protest . The formal written notice of protest should be printed, typewritten, or otherwise duplicated in legible form. The content of the formal written notice of protest should contain:

a. The name and address of the appropriate departmental office with which the protest will be filed;

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b. The name and address of the person or firm filing the protest and an explanation of how his/its substantial interests have been affected by the solicitation or by the Department’s notice of intended or actual contract award;

c. A statement of how and when the person or firm filing the protest received notice of the solicitation or notice of the Department’s intended or actual contract award;

d. With particularity, the facts and law upon which the protest is based;

e. A statement of all issues of disputed material facts (if there are none, the protest must indicate such);

f. A concise statement of the ultimate facts alleged, as well as the rules and statutes which entitle the person or firm filing the protest to relief;

g. A demand for relief to which the person or firm deems himself/itself entitled; and,

h. Any other information which the person or firm contends is material.

1-46. Department’s Response to Protest .

a. Upon receipt of a formal written notice of protest, the solicitation process or contract award process must be stopped until the protest is resolved. Upon receipt of a protest, the Contract Manager shall immediately consult the appropriate legal counsel. With legal counsel, the contract signer must determine whether or not to accept or reject the protest.

b. The Secretary of the Department, if it is deemed necessary, may set forth in writing, particular facts and circumstances which may require continuance of the solicitation processes or the contract award process on an emergency basis without the above mentioned delay in order to avoid immediate and serious danger to public health, safety, or welfare. This written determination will specifically detail the facts underlying the decision and will constitute final agency action.

(1) Use the PUR 7800, Notice of Emergency Purchase, for the emergency certification. The form can be accessed at the following web site:


(2) The heading should read “Notice of Emergency Purchase.” The certification is to be signed by the appropriate authority and notarized. Such certifications may be signed pursuant to the appropriate Delegations of Authority.

(3) The procedures specified in s. 120.57(3)(c), F.S., must be used for processing emergency procurements due to disputes.

1-47. Resolution of the Protest .

a. Upon receipt of the intent to protest or formal written notice of protest, the Procurement Manager may work with the protestor to resolve the protest by mutual agreement on an informal basis. The Procurement or Contract Manager will have seven (7) days after receipt of the formal written notice of protest to resolve the protest through mutual agreement. The seven (7) days will exclude Saturdays, Sundays, and state holidays, as designated in s. 110.117, F.S.

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b. If the protest is not resolved by mutual agreement within seven (7) days, excluding Saturdays, Sundays, and state holidays, as designated in s. 110.117, F.S., of receipt of the formal written protest, and there is no disputed issue of material fact, the Secretary of the Department shall designate a qualified hearing officer who shall conduct an informal proceeding pursuant to s. 120.57(2), F.S.

c. If the protest is not resolved by mutual agreement within seven (7) days, excluding Saturdays, Sundays, and state holidays, as designated in s. 110.117, F.S., of receipt of the formal written protest, and there is a disputed issue of material fact, the formal written protest shall be referred to the Division of Administrative Hearings for further proceedings after consulting with legal counsel.

d. Upon completion of the administrative hearing process and any appellate court proceedings the disposition of the bond shall be as follows: if the Department prevails, it shall recover all costs and charges that shall be included in the final order or judgment, excluding attorney’s fees. Upon payment of such costs and charges by the person protesting, the bond shall be returned to him. If the person protesting the award prevails, he shall recover from the Department all costs and charges that shall be included in the final order of judgment, excluding attorney’s fees.

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Chapter 7

CONTRACT DOCUMENTS

1-48. Purpose and Scope . Chapter 7 provides an overview of the Department’s contract documents. The chapter will explain the Department’s contract documents; discuss the processes by which they are developed, and the correct protocols applicable to their use.

1-49. The Contract . As used in this operating procedure, the term contract means a formal written agreement executed between the Department and an individual or organization for the procurement of contractual services. The contract (formal written agreement) must include all terms and conditions governing the nature and delivery of services, Provider performance specifications and performance evaluation methodology, record keeping and reporting requirements, payment methodology, penalties for the Provider’s non-compliance, etc. All terms necessary to govern the relationship between the Department and the Provider must be set forth in the contract document. The contract shall ensure that the Provider is held to the highest possible standards for service quality, accountability, economic efficiency, and service effectiveness. All Department purchases of contractual services shall be evidenced by a written contract document, executed by both the Department and the Provider prior to the contract beginning date (s. 287.058, F.S.). A retroactive contract based on an emergency is an exception that is addressed in Chapter 4 of this operating procedure. NOTE: Letters of Agreement, or other similar instruments, do not meet the Department’s definition of a contract and their use is prohibited for departmental purchases of contractual services with the exception of the general counsel’s agreements with outside attorneys (including Circuit/Region Legal Counsels).

1-50. Contract Document Profile . The complete contract document must include at a minimum the: a) Standard Contract, b) Attachment I, and c) the most recent version of the Financial and Compliance Audit Attachment. Other attachments, such as line item budgets, may be added as needed.

a. Minimum Contract Document Requirements - s. 287.058, F.S . All contracts in excess of Category Two must contain, at a minimum, the provisions of s. 287.058, F.S. As these requirements (with the exception of the renewal clause) have been incorporated into the Department’s Standard Contract, they are not repeated here. When applicable, the Contract Manager must include a renewal clause in the Attachment I as it is not addressed in the Standard Contract.

b. Federal and State Contract Document Requirements . In addition to the specific requirements of s. 287.058, F.S., mentioned above, there are numerous federal and state contract terms and conditions generally required to be included in the Department’s contracts. Use of the Department’s Standard Contract will ensure that these general requirements have been included.

c. Minimum Department Contract Document Requirements . In addition to the above minimum statutorily mandated requirements, there are two departmental requirements that must be addressed/included in each contract for services. These are:

(1) The Statement of Work (see Chapter 7, paragraph 7-6 of this operating procedure for additional detail).

(2) A payment schedule must be included in the Method of Payment section of the Attachment I.

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d. Technical Assistance With Contract Document Requirements . If there are questions regarding contract document provisions, contact the Contract Administrator.

1-51. Standard Contract . The Standard Contract is the document that contains the basic contract terms and clauses required in all Department services contracts. This includes administrative, financial, and non-programmatic terms and conditions usually mandated by federal or state statutes, regulations, rules, and policies of the Department and other applicable State agencies, such as the Office of the Chief Financial Officer. The Office of Contracted Client Services is the Office of Primary Responsibility (OPR) for the Standard Contract. OPR responsibilities include distribution, maintenance, revisions, and approval of all modifications.

a. Purpose . The purpose of the Standard Contract is to:

(1) Aid Contract Managers in the preparation of their contracts;

(2) Ensure inclusion of uniform administrative requirements of contract Providers on a Department wide basis;

(3) Ensure the minimum contract document requirements are included in all Department contractual services contracts; and,

(4) Simplify the review of the contract document.

(5) Use of the Standard Contract is mandatory when purchasing contractual services, including those with private for-profit or non-profit organizations, other governmental agencies, or individuals.

b. The PUR 1000 General Contract Conditions, contains standard terms or conditions that apply to all contracts. The PUR 1000 is incorporated into the Standard Contract by reference. In the event of any conflict between the PUR 1000 and any terms or conditions of any contract (including the Department's Standard Contract), the terms or conditions of the contract shall take precedence over the PUR 1000. However, if the conflicting term or condition in the PUR 1000 is required by any section of the Florida Statutes, the term or condition contained in the PUR 1000 shall take precedence.

c. Revision . The Standard Contract is reviewed and updated at least annually and posted on the Office of Contracted Client Services (ASC) web site at: http://ewas.dcf.state.fl.us/asc/forms/forms2.asp.

d. Deviations from the Standard Contract . All changes to or deviations from the Standard Contract must be approved by ASC, in writing. ASC will review written deviation requests, related to a specific contract, from Region Contract Administrators which include the following:

(1) Written request describing the circumstances which necessitate the deviation;

(2) Proposed text to be used in the deviation language. Normally a clause is added to the Special Provisions section of the Attachment I affecting the change; and,

(3) Justification for the change.

e. Review and Approval of Deviations from Standard Contract . The Office of the General Counsel and other pertinent offices will review change requests and recommend approval/disapproval

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by ASC. If approved/disapproved, ASC will furnish written notification of approval/disapproval. The notification shall be maintained in the Contract Manager’s file.

1-52. Exceptions to the Mandated Use of the Department’s Standard Contract . There are limited situations in which the use of the Department’s Standard Contract document may be excepted or waived. A brief discussion of these situations is provided below. The reader is cautioned that these exceptions or waivers relate only to the use of the Standard Contract document. All other procurement/contracting requirements must still be adhered to.

a. Direct Order in Lieu of the Standard Contract Document . In limited cases, a direct order may be used in lieu of a written agreement for the procurement of contractual services. For those circuits/regions concluding the need to implement this option, it is recommended that the Administrative Services Support Center or circuit/region Purchasing Office and Contract Administration Offices be involved in coordinated development of circuit/region-specific policies and procedures. At a minimum, circuit/region policies and procedures must comply with the following guidelines that address minimum requirements of federal law, statute, rule, and Department policy:

(1) Use of a direct order may be considered for a given class of contractual services on a limited basis when:

(a) The purchase is from a source of supply certified on state term contract by the State Purchasing Office, Department of Management Services (DMS); or,

(b) The purchase satisfies ALL of the following criteria. The purchase:

1. Is for a simple or standardized service;

2. Involves a limited, “one time” transaction; and,

3. Involves a relatively small amount of money.

(2) When using a direct order for contractual services, it is necessary to meet ALL of the following criteria:

(a) Adhere to applicable procurement procedures;

(b) Ensure that efficient tracking and accounting mechanisms are in place which are compatible with and accessible to existing systems for contractual services in order to facilitate circuit/region management and Headquarters monitoring and oversight; and,

(c) Ensure that, at a minimum, all of the following terms and conditions are included in the direct order:

1. The provisions of s. 287.058(1)(a) - (e), F.S. (NOTE: These specific provisions may be printed somewhere on the direct order either in full or incorporated by reference.);

2. A clause prohibiting the use of funds for lobbying (as found in Section I, Paragraph R. of the Standard Contract);

3. A clause regarding Public Entity Crimes (as found in Section I, Paragraph S. of the Standard Contract);

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4. A clause regarding the State’s obligation to pay being contingent upon an annual appropriation by the Legislature (as found in Section II, Paragraph A. of the Standard Contract);

5. A clause regarding the Health Insurance Portability and Accountability Act (HIPAA), ( 42 U.S.C. 1320d.) requires that all contracts for services involving the use or disclosure of protected health information contain notice that Providers comply with the provisions of the Act;

6. An adequate description of the services to be provided and clearly defined deliverables;

7. The contract period including a justification of non-multi-year contracting;

8. The Method of Payment;

9. The signature of an individual authorized to sign (before services are rendered); and,

10. Performance measures and associated performance methodologies.

b. Chief Financial Officer’s Waiver of the Contract Document Requirements of s. 287.058, F.S . The authority to grant these waivers vests solely with the Chief Financial Officer pursuant to s. 287.058(5), F.S. These waivers have been limited and are very specific as to the services/situations to which they apply. (These waiver requests are initiated by the Headquarters Program Offices and coordinated through the Office of Contracted Client Services (ASC) and the Office of Financial Management.) The Standard Contract is available electronically to all Department staff at the ASC web site at the following address:

http://ewas.dcf.state.fl.us/asc/forms/forms2.asp

1-53. Attachment I Design . As stated in Chapter 7, paragraph 7-2 of this operating procedure, at a minimum, the contract document consists of the Standard Contract, an Attachment I, and the most recent version of the Financial and Compliance Audit Attachment. The Attachment I is that section of the contract document which addresses all the contract terms which are not covered in the Standard Contract. These terms address such things as the service(s) to be purchased, client eligibility, target group(s), service location(s), hours of operation, Provider performance standards and evaluation methodology, Provider staff qualification requirements, reporting requirements, and payment methodology/schedule of deliverables.

a. Format . The Attachment I is organized in four major sections as follows:

(1) Services to Be Provided . This section is the first of two parts of the Statement of Work. This statement is a detailed expression of the services to be provided. If the contract is to be for multiple years, all terms and conditions (for each year of the multi-year contract) must be specified in this section of the original contract document.

(2) Manner of Service Provision . This section of the Attachment I is the second part of the Statement of Work and includes contract outcome and output measures and performance standards. It details the service tasks, staffing requirements, service location, equipment, deliverables,

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performance specifications, Provider responsibilities, and Department responsibilities. A summary may be included here when referencing details in another document.

(3) Method of Payment . The Method of Payment section specifies the total or maximum dollar amount of the contract, the manner in which contract costs will be displayed on invoices, the frequency with which invoices will be submitted to the Department, and any special conditions pertaining to payment of contract invoices. This section identifies the documentation which must be submitted by the Provider to the Department or maintained on file by the Provider to establish an audit trail for contract costs and provision of services. If applicable, matching requirements, including (a) specific dollar amount(s) and percentage(s) will also be addressed in the Method of Payment section. See Chapter 9 of this operating procedure for approved Method of Payment clauses.

(4) Special Provisions . The final section of the Attachment I contains any special requirements not covered elsewhere in the contract, including the Standard Contract. This section is the place to incorporate or address the individualized, circuit/region and Provider specific issues/requirements which cannot be addressed in the previous sections. The recommended pre-approved language for some of the most commonly used Special Provisions and the appropriate use of these clauses is included in Chapter 9 of this operating procedure.

b. Attachment I Development . A unique Attachment I will have to be developed for each contract for services. Attachment I development will generally be the responsibility of the Contract Manager. The Contract Manager is advised to coordinate Attachment I development with the Circuit/Region Contract Administration Office at a minimum, as well as with appropriate Department staff possessing expertise in the areas to be addressed in the contract.

(1) Program Specific Model Attachment I (PSMAI) . A PSMAI is a model contract Attachment I developed by each program office that includes the minimum programmatic information required on a Department wide basis for the provision of services and management of the contract.

(2) Development and Maintenance . It is the responsibility of the program office to develop the PSMAI with input from the Office of Contracted Client Services (ASC) when necessary. The PSMAI will have to be developed for each contract for services. Development will generally be the responsibility of the Contract Manager. The Contract Manager is advised to coordinate PSMAI development with the Circuit/Region Contract Administration Office at a minimum, as well as with appropriate Department staff possessing expertise in the areas to be addressed in the contract. The program office will maintain the Statement of Work. The final review and written approval of all PSMAIs must include the appropriate program office for programmatic sufficiency. Any PSMAI that is not reviewed and approved is invalid.

(3) Technical Assistance . ASC will be available to program offices to answer questions regarding the PSMAI development, use or maintenance.

1-54. Statement of Work Format . The following is the format for a Statement of Work to be included in the Services to Be Provided and Manner of Service Provision sections of an Attachment I (sections A. and B.). Method of Payment section C and Special Provisions section D follow the above. See Chapter 9 of this operating procedure for recommended and required language for these sections.

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Statement of Work Format for Performance Based Contracts

A. Services to Be Provided.1. Definition of Terms.

a. Contract Terms. Provide a list of definitions for important contract terms.b. Program or Service Specific Terms. Provide the definitions for terms which are unique to the program

or service, and which will be used in the Statement of Work.2. General Description.

a. General Statement. Provide a general description of the services to be performed under the contract and what will be expected of the provider.

b. Authority. Cite the authority, e.g., Florida Statutes, Florida Administrative Code (F.A.C.) rule number, Code of Federal Regulation (CFR) number, etc., for contracting for the service and under which the program operates and is administered.

c. Scope of Service. Provide a general description of the limits or boundaries within which the services will be delivered, and the length of service that is expected.

d. Major Program Goals. Describe the major goals of the program that the contract will support. Describe any long range or broad objectives which are pertinent, and, as appropriate, describe the Department’s overarching purpose for contracting for the services to be performed.

3. Clients to be Served.a. General Description. Provide a general description of the clients who will receive services under the

contract including, as appropriate, the estimated size(s) of the client population(s) to be served. b. Client Eligibility. Provide specific criteria or client characteristics that will be used to determine whether

a client will receive the contracted services. Such criteria may include, but are not limited to, age, sex, medical condition, economic status, previous history, referral source, potential prognosis, or city/county of residence.

c. Client Determination. Provide any specific client selection information necessary for the provider, and describe any information that will be necessary to determine client eligibility. Include information such as specific types of exclusions, specific types of inclusions, how eligibility questions are to be resolved, and who has the authority to make final determinations.

d. Contract Limits. As appropriate, specify limitations that may affect or will limit the number of clients to be served, the amount of service available to individual clients, or the monetary value of the contract.

B. Manner of Service Provision.1. Service Tasks.

a. Task List. Provide a list of specific tasks, e.g., counseling, transportation, day care, case management, etc., which will be performed under the contract along with a description of the task, and any specific elements which are included or must be considered in task performance.

b. Task Limits. Provide a description of the limits within which the tasks must be performed. These limits may be programmatic, medical, financial, legal, or geographic.

2. Staffing Requirements.a. Staffing Levels. Specify the number and type of staff members the provider is required to have

available to perform the work. b. Professional Qualification. As required, specify what professional licenses, certifications, or experience

the provider’s professional staff members are required to possess or obtain. c. Staffing Changes. Specify under what conditions the provider is required, or permitted to make staffing

changes. Specify what approvals or notification requirements are necessary to make staffing changes and any lead times required for notifications or approvals.

d. Subcontractors. Specify whether, and under what conditions, the provider is permitted to use subcontractors and what approval or notification requirements are pertinent to the use of subcontractors.

3. Service Location & Equipment.a. Service Delivery Location. Specify where the services are to be delivered. If the provider is supplying

a facility or building for the contract, describe any specific physical or facility requirements that must be available for service delivery or client use.

b. Service Times. Specify when the services must be available, the minimum or maximum frequency of the delivery of services, any requirements for responding to emergencies or unexpected needs for service, and any information necessary to identify what constitutes service completion.

c. Changes in Location. Specify who may approve changes in location during the course of the contract, advance notification requirements to change location, and requirements for temporary arrangements that must be made in the event of location changes.

d. Equipment. Describe any equipment that must be available for service delivery.

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4. Deliverables.a. Service Units. For contracts with fixed price features describe, specifically, what comprises a service

unit, how many units, by type of service, will be provided under the contract, and if applicable, any limitations that affect the delivery of service units.

NOTE: For Cost Reimbursement contracts delete the “Service Units” section and renumber the next two sections a. and b.

b. Records and Documentation. Describe the form, content, and construction of any records or documentation which the provider is required to maintain, especially those records subject to audit, any limitations which are pertinent to the inspection and availability of the documentation, who makes final determinations regarding questions about records, and how to obtain such determinations. Include information regarding whether and which records must be maintained manually, electronically, or both.

c. Reports. Specify the type, frequency, form, content, and construction of any reports that the provider is required to submit as a part of the contract. A table such as the following should be included in the contract to assist the provider and the Contract Manager in keeping track of required reports.

Report Title Reporting Frequency Report Due Date Number of Copies DCF Office address(es) to receive reports

NOTE: Circuits/Regions may move the above table to an exhibit if the size of the table precludes including it in the body of the work statement. Circuits/Regions are also authorized to add columns or notes as necessary to enhance the usefulness of the table.

5. Performance Specificationsa. Performance Measures. Include the Department’s approved output and outcome measures with their

established standards. If the Department has not established measures for outputs and outcomes or standards, contract originators and signers may determine the measures for the outputs, outcomes, and standards that are most appropriate for use in the contract. The outputs and outcomes must be measurable and expressed in mathematical terms; (e.g. percentages, ratios, averages, units, frequency).

b. Description of Performance Measurement Terms. Clarify performance measurement terms that are unique or possess a unique operative definition. This section may include measurement unique definitions not defined elsewhere in the contract. The sections may also include a description of how the elements relate to the performance measure or to other terms.

c. Performance Evaluation Methodology. Include information about evaluating the performance and the methodology for each measure. Clearly state the mathematical formula to be used (e.g. numerator and denominator). For each output and outcome provide a detailed description who, when and how the performance data will be collected and processed.

NOTE: In addition, the clause in Chapter 9, paragraph 9-7 i. of this operating procedure shall be inserted in this section of the contract.

6. Provider Responsibilities.a. Provider Unique Activities. As required, specify any activities, tasks, obligations, or work that are solely

and exclusively the responsibility of the provider, and for which, by execution of the contract, the provider agrees to be accountable.

b. Coordination With Other Providers/Entities. As required, specify what activities, tasks, obligations, or work the provider must coordinate with other providers or entities in performing the contract. Specify that the failure of other providers or entities does not alleviate the provider from any accountability for tasks or services that the provider is obligated to perform pursuant to the contract.

7. Department Responsibilities.a. Department Obligations. Specify what support, other than monetary, the Department will provide

during the period of the contract, and any preconditions which the contractor must fulfill to ensure receipt of such support.

b. Department Determinations. As required, specify in what areas the Department has exclusive authority to make determinations, and any procedures that the provider must observe in obtaining required determinations.

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c. Monitoring Requirements. State that the provider will be monitored in accordance with existing departmental procedures (Children and Families Operating Procedure (CFOP) 75-8). In the event that procedures other than CFOP 75-8 are to be used, describe the manner in which the provider will be monitored. That description should include, but not be limited to, specifying which records, reports, documents, or contract elements will be used in conducting the monitoring.

1-55. Other Attachments/Exhibits . The following are examples of other documents and forms which may be included in the contract as additional attachments: sample invoice forms, line item budgets, appropriate portions of the solicitation document, and the Provider’s response to the solicitation document (appropriate parts or all). Subsequent appendages to each contract Attachment will be identified as an Exhibit and ordered alphabetically starting with A, such as Exhibit A, Exhibit B.

1-56. Duration of Contract .

a. Contract beginning and ending dates must fall within the period authorized by the funding source(s) involved.

b. For contracts requiring a Certification of Emergency for Retroactive Payment or for non-compliance situations, the beginning date in Section III. A. of the Standard Contract should reflect the date on which services actually began. (See Chapter 10, paragraph 10-12 of this operating procedure for information regarding retroactive payment situations.)

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Chapter 8

RATE CONTRACTS

1-57. Purpose and Scope . Chapter 8 provides a discussion of the Rate Contract that establishes a rate of payment for a specified unit of service.

1-58. Introduction . A contract that establishes a rate of payment for a specified unit of service is known as a Rate Contract. The Department’s Standard Contract document shall be used for Rate Contracts. All contractual services purchased using a Rate Contract must be procured in accordance with Chapter 287, F.S., as further discussed in Chapters 3, 4, and 5 of this document. See Chapters 7 and 10 of this operating procedure for a complete discussion of contract document requirements, and contract development and review procedures.

1-59. Rate Contract Management Procedures . The client must be determined by the Department to be eligible for the service(s) and the service(s) must be authorized by the Department’s program staff prior to any service(s) being rendered. The following procedures must be used for managing Rate Contracts:

a. Eligibility determination must be established per existing Department programmatic eligibility criteria. These criteria are to be part of the Services to be Provided section of the Attachment I.

b. Authorization of services is required to obligate the Department to make payment under an executed Rate Contract. It is preferable that the authorization be provided in writing, but in emergency circumstances authorization may be provided orally.

(1) Persons other than the designated Contract Manager signing authorizations for services or approving invoices for payment under a particular Rate Contract must have written delegated authority to do so.

(2) Appropriate staff, to be determined by the circuit/region or Headquarters staff, must verify that budget and cash are available to fund the service, prior to the service being authorized.

(3) Records must be maintained by staff that indicate total budget allocation, the number of services authorized, expenditures made to date, and the available balance.

(4) An ongoing spending plan analysis and projection of total annual expenditures must be made. The frequency of this report is to be determined by the Circuit/Region Administration and Headquarters.

1-60. Rate Contract Payment .

a. The Department is not obligated to make payment to a Provider under an executed Rate Contract for authorized services until the services have been delivered and the invoice is approved by the Contract Manager for the Rate Contract.

b. Invoices must be provided for each Rate Contract and should be standardized to the greatest extent possible. If no invoice is provided, the Contract Manager should use an appropriate Department standard invoice if applicable.

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c. Prior to the development of the invoice the Program Office must determine if the Provider will be permitted to charge the client, parent, or guardian additional fees for providing the service. Circuit/Region Program Office decisions regarding the permissibility of a Provider charging fees must be made within the framework of the respective Headquarters’ policy.

1-61. Multi-Circuit Rate Contracts . A Multi-Circuit Rate Contract occurs when two or more circuits or circuit(s) and region, purchase the same or similar services from the same Provider under a Single Rate Contract. The Standard Contract document is used for Multi-Circuit Rate Contracts.

1-62. Multi-Circuit Rate Contract Processing Procedures . The following procedures are intended as guides to the negotiation, encumbrance, payment, monitoring, and amendment of Multi-Circuit Rate Contracts (two or more circuits or circuit(s) and region purchasing the same or similar services from the same Provider under a Single Rate Contract).

a. General Procedures for the Processing of Multi-Circuit Rate Contracts . It is the responsibility of any user Circuit/ Region Contract Manager to notify the appropriate home circuit/region (the circuit/region negotiating and executing the Rate Contract) Contract Manager of the intention to participate in that circuit’s or region's contract. The notification of the home circuit/region shall be made via a Notice of Intent to Participate in a Multi-Circuit Rate Contract Form (Appendix B to this operating procedure).

b. Home circuit/region will negotiate Rate Contracts which have previously been used by other circuits/regions or are anticipated to be used by other circuits/regions using the Special Provisions section of the Attachment I.

NOTE: Although N/A is listed as the contract amount in the dollar amount of the Standard Contract, in Section II. A. each circuit/region must enter their respective estimated/anticipated dollar amounts in the Florida Accounting and Information Resource (FLAIR) Contract Subsystem. The home Circuit/Region Contract Manager must list the dollar amount estimated to be incurred by the home circuit/region on the Contract Review Form (CF 1122), under original amount. The user Circuit/Region Contract Managers will do the same except they will use the amount field in Section B (Contract Amendments of the CF 1122 ). All subsequent changes in the anticipated dollar amount must also be entered in the FLAIR Contract Subsystem using the Amendment Section of the CF 1122.

c. The Special Provisions section must include language clearly specifying that:

(1) The contract is a Multi-Circuit Rate Contract and may be used by any circuit/region.

(2) Each circuit/region is to be fully responsible for its portion of the services purchased and billed directly by the Provider for the cost of services to clients of that circuit/region.

d. Responsibilities for the Processing of Multi-Circuit Rate Contracts.

(1) Responsibilities of the Home Circuit/Region.

(a) To supply the Contract Manager in each user circuit/region two fully executed copies of the Multi-Circuit Contract and CF 1122.

(b) To supply the Department of Financial Services in Tallahassee with a fully executed Rate Contract. The Chief Financial Officer has requested this for central file purposes.

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(c) To add user circuits/regions applicable organization codes and service area codes to the contract information file to indicate its intention to participate in the Multi-Circuit Rate Contract. (See CF 1122, lines 13(2) - (4))

(d) To send one copy of the Multi-Circuit Rate Contract with the first voucher for payment to the appropriate Chief Financial Officer’s office for that circuit/region.

(e) To add the Multi-Circuit Rate Contract to the Contract Information File in order that user circuits/regions may encumber and allot their share of the Rate Contract. This must be accomplished immediately after execution.

(f) To supply the Contract Manager in each user circuits/regions any amendments to the contract that may be executed during the life of the contract.

(g) To conduct required monitoring per Children and Families Operating Procedure (CFOP) 75-8 and provide copies of resulting reports to the user circuits/regions unless other arrangements have been agreed upon by the Circuit/Region Contract Administrators involved.

(h) The home circuit/region is not required to amend its Rate Contracts to accommodate new user circuits/regions.

(2) Responsibilities of the User Circuit(s)/Region.

(a) To supply the user circuits/regions Fiscal department one copy of the contract, the CF 1122, and any amendments.

(b) To forward these documents with the first invoice for payment to the appropriate Chief Financial Officer’s office.

(c) To input into the contract amendment file on the FLAIR Contract Subsystem its original amount under the Amended Amount and denote its circuit/region in the description.

(d) The user circuits/regions may execute an individual Rate Contract with the Provider if the home circuit/region has not executed a Multi-Circuit Rate Contract.

(3) Responsibilities of Both the Home and User Circuit(s)/Region . Each circuit/region is responsible for the encumbrance and allotment of its share of the Rate Contract.

1-63. Development and Assignment of a Contract Number for Multi-Circuit Rate Contracts . Contract numbers will be developed and assigned to Multi-Circuit Rate Contracts by the home circuit/region in the following way:

a. The first character must always be S.

b. The second digit designates the home circuit/region. Use the same coding scheme that is used to identify circuits/regions in the FLAIR Contract Subsystem. (Note that this digit will remain the same and is not to be changed to reflect user circuit(s)/region.)

c. The third digit equals program entity. Use the same coding scheme that is used to identify budget entity in the FLAIR Contract Subsystem.

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Chapter 9

CONTRACT CLAUSES

1-64. Purpose and Scope . Chapter 9 provides a compilation of contract clauses to be used to customize each contract, providing unique terms and conditions appropriate to the services being procured. This is accomplished through the inclusion of both Special Provisions and, in many cases, selection of an appropriate Method of Payment. The clauses in this chapter have been approved by the Offices of Contracted Client Services and the General Counsel. They are not to be altered without written permission from the Office of Contracted Client Services.

1-65. Method of Payment Clauses . This section of the contract contains information describing: the method and frequency of payment to be used; match requirements, if any; instructions regarding the manner in which contract costs will be displayed on invoices; the documentation of contract costs which must be given by the Provider to the Department; and the enumeration of other special provisions pertaining to payment of contract invoices, such as a time limit for submission of final invoices. The Method of Payment section of the contract, in addition to the payment method, will address the payment timing i.e., reimbursement or advance. Contract Managers are cautioned to be aware of the current Chief Financial Officer (CFO) memorandums when contract writing. The CFO memorandums may be viewed at: http://www.fldfs.com/aadir/cmmain.htm.

a. Specification of Time to Inspect Deliverables Clause . The Standard Contract, Section II. B., allows the Department five (5) working days to inspect and approve the goods and services procured unless the contract specifies otherwise. The Contract Manager may negotiate a period longer than five working days in order to inspect and approve deliverables per s. 215.422, F.S. Adequate review and inspection time should depend on the complexity of the deliverables. If an increased amount of time to inspect the deliverables is required, add the following clause in the Method of Payment section of the contract.

Specification of Time to Inspect Deliverables: The department has ___ working days to inspect and approve goods and services purchased under this contract.

b. Required Match Clause . If the contract contains match requirements, specify such in the Method of Payment section of the Attachment I. The following clause may be used to meet some of the simpler match requirements. With more complex match requirements a clause specific to the requirements may have to be written. NOTE: If this contract was procured by competitive solicitation, this must reflect the same match requirements found in the solicitation.

Required Match: A match of _____ percent of ________ is required for this contract. The match requirement may be satisfied by specify type of match. The following may not be used as match: enter any restrictions here, (e.g., in-kind contributions, Medicaid revenues).

c. Payment Methods Used . The Department uses two basic payment methods in contracting for services; Cost Reimbursement and Fixed Price. This chapter will provide a general discussion of these Methods of Payment and include sample payment clauses that are intended to serve as a guide in the Contract Manager’s development of payment terms and conditions appropriate to each contract.

(1) Cost Reimbursement - Discussion . This payment method is used when the Department desires to exercise some degree of control or oversight over the Provider’s costs incurred in delivering the contracted service(s). The Provider will be required to include a detailed, line item budget in the contract. Ordinarily, this line item budget will include: only those line items identified/approved as allowable under the terms of the contract; the projected (budgeted) dollar amount for each line item; and, a detailed budget narrative supporting the budget as to reasonableness

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http://www.fldfs.com/aadir/cmmain.htm.


and necessity. Please refer to Appendix C of this operating procedure (Sample Project Budget Detail) for a sample line item budget format and for information regarding budget analysis. The Provider will be reimbursed for actual, allowable expenditures that are made within the limits of the approved budget. In order to be paid, the Provider will have to submit periodic invoices that clearly identify these expenditures in accordance with the line items in the approved budget. Additionally, the expenditures reported on the invoice must be supported with documentation that is required to accompany each invoice. Note: Pursuant to Comptroller’s Memorandum No. 01 (97-98), the Department will be required to maintain the documentation supporting cost reimbursement invoices and to make it available for audit purposes.

(2) Cost Reimbursement .

(a) Payment Clause .

This is a cost reimbursement contract. The department shall reimburse the provider for allowable expenditures incurred pursuant to the terms of the contract for a total dollar amount not to exceed $_________, subject to the availability of funds.

(b) Invoice Requirements .

The provider shall request reimbursement on a monthly basis through submission of a properly completed invoice (Exhibit _____) within _____ days following the end of the month for which reimbursement is being requested. Charges on the invoice must be accompanied by supporting documentation.

Payment may be authorized only for allowable expenditures on the invoice which are in accord with the limits specified on the approved line item budget (Exhibit _____). The approved line item budget may be modified only through amendment to this contract initiated by a written request that includes justification supporting the need for modification. Such modifications cannot be made retroactive to a date prior to the execution date of the formal amendment.

(c) Supporting Documentation Requirements

1. Professional Services Fees on a Time/Rate Basis. The invoice must include a general statement of the services being provided. The time period covered by the invoice, as well as the hourly rate times the number of hours worked, must be stated. Supporting documentation must be included detailing the hours represented on the invoice. Such documentation should include timesheets or a time log and copies of canceled payroll checks. The State Chief Financial Officer reserves the right to require further documentation on an as needed basis.

2. Postage and Reproduction Expenses. Purchases made from outside vendors must be supported by paid invoices and/or receipts. Purchases for all in-house postage (e.g., postage meter) and reproduction expenses must be supported by usage logs or similar documentation.

3. Expenses. Receipts are required for all expenses incurred, (e.g., office supplies, printing, long distance telephone calls, etc.). Receipts are required for all expenses of this nature.

4. Travel. For all travel expenses, a Department travel voucher, Form DFS-AA-15 (State of Florida Voucher for Reimbursement of Traveling Expenses) must be submitted. Original receipts for expenses incurred during officially authorized travel (items such as car rental and air transportation, parking and lodging, tolls and fares) are required for reimbursement. Subsection 287.058(1)(b), F.S., requires that bills for any travel expense shall be submitted in accordance with s. 112.061, F.S., governing payments by the state for traveling expenses. Children and Families Operating Procedure (CFOP) 40-1 (Official Travel of DCF Employees and Non-Employees) provides further explanation, clarification and instruction regarding the reimbursement of traveling expenses necessarily incurred during the performance of official state business.

5. Conference Travel. Prior approval is required in accordance with s. 112.061, F.S., and must be certified on Form DFS-AA-13 (State of Florida Authorization to Incur Travel Expense) with a copy of the program or agenda of the conference attached. Reimbursement is in accordance

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with the provisions of the clause above entitled Travel. See CFOP 40-1 for further explanation, clarification, and instruction.

6. Service Delivery Documentation. The provider must maintain records documenting the total number of clients and names (or unique identifiers) of clients to whom services were provided and the date(s) on which services were provided so that an audit trail documenting the service provision is available. Contracts between state agencies, and/or contracts between universities may submit alternative documentation to substantiate the reimbursement request that may be in the form of Florida Accounting and Information Resource (FLAIR) reports or other detailed reports.

NOTE: Contracts between state agencies, and/or contracts between universities may submit alternative documentation to substantiate the reimbursement request that may be in the form of Florida Accounting and Information Resource (FLAIR) reports or other detailed reports.

(3) Fixed Price - Discussion . Documentation of the decision to use a fixed price method of payment rather than reimbursing the Provider’s actual costs must be maintained in the procurement file. This method of payment is used when the service provided can be broken down into unit costs (hours, days, etc.) or fixed fees (payment based on the delivery of a complete service). When proposing a fixed price contract, the individuals involved for the Department, e.g., Contract Manager, Procurement Manager, should apply a reasonable and necessary test to the proposed costs. Basically this test determines whether the proposed costs are reasonable and necessary by comparing them to the cost of comparable local services. One or both of the following analyses may be applied:

(a) If there are vendors of the service in the geographic area, the local competitive rate test is used. If there are no vendors of the service in the geographic area, the local comparable rate test may be used.

1. Local Competitive Rate Test . To meet the reasonable and necessary test competitive costs are determined through a local survey of the cost of the proposed service. The average competitive cost determined by the survey is used to verify that the rate is competitive. The Contract Manager must determine the degree of competition.

2. Local Comparable Rate Test . To meet the reasonable and necessary test the rate must be comparable with the going rate for comparable, similar services in the geographic area where the service is being provided. The Contract Manager must determine the degree of comparability. (See Appendix H to this operating procedure for more information on Cost or Price Analysis.)

(b) The Provider will be required to submit a detailed, line item budget. Ordinarily, this line item budget will include: only those line items identified/approved as allowable under the terms of the contract; the projected (budgeted) dollar amount for each line item; and, a detailed budget narrative supporting the budget as to reasonableness and necessity. Refer to Appendix C to this operating procedure for a sample line item budget format and for information regarding budget analysis.

(c) Contracts are exempted from the line-item budget submission requirement where the rate of payment is established by law, rule or regulation, e.g., community Substance Abuse and Mental Health (SAMH) programs unit cost contracts with rates negotiated pursuant to the provisions of Rule 65E-14.021, Florida Administrative Code (F.A.C.) and Children’s Mental Health Behavioral Health Network Contracts. Title XXI of the KidCare Program, with established capitated rates per enrolled client. Private Attorney services which utilize the standard fee schedule prescribed in Chapter 2-37, F.A.C., are also exempted from this requirement. Contracts awarded based on a State

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Term Contract are also exempted from this budget submission requirement. The Method of Payment used for a contract procured as a result of State Term Contract must have a direct relationship to the quoted prices in the State Term Contract.

(d) An explanation of the decision process used to determine line item allowability, reasonableness and necessity must be provided to the prospective Provider during the negotiation process. Any issues regarding the budget or supporting narrative must be discussed in the negotiation and documented in the Memorandum of Negotiation and maintained in the Procurement Manager's file.

(e) Any indirect cost line item that proposes a percentage of allocated overhead in excess of 10% of the total cost of the contract must be supported by a contract-specific indirect cost proposal which includes a cost allocation plan that provides a narrative description specifically detailing how the proposed indirect costs provide a derived benefit to the contracted services. The Contract Manager may not accept an approved indirect cost plan or an approved indirect cost rate that is not specific to the contractual services being delivered.

(f) The Contract Administrator may make the determination that sufficient documentation exists to exempt certain professional service Providers from the requirement to submit detailed budgets. For unit cost professional services, a price analysis must be conducted to establish that the services are like or similar to services for which rates have been established such as Medicaid or Medicare rates.

(4) Fixed Price – Payment Methods . Department staff may use, if appropriate, either of the following fixed price payment methods:

(a) Unit Cost . With a unit cost payment method, the Provider is paid a pre-determined price for each unit of service delivered. A unit of service may be based on time, tasks, activities, contacts, or any combination thereof.

1. Payment Clause .

This is a fixed price (unit cost) contract. The department shall pay the provider for the delivery of service units provided in accordance with the terms of this contract for a total dollar amount not to exceed $_________, subject to the availability of funds.

The department agrees to pay for the service units at the unit price(s) and limits listed below:

Service Units (services) Unit Price Maximum # of Units

_______________ _______________ _______________

_______________ _______________ _______________

_______________ _______________ _______________

_______________ _______________ _______________

_______________ _______________ _______________

2. Invoice Requirements .

The provider shall request payment on a monthly basis through submission of a properly completed invoice (Exhibit _____) within _____ days following the end of the month for which payment is being requested.

Payments may be authorized only for service units on the invoice which are in accord with the above list and other terms and conditions of this contract. The service units for which payment is requested may not either by themselves, or cumulatively by totaling service units on previous invoices, exceed the total number of units authorized by this contract.

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3. Supporting Documentation Requirements .

The provider must maintain records documenting the total number of recipients and names, or unique identifiers, of recipients to whom services were provided and the date(s) that the services were provided so that an audit trail documenting service provision can be maintained.

(b) Fixed Fee . With a fixed fee payment method, the total contract price is determined up front and paid upon completion of the total service requirements of the contract. A fixed fee payment method would be most appropriate when contracting for an evaluation service, for example, where the deliverable may consist solely of an evaluation report.

1. Payment Clause .

This is a fixed price (fixed fee) contract. The department shall pay the provider, upon satisfactory completion of both the service(s) and all terms and conditions specified in this contract, the amount of $________ as payment in full, subject to the availability of funds.

2. Invoice Requirements .

The provider shall request payment through submission of a properly completed invoice (Exhibit _____) within _____ days following the completion of all terms and conditions for the delivery of service under this contract. If the provider fails to do so, all right to payment is forfeited, and the department will not honor any requests submitted after the aforesaid time period. Payment due under the terms of this contract will be withheld until the department has approved the final product.

3. Supporting Documentation Requirements .

The provider must maintain records documenting the total number of recipients and names, or unique identifiers, of recipients to whom services were provided and the date(s) that the services were provided so that an audit trail documenting service provision can be maintained.

1-66. Advance Payments – Discussion . The payment methods and sample clauses, as presented in Chapter 9, paragraph 9-2 of this operating procedure, will accommodate payment to the Provider only after the expenditures have been made or services delivered. Under certain circumstances, it is possible, to make a portion of the contract funds available to a Provider prior to the delivery of services and/or expenditure of funds by the Provider. This manner of making payment may be used only when the specific funding source or program is authorized by the General Appropriations Act in a grants-and-aids category. Advances may be made only to not-for-profit corporations or governmental agencies. Advance payments are not limited to cost reimbursement contracts. The Contract Manager’s file must contain the justification submitted by the Provider and the Contract Manager’s reasons for supporting the need for an advance. Reconciliation and recoupment of advances made under a contract are to be completed by the time final payment is made.

a. Payment of Advances . The payment of any advances may be made on a monthly basis up to the first three months of the contract and may not exceed the expected cash needs of the Provider during the first three months. Requests to exceed the three month period may be submitted to the State’s Chief Financial Officer through the Department’s Office of Financial Management. Detailed documentation justifying cash needs for advances (e.g., certified statement/work papers from the Provider analyzing the timing of projected expenditures versus available operating capital and anticipated revenues) must be maintained in the Contract Manager’s file.

b. Interest Earned . Per s. 216.181(16)(b), F.S., any interest earned by the Provider on such advances is to be returned to the Department or applied against the Department’s obligation to pay the contract. Specific instructions for the return of interest earned by the Provider or its application against the amount of the contract must be developed by the Contract Manager and the Provider, and be

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included in the Method of Payment or Special Provisions section of the contract. Further instruction regarding actions to be taken by circuits/region to implement the requirements of s. 216.181(16)(b), F.S., includes the following:

(1) The preferred manner of financing contract operations is for Providers to maintain sufficient funds to meet operating expense requirements of the contract. Since typical invoicing procedures allow for invoicing monthly and the state is required to make payment within forty (40) days of receiving a properly payable invoice, new Providers should, therefore, have operating capital sufficient to cover at least the first sixty 60 days of operation. There are times the Provider is incapable of maintaining this funding level, and the Department authorizes an advance.

(2) Under normal circumstances, advance payments are made to Providers on a monthly basis in amounts sufficient to cover the Provider's estimated expenses for the month. Careful review of the amounts requested by the Provider and frugal management should result in no excess funds being paid. Occasionally, funds are paid to Providers, resulting from estimating errors and cost avoidance, in excess of the actual requirement. In such cases, statute allows that such funds may be invested in an insured interest-bearing account. When this occurs, the repayment provisions take effect.

(3) The statute also establishes a requirement that the benefit/proceeds of the interest- bearing account flow to the Department. The Contract Manager may select one of two methods for collecting this interest. The first method is straightforward in that the Provider returns any interest earned on the excess advance to the Department by check. The second method employs an offsetting principle. If this method is chosen, the Contract Manager reviews and approves the invoices for work accomplished (fixed price) or cost incurred (cost reimbursement) in the normal fashion. The final amount to be paid for a specified monthly invoice is reduced by the amount of interest earned, reported by the Provider. Accordingly, the offset occurs on a monthly basis.

(4) The effect of either method is that the Provider will deliver the same amount of services originally agreed to and will be paid precisely the same amount as agreed to at the award of the contract. Any value derived from these interest-bearing accounts conveys to the Department for use, as it deems necessary.

(5) Allowing the excess payments to be invested in interest-bearing accounts is essentially making the best of an undesirable situation. The desired approach is to exercise sound management of the funds to be advanced to Providers by dispersing only what is needed. The goal is not to earn interest.

c. Clauses . The following clauses are presented as examples of clauses that would need to be included in the Method of Payment section of an advance payment contract in addition to the aforementioned clauses for cost reimbursement or fixed price payment methods:

Advance Payments:

The provider may request a monthly advance for each of the first three months of the contract period, based on anticipated cash needs. All reimbursement requests for the fourth through the twelfth months shall be based on the submission of monthly actual expenditure reports beginning with the first month of the contract.

Advanced funds may be temporarily invested by the provider in an insured interest bearing account, in accordance with s. 216.181(16)(b), F.S. Interest earned on advanced funds shall be returned to the department on a monthly basis or applied against the amount of the contract owed by the department (Contract Manager: choose one).

NOTE ON ADVANCED PAYMENTS: Unless otherwise required by the contract, invoices requesting advances are not required to have supporting documentation attached.

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d. Scheduling the Advance Payment .

The following is an example of how to schedule the submission of advance and reimbursement requests:

Date of Month Type of Request Based On Submission

July Advance Anticipated Cash Needs July 1August Advance Anticipated Cash Needs July 15September Advance Anticipated Cash Needs August 15October Reimbursement July Actual Expenditures September 15November Reimbursement August " October 15December Reimbursement September " November 15January Reimbursement October " December 15February Reimbursement November " January 15March Reimbursement December " February 15April Reimbursement January " March 15 May Reimbursement February " April 15June Reimbursement March " May 15

Final April " Date(s)Final Invoice Expenditure May specified

Report June " in contract

NOTE: The October payment is termed a reimbursement; however, it must be received by the provider in time to provide cash flow for the month of October. The provider’s fiscal reports covering actual expenditures during the last three months of the contract (April, May, and June in this example) should reflect an adjustment reconciling advances for the first three months of the contract.

1-67. Fees for Services . If the Provider will be permitted to charge fees for services in addition to receiving reimbursement from the Department, a provision to that effect must be included in the Special Provisions section of the Attachment I. The disposition of client fees and other third party payments must also be addressed in the Special Provisions section and should be accommodated on the invoice form. If the Provider will not be allowed to charge fees to clients, this must be reflected in the Special Provisions section of the Attachment I. In addition, the invoice must contain the statement “The Provider will accept payment from the Department of Children and Families as payment in full.”

1-68. Subcontractors .

a. The contract must specify whether, and under what conditions, the Provider is permitted to use subcontractors and what approval or notification requirements are pertinent to the use of subcontractors.

b. The Department will not select subcontractors for the Provider or be responsible for subcontractors selected by any Provider. The Provider will be held responsible and accountable for all work covered under the contract including any work performed by subcontractors.

c. The Department may choose at the award of the contract to allow the Provider of services selected through competitive means to subcontract any or all of the services to be provided. One of the following clauses must be placed in Section B. 2. d. of the Statement of Work Format when the Department chooses to allow/not allow a Provider to select a subcontractor (choose only one of the following options, do not combine options):

Option 1:

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This contract allows the provider to subcontract for the provision of all services under this contract, subject to the provisions of Section I. I. of the Standard Contract. Written requests by the provider to subcontract for the provision of services under this contract will be routed through the Contract Manager for department approval.

Option 2:

This contract does not allow the provider to subcontract for the provision of any services under this contract.

Option 3:

This contract allows the provider to subcontract for the provision of the following services under this contract: (enter services). All subcontracting is subject to the provisions of Section I. I. of the Standard Contract. The provider may not subcontract services not listed.

d. A Provider may request approval to subcontract additional work at any time during the performance of the contract in accordance with the Standard Contract. The Contract Manager may approve such a request if is in the best interest of the Department, i.e. it results in reduced cost or improved service delivery.

1-69. Medicaid Billing .

a. The following language shall be included in all Substance Abuse and Mental Health contracts for client services that are awarded, renewed or amended with a Provider that is also a “Medicaid Provider” as defined in s. 409.901(16), F. S.

The Department and the Provider specifically agree and acknowledge that the Medicaid Program is the payor of last resort for Substance Abuse and Mental Health contracts and:

(1) For Medicaid purposes, the department shall not be considered a liable third party for Substance Abuse and Mental Health Program payments funded through the department; and,

(2) In no event shall the provider bill the Medicaid program for services or expenses for Medicaid recipients for which the provider has already been paid by any other liable third party; and,

(3) Provider services covered under the Florida Medicaid program for Medicaid recipients may be billed to the Medicaid program by the provider, unless the provider is already being paid by any other liable third party; and,

(4) Authorized provider services to non-Medicaid recipients, or for non-Medicaid covered services, may only be billed to the department or any other non-Medicaid first or third party payor; and,

(5) The Medicaid enrolled provider may not bill the department for Medicaid covered services provided to Medicaid eligible recipients; and,

(6) The provider shall identify and report Medicaid earnings separate from all other fees; and,

(7) Medicaid earnings cannot be used as local match; and,

(8) The provider shall ensure that Medicaid payments are accounted for in compliance with federal regulations; and,

(9) In no event shall both Medicaid and the department be billed for the same service; and,

(10)The provider operating a residential treatment facility licensed as a Crisis Stabilization Unit, Detoxification Facility, Short-term Residential Treatment Facility, Residential Treatment Facility Levels 1 or 2, or Therapeutic Group Home that is greater than 16 beds is not permitted to bill or knowingly access Medicaid for any services for recipients while in these facilities; and,

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(11)The provider operating a children’s Residential Treatment Center of greater than 16 beds is not permitted to bill or knowingly access Medicaid for any services for recipients in these facilities except as permitted under the Medicaid State Inpatient Psychiatric Program Waiver.

b. The following language shall be included in all Department contracts for client services (if relevant) that are awarded, renewed or amended with a Provider that is also a “Medicaid Provider” as defined in s. 409.901(16), F. S.

The department and the provider specifically agree and acknowledge that the Medicaid program is the payor of last resort; and,

(1) In no event shall the provider bill the Medicaid program for services or expenses for Medicaid recipients for which the provider has already been paid by any other liable third party; and,

(2) Provider services covered under the Florida Medicaid program for Medicaid recipients may be billed to the Medicaid program by the provider, unless the provider is already being paid by any other liable third party; and,

(3) Authorized provider services to non-Medicaid recipients, or for non-Medicaid covered services, may only be billed to the department or any other non-Medicaid first or third party payor; and,

(4) The provider shall identify and report Medicaid earnings separate from all other fees; and,

(5) Medicaid earnings cannot be used as local match; and,

(6) The provider shall ensure that Medicaid payments are accounted for in compliance with federal regulations; and,

(7) In no event shall both Medicaid and the department be billed for the same service.

1-70. Miscellaneous Clauses . The Special Provisions section of the contract is used to further tailor the contract to meet any unique situations and/or provisions not addressed in the Standard Contract and Attachment I. This includes any additional requirements of the Department’s organizational unit that will manage the contract and funding source (e.g., federal grants). This paragraph contains a compilation of clauses for the Contract Manager’s use, as appropriate. See Chapter 9, paragraph 9-8 of this operating procedure for required clauses to be used with contracts funded by federal funds/grants. All clauses in this chapter have been approved by the Office of the General Counsel and are to be used as written. They may not be modified without authorization through the Contract Administrator (CA) from the Office of Contracted Client Services (ASC).

a. Nonexpendable Property/Title to Vehicles (Transportation Disadvantaged) . When providing state owned property to a Provider for use in conjunction with the performance of services to the state, the Department shall furnish an inventory of property to be transferred to the Provider, in accordance with Children and Families Operating Procedure (CFOP) 80-2. The Provider receiving the property shall inspect the property to ascertain its condition for use prior to acceptance. The state does not warrant the condition or suitability for use of property in the possession of the Provider. After acceptance by the Provider, the condition or suitability for use of such property shall not forestall contract performance or be considered as a cause of an excusable delay. The clauses following paragraphs (1) and (2) below apply to nonexpendable/tangible property and title to vehicles.

(1) Property – Nonexpendable Property . Rule 60A-1.017, Florida Administrative Code (F.A.C.), places certain documentation requirements on state agencies for service contracts which provide for a Provider to purchase tangible personal property when the ownership of that property will subsequently be transferred to the state. These clauses are required if the Provider is being reimbursed for actual expenditures and such purchases are included in the approved contract budget.

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This includes all contracts utilizing a cost reimbursement method of payment or a combination fixed price and cost reimbursement method of payment. Substance Abuse and Mental Health contracts must follow the property requirements in Chapter 65E-14, F.A.C. Additional information regarding the management and disposition of property can be found in CFOP 80-2, Office of Management and Budget (OMB) Circular A-102, OMB Circular A-110, and other appropriate federal regulations, laws, and state statutes and rules. See Appendix D to this operating procedure for a sample letter to be submitted prior to purchase of any property.

Property: The word "property" as used in this section means equipment, fixtures, and other tangible personal property of a nonconsumable and nonexpendable nature, the value or cost of which is $1,000 or more and the normal expected life of which is 1 year or more, and hardback-covered bound books that are circulated to students or the general public, the value or cost of which is $25 or more, and hardback-covered bound books, the value or cost of which is $250 or more. Each item of property which it is practicable to identify by marking shall be marked in the manner required by the Auditor General. Each custodian shall maintain an adequate record of property in his or her custody, which record shall contain such information as shall be required by the Auditor General. Once each year, on July 1 or as soon thereafter as is practicable, and whenever there is a change of custodian, each custodian shall take an inventory of property in his or her custody. The inventory shall be compared with the property record, and all discrepancies shall be traced and reconciled. All publicly supported libraries shall be exempt from marking hardback-covered bound books, as required by this section. The catalog and inventory control records maintained by each publicly supported library shall constitute the property record of hardback-covered bound books with a value or cost of $25 or more included in each publicly supported library collection and shall serve as a perpetual inventory in lieu of an annual physical inventory. All books identified by these records as missing shall be traced and reconciled, and the library inventory shall be adjusted accordingly.

When state property will be assigned to a provider for use in performance of a contract, the title for that property or vehicle shall be immediately transferred to the provider where it shall remain until this contract is terminated or until other disposition instructions are furnished by the Contract Manager. When property is transferred to the provider, the department shall pay for the title transfer. The provider’s responsibility starts when the fully accounted for property or vehicle is assigned to and accepted by the provider. Business arrangements made between the provider and its subcontractors shall not permit the transfer of title of state property to subcontractors. While such business arrangements may provide for subcontractor participation in the use and maintenance of the property under their control, the department shall hold the provider solely responsible for the use and condition of said property. Provider inventories shall be conducted in accordance with Children and Families Operating Procedure (CFOP) 80-2.

If any property is purchased by the provider with funds provided by this contract, the provider shall inventory all nonexpendable property including all computers. A copy of which shall be submitted to the department along with the expenditure report for the period in which it was purchased. At least annually the provider shall submit a complete inventory of all such property to the department whether new purchases have been made or not.

The inventory shall include, at a minimum, the identification number; year and/or model,: a description of the property, its use and condition; current location; the name of the property custodian; class code (use state standard codes for capital assets); if a group, record the number and description of the components making up the group; name, make, or manufacturer; serial number(s), if any, and if an automobile, the Vehicle Identification Number (VIN) and certificate number; acquisition date; original acquisition cost; funding source; and, information needed to calculate the federal and/or state share of its cost.

The Contract Manager must provide disposition instructions to the provider prior to the end of the contract period. The provider cannot dispose of any property that reverts to the department without the Contract Manager’s approval. The provider shall furnish a closeout inventory no later than 30 days before the completion or termination of this contract. The closeout inventory shall include all nonexpendable property including all computers purchased by the provider. The closeout inventory shall contain, at a minimum, the same information required by the annual inventory.

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The provider hereby agrees that all inventories required by this contract shall be current and accurate and reflect the date of the inventory. If the original acquisition cost of a property item is not available at the time of inventory, an estimated value shall be agreed upon by both the provider and the department and shall be used in place of the original acquisition cost.

Title (ownership) to and possession of all property purchased by the provider pursuant to this contract shall be vested in the department upon completion or termination of this contract. During the term of this contract, the provider is responsible for insuring all property purchased by or transferred to the provider is in good working order. The provider hereby agrees to pay the cost of transferring title to and possession of any property for which ownership is evidenced by a certificate of title. The provider shall be responsible for repaying to the department the replacement cost of any property inventoried and not transferred to the department upon completion or termination of this contract. When property transfers from the provider to the department, the provider shall be responsible for paying for the title transfer.

If the provider replaces or disposes of property purchased by the provider pursuant to this contract, the provider is required to provide accurate and complete information pertaining to replacement or disposition of the property as required on the provider’s annual inventory.

The provider hereby agrees to indemnify the department against any claim or loss arising out of the operation of any motor vehicle purchased by or transferred to the provider pursuant to this contract.

A formal contract amendment is required prior to the purchase of any property item not specifically listed in the approved budget.

(2) Title to Vehicles (Transportation Disadvantaged) . Procedures for acquisition of vehicles for transportation of Department clients acquired directly by the Department or a contracted Provider for transportation of Department clients are contained in Children and Families Operating Procedure (CFOP) 40-5. The following clause must be used in all cost reimbursement contracts that provide for the purchase of vehicles for transportation of Department clients (transportation disadvantaged) using Department funds:

Title to Vehicles (Transportation Disadvantaged): Title (ownership) to and possession of all vehicles acquired with funds from this contract shall be vested in the department upon completion or termination of the contract. The provider will retain custody and control during the contract period, including extensions and renewals.

NOTE: For fixed price contracts, neither title to nor possession of vehicles purchased by Providers usually will not be vested in the Department upon completion of the contract by the Provider. However, consult the Contract Administrator (CA) to determine if it is appropriate to include a clause in a fixed price contract that would return to the Department property that the Provider purchased under such fixed price contract.

b. Bonding Clause . The following clause may be used in contracts when the Department wishes to ensure that all officers, employees, and agents of the Provider authorized to handle funds are properly bonded:

Bonding: The provider agrees to furnish an insurance bond from a responsible commercial surety company to cover all officers, employees, and agents of the provider authorized to handle funds received or disbursed under this contract. The bond shall be in an amount commensurate with the funds handled, the degree of risk (as determined by the surety company), and consistent with good business practice.

c. Title to Prescriptive Medical Property . The following clause may be used in contracts involving the procurement of prescriptive medical personal property for clients in which legal title to the property will be granted to the client:

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Prescriptive Medical Property: The client has the title to prescriptive medical personal property purchased by the department for use and benefit of the client and identified in Paragraph _____ of this contract.

d. Support Services . When Department contract signer has made the decision to provide support services (e.g., office space, office supplies, telephone services, secretarial, clerical support, etc.) pursuant to Health & Rehabilitative Services (HRSR) 55-13, it will be necessary to develop a clause to that effect which will include a list of the specific support services to be provided.

e. Contract Renewals . Except for those contracts initially obtained pursuant to s. 287.057(5)(a), F.S., or s. 287.057(5)(c), F.S., contracts for services may be renewed for no more than 3 years or for a period no longer than the term of the original contract, whichever period is longer. Renewals may be divided into increments (e.g., three one-year renewals or one three year renewal or for the term of the original contract) per Rule 60A-1.048(1)(a), F.A.C. The Department may not renew any contract for the outsourcing of a service or activity that has a value exceeding the sum of $10 million before submitting a written report documenting satisfactory contract performance. This report is to be submitted through the Office of the Secretary, to the Governor, the President of the Senate, and the Speaker of the House of Representatives ninety days prior to execution of any renewal. Renewal of the contract for services shall be in writing and shall be subject to the same terms and conditions set forth in the initial contract. If the contractual service is purchased as a result of a competitive procurement, the cost of the contemplated renewal shall be included in the solicitation. A renewal contract may not include any compensation for costs associated with the renewal. Contract renewals are contingent upon satisfactory Provider performance evaluations as determined by the Department.

(1) Prior to execution of a contract renewal, the Contract Manager will document in the contract file that an evaluation of Provider performance has been made and that the performance is satisfactory. The determination shall be filed in the original contract file and shall include one of the following statements:

(a) The Provider’s performance is satisfactory and there are no current performance deficiencies.

(b) Some performance improvement is needed; however the Provider’s performance is satisfactory to the extent that renewal is appropriate.

(c) The Provider’s performance is unsatisfactory and the contract will not be renewed.

(2) Listed below is the recommended Contract Renewal clause for inclusion in all contracts for which renewal is contemplated:

Contract Renewal: This contract may be renewed for ________ not to exceed three years or for the term of the original contract, whichever period is longer. Such renewal shall be made by mutual agreement and shall be contingent upon satisfactory performance evaluations as determined by the department and shall be subject to the availability of funds. Any renewal shall be in writing and shall be subject to the same terms and conditions as set forth in the initial contract, including any amendments.

f. Attorney’s Fees . When considering including a provision allowing attorney's fees to a party required to take any action to enforce the contract, be aware that s. 57.105(7), F.S., provides that the court may also allow reasonable attorney’s fees to the other party when that party prevails in any action, whether as plaintiff or defendant, with respect to the contract.

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g. Information Technology Resources . Information Technology Resources (ITRs) are defined in Children and Families Operating Procedure (CFOP 50-9). When acquisitions are made as part of the deliverable products or services of any contract, the following language is to be inserted in the contract.

Information Technology Resources: All department contract providers must receive written approval from the department prior to purchasing any Information Technology Resource (ITR) with contract funds. The provider agrees to secure prior written approval by means of an Information Resources Request (IRR) Form before the purchase of any ITR. The Contract Manager is responsible for serving as the liaison between the provider and the department during the completion of the IRR in accordance with Children and Families Operating Procedure (CFOP) 50-9, Policy on Information Resource Requests. The provider will not be reimbursed for any ITR purchases made prior to obtaining the department’s written approval.

h. Required Provider Actions In the Event a Child is Missing . The following definitions must be added to section A. 1. b. of applicable contracts and the following clause must be included in the section B. 6. (Provider Responsibilities) of the Attachment I for all contracts which may involve case management or other family services for children in out-of-home placements, children’s mental health, children’s substance abuse, developmentally disabled children or other situations where the care of the child is assigned to the Department or Provider.

(1) Definitions to be included in Section A. 1. b. of Attachment I .

For the purposes of this contract, the following definitions apply.

“Designee” means a person, contractual provider or other agency or entity named by the department.

“Exigent Circumstances” means situations that require immediate actions, such as the child is under the age of thirteen, believed to be out of the zone of safety for their age and development, mentally incapacitated, in a life threatening situation, in the company of others who could endanger their welfare or is absent under circumstance inconsistent with established behaviors.

“Missing Child” means a person who is under the age of 18 years; whose location has not been determined; is currently placed in an out-of-home care setting; court order in-home placement; or is the subject of an active abuse investigation in which the child has been sheltered, would have been sheltered if their location had become known, or who was in the physical custody of the department or a provider when they went missing; and who has been or will be reported as missing to a law enforcement agency.

“Family Services Counselor” means a professional position responsible for case management for children placements. The term includes department staff and staff working for an agency named as a designee.

(2) Clause to be included in Section B. 6. of Attachment I .

Reporting a Child as Missing.

The provider agrees to instruct caregivers, including relative and non-relative caregivers, family services counselors, and all other staff that might be required to report a child as missing to local law enforcement to immediately undertake the following activities, as applicable, and document all actions and activities related to any efforts made to report and/or locate any child who is determined to be missing from their care or supervision:

1. If exigent circumstances exist, the caregiver, family services counselor, or provider employee who has identified that a child is missing from their care or supervision shall immediately call local law enforcement as soon as a determination has been made that a child is missing and they shall request that the responding office:

a. Take a missing child report.

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b. Assign a case number to the missing child report and provide the case number back to the caregiver or person who is reporting the child missing.

c. Provide local law enforcement with a recent high quality photo of the child, or provide local law enforcement with a recent high quality photo when one becomes available.

d. Request that a copy of the police report be provided to the family services counselor once a police report becomes available.

e. If the responding law enforcement officer refuses to take a missing child report, for any reason, the individual attempting to report the child as missing will document the officer’s name and specific local law enforcement agency name and request to speak to the law enforcement agency Watch/Shift Commander. If the law enforcement agency Watch Commander refuses to take a missing child report and it is a caregiver that is attempting to report the child as missing, the caregiver will immediately contact the family services counselor or on-call staff and provide them with all information related to local law enforcement not issuing a missing child report. Once the family services counselor or on-call staff have learned that a local law enforcement agency will not issue a missing child report they will immediately seek assistance from the local area Community Based Care (CBC) Child Location Specialist or the Department of Children and Families Regional Criminal Justice Services Coordinator on resolving any issue related to reporting the child as missing to local law enforcement.

f. If it is a caregiver who has reported the child as missing to local law enforcement or attempted to report a child as missing to local law enforcement, they shall immediately notify the child’s family services counselor or emergency on-call staff and provide them with the following information:

(1) The law enforcement agency name that the child was reported as missing to or attempted to be reported as missing to.

(2) The law enforcement missing child case number if one was issued by local law enforcement.

(3) A copy of the law enforcement report when one is made available.

(4) Detailed information on the child’s overall state of mind and behavior prior to the child going missing.

(5) Detailed description of what the child was last seen wearing.

(6) Detailed information on possible locations that the child might be going to.

(7) Detailed information on any individuals that the child might be traveling with.

2. If exigent circumstances do not exist, the caregiver, family services counselor, or other provider staff will within the first four (4) hours of learning that a child might be missing check to see what, if any, of the child’s personal belongings are missing or if the child left a note; and,

a. Contact the following persons as appropriate to ascertain if the child has been seen, or has given any indications that may explain the child’s missing status:

(1) School/child’s teachers and school resource officer;

(2) The child’s relatives/parents, both local and non-local, if appropriate, and the caregiver has the means for such contact;

(3) Any friends or places that the child generally frequents, the local runaway shelter, if there is one in the community; and,

(4) The child’s employer, if applicable.

b. Write down any information gathered that might help locate the child.

c. Provide telephone/beeper numbers and ask for the individuals above to call back and share information if they have further information or see the child.

3. If at any time during the initial four (4) hour search for the child, if the caregiver, family services counselor, or any other provider employee becomes concerned about the immediate safety and well-being of the child, or the child’s location remains unknown after four (4) hours from the time

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that the caregiver, family services counselor, or provider employee learned that the location of the child was unknown, they shall immediately call local law enforcement and they shall request that the responding office:

a. Take a missing child report.

b. Assign a case number to the missing child report and provide the case number back to the person who is reporting the child missing.

c. Provide local law enforcement with a recent high quality photo of the child, or provide local law enforcement with a recent high quality photo when one becomes available.

d. Request that a copy of the police report be provided to the family services counselor once the police report becomes available.

e. If the responding law enforcement officer refuses to take a missing child report, for any reason, the individual attempting to report the child as missing will document the officer’s name and specific local law enforcement agency Watch/Shift Commander. If the law enforcement agency Watch/Shift Commander refuses to take a missing child report and it is a caregiver that is attempting to report the child as missing, the caregiver will immediately contact the family services counselor or on-call staff and provide them with all information related to local law enforcement not issuing a missing child report. Once the family services counselor or on-call staff have learned that a local law enforcement agency will not issue a missing child report they will immediately seek assistance from the local area Community Based Care (CBC) Child Location Specialist or the Department of Children and Families Regional Criminal Justice Services Coordinator on getting local law enforcement to issue a missing child report.

f. If it is a caregiver who has reported a child as missing to local law enforcement, or attempted to report a child as missing to local law enforcement, they shall immediately notify the child’s family services counselor or emergency on-call staff and provide them with the following information:

(1) The law enforcement agency name that the child was reported as missing to or attempted to be reported as missing to.

(2) The law enforcement missing child case number if one was issued by local law enforcement.

(3) A copy of the law enforcement report when one is made available.

(4) Detailed information on the child’s overall state of mind and behavior prior to the child going missing.

(5) A detailed description of what the child was last seen wearing.

(6) Detailed information on possible locations that the child might be going to.

(7) Detailed information on any individuals that the child might be traveling with.

4. If at any time, the child is located or returns to the caregivers home after law enforcement has been notified of the missing child case, all law enforcement agencies and other agencies that were notified of the missing child episode must be contacted immediately by the caregiver, family services counselor, or other provider employee. If at any time new information is obtained on a possible location of the missing child, the caregiver, family services counselor, or any other employee of the provider shall immediately contact all law enforcement agencies and other agencies that were notified of the missing child episode as to the possible location of the child.

5. All of the department’s documentation related to the missing child episode shall be completed and entered into the department’s approved missing child reporting system within one working day of the family services counselor, on-call staff, or Community Based Care (CBC) Child Location Specialist learning of a missing child episode regardless of whether local law enforcement has issued a missing child report number. This includes the uploading of a recent high quality photograph of the child into the department’s approved missing child reporting system. If local law enforcement has refused to issue a missing child report a dummy local law enforcement case number of 00000 and the name of the local law agency that refused to issue

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the missing child report shall be used to complete and enter the missing child episode into the department’s approved missing child reporting system.

(3) If the Provider is performing the duties described in Children and Families Operating Procedure (CFOP) 175-85 as departmental functions, i.e., Family Safety Counselor, Case Management, etc., the following clause shall be included:

Reporting of Missing Children.

The provider agrees to follow the procedures outlined in Rule 65C-30.019, F.A.C. and Rule 65C-29.013, F.A.C. and in Children and Families Operating Procedure (CFOP) 175-85, entitled “Prevention, Reporting, and Services to Missing Children”. The provider will perform the departmental functions as described in Rule 65C-30.019, F.A.C. and CFOP 175-85 which correspond to the functional role of this contract.

i. Performance Standard Clause . The following clause shall be placed in Section B. 5. c. of the Statement of Work Format for Performance Based Contracts:

Performance Standards Statement:

By execution of this contract the provider hereby acknowledges and agrees that its performance under the contract must meet the standards set forth above and will be bound by the conditions set forth in this contract. If the provider fails to meet these standards, the department, at its exclusive option, may allow a reasonable period, not to exceed 6 months, for the provider to correct performance deficiencies. If performance deficiencies are not resolved to the satisfaction of the department within the prescribed time, and if no extenuating circumstances can be documented by the provider to the department’s satisfaction, the department must terminate the contract. The department has the sole authority to determine whether there are extenuating or mitigating circumstances.

j. MyFloridaMarketPlace Clauses .

(1) Transaction Fee Clauses .

(a) The State of Florida, through the Department of Management Services, has instituted MyFloridaMarketPlace, a statewide e Procurement system.

Pursuant to s. 287.057(23), Florida Statutes, all payments shall be assessed a Transaction Fee of one percent (1.0%), which the provider shall pay to the state. For payments within the state accounting system (Florida Accounting and Information Resource (FLAIR) or its successor), the Transaction Fee shall, when possible, be automatically deducted from payments to the provider. If automatic deduction is not possible, the provider shall pay the Transaction Fee pursuant to Rule 60A-1.031(2), Florida Administrative Code. By submission of these reports and corresponding payments, provider certifies their correctness. All such reports and payments shall be subject to audit by the state or its designee.

The provider shall receive a credit of any Transaction Fee paid by the provider for the purchase of any item(s) if such item(s) are returned to the provider through no fault, act, or omission of the provider. Notwithstanding the foregoing, a Transaction Fee is non-refundable when an item is rejected or returned, or declined, due to the provider’s failure to perform or comply with specifications or requirements of the agreement.

Failure to comply with these requirements shall constitute grounds for declaring the provider in default and recovering procurement costs from the provider in addition to all outstanding fees. PROVIDERS DELINQUENT IN PAYING TRANSACTION FEES MAY BE EXCLUDED FROM CONDUCTING FUTURE BUSINESS WITH THE STATE.

(b) Contracts that are exempt from the transaction fee must include the following clause:

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This contract/item is exempt from the MyFloridaMarketPlace Transaction Fee in accordance with Rule 60A-1.032(1), Florida Administrative Code.

(2) Unregistered Vendor Clause (willing) . The following clause shall be inserted in contracts with unregistered vendors (willing):

The vendor acknowledges that it has been advised of the requirements of Rule 60A-1.030, Florida Administrative Code (F.A.C.), and agrees to be subject to the terms of use of the MyFloridaMarketPlace system within (20) days after the start date of this contract. Final approval of receipt of the commodities or services provided by this contract will not be given until the vendor has completed the registration process.

k. Provision for Possible Disclosure of Protected Health Information . The following clauses are required by the Health Insurance Portability and Accountability Act (HIPAA) and shall be included in their entirety in Section B. 6. a., Provider Unique Activities, of all contracts executed by the Department that may involve the use or disclosure of protected health information for medical, mental health, substance abuse, pharmaceutical, dental, or other health related services:

If required by 45 CFR Parts 160, 162, or 164; the following provisions shall apply [45 CFR 164.504(e)(2)(ii)]:

(1) The provider hereby agrees not to use or disclose protected health information (PHI) except as permitted or required by this contract, state or federal law.

(2) The provider agrees to use appropriate safeguards to prevent use or disclosure of PHI other than as provided for by this contract or applicable law.

(3) The provider agrees to report to the department any use or disclosure of the information not provided for by this contract or applicable law.

(4) The provider hereby assures the department that if any PHI received from the department, or received by the provider on the department’s behalf, is furnished to provider’s subcontractors or agents in the performance of tasks required by this contract, that those subcontractors or agents must first have agreed to the same restrictions and conditions that apply to the provider with respect to such information.

(5) The provider agrees to make PHI available in accordance with 45 C.F.R. 164.524.

(6) The provider agrees to make PHI available for amendment and to incorporate any amendments to PHI in accordance with 45 C.F.R. 164.526.

(7) The provider agrees to make available the information required to provide an accounting of disclosures in accordance with 45 C.F.R. 164.528.

(8) The provider agrees to make its internal practices, books and records relating to the use and disclosure of PHI received from the department or created or received by the provider on behalf of the department available for purposes of determining the provider’s compliance with these assurances.

(9) The provider agrees that at the termination of this contract, if feasible and where not inconsistent with other provisions of this contract concerning record retention, it will return or destroy all PHI received from the department or received by the provider on behalf of the department, that the provider still maintains regardless of form. If not feasible, the protections of this contract are hereby extended to that PHI which may then be used only for such purposes as make the return or destruction infeasible.

(10) A violation or breach of any of these assurances shall constitute a material breach of this contract.

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l. Justification for Contracts Less Than One Year . A multiple year contract has an initial contract period greater than 12 months. These contracts are written for regulated exemptions, single source, and competitively bid contracts. In accordance with s. 402.7305(3), F.S., the Department shall, whenever possible, execute multi-year contracts to make the most effective use of the resources devoted to contract processing and execution. Whenever the Department chooses not to use a multi-year contract, a justification for that decision must be included in Section D, Special Provisions of the Attachment I.

1-71. Required Special Provisions Clauses for Contracts Funded by Federal Funds . The listing below contains special contract clauses that must be included (as appropriate) when the contract is funded by federal funds/grants. Contract Managers should be encouraged to work with the grant Project Director/Manager (Headquarters Program Office) regarding these issues involving federal grant requirements. The grant Project Director/Manager should in turn coordinate with Headquarters Office Revenue Management staff.

a. Notice of Patent Requirements and Regulations . A notice of federal grantor agency requirements and regulations pertaining to reporting and patent rights under any contract involving research, developmental, experimental, or demonstration work with respect to any discovery or invention which arises or is developed in the course of or under such contract, and of grantor agency requirements and regulations pertaining to copyrights and rights to data must be included in all contracts (as appropriate).

b. Energy Efficiency Standards and Policies . A provision for mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy, Policy and Conservation Act (Public Law 94-163) must be included in all contracts as appropriate.

1-72. Required Special Provisions Clauses for Subcontracts Paid from Contracts Funded by Federal Funds. The listing below contains special contract conditions that must be included (if appropriate) in subcontracts for services to be paid from funds received through contracts financed by federal funds/grants:

a. Retention of Records . A provision requiring retention of records for six (6) years after the subcontractor makes final payment and all other pending matters, including audits or litigation regarding the terms of this subcontract, are closed, or longer if required by law.

b. Access to Records . A provision requiring access to the records be provided to the Department as well as the Provider and the federal government, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the subcontractor which are directly pertinent to that specific subcontract for the purpose of making audit, examination, excerpts, and transcriptions.

c. Energy Efficiency Standards and Policies . All subcontracts shall include a provision for mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy, Policy and Conservation Act (Public Law 94-163).

d. Patent Rights . All subcontracts shall include a provision that the Federal awarding agency reserves all patent rights with respect to any discovery or invention that arises or is developed in the course of or under the subcontract.

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e. Copyrights and Rights in Data . All subcontracts shall contain a provision that the Federal awarding agency shall retain a royalty-free, nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use for federal government purposes, the copyright in any work developed under a subcontract and the rights in data. The federal awarding agency shall also retain any rights of copyright to which a subcontractor purchases ownership with support from the subcontract.

f. Subcontracts in Excess of $10,000-Equal Opportunity Employment Act . All subcontracts in excess of $10,000 awarded by the Department and its Providers and subcontractors shall contain a provision requiring compliance with Executive Order 11246 of September 24, 1965, entitled “Equal Employment Opportunity,” as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations, 41 CFR, Part 60.

g. Subcontracts in Excess of $100,000-Clean Air and Clean Water Acts . All subcontracts in excess of $100,000 shall contain a provision that the subcontractor will comply with all applicable standards, orders, or requirements issued under s. 306 of the Clean Air Act (42 USC 1857(h)), s. 508 of the Clean Water Act (33 USC 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15).

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Chapter 10

CONTRACT REVIEW AND APPROVAL PROCESS

1-73. Purpose and Scope . Chapter 10 provides insight into the contract review and approval processes as well as review and approval of contract renewals and retroactive payment situations. A discussion of subcontracting is also included in this chapter.

1-74. Transmittal . The Contract Manager must complete the Contract Review Form (CF 1122) pursuant to circuit/region specific procedures prior to submitting a contract to the Contract Administrator (CA). Transmittal of a contract from the Contract Manager to the CA must be in compliance with circuit/region specific procedures.

1-75. Preparation for Review . The Contract Administrator (CA) will assign an appropriate contract number and enter that number on the Contract Review Form (CF 1122). The contract is then logged in on the CA log. The reviews required by this operating procedure are to be done in accordance with circuit/region specific procedures. It is the responsibility of the CA to track the contract through the review process. Chapter 10, paragraphs 10-4 through 10-7 of this operating procedure provide brief descriptions which parallel page 4 of the CF 1122.

1-76. Initiator Review . The initiating office sign-off* certifies:

a. To the need for the services under the terms of the contract;

b. That the Statement of Work is clearly written and that expected results are quantifiable, measurable, and clearly defined in the contract and meet Department policy requirements for performance contracting;

c. That contract negotiation, cost/price analysis, and justification of need for advances have been performed and that supporting documentation is in the Contract Manager’s file;

d. That the contract is in compliance with applicable program specific state, federal, Department, and/or other funding source requirements;

e. That contracts containing federal funding of $25,000 or more have a Certification Regarding Debarment and Suspension Form (CF 1125) signed by the Provider or that an acceptable written explanation has been attached to the unsigned form by the Provider. Contact the Contract Administrator (CA), if assistance is needed;

f. That contracts containing federal funding in excess of $100,000, have a Certification Regarding Lobbying Form (CF 1123) completed by the Provider and is an attachment to the contract. Where required, a completed Disclosure of Lobbying Activities Form (Standard Form LLL) is on file with the Contract Manager; and,

g. That each person who participated in the procurement process has completed the Conflict of Interest Questionnaire Form (CF 1124). The CF 1124 is either included with the contract or is on file with the Contract Manager.

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*NOTE: This sign-off is to be, at a minimum, the Program Administrator, unless the Program Administrator is also the contract signer. In that case, the Contract Manager may sign as initiator.

1-77. Financial Review .

a. Financial sign-off and approval attests:

(1) To the presence of budget authority to expend moneys for the services specified in the contract;

(2) That correct accounting codes are used, including expansion options, categories, and organizational expenditure codes; and,

(3) That appropriate payment provisions are included and are in compliance with the method of payment section of the Department Attachment I/Program Specific Model Attachment I and the State’s Chief Financial Officer’s regulations.

b. Contract Administrator (CA) sign-off and approval attests:

(1) That the contract is in compliance with applicable state and federal procurement rules and regulations;

(2) That the Renewal Clause is included if applicable. See Chapter 9, paragraph 9-7e; and,

(3) That the appropriate Department contract documents are being used.

NOTE: This review requires processing through the budget or fiscal office and the office of the CA to determine full compliance.

1-78. Legal Review . Legal sign-off and approval signifies that the vendor is properly bound by the contract, and that the Department is adequately protected. Legal review verifies that any modifications made to approved Department contract documents are appropriate and have the approvals required pursuant to Chapter 7 of this operating procedure. Providers shall submit a letter of authorization for the individual signing the contract on behalf of the Provider, which will be included in the contract review file when it is submitted for legal review. If the Chairman of the Board of Directors, Chief Executive Officer or Company President signs the contract on behalf of the Provider, a letter of authorization is not required.

1-79. Other Review . This section may be used for any additional review required by circuit/region specific procedures. The Contract Management Unit Supervisor may sign here (if applicable).

1-80. Contract Execution . Whenever possible, the Provider’s signature should be obtained prior to obtaining the appropriate Department signatures.

a. Providers . The signer of the contract for the Provider must have the authority to commit the vendor to the terms of the contract. Recent written proof of that authority should be maintained in the contract file.

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b. Department . Contracts must be signed in accordance with the most recent Delegations of Authority. NOTE: Only Senior Management or Select Exempt Employees may be delegated signature authority for contracts.

c. Circuit/Region Program Office . It is the responsibility of the appropriate circuit/region program office to provide copies of contracts to the respective Headquarters program office as needed.

NOTE: Only two copies of the contract require original signatures, one for the vendor and one for the Department. Circuit/Region specific procedures must specify the number of copies to be processed for signature. The Contract Manager must provide sufficient copies of a contract to allow the Contract Administrator to retain one executed copy.

1-81. Contract Revisions .

a. Contract revisions may be one of two types.

(1) Pen and Ink Changes . Minor changes (e.g., misspelled words, transposed numbers, word omissions, etc.) may be accomplished by pen and ink changes to the contract document. NOTE: Pen and ink changes require making the same changes on each copy of the contract and must be initialed and dated by the contract signers.

(2) Revisions Requiring a Written Amendment . Substantial changes (e.g., new clauses, budget modifications, etc.) must be done by preparing a separate document (amendment). The Contract Amendment Form (CF 1127) provides a format for use as a guide in preparing contract amendments.

b. All revisions to a contract must be clearly specified in the contract document either through a pen and ink change or a formal written amendment. Oral agreements to changes are not valid. All revisions to a contract of any type must be approved by Legal. Revisions made to a contract after approval by Legal voids the approval.

c. Requirements set out in s. 287.057(14)(a), F.S., for amending/renewing contracts for the outsourcing of a service or activity that has an original term value exceeding the sum of $10 million and will result in a longer contract term or increased payments. The Department may not renew or amend any contract for the outsourcing of a service or activity that has a value exceeding the sum of $10 million before submitting a written report documenting satisfactory contract performance. This report is to be submitted through the Office of the Secretary with the normal approval route for your program area, to the Governor, the President of the Senate, and the Speaker of the House of Representatives.

d. The Contract Manager must complete a Contract Review Form (CF 1122) prior to submitting an amendment to the Contract Administrator (CA). Transmittal of amendments from the Contract Manager to the CA must be in compliance with circuit/region specific procedures. The Contract Manager must provide sufficient copies of the executed amendment to allow the CA to retain one copy. See “Note” following Chapter 10, paragraph 10-8 of this operating procedure.

1-82. Contract Amendments, Extensions, and Price-Level Increases .

a. Amendments must be processed through the contract review and approval process discussed in Chapter 10, paragraphs 10-2 through 10-8 of this operating procedure. Amendments retain the same contract number as the original contract.

b. Contract amendments must be signed by the original contract signer (position / title).

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c. A contract may be amended to extend the contract period. This is known as an extension. See the definition of extension found in the Glossary. An extension of a contract shall be in writing and for a period not to exceed six months. There shall be only one extension of a contract unless the failure to complete the contract is due to circumstances beyond the Provider’s control.

d. A contract extension may not be granted when the Department fails to adequately plan for the issuance of a renewal, or a new contract with the Provider in a timely manner. An extension may only be granted if the Department can show that actions to issue a renewal, or a new contract were initiated in sufficient time, but that for reasons beyond the Provider’s control the award could not be made in time.

e. Additionally, prior to execution of an amendment extending the contract, the Contract Manager must document that the Provider’s performance under the contract has been satisfactory, but that the Provider is, through no fault of its own, unable to complete the service as required.

f. The Contract Manager must document in the contract file the circumstances surrounding the need for the additional time and an evaluation of Provider performance. This documentation shall be filed in the original contract file and include, and be limited to, one of the following statements:

(1) The Provider’s performance is satisfactory and there are no current performance deficiencies.

(2) Some performance improvement is needed; however, the Provider’s performance is satisfactory to the extent that an extension of the contract is appropriate.

g. Once a contract has been executed, the dollar amount may not be increased unless there is a corresponding increase in the scope of work except as noted in Chapter 10, paragraph 10-10g(3)(a) below. The Chief Financial Officer of the state provides in part that the Department cannot amend a contract to increase the rate of pay without increasing the contractual scope of work. The following conditions list examples of common situations in which the scope of work is being increased with a corresponding increase in funds:

(1) A contract for a service that previously has received single source approval from the State Purchasing Office, Department of Management Services (DMS), receives a second single source approval to add additional services and funds to the contract.

(2) Additional funds are made available to procure additional services.

(a) In the case of exempt services, this may be accomplished through negotiating an amendment to an existing contract.

(b) In the case of non-exempt services, it will be necessary to consult with the Contract Administrator (CA).

(3) The following describes the only exception to the policy stated above:

(a) Additional funds may be added to contracts without increases in scope of work through price-level increases. Price-level increases are defined as additional funds for specific programs or projects which are requested in the Legislative Budget Request, identified in the contract as forthcoming pending legislative appropriations and later identified in the operating budget for use to increase the amount of money a Provider receives for services being rendered. These contracts are executed before the amount of the price-level increase is known; therefore, amendments must be executed for the price-level increase after the beginning date of the contract. These amendments may

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be effective retroactive to the effective date of the price-level increases or the effective date of the contract, whichever is later.

(b) Contracts must clearly indicate the manner of implementation of price-level increase before this method of increasing current funds may be used.

h. With the exception of the circumstances noted above, no amendment can be retroactive. All amendments must be executed on or before the effective date of the amendment.

i. A contract that has expired may not be amended or extended under any circumstances.

j. The procedures and Contract Review Form required under Chapter 10, paragraphs 10-2 through 10-8 of this operating procedure also apply to amendments.

1-83. Contract Renewals .

a. If renewal language is present in the original contract or solicitation, and after documenting the Provider's performance evaluation, the Contract Manager may renew the original contract under the same terms, conditions, and price as the original contract by executing the renewal form/letter found in the Contract Renewal Form (CF 1128).

NOTE: If terms, conditions, and/or price are different for the additional renewal period, Contract Managers must include the renewal year’s terms, conditions, and price in the original contract in order to renew. If this information is not included in the original contract, a new contract should be developed.

b. A clause permitting contract renewal may not be amended into any contract competitively procured unless the solicitation provides for renewal or the original contract provides for such a clause upon the occurrence of a contingency that has actually occurred.

c. Contract renewals must be executed before or on the expiration date of the original contract. Contracts cannot be renewed once they expire.

d. The procedures and Contract Review Form required under Chapter 10, paragraphs 10-2 through 10-8 of this operating procedure also apply to renewals.

e. Renewal Numbering System.

(1) The single page renewal form/letter will not change the currently used method of assigning contract numbers; however, a new contract number is assigned.

(2) The preferred method of numbering a contract renewal provides the renewal a new contract number (different from the original contract number) for easier identification in the Florida Accounting and Information Resource (FLAIR) Contract Subsystem and for audit purposes.

f. If the circuit/region chooses to use the same contract number for renewals as it used for the original contract, the following procedures must be followed:

(1) Do not change the original beginning date.

(2) Change the original ending date to the new ending date.

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(3) Change the contract status field to the appropriate code. For renewal, change the contract status from NW to R1, R2 or R3. Statuses R2 and R3 apply only to those contracts with multiple renewals.

(4) Add the renewal dollars through the amendment file. Do not change the original amount in the contract information file. In the description field, note that the dollars are for the renewal of the contract.

1-84. Retroactive Payment Situations .

a. Emergency Certification for Retroactive Payment . The Emergency Certification for Retroactive Payment is a certification by the Circuit/Region Administrator, or appropriate signer at Headquarters, which allows payment to be made for the period during which a Provider has rendered services without the benefit of an executed contract. Contract Managers who are contemplating an emergency procurement must obtain, and retain in the contract file, pricing information from at least two prospective Providers prior to conducting the emergency procurement. The pricing information can be obtained via telephone or other means of contact and must be documented in writing in the contract file.

(1) Any determination that the time required to follow this procedure would increase the immediate danger to the public health, safety, or welfare or cause other substantial loss to the state, must be certified under oath and furnished along with any other documents relating to the emergency procurement to the Department of Management Services (DMS).

(2) Procedures to follow for retroactive payment when no valid emergency existed (non-compliance) are described in Chapter 10, paragraph 10-12b below. Also see Chapter 4, paragraph 4-5 of this operating procedure, Emergency Procurement.

b. Non-Compliance . When there is no valid emergency and a contract fails to meet the criteria to qualify for an Emergency Certification for Retroactive Payment, the following action must be taken pursuant to s. 287.058(2), F.S.

(1) The appropriate signer is required, no later than thirty (30) days after the Provider began rendering the service, to certify to the State Purchasing Office, Department of Management Services (DMS), the specific conditions and circumstances which lead to the failure to have the contract signed prior to the rendering of services. The certification must also describe actions taken to prevent recurrence of such non-compliance. This certification must be submitted to the State Purchasing Office, DMS, on a PUR 1010, Notice of Non-Compliance. NOTE: The Secretary of the Department has limited the Delegation of Authority to sign certifications for non-compliance to the following positions: Assistant Secretary for Administration and Assistant Secretary for Substance Abuse and Mental Health and Circuit / Region Administrators.

(2) A copy of the PUR 1010, Notice of Non-compliance, must be submitted to the State’s Chief Financial Officer with the voucher authorizing payment.

(3) Repeated instances of non-compliance must be reported by the State Purchasing Office to the Auditor General.

(4) Nothing in s. 287.058(2), F.S., shall be deemed to authorize additional compensation prohibited by s. 215.425, F.S.

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1-85. Settlement Agreements .

a. In those situations above where the Department fails to meet the thirty (30) day time frames for certification, the Chief Financial Officer has advised the Department that a Settlement Agreement is the only legal basis for making payment for the services rendered prior to execution of the contract by both parties. A Settlement Agreement may be required when: 1) the agency head has not certified a valid emergency within 30 days after the contractor began rendering services, or 2) in the absence of a valid emergency, the agency head has not certified the conditions and circumstances which caused the non-compliance.

b. Settlement Agreements are to be negotiated between the Department and the Provider, signed by both parties, and forwarded, through the Administrative Services Support Center, to the Bureau of Auditing, Department of Financial Services for approval. The Settlement Agreement is contingent upon approval by the Chief Financial Officer. The Settlement Agreement binds both parties to the amount negotiated. (Refer to s. 17.03, F.S., which gives the authority to examine, audit, and settle claims against the State to the Chief Financial Officer.) See Appendix G of this operating procedure for procedures regarding the preparation and submission of Settlement Agreements.

c. Settlement Agreement Tracking System (SATS) . The Settlement Agreement Tracking System (SATS) is an automated routing and approval system designed to track and maintain Settlement Agreements, to include the authorizing signatures involved with the approval process, as well as any corresponding documentation. The following guidance is provided to outline the provisions associated with the use of the SATS.

(1) Sponsor. The Office of Contracted Client Services is identified as the Sponsor for the SATS. The duties of the Sponsor include:

(a) Implementation of policy and operating procedures;

(b) System oversight and maintenance; and,

(c) Staff instruction specific to the SATS.

(2) Purpose. The SATS is developed in response to the Department of Children and Families 06-07 Business Plan, which charges the Office of Contracted Client Services with the task of reducing the number and amount of Settlement Agreements. The data captured by the SATS will be analyzed to identify trends found in the payment of Settlement Agreements pertaining to acquisitions which are related to client services or general services (does not apply to Human Resources Settlement Agreements). These trends will be used to establish strategic modes for reducing the number and amount of Settlement Agreements paid throughout the Department.

(3) Scope. Settlement Agreements which involve the payment of funds and are also pertaining to acquisitions which are related to client services or general services (does not apply to Human Resources Settlement Agreements) shall be entered, routed for approval, and maintained in the SATS. Requests for authorizing signatures from the Assistant Secretary for Administration or Deputy Secretary shall be forwarded through the DCFTracker System (see paragraph 10-13c(4)).

(4) Use of DCFTracker System . The SATS shall be utilized in conjunction with the DCFTracker System when requesting the final authorizing signature from the Assistant Secretary for Administration or Deputy Secretary. Requests for final authorizing signatures from the Assistant Secretary for Administration or Deputy Secretary shall be forwarded through the DCFTracker System. The SATS shall be utilized to indicate that a DCFTracker issue has been created to obtain the final authorizing signature from the Assistant Secretary for Administration or Deputy Secretary. The SATS

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shall not be utilized to obtain approvals or authorizing signatures from fiscal, Contract Administration, Office of the General Counsel or the Administrative Services Support Center.

(5) Points of Contact .

(a) Regional Designees . Each region shall designate one staff member to serve as a Point of Contact for the Office of Contracted Client Services and perform the administrative duties relative to the SATS.

(b) The Office of Contracted Client Services shall maintain a comprehensive list of regional Points of Contact.

(c) Originator . The originator of a Settlement Agreement shall remain the primary Point of Contact throughout the entire routing and approval process. Questions relative to the routing and/or approval of a specific Settlement Agreement shall be directed to the originator. The originator shall be identified as the Department Contact Person in the SATS.

(6) System Access . The SATS is a web-based data system which is supported by the Novell Network. The Novell Network allows for the system to be available to all Department staff when the following provisions are met:

(a) The Reports module of the SATS may be viewed by any Department staff who has access to the Department of Children and Families Intranet web site.

(b) To gain access to the Add/Edit module of the SATS, Department staff shall be entered into the system as a user(s).

(c) To gain access to the Admin. module of the SATS, which allows the user to add, delete, and/or amend user information, Admin. shall be entered into the system as the User Level identified with the user.

(d) The regional Points of Contact shall have access to the Admin. module of the SATS.

(e) The regional Points of Contact shall be responsible for adding, deleting and/or amending user information within their respective region. User information shall be added, deleted, and/or amended by the regional Points of Contact only.

(f) The regional Points of Contact shall maintain a comprehensive list of users, to include corresponding User Levels, position titles, and contact numbers, within their respective region.

(7) System Notifications . The SATS is designed to generate messages, through Lotus Notes, indicating a new Settlement Agreement has been entered into the SATS and/or a Settlement Agreement has been forwarded to the appropriate User Level/office and region for review and approval.

(a) The Administrative Services Support Center and Office of Financial Management shall receive notifications indicating when a new Settlement Agreement is entered into the SATS.

(b) Regional Points of Contact shall receive a notification indicating when a new Settlement Agreement has been entered into the SATS.

(c) Regional Points of Contact shall enter the users, within their respective region, selected to receive system notifications.

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(8) Data Entry . The originator of a Settlement Agreement shall be responsible for ensuring that the appropriate data, to include payments details, is fully entered into the SATS. Payment details shall be fully entered into the SATS prior to forwarding a Settlement Agreement to Contract Administration (when pertaining to contracts) or Legal (when pertaining to general services) for review and approval.

(9) Hard Copy File . A hard copy file shall be maintained for each Settlement Agreement entered into the SATS. The originator of the Settlement Agreement record shall be responsible for creating and maintaining the hard copy file. The hard copy file shall be routed to the Administrative Services Support Center when payment is request through the SATS.

(10) Settlement Agreement Document . Each Settlement Agreement document shall receive original ink signatures from the Provider, Office of the General Counsel, and the Assistant Secretary for Administration or Deputy Secretary. The Settlement Agreement document shall be maintained in the corresponding hard copy file, created by the originator.

(11) System Action Requirement . After a Settlement Agreement has been entered into the SATS, to include during the routing and approval process, a Settlement Agreement record shall not remain inactive for a period of more than 14 calendar days.

(12) Routing and Required Approval . Settlement Agreements, to include at a minimum the Settlement Agreement document, Letter of Best Interest to the State, and invoice shall be fully routed through the SATS in conjunction with the DCFTracker System (the DCFTracker System shall be utilized when requesting final authorizing signatures from the Assistant Secretary for Administration or Deputy Secretary only). With the exception of Contract Administration (applies to acquisitions pertaining to contracts only), each Settlement Agreement shall receive the appropriate approvals/signatures from the following offices ranked in the order listed:

(a) Fiscal . The originator shall receive confirmation from the program fiscal representative indicating that the appropriate funds are available to satisfy the amount of the Settlement Agreement. The program fiscal representative shall provide confirmation one time only, unless the amount of the Settlement Agreement is amended at any time after the initial confirmation. Confirmation may be obtained from a region level program fiscal representative. Settlement Agreements shall not receive any authorizing approvals or signatures, to include the required signature(s) from the Provider, prior to the confirmation of the availability of funds.

(b) Contract Administration . Each Settlement Agreement pertaining to acquisitions related to contracts shall be reviewed and receive an authorizing approval from the respective Contract Administration office, prior to obtaining the required signature(s) from the Provider. Contract Administration shall not approve any Settlement Agreement in which the appropriate funds have not been confirmed by a program fiscal representative.

(c) Office of the General Counsel . Each Settlement Agreement shall receive an approval prior to obtaining the required signature(s) from the Provider and an authorizing ink signature after obtaining the required signatures(s) from the Provider. The Office of the General Counsel shall not approve any Settlement Agreement in which the appropriate funds have not been confirmed by a program fiscal representative and/or Contract Administration has not reviewed and approved.

(d) Assistant Secretary for Administration or Deputy Secretary . Each Settlement Agreement shall receive an authorizing ink signature, requested through the DCFTracker System, from the Assistant Secretary for Administration or Deputy Secretary, after obtaining the required ink signatures from the Provider and Office of the General Counsel. Each Settlement Agreement shall include a scanned copy of the corresponding Settlement Agreement Routing Details page found in the SATS. Settlement Agreements shall not be forwarded to the Assistant Secretary for Administration or

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Deputy Secretary when the appropriate funds have not been confirmed by a program fiscal representative, the Settlement Agreement has not been reviewed and approved by Contract Administration (when the Settlement Agreement is pertaining to a contract), and/or the Settlement Agreement has not received the appropriate ink signatures from the Provider and Office of the General Counsel.

(e) Administrative Services Support Center . A complete Settlement Agreement package, to include a Settlement Agreement prepared in accordance with Children and Families Operating Procedure (CFOP) 75-2, shall be submitted to the Administrative Services Support Center for payment through the SATS, as well as in hard copy form. Settlement Agreements shall not be forwarded to the Administrative Services Support Center for payment when the appropriate funds have not been confirmed by a program fiscal representative, the Settlement Agreement has not been reviewed and approved by Contract Administration (when the Settlement Agreement is pertaining to a contract) and/or the Settlement Agreement has not received the appropriate ink signatures from the Provider, Office of the General Counsel and/or Assistant Secretary for Administration or Deputy Secretary.

(13) Circuit/Region Level Approval . Settlement Agreements shall be prepared, reviewed and receive the appropriate approvals/signatures at the circuit/region level in accordance with CFOP 75-2 and circuit/region specific operating procedures. Settlement Agreements shall not be forwarded to the Office of the General Counsel prior to receiving the appropriate approvals/signatures deemed required at the circuit/region level.

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Chapter 11

CONTRACT MANAGEMENT

1-86. Purpose and Scope . Chapter 11 provides a summary of the contract management activities within the Department. This discussion comprises a delineation of the duties of a Contract Manager, various documentation requirements, contract monitoring responsibilities of the Contract Manager, and other contract-related duties.

1-87. Introduction . Only Department staff may be designated as Contract Managers. Contract management responsibilities should be assigned to career service employees. However, if an employee in career service status is unavailable, the Department may assign contract management responsibilities to employees in Other Personnel Services (OPS) status. This responsibility shall not be assigned to independent contractors or to Department staff when supervised by independent contractors.

1-88. Contract Manager Assignment/Requirements . Subsections 287.057(15), and 402.7305, F.S., require the Department, for each contractual services contract, to designate a Department employee to be responsible for enforcing performance of the contract terms and conditions and serve as a liaison with the contractor. A member of the Department’s Senior Management or Select Exempt Service must assign, in writing, the responsibility of a contract to a trained Contract Manager. This individual is responsible for day-to-day contract oversight, including approval of contract deliverables and invoices. The Contract Manager is the primary point of contact through which all contracting information flows between the Department and the Provider. All actions related to the contract shall be initiated by or coordinated with the Contract Manager. The Contract Manager shall receive Contract Manager training before being assigned responsibility for any contract. Contract Manager responsibilities include:

a. Carrying out the preparations for contracting including the verification of funds, preparation of the contract document, preparation of the necessary PUR forms and conducting cost or price analysis.

b. Attending mandatory Contract Manager training.

c. Acting as the primary point of contact between the Department and the Provider.

d. Collecting evidence of registration in MyFloridaMarketPlace or proof of exemption by Rule from registration. Determine if the Transaction Fee applies; if not, document exemption (see Chapter 1 of this operating procedure).

e. Objectively soliciting and analyzing bids (Children and Families Operating Procedure (CFOP) 60-5, Chapter 5, Code of Ethics for Public Officers and Employees).

f. Ensuring that the appropriate audit requirements are conveyed to the Provider.

g. Advertising and negotiating the contract.

h. Ensuring that the individual signing the Standard Contract on behalf of the Provider is legally authorized to bind the Provider to the contract. Prior to contract execution, the Contract Manager must obtain a letter from the Provider (signed by the President, Chairman of the Board of Directors, Chief Executive Officer) authorizing the individual who will be signing the Standard Contract on behalf of the Provider to legally bind the Provider to the contract terms and conditions. If the Chairman of the Board

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of Directors, Chief Executive Officer or company President signs the Standard Contract on behalf of the Provider, a letter of authorization is not required. The Contract Manager will include the Provider’s letter of authorization in the contract review file when it is submitted for review. The Contract Manager will retain the letter as part of the contract file documentation.

i. Recouping all overpayments to Providers. The Contract Manager shall first seek immediate repayment in all instances. In the event the Provider cannot make immediate repayment in full to the Department, upon discovery by the Provider or the Department of an overpayment, the Provider may propose a repayment plan. A repayment plan may only be approved by the Department of Financial Services. The written details of the intended payback plan shall be submitted by the Contract Manager to the local legal office and the Contract Administrator (CA) for approval. After approval by the CA, the repayment plan will be sent through the Administrative Services Support Center (ASSC) for review and forwarding to the Department's Comptroller. The Department's Comptroller will review the plan and, if approved, forward it to the Department of Financial Services, Bureau of Auditing, for final approval.

j. Securing a signed Certification Regarding Debarment and Suspension Form (CF 1125) from the Provider for any contract containing federal funding of $25,000 or more. If the Provider refuses to sign the form, a written explanation must be attached to the unsigned form. Contact the CA or the Office of Contracted Client Services if assistance is needed. NOTE: The Provider agrees by signing this certification that it will require each subcontractor of the contract, whose payment will equal or exceed $25,000 in federal moneys, to also sign a copy of this certification. Subcontractors’ certifications must be kept at the Provider’s business location.

k. Prior to contract execution, securing from the vendor, for any contract containing federal funding in excess of $100,000, a signed Certification Regarding Lobbying Form (CF 1123) and, if required, a Disclosure of Lobbying Activities form (Standard Form LLL) regarding lobbying under federal grants and contracts.

l. Securing a signed Conflict of Interest Questionnaire (CF 1124) from the individuals taking part in the development or selection of criteria for evaluation, the evaluation process, and the award process.

m. Completing a determination of Provider’s status of Recipent/Subrecipient vs. Vendor.

n. Completing the Post Award Notice of Federal Awards and State Financial Assistance, and insuring that copies are posted to the file. The notice must be distributed to the vendor within 90 days of contract execution. The Notice is completed using the current fiscal information from the Contract Review Form (CF 1122) and the Audit Compliance Wizard found on the Office of Contracted Client Services web site. A new Notice must be completed whenever the dollar amount of the contract is amended.

(1) The Notice can be produced electronically when information is loaded into the Audit Compliance Wizard at the following location:

http://ewas.dcf.state.fl.us/asc/Contract_Information/default.asp

(2) To complete the form you will need the following information from the CF 1122:

(a) Budget Entity or Entities, the eight digit code(s) which identifies the program(s).

(b) The dollar amount for each Budget Entity (BE), Other Cost Accumulator (OCA) code, and category combination.

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o. Conducting diligent oversight of Provider performance, acting as the primary point of contact with the Provider for the Department, and working with the Department’s quality assurance/monitoring units for annual Provider monitoring.

p. Securing the Emergency Preparedness Plan from the Provider and responding in writing, accepting, rejecting, or requesting modifications within 30 days of contract execution when applicable.

q. Approving subcontracts and assignments. Paragraph I. I. 1. of the Standard Contract (Assignments and Subcontracts) states: the Provider shall neither assign the responsibility for this contract to another party nor subcontract for any of the work contemplated under this contract without prior written approval of the Department. The Department approves the act of subcontracting, not the subcontract document, or the subcontractor, except for making certain that the subcontractor is not on the debarred list. The federal list is located at http://www.epls.gov/. The Department may object to any subcontractor that does not have an acceptable history either with the Department or Department of Management Services (DMS). Any of the specific details of the contract between the Provider and the subcontractor are between those two parties. Department approval will provide reasonable assurance that the subcontract is executed in accordance with the terms and conditions contained in the prime contract and are in the best interest of the state. The Attachment I may include language to the effect that where subcontracting is permitted, the subcontract must be negotiated to adopt the applicable terms of the Provider contract with the Department. The Department should not perform a detailed audit of the subcontract provisions or the subcontractor promises to the Provider. Those issues will be dealt with in the Department’s monitoring of the performance of the Provider, whether the work is done through the subcontract or by the Provider itself.

r. Processing, inspecting, reviewing, and approving the Provider’s invoices for payment. Reconciling quarterly the contract payment records with the State’s official accounting records.

s. Reviewing the Provider’s documentation of contract-related expenditures.

t. Ensuring that Providers complete the Civil Rights Compliance Checklist (CF 946). [45 CFR, Part 80; CFOP 60-16]

u. Maintaining the files of record pertaining to his/her contract(s).

v. Conducting periodic (not less than annual) visits with clients at the Provider’s physical location where services are delivered (refer to Chapter 11, paragraph 11-4b of this operating procedure for file documentation requirements).

w. Conducting direct meetings with the Provider’s representative. “Direct” is defined as face-to-face meetings or telephonic contact. These meetings shall be conducted at least monthly.

x. Reporting, in the event of discovering or being made aware of a Provider HIPAA violation, the Contract Manager must report the violation to the Department of Health and Human Services, Office of Civil rights at http://www.hhs.gov/ocr/privacyhowtofile.htm (for privacy issues only) or Centers for Medicare and Medicaid Services at https://htct.hhs.gov/aset/. The Office of Civil Rights is responsible for responding to complaints pertaining to Privacy issues only. The remaining HIPAA rules, including the Security Rule, are the responsibility of the Centers for Medicare and Medicaid Services.

y. Requesting, reviewing and approving corrective action plans, preparing status reports on the plans (as required) and overseeing their implementation.

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https://htct.hhs.gov/aset/

http://www.hhs.gov/ocr/privacyhowtofile.htm

http://www.epls.gov/


z. Performing Contract Closeout Activities.

aa. Sending a letter to the Provider, within 30 days of the contract award, advising the Provider as to the procedure to be followed if contracted by the State Advocacy Council (SAC) or Local Advocacy Council (LAC) (refer to Appendix I of this operating procedure for a sample letter).

1-89. Contract Manager’s File . For each contract, the Contract Manager’s file consists of two subfiles: the procurement file and a contract file. The Contract Manager’s file is the official record for the Department and must be maintained for a period of six (6) years following contract closeout or resolution of pending action (e.g., legal, audit, etc.) whichever is later. Reviews of the Contract Manager’s file are to be conducted on a routine basis by the Contract Administrator (CA) to ensure necessary documentation is being properly maintained.

a. Procurement File . The procurement file, containing all documentation and information regarding the vendor selection process regardless of the procurement method, becomes part of the Contract Manager's file upon contract award, and includes, at a minimum, the following items:

(1) Justification for selecting the procurement type used;

(2) Documentation of actions taken and resulting determinations prior to contracting with a state college or university;

(3) Proof of all legal advertising and postings;*

(4) Copy of the prospective vendor list (if applicable);

(5) Copy of the solicitation;*

(6) Copies of solicitation responses received; *

(7) Documentation of the solicitation response opening activities;

(8) Correspondence received pertaining to the solicitation;

(9) Copies of the evaluation team’s scoring results;*

(10) Documentation of any posting activities including documentation of all notices posted on the MyFlorida.com web site;*

(11) Notice of Award;*

(12) Copies of protests received and documentation of their resolution;

(13) Solicitation Receipt Log;

(14) Solicitation Tabulation (if applicable);*

(15) Copies of the questions and responses to all inquiries;

(16) For competitive procurements, documentation listing the names of all individuals taking part in the development or selection of criteria for evaluation, the evaluation process, and the award process;

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(17) A signed and completed Conflict of Interest Questionnaire (CF 1124) from all individuals taking part in the selection process, etc;*

(18) Documentation required by small purchase procedures (see Chapter 3 of this operating procedure); and ,

(19) Documentation required by non competitive procurement procedures (see Chapter 4 of this operating procedure).

*NOTE: A copy of this documentation must accompany the contract through the review and approval process and must be maintained in the CA’s file.

b. Contract File . A chronological file prepared to hold pertinent information related to a contract from the time it is awarded until contract closeout. This is the official file record for such information and must include, if applicable, but is not limited to:

(1) Documentation of the written assignment of contract management duties by a member of the Department’s Senior Management or Select Exempt Service;

(2) Copy of the contract and Contract Review Form (CF 1122);

(3) Copy of the applicable Contract Renewal Form or Letter (Appendix F to this operating procedure);

(4) Correspondence regarding the contract;

(5) Documentation of the delivery of the Statewide Advocacy Council (SAC)/Local Advocacy Council (LAC) letter (Appendix I to this operating procedure);

(6) Amendments, if any;

(7) Civil Rights Compliance Checklist (CF 946), as appropriate;

(8) Memorandum of Negotiation;

(9) Recordings of Negotiation (ITN Only);

(10) Documentation evidencing cost or price analysis;

(11) Provider’s justification of need for advances;

(12) Documentation supporting Provider compliance with insurance requirements in contract;

(13) Certification Regarding Debarment and Suspension Form (CF 1125) for all contracts containing federal funding of $25,000 or more;

(14) Certification Regarding Lobbying Form (CF 1123) for all contracts containing federal funding in excess of $100,000;

(15) Contract Manager’s Budget Record and Authorizing Documents (e.g., Appropriations Act proviso, budget agendas, etc.);

(16) Post Award Notice;

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(17) Approvals/Disapproval of Subcontracts;

(18) Recipient/Subrecipient Vs. Vendor Checklist;

(19) Emergency Preparedness Plan;

(20) Chronological activity record, including, but not limited to:

(a) Documentation of periodic (not less than annually) client visits at the Provider’s physical location where services are delivered, including evidence that the Contract Manager spoke directly to clients receiving services and Provider staff responsible for delivering the services.

(b) Documentation of Contract Manager’s direct meetings with the Provider’s representative.

(21) Relevant monitoring and evaluation reports including documentation of Provider performance reviews;

(22) Corrective Action documentation, including Approved Plans, Status Reports (as required), and Completion of the Corrective Action Plan (CAP);

(23) Copies of invoices with a copy of the Summary of Contractual Agreement/Purchase Order Form and supporting documentation;

(24) Schedule of contract payments and total amount disbursed; and,

(25) Documentation of periodic (not less than quarterly) reconciliation of contract payment records with the State’s official accounting records.

1-90. Invoice Processing, Inspection, Review, and Approval . Unless an alternative departmentally approved invoicing process has been established, the Contract Manager must receive invoices or requests for payment directly from the Provider and process them for payment which includes providing a copy of the Summary of Contractual Services Agreement/Purchase Order Form.

a. Invoice Processing, Inspection, and Review . Upon receipt of each invoice, the Contract Manager must determine the following:

(1) Were invoiced goods and services satisfactorily provided according to the terms and conditions of the contract?

(2) Is the invoice or request for payment in the proper format, mathematically correct, and does it contain the necessary information as required?

(3) Is supporting documentation included?

(4) Does supporting documentation support invoice or request for payment?

(5) Are expenditures allowable according to the contract budget and/or other contract terms?

b. Invoice Approval . The Contract Manager’s signature on an invoice or request for payment attests that the goods or services have been satisfactorily provided, and that the expenditures are allowable and in compliance with the terms of the contract. The Contract Manager may negotiate a

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period longer than five (5) working days in order to inspect and approve deliverables per s. 215.422, F.S. (See Section II. B. of the Standard Contract.) Adequate review and inspection time should depend on the complexity of the deliverables. If the invoice or request for payment is approved, the Contract Manager should transmit it to the appropriate fiscal office for payment. If the invoice or request for payment is disapproved, the Contract Manager should return it to the Provider with an explanation and corrective actions to be taken.

c. Contract and Grant Reviews and Related Payment Processing Requirements . Contract Managers/Contract Administrators must ensure that all executed agreements with any required documentation, are submitted to the Administrative Services Support Center (ASSC) upon receipt of the executed agreement. Contract Managers will continue to submit the Summary of Contractual Service Agreement/Purchase Order with the invoices to ASSC.

1-91. Contract Monitoring – The Role of the Contract Manager .

a. Scope . This section outlines contract monitoring requirements for the Contract Oversight Unit (COU) and explains the role of the Contract Manager in contract monitoring. Children and Families Operating Procedure (CFOP) 75-8, Policies and Procedures of Contract Oversight, contains the Department’s operating procedures for monitoring Department contracts.

b. Definitions .

(1) Contract monitoring is the acquisition, review, and reporting of information about the Providers’ compliance with the terms and conditions of the contract.

(2) The Contract Manager is the primary point of contact through which all contracting information flows between the Department and the Provider. All actions related to the contract shall be initiated by or coordinated with the Contract Manager. The COU is staffed with persons specifically trained to perform contract monitoring and is responsible for monitoring the administrative and programmatic terms and conditions of the Department’s contracts.

c. Frequency .

(1) Every contract issued by the Department shall be monitored with the exception of those granted an exclusion.

(2) All contracts receive a risk assessment in accordance with CFOP 75-8 to determine monitoring activity level based upon the risk the Department assumes with each Provider. Contracts may receive a high, medium, or low level risk ranking. Providers will be monitored based upon the risk the Department assumes when contracting with an external entity, as set forth in CFOP 75-8.

(3) The COU may conduct unscheduled site visits to the Provider if the Contract Manager, Contract Administrator (CA), or the COU Manager has reason to believe such a visit is warranted.

d. Monitoring Activity .

(1) The COUs are responsible for conducting a risk assessment for each contract; scheduling, planning, and conducting the monitoring; preparing and submitting a report to the Contract Manager. Other Department staff, such as the CA, Contract Manager, and program office staff, may be consulted and may contribute but the final monitoring report is the responsibility of the COU.

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(2) In accordance with CFOP 75-8 the Contract Manager, as the primary point of contact for the Department:

(a) Facilitates communications between the Provider and the COU, particularly in cases where the Provider has failed to respond to COU requests.

(b) The Contract Manager is copied on all written correspondence between the contract monitor and the Provider.

(c) Makes the contract file available to the COU and provides pre-site visit information necessary for monitoring.

(d) Attends the entrance (optional) and exit interview (mandatory) conducted by the COU with the Provider.

(e) Requests corrective actions from a Provider who is out of compliance with the terms and conditions of its contract.

(f) Accepts corrective action plans submitted by Provider.

(g) Follows up with Provider to assure implementation of corrective actions.

(h) Takes action to impose financial penalties on Provider for failure to complete the required corrective action.

(3) The COU is responsible for monitoring all of the Department’s contracts. If the monitor finds irregularities in any stage of the monitoring that require immediate attention or action, degraded service to the Department’s clients or indications of questionable financial and managerial practices, he or she shall report these to the Contract Manager who decides what remedial action will be taken.

e. Reporting .

(1) The COU is responsible for preparing the Preliminary Monitoring Log in accordance with CFOP 75-8.

(2) The COU will provide the final report to the Contract Manager in electronic format. The Contract Manager, as primary point of contact, is responsible for submitting the report to the Provider. The COU shall enter the information from the contract monitoring report into the Contract Evaluations Reporting System (CERS) within 7 calendar days of the monitoring report’s issuance.

(3) The Contract Manager is responsible for notifying the Provider when a corrective action plan is required. Contract Managers shall document their activities using the CERS system within 10 calendar days of the monitoring report’s issuance. While some corrective actions must be taken immediately due to health, safety, or welfare issues, the Provider should be given no more than thirty (30) calendar days to submit the corrective action plan to the Contract Manager. The corrective action plan, stating how and when deficiencies will be corrected, must be reviewed by the Contract Manager. Once the Contract Manager is satisfied that the Corrective Action Plan is acceptable he or she should notify the Provider in writing that the Corrective Action Plan has been approved.

(4) The Contract Manager notifies the Provider that the plan has been approved or disapproved. Reasons for departmental disapproval should be listed.

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(5) The Contract Manager notifies the CA when the Provider has completed its corrective action plan. The CA records completion into the Florida Accounting and Information Resource (FLAIR) Contract Subsystem.

1-92. Financial Penalties for a Provider’s Failure to Comply With a Requirement for Corrective Action .To implement the provisions of s. 402.73 F.S., the Department promulgated Rule 65-29.001, Florida Administrative Code (F.A.C.). This rule provides the Department with sanctions other than the termination of a contract if a Provider fails to comply with a Department request or requests for corrective action. The key provisions of the rule provide guidelines that will be utilized by the Department in implementing financial penalties for non-compliance with provisions of contracts. Non-compliance determined by the Department to have a direct affect on client health and safety will result in a financial penalty of ten percent (10%) imposed on the Provider. Non-compliance issues involving provisions not having a direct affect on client health and safety will result in a financial penalty of five percent (5%) imposed on the Provider and non-compliance as a result of unacceptable administrative support will result in a financial penalty of two percent (2%) being imposed on the Provider.

1-93. Provider Failure to Perform . When the Department determines that the Provider has failed to perform the contract terms and conditions, the Contract Manager, with the advice of legal counsel, is responsible for notifying the Provider of a possible default of the contract. This notification should state that the Department believes that the Provider is in possible default. The default procedures begin with an initial notice issued by the Department requiring the Provider to correct certain cited failure(s) through the submission of an acceptable corrective action plan by a designated deadline. If the Provider fails to submit an acceptable corrective action plan by the deadline, the Department issues a second notice stating that the Provider is in breach of the contract, and that the contract has been terminated pending an appeal by the Provider.

1-94. Contract Default .

a. The definition of “contract default” is the Department's determination that a Provider has failed to perform the terms and conditions of a contract.

b. Providers who fail to perform according to the contract terms and conditions shall be notified, in writing, of a failure to perform, and provided a reasonable deadline for correcting the failure(s) cited in the correspondence.

c. The Department's notice to the Provider of the Provider's failure to perform will state that if the established deadline for correction of the performance deficit is not met, the Provider may be determined to be in breach of the contract. The Provider may risk both termination of the contract and removal from Department of Management Service's approved vendor list. All correspondence to Providers regarding failure to perform shall be sent Certified Mail, Return Receipt Requested. (See Rule 60A-1.006(3), Florida Administrative Code (F.A.C.).

d. A reasonable deadline for correction of the performance deficit is usually considered to be no less than ten (10) days after receipt of the notice, but may be a shorter period depending upon the seriousness of the performance deficit or the nature of the contract services.

e. Unless the Provider corrects its failure to perform within the time provided, or unless the Department determines on its own investigation that the Provider’s failure is legally excusable, the Provider may be found in breach.

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f. Because the Department has the authority, in some instances, to waive a breach of contract, legal counsel and contract signer, must agree on the action to be taken prior to issuance of the second notice informing the Provider of a breach of contract.

g. If the Provider does not comply with the Department's request for a corrective action, the Provider will be issued a second notice informing them that they are in breach of the contract. The notice of breach will state the reasons the defaulting Provider has been found in breach. In addition, the notice will state that the Department will terminate the contract, and that if the Department must re-procure the services, the amount of the re-procurement costs must be reimbursed to the Department by the defaulting Provider.

h. The foregoing provisions do not limit, waive, or exclude the Department’s remedies against the defaulting Provider at law or in equity. (See Rule 60A-1.006(3), F.A.C.)

1-95. Breach of Contract .

a. Breach of contract is defined as failure, without legal excuse, of a party to perform any promise which forms the whole or part of a contract.

b. A breach may be indicated by one or more findings contained in the monitoring report and any other material reports that find that a Provider is not complying with the terms and conditions of the contract. The Contract Manager, contract signer, and appropriate Department legal, administrative services and program staff shall be consulted in any instance in which there is reason to believe that a breach of contract has occurred.

c. Immediate action is required, upon learning of the occurrence of a contract breach. If the Department is contemplating a contract termination, the Contract Manager must contact the Circuit/Region Legal Counsel (CLC) or Office of the General Counsel (OSLS) if at Headquarters. The CLC or OSLS will provide legal guidance and assistance to the Contract Manager in determining whether termination is appropriate, and to help ensure that the interests of the Department are protected.

(1) Where a decision is made to waive the breach that was a result of a Contract Oversight Unit (COU) monitoring report by either the Circuit/Region Administrator and/or the appropriate Assistant Secretary, in consultation with legal counsel, the Contract Manager shall send a notification that the breach has been waived to the COU supervisor (see Children and Families Operating Procedure (CFOP) 75-8).

(2) The Contract Manager, with the advice of legal counsel, is responsible for notifying the Provider of a breach. The Contract Manager is responsible for assuring the Department that the problems are corrected in the event that the breach is to be waived by the Department or remedied by a corrective action.

(3) Any Provider who has breached a contract has the right to petition for an administrative hearing with regard to the decision to be removed from Department of Management Services’ approved Provider list pursuant to s. 120.57, F.S., and shall be given a time certain within which to submit the petition.

1-96. Contract Termination . Termination refers to the ending of a contract. A contract may be terminated in whole or in part. If terminated only in part, the non-terminated portion remains in full force and effect for the duration of the original agreement. Terminations may be made by mutual agreement or as a result of default or breach. Regardless of the reason, if a contract is to be terminated, the Contract Manager prepares, for

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the signature of the contract signer, a letter to the Provider stating the reason for and the date of termination. Legal counsel must approve this letter before it is sent. The Contract Manager must ensure that the termination date is in accordance with the time frames specified in the applicable termination clause in the contract. The letter should be delivered by certified mail, return receipt requested, or in person with proof of delivery. A copy of the termination letter, indicating the contract number, must be placed in the Contract Manager’s file. Copies should also be sent to the appropriate fiscal office and the Contract Administrator (CA). Internal circuit/region procedures should address input into the Florida Accounting and Information Resource (FLAIR) Contract Subsystem for the de-commitment of funds.

a. Any Provider who has breached a contract will not be reinstated on Department of Management Services’ (DMS) approved vendor list at least until such time as the Department is reimbursed for all re-procurement costs. Any Provider who has breached a contract shall reimburse the Department for all re-procurement costs and for the difference between the cost of obtaining new contractual services and the contract price for such contractual services.

b. A copy of all departmental termination actions shall be provided to the State Purchasing Office, DMS. Any Provider that fails to fulfill any of its duties specified in a contract may result in the removal of such Provider from its mailing list and directing all agencies to cease doing business with such Provider until the Provider reimburses all re-procurement and substitute costs and satisfies the State Purchasing Office with sufficient corrective action that further instances of default will not occur.

c. In the event a contract is terminated for failure to perform under the contract, the Provider will not be permitted to contract with the Department for a period of 24 months.

d. As soon as the contract is terminated for cause, the Contract Manager must notify the Office of Contracted Client Services (ASC) in writing of the contract termination. The notification must include the Provider’s name, date of the termination, and the reasons/circumstances for the termination. ASC will notify all CAs of the termination.

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Chapter 12

FLAIR CONTRACTS AND GRANTS SUBSYSTEM

1-97. Purpose and Scope . Chapter 12 reviews the capabilities of the Florida Accounting Information Resource (FLAIR) system [formerly the State Automated Management Accounting Subsystem (SAMAS)] as they relate to the Department’s contracting system. FLAIR was designed with the capability to maintain non-accounting data on contracts and grants. The data that is input for each contract is contained on the Contract Information File that is part of the Contracts and Grants (C&G) Subsystem in FLAIR.

1-98. The Contract Review Form . The Contract Review – FLAIR Sub-System Entry Form (CF 1122) is the document that the Department uses to collect the data that is input into the Contract Information File. The CF 1122 is periodically updated to keep pace with changes in the law, the Florida Administrative Code, or reporting requirements. Once approved, changes to the form are immediately posted to the CF 1122 located on the Office of Contracted Client Services web site. All information on the first page of the CF 1122, except for the shaded areas, is input into the C&G Subsystem. Some information that is not input specifically can be derived from certain combinations of other data elements. Therefore, it is important that all data elements on the CF 1122 be completed for input into the system. Also, whenever a contract is amended, a CF 1122 must be completed to reflect the revisions. The amendment must then be input to the contract amendment file. The CF 1122 is available on the Office of Contracted Client Services web site and on the Intranet in the DCF Forms Application.

1-99. Access to FLAIR and C&G Subsystem . Access to FLAIR as well as the C&G Subsystem is restricted to certain individuals whose job functions require inquiry or update capability to the computer files. See the Circuit/Region Manager for Support Services for information regarding clearance to use FLAIR or the C&G Subsystem.

1-100. Payment Inquiry . The following functions are available in FLAIR and are excellent tools when researching problems involving payments to vendors for both current and prior contracts:

a. The Vendor Payment History function (VH) provides on-line inquiry capability of payments made (contractually, as well as non-contractually) by the Chief Financial Officer to vendors for approximately the last three years (see the FLAIR Manual, Chapter 28). A copy of the FLAIR manual is available from the Office of Financial Management (ASFM).

b. The Contract Payment function (CT) provides on-line inquiry capability of payments made by the Chief Financial Officer on contracts in excess of $75,000 for approximately the last three years (see the FLAIR Manual, Chapter 29).

1-101. Contract Information Inquiry . Inquiry capability in the Contract Information File is used to obtain general information about any contract. Typical information that is useful includes: the identification of other Contract Managers who may have contracts with the same vendor, the identification of monitoring dates, the phone number for the contact person at the Provider’s place of business, and the number of clients being served by the contract.

1-102. Contract Information File . The Contract Information File maintains a record for each contract independently, and it can be updated by any individual who has received the appropriate clearance. The Contract Information File is used extensively as a resource to obtain a variety of contract statistical data. For this reason, the necessity for the input of accurate and complete information is essential.

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a. Data for the following types of contracts is maintained on the system:

(1) Client services contracts;

(2) General services type contracts; and,

(3) Architectural/engineering contracts for fixed capital outlay projects.

b. Usage . The Department manages a very large number of contracts and it is important that the information system be capable of providing complete, accurate, and timely information to requesters. In addition to Department staff, requesters may include the Office of the Governor, the Legislature, the news media, etc. The information supplied may be used for public dissemination or in making critical decisions regarding the funding of services and Department programs. Statistical information from the Contract Information File is prepared and distributed to management on both a monthly and a quarterly basis by the Office of Contracted Client Services. As the Contract Information File is used extensively to establish historical trends and analyses, it is important that all contracts be included on the system. Additionally, it is important that contract information records not be eliminated by replacing the information of a closed contract with information from a new contract and reusing the same contract number. This practice reduces the historical usefulness of the file.

1-103. Reports . Most contract reports are generated from the Contract Information File, however reports may be run through the integration of two or more files. For example, some Schedule of Allotment Balances by Contract reports may be generated from the Contract Information File and the C&G Master File.

a. Production Reports . Production reports are those reports that are scheduled to be produced at routine intervals (e.g., daily, weekly, monthly, or quarterly). The Schedule of Allotment Balances by Contract is an example of a production report.

b. Ad Hoc Reports . Ad hoc reports are designed to meet a specific request and are available as needed.

c. Requesting Reports . All report requests should be coordinated through the Contract Administrator (CA). If the CA does not have the report, a request will be forwarded as follows:

(1) If the report is an existing FLAIR report, the request will be sent to ASFM; or,

(2) If the report requires modification of an existing report or if it is a new report, the request will be sent to the Office of Contracted Client Services (ASC).

1-104. Enhancements . As ideas for improvements to the system come about, they are presented to FLAIR for consideration and assignment of priority and approval. These improvements are called enhancements. Most enhancements are discussed at FLAIR user meetings. These are forums through which all state user agencies have an opportunity to express their concerns or questions about prospective changes. For the Department, the views and concerns of the individual circuits/region are consolidated into an agency position. ASFM represents the Department at these meetings. Staff from ASC also attend and are responsible for coordinating the Department’s position concerning enhancements to contract information captured through FLAIR.

1-105. HRS Menu . This is a facility used for on-line inquiry and reporting of FLAIR data. It also provides access to FLAIR files for downloading selected records in a d-Base or Lotus format onto a personal computer. The on-

2


line inquiry capability is available to anyone who has access to FLAIR and has obtained an access password. The download capability requires a password as well as an additional computer hookup called Natural Connection. Contact the Circuit/Region Information Systems Office for further information on this topic. A document entitled “HRS Menu” which provides information about these two functions is available from ASFM.

1-106. Report Distribution System (RDS) . The RDS system allows on-line viewing of FLAIR reports. FLAIR reports which are currently requested through the Report Request Function (RP) will be run in the RDS to provide the user faster access to these reports. This includes all Production Reports and Ad Hoc Reports which are scheduled to be run. The user has the capability of viewing a report on-line, performing finds or searches within a report, changing the view of a report, attaching a note to a report, and printing all or part of a report. The RDS is discussed in a document produced by ASFM, entitled “State of Florida Report Distribution System”.

1-107. Information Delivery System (IDS) . This system enables the user to access contract data from the Contract Information file, FLAIR Master File, and various other related files to build an on-line query (or report). Using a Windows type environment, the data elements are chosen from a list of contract and fiscal data fields. The resulting query can be viewed and saved for future viewing, or exported and saved as an Excel file. The inquiry data is available from tapes run at the end of each month. Contact the Circuit/Region Information Systems Office to learn how to access this system and to receive a user manual.

1-108. References . Additional information regarding the C&G Subsystem is available in the FLAIR C&G Manual which is located on the ASFM web site; click on “Documentation and Reference Guides”, then select C&G Manual. The following sections in Chapter 2 of the FLAIR C&G Manual may be of interest to Contract Managers:

a. Section I. Contracts and Grants Information Files.

b. Section II. The Contract Amendment Files.

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Chapter 13

CONTRACT ADMINISTRATION

1-109. Purpose and Scope: This chapter provides an overview of Contract Administration activities within the Department. It is intended to aid Contract Administrators (CA), their staff and Contract Managers. Responsibilities and duties performed by contract administration staff vary statewide. Therefore, this chapter intends to provide an overview of responsibilities and duties performed by these units. It does not restrict contract administration responsibilities or processes but intends to provide a minimum set of tasks that are required to be accomplished.

1-110. Introduction: The CA is the primary contact/liaison between the Contract Manager and senior management within the region/circuit and the Department’s headquarters.

1-111. Authority: Subsection 287.057(16), F.S. requires the agency to designate at least one employee who shall serve as a CA responsible for maintaining a contract file and financial information on all contractual services contracts. The CA serves as a liaison with the Contract Managers and the Department. Department policy requires that the official file be maintained by the Contract Manager.

1-112. Responsibilities:

a. Direct Responsibilities .

(1) Distribution of New and/or Revised Departmental Policies and Procedures . Distributes new and revised procedures or clarifications issued by the Office of Contracted Client Services through contract directives (CDA’s). Provides interpretations, clarifications and instructions for the application of these changes and ensures policy implementation.

(2) Quality Assurance . Ensures that the contract, contract amendment or solicitation under review is in compliance with Federal and State laws, rules and Department contracting procedures. Quality Assurance may also include, but is not limited to the review of the following:

(a) Reviews of solicitations, contracts and contract amendments. Contract Administration reviews all documents to make sure that they are the most current version available.

(b) Compliance with Department format.

(c) Elimination of internal conflicts and inconsistencies.

(d) Achievable percentages in performance measurements.

(e) Clarity, spelling and grammar.

(f) Assigns solicitation and contract numbers to new documents and tracks all documents throughout the review and approval process.

(3) CF1122 Reviews . Reviews the CF1122 form for completeness and accuracy and signs the attestation.

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(4) Training . CA provides or coordinates the provision of contract/procurement related training necessary for contract personnel to perform their assignments. This training requires CA to:

(a) Coordinate training with program offices, contract operations, contract oversight, budget, legal and any other entity that has an interest in the contracting process so that a consistent message/theme is being presented to all contract personnel.

(b) Ensure that training includes the achievement of the goals and objectives contained in the training materials developed by the Office of Contracted Client Services.

(c) Advertise training using the Office of Contracted Client Services (ASC) Contract Training Tracking System.

(d) Evaluate the training needs of contracting staff.

(e) Ensure that Contract Managers receive ongoing procedural updates.

(f) Provide annual update training of revised policies and procedures and any other identified training so that the Contract Managers maintain their proficiency.

(g) Follow-up of Contract Manager Training:

1. Six months after the completion of each Contract Manager Training course, the CA will send a survey to those who attended the training. The email address of the learners will be available on the ASC Training Registration System.

2. The email for the survey should provide a link to the survey which is posted on the ASC Intranet Training Resources page at: http://ewas.dcf.state.fl.us/asc/Prof_Dev/Training_Resources.asp.

(5) Technical Assistance . CA is responsible for providing assistance to contract personnel with:

(a) Writing new contracts, amendments, and solicitations.

(b) Questions regarding contracting and provider requirements.

(c) Guidance in resolving issues and problems.

(6) Contract Manager File Reviews . CA is required to ensure that the Contract Manager is maintaining the Department’s official contract file. Ensuring that the file has all pertinent and required information as listed in paragraph 11-4.b. of this operating procedure.

(7) Data Input/Updates . CA is responsible for the data input and updates and will:

(a) Input and update the Contract Information System of the Florida Accounting Information Resource (FLAIR).

(b) Ensure that contract data information is accurately entered by performing reconciliations.

(c) Address any discrepancies found or reported through FLAIR Error Reports.

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http://ewas.dcf.state.fl.us/asc/Prof_Dev/Training_Resources.asp


(d) Asset Inventory . Maintain and update contract asset information of the region/circuit contracting staff by contract unit on the ASC web site for their region/circuit.

(8) Waivers . When it is deemed necessary to change a Standard Contract clause, the request to make that change is submitted to the CA. If the CA concurs that the deviation is necessary, they are to submit the request, with proposed text and justification, to ASC Policy for review. If the CA does not concur with the deviation, it is their responsibility to reject.

b. Oversight Responsibilities .

(1) Competitive Solicitations . CA will assist the individual assigned to develop a procurement using an Invitation To Bid (ITB), Request For Proposal (RFP) and/or an Invitation To Negotiate (ITN). CA may assist in the writing of these documents by supplying or recommending language to use in the solicitation. Upon completion of the solicitation by the Procurement Manager, the CA will perform a review of the document and if acceptable, submit it to legal for review.

(2) Non-Competitive Procurements . CA may assist in the development of the following documents which have specific requirements that are detailed in Chapter 4 of this operating procedure.

(a) Single Source Procurement . Documents required for a single source procurement are the PUR 7776, 7777, and 7778. The CA generally reviews these documents before being submitted for approval. Once approved the CA will post the required forms.

(b) Emergency Procurements . The Notice of Emergency Purchase (PUR 7800) must be signed by the Secretary or designee and notarized. The CA will distribute the signed documents to Department of Management Services.

(c) Regulated Exemptions . Exemptions to the competitive process are provided for in recognition of the special characteristics present when purchasing certain services. The CA must ensure that these procurements are used appropriately.

(d) Non Competitive Non Client Services Contracts . The CA must ensure that the appropriate approvals have been obtained prior to entering into these contracts. See Chapter 4, paragraph 4-11 for requirements.

(3) Settlement Agreements/Non-Compliance . On occasion it may be necessary to pay the provider through a Settlement Agreement or through the use of the non-compliance form PUR 1010. The CA will advise and assist the Contract Manager in these situations. (See Chapter 10, paragraph 10-13 for requirements.)

(4) Contract Evaluation and Reporting System (CERS) . CA is responsible for guiding Contract Managers in the proper use of the CERS. CA ensures that the appropriate types of entries are made in the CERS and that the CERS process and procedures are followed.

(5) Multi-Region/Circuit Rate Contracts . CA ensures policies regarding the use of a contract by two or more regions/circuits are met as listed in Chapter 8, paragraphs 8-5 and 8-6.

(6) Postings and/or Processes . CA is generally responsible for reviewing and posting/processing the following documents which have specific requirements that are detailed in Chapter 4 of this operating procedure.

(a) Competitive Solicitations

(b) Single Source Documents PUR 7776, 7777 and 7778

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(c) Emergency Procurements PUR 7800

(d) Non Compliance PUR 1010

(e) Post notices of meetings for negotiations

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PURCHASING CATEGORY THRESHOLD AMOUNTSEFFECTIVE 07/01/99 - PRESENT

CATEGORY ONE:...........$ 15,000CATEGORY TWO:...........$ 25,000

CATEGORY THREE:...........$ 50,000CATEGORY FOUR:...........$ 150,000

CATEGORY FIVE:...........$ 250,000

Historical ChangesSource: Chapter 60A-1 Florida Administrative CodePURCHASING CATEGORY THRESHOLD AMOUNTS

07/01/96-06/30/99

CATEGORY ONE:...................... $5,500CATEGORY TWO:...................... $15,000CATEGORY THREE:.................. $23,000CATEGORY FOUR:.................... $75,000CATEGORY FIVE:...................... $150,000

01/01/96-06/30/96


01/09/95-12/31/95


10/01/90 - 01/08/95


01/18/90 - 09/30/90

CATEGORY ONE:...................... $ 650CATEGORY TWO:...................... $3,500CATEGORY THREE:.................. $6,500CATEGORY FOUR:.................... $65,000CATEGORY FIVE:...................... $130,000

12/01/88 - 01/17/90

CATEGORY ONE:...................... $ 650CATEGORY TWO:...................... $3,000CATEGORY THREE:.................. $6,000CATEGORY FOUR:.................... $65,000CATEGORY FIVE:...................... $130,000

Appendix A to CFOP 75-2


NOTICE of INTENT to PARTICIPATE in a MULTI-CIRCUIT RATE CONTRACT

_________Program Office_______Circuit No.

SUBJECT: Notice of Intent to Participate in Multi-Circuit Rate Contract

TO:_________Program Office_______( name of lead Contract Manager )

This is to inform you that Circuit/Region (number) will participate in the Multi-Circuit Rate

Contract with ______________________ for the period from _____________ to

_____________ for which you are the lead Circuit/Region.

Estimated number of units _______________

Estimated total amount $_________________

Signature of Contract Manager

Name of Contract Manager

Title

SunCom No.

cc: _________________________________

Appendix B to CFOP 75-2


SAMPLE PROJECT BUDGET DETAIL

I. PROJECT BUDGET SUMMARY INSTRUCTIONS

The Project Budget Summary displays all costs which will be paid by the Department if this project is funded (refer to Page C-8 for suggested format). The instructions below will assist you in preparing the Project Budget Summary.

A. Following the instructions provided in Section II, use the Project Budget Detail format (Page C-9) to calculate project costs for all applicable budget line items contained on Pages C-1 through C-6.

B. List total cost of each line item in Column B on the Project Budget Summary (Page F-8). For items that are not applicable, place N/A on the respective line item. Add additional line items as needed.

C. List percentage of total costs of each item the Department will be requested to fund in Column C of the Project Budget Summary (Page C-8). The percentage of costs being requested from the Department, for any given budget line item, must be justified and a detailed rationale provided.

D. Amount to be requested from the Department: (Column B) X (Column C) = (Column D)E. Total Column D of the Project Budget Summary. Enter the sum of the amount requested from

Department of Children and Families (DCF) in the Grand Total. F. Include the necessary narrative for each line item as noted in Section II.G. To calculate match, use the Project Match Summary format on Page C-10 and follow the

instructions provided in Section III.

II. INSTRUCTIONS FOR COMPLETING SAMPLE PROJECT BUDGET DETAIL(Refer to Page C-9 for an example of suggested format, use a separate page and distinct titles for each line item.)

A. Personnel:

1. List each position that will work on this project in Column 1.2. List gross annual salary* paid each position in Column 2.3. List percent of time each position is funded by this project in Column 3.4. (Column 2) X (Column 3) = (Column 4), salary, by project position.5. Total Column 4 for personnel costs. Enter the total personnel costs in Column B, Line A,

Page C-8.

*If raises in salary are projected for any position, break out the salaries accordingly (e.g., 3 months at $500 per month, 9 months at $525 per month for an annual salary of $6,225).

Personnel Narrative:

1. List position title and attach descriptions of each position to be funded in whole or in part by the Department if such was not attached to the solicitation document.

2. If not explained in the programmatic narrative of the solicitation document, provide an explanation of the purpose of each position.

3. If gross salary is in excess of what the Department allows for a comparable position, provide sufficient justification.

Note: Daily time logs must be maintained by providers for all positions funded by the Department.

Appendix C to CFOP 75-2


B. Fringe Benefits:

1. List each position that will work on this project to the left of Column 1.2. List fringe benefits separately for each position in Column 1 (e.g., FICA, Worker's Comp.,

Unemployment Comp., Health Insurance, etc.).3. List total gross amount paid by the provider, by position, in Column 2, for each type of fringe

benefit.4. List percent of time each position will spend on this project in Column 3. (The percentages

should be the same as those used for personnel.) 5. (Column 2) X (Column 3) = (Column 4), fringe benefits, by project position. 6. Total Column 4 for fringe benefits costs. Enter the total fringe benefits costs in Column B,

Line B, Page C-8.

C. Staff Travel:

NOTE: DO NOT include/calculate staff transportation of clients here.

1. List separately the type(s) of travel cost(s) to be incurred for this project in Column 1 (e.g., mileage, airline fare, per diem, etc.).

2. List the unit cost of type(s) of travel in Column 2 (e.g., 44.5 cents per mile, $80 per day per diem, etc.).

3. List the number of units of each type of travel projected to be utilized in Column 3 (miles traveled for this project, a frequency count of the total number of travel days for each staff member, price of air fare, etc.).

4. (Column 2) X (Column 3) = (Column 4), staff travel costs, by type of travel (e.g., mileage, per diem, etc.).

5. Total Column 4 for staff travel costs. Enter the total amount of staff travel costs in Column B, Line C, Page C-8.

Staff Travel Narrative: Explain who will be traveling, where they will be traveling, and for what purpose. Reimbursement rates cannot exceed allowable rates paid by the Department.

D. Consultants:

1. List type(s) of consultant(s) needed for this project in Column 1. Note the method of payment for each to the left of Column 1 (e.g., unit cost/fixed price). Unit Cost Method of Payment (By the Unit, e.g., hour, day).

2. List the unit cost by hour (or appropriate unit) for each unit cost reimbursed consultant in Column 2.

3. List number of hours (or other appropriate units) that each unit cost reimbursed consultant is projected to work on this project in Column 3.

4. (Column 2) X (Column 3) = (Column 4), dollar amount to be paid to unit cost reimbursed consultants, by type of consultant.

5. Total Column 4 for the cost of unit cost reimbursed consultants (if you also have fixed price reimbursed consultants, this is actually a subtotal).

Fixed Price Method of Payment (By the Job)

6. Enter the total cost of each fixed price reimbursed consultant in Column 4.7. Total Column 4 for the cost of fixed price reimbursed consultants (if you also have unit cost

reimbursed consultants, this is actually a subtotal). 8. If your project has consultants reimbursed by both Methods of Payment, add the subtotals

found in numbers 5. and 7. above. If your project has consultants reimbursed by either Method of Payment, enter the number found in 5. or 7. above.

9. Enter the total consultants’ costs in Column B, Line D, Page C-8.

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Consultant Narrative: Explain in full the purpose and the necessity for the employment of the consultants for this project.

E. Subcontracted Services:

1. List type of services to be subcontracted for this project and, when possible, the name of the potential vendor in Column 1.

2. List total amount to be subcontracted in Column 4.3. Total Column 4 for subcontracted services costs. Enter the total amount of subcontracted

services costs in Column B, Line E, Page C-8.

Subcontracted Services Narrative: Justify services provided by subcontractors and explain why they cannot be performed by existing agency staff. Explain the method of payment that will be used in the subcontract. Per the Standard Contract, the provider may not subcontract for any of the work paid for by the Department without prior written approval of the Department.

F. Client Transportation:

1. List type of transportation needed for this project in Column 1 (e.g., provider van, bus, taxi, staff car, etc.).

2. Provider Vehicle Client Transportation: a. List type of vehicle projected to be operated, and its seating capacity in Column 1 (e.g.,

Ford van, nine passenger). b. For each vehicle, list the type(s) of normal operating expense(s) that will be incurred

during operation during the contracting period in Column 1 (e.g., tune-ups, oil, tires, gas, etc.)

c. Enter the total amount of normal operating expense projections in Column 4. d. For each vehicle, calculate gasoline costs as follows:

(1) Enter the approved cost per gallon in Column 2.(2) Divide the number of miles projected to be traveled by the number miles per gallon

for that vehicle. Enter the quotient in Column 3.(3) (Column 2) X (Column 3) = (Column 4), total gasoline costs for each type vehicle

listed.e. Total Column 4 for total provider vehicle client transportation costs (if you also use other

types of client transportation, this is actually a subtotal).3. Public Common Carrier Client Transportation:

a. List type(s) of common carrier(s) to be used in Column 1 (e.g., city bus, taxi, etc.).b. For each type of carrier, enter the unit cost in Column 2 and list the number of units in

Column 3 (e.g., bus tickets).c. (Column 2) X (Column 3) = (Column 4), total costs for each type common carrier listed.d. Total Column 4 for total public common carrier client transportation costs (if you also use

other types of client transportation, this is actually a subtotal).4. Staff Vehicle Client Transportation:

a. List positions projected to transport clients in staff vehicles in Column 1 (e.g., case manager, nurse, etc.).

b. Enter 44.5 cents as the unit cost per mile in Column 2.c. Enter the number of anticipated staff vehicle client miles in Column 3.d. (Column 2) X (Column 3) = (Column 4), total client transportation costs for each staff

position listed (if you also use other types of client transportation, this is actually a subtotal).

5. Total all subtotals in Column 4 for total client transportation costs.6. Enter the total client transportation costs in Column B, Line F, Page C-8.

Client Transportation Narrative: Explain where and why clients are being transported. If a provider employee is to transport clients in a provider vehicle (e.g., van driver), the driver must have a

C-3


chauffeur's license. NOTE: If awarded a contract, the provider must subcontract for client transportation with the designated Community Coordinated Transportation Provider (CCTP), or otherwise comply with the provisions of Chapter 427, F. S. If no CCTP is available in the provider’s area, please note this in the narrative.

G. Office Expenses:

1. List normal office expenses for this project in Column 1 (e.g., telephone, postage, utilities, supplies, etc.). These expenses should be based on prior history, or, if for a new agency, should be based on a reasonable estimate.

2. List rate per month for this project for each type of expense in Column 2.3. List number of months in the contracting period in Column 3.4. (Column 2) X (Column 3) = (Column 4), cost for each office expense.5. Total Column 4 for office expenses cost. Enter the total of office expenses cost in Column B,

Line G, Page C-8.

Office Expense Narrative: It will be necessary to give a complete explanation of all expenses that are not self-explanatory.

H. Operating Capital Outlay (OCO):

This can be defined as fixed assets, such as equipment, fixtures and other tangible personal property of a nonconsumable and nonexpendable nature, with an acquisition value or cost of $1,000 or more per unit and an expected useful life of at least one year, and hardback bound books that are not circulated to students or the general public, the value or cost of which is $250 or more per unit. Hardback bound books with a value or cost of $25 or more per unit should be classified as OCO expenditures only if they are circulated to students or the general public.

1. List all OCO items for this project only in Column 1.2. List total purchase price for each item in Column 4.3. Total Column 4 for OCO cost. Enter the total amount of OCO cost in Column B, Line H, Page

C-8.

Operating Capital Outlay Narrative: Explain the need for each OCO item and describe how it will be used. Purchases exceeding $500 must be inventoried. An inventory listing of OCO items purchased by this project will be required if this project is funded by the Department. NOTE: Prior to making OCO purchases for this project, the provider should verify with the Department that the cost of the specific item is allowable.

I. Rental or Use of Space:

1. List locations of each space to be rented for this project to the left of Column 1.2. List the cost of each rental space per month in Column 2. Calculate this as described below:

a. Cost per square foot X number of square feet for the project.3. List number of months space will be rented for this project in Column 3 (not to exceed this

budget period).4. (Column 2) X (Column 3) = (Column 4), cost for rental or use of space during the budget

period. 5. If the building will not be rented by the square foot, enter the total cost for the rental or use of

space in Column 4.6. If the provider owns the building, enter the least of ownership cost (depreciation plus general

liability insurance) or rent in column 4. If depreciation is not booked, the provider may enter a pro rata cost of space based on the use allowance (not to exceed 2% of the cost of acquisition) or develop and submit an inventory of assets showing cost, date of purchase,

C-4


general condition, etc. Depreciation methodology of assets not consistent with IRS guidelines must be explained in the narrative.

7. Total Column 4 for rental or use of space cost. Enter the total of rental or use of space cost in Column B, Line I, Page C-8.

Rental or Use of Space Narrative: Explain what the space will be used for and why it is necessary for this project. Copies of lease agreements or proofs of purchase will be required if the Department funds this project.

J. Rental of Equipment:

1. List each kind of equipment to be rented during this budget period for this project in Column 1 (e.g., furniture, fixtures, vehicles, etc.).

2. List monthly rental cost of each kind of equipment in Column 2.3. List number of months equipment will be rented in Column 3 (not to exceed this budget

period).4. (Column 2) X (Column 3) = (Column 4), cost for rental of each piece of equipment. If the

provider owns the equipment, enter the least of ownership costs (depreciation plus general liability insurance) or rent in Column 4.

5. Total Column 4 for rental of equipment costs. Enter the total of rental equipment costs in Column B, Line J, Page C-8.

Rental of Equipment Narrative: Explain the need for equipment. Copies of leases or rental agreements or proofs of purchase will be required if the Department funds this project.

K. Maintenance Agreements:

1. List maintenance agreements which this project will fund Column 1 (i.e., building, equipment, yard, etc.).

2. List monthly payments/costs for each agreement in Column 2.3. List number of months needed for each agreement in Column 3 (not to exceed this budget

period).4. (Column 2) X (Column 3) = (Column 4), cost for each maintenance agreement.5. Total Column 4 for maintenance agreement costs. Enter the total maintenance agreement

costs in Column B, Line K, Page C-8.

Maintenance Agreement Narrative: Explain the need for the agreements. Copies of agreements will be required if the Department funds this project.

L. Insurance:

Note: DO NOT include health insurance premiums here (see Page C-2, Fringe Benefits).

1. List type(s) of insurance(s) needed for this project in Column 1 (e.g., liability, auto, bond, etc.).2. List monthly premiums in Column 2.3. List number of months funding is requested by this project for each insurance premium in

Column 3 (not to exceed this budget period).4. (Column 2) X (Column 3) = (Column 4), cost of each type of insurance.5. Total Column 4 for insurance costs. Enter the total insurance costs in Column B, Line L, Page

C-8.

Insurance Narrative: Explain need for insurance. Proof of insurance will be required if the Department funds this project.

C-5


M. Membership Fees & Subscriptions:

1. List membership fees and subscriptions for this project only in Column 1.2. List monthly payments in Column 2.3. List number of months funding by this project is requested for each fee or subscription in

Column 3.4. (Column 2) X (Column 3) = (Column 4), cost for each membership fee and subscription.5. Total Column 4 for membership fees and subscriptions costs. Enter the total membership fees

and subscriptions costs in Column B, Line M, Page C-8.

Membership Fees & Subscriptions Narrative: Explain the need for this/these membership(s) and/or subscription(s) and explain why it/they is/are necessary for this project.

N. Advertising:

1. List advertising activities needed for this project in Column 1 (e.g., subcontracts, job openings, etc.).

2. List total projected cost for each advertising activity in Column 4.3. Total Column 4 for advertising costs. Enter the total amount of advertising costs in Column B,

Line N, Page C-8.

Advertising Narrative: Explain why each advertising activity is needed for this project.

O. Client Educational and Training Tools:

1. List client educational and training tools used only for this project in Column 1.2. List number of each client educational and training tool to be purchased in Column 2.3. List total projected cost for each client educational and training tool in Column 3.4. (Column 2) X (Column 3) = (Column 4), cost for each type of client educational and training

tools.5. Total Column 4 for client educational training tools costs. Enter the total client educational and

training tools costs in Column B, Line O, Page C-8.

Client Educational and Training Tools Narrative: Explain the need for and how the client educational and training tools will be used in this project.

P. Other Allowable Costs:

1. List any other allowable costs that are not included above in Column 1 (e.g., raw food, client meals, etc.). Do not use miscellaneous or other categories that are not itemized. Identify, by name, the specific items for which funds are needed in Column 1.

2. List total cost for each item in Column 4.3. Total Column 4 for other allowable costs. Enter the total other allowable costs in Column B,

Line P, Page C-8.

Other Allowable Costs Narrative: Explain the specific need for each of these items and how and for whom they will be used in the project.

III. INSTRUCTIONS FOR DISPLAYING PROPOSED EXPENDITURES TO BE USED AS MATCH

Please refer to Page C-10 for example of suggested format. Use (a) separate page(s) for each line item.

NOTE: The funding source of budget items identified as match may not be another federal grant and the budget items identified as match (or percentage identified as match) may not be used as

C-6


match for other federal funds. The types of expenditures that are generally allowable for in-kind match are listed below. (Consult the solicitation document and/or Contract Manager for information regarding matching requirements and specific items allowable for match.)

A. Salaries and Benefits: Staff being paid from another funding source (e.g., United Way, the county, etc.) during this budget period must be rendering services directly benefiting the project to be funded by the Department. If staff are not working full time on this project, daily time logs will be required.

Salary and Benefits Narrative: List funding source of salaries and benefits for each position listed as match, as well as percent of time each position will spend on this project. (For all less than full time positions, explain how their duties will contribute to this project.)

B. Travel: Expenditures incurred in this category must directly benefit the operation of this project.

Travel Narrative: Identify the position(s) that will be traveling, where the position(s) will be traveling, the purpose of the travel, and describe how the travel will benefit this project.

C. Office Expense and Supplies: The cost of supplies must be documented. The supplies and office expenses must directly benefit the operation of the project.

Office Expense and Supplies Narrative: It will not be necessary to provide an explanation for these expenditures unless less than 100 percent of the item(s) will be used to support the project for which funding is being requested. If less than 100 percent of the item(s) will be used for this project, indicate the percent of the total cost of item(s) which will be claimed as match.

D. Equipment: For certified public expenditures, a use allowance of 6 2/3 percent (.06666) of the acquisition cost of the equipment may be used. The equipment may not be donated and the acquisition cost must be documented. For in-kind match expenditures, the resale value may be used as match and must be documented if the equipment is donated. The depreciation value of purchased equipment may be used as match. NOTE: In all cases the equipment must directly benefit this project.

Equipment Narrative: An explanation of how the amount of match to be claimed for each piece of equipment was calculated must be included here.

E. Other Expenditures: Costs for other items which directly will benefit this project, such as utilities, rent, etc., may be used as match. These items must be specifically identified.

Other Expenditures Narrative: An explanation of how the amount of match to be claimed for each item was calculated must be included here.

C-7


PROJECT BUDGET SUMMARY

(A). List budget line item as detailed on Pages C-1 through C-6. (If N/A, please indicate)(B). List total agency amount for line item.(C). List percent of each line item requested from DCF.(D). (Column D) = (Column B) X (Column C).

(A)

Budget Line Item

(B)$ Amount

ofLine Item

(C)

Percent (%)Requested

(D)$ AmountRequestedFrom DCF

A. Personnel...............................................................

B. Fringe Benefits.......................................................

C. Staff Travel.............................................................

D. Consultants............................................................

E. Subcontracted Services..........................................

F. Client Transportation..............................................

G. Office Expenses.....................................................

H. Operating Capital Outlay........................................

I. Rental or Use of Space..........................................

J. Rental of Equipment...............................................

K. Maintenance Agreements.......................................

L. Insurance................................................................

M. Membership Fees & Subscriptions.........................

N. Advertising..............................................................

O. Client Educational & Training Tools.......................

P. Other Allowable Costs............................................

Q. ______________________________....................

R. ______________________________....................

GRAND TOTAL

C-8


PROJECT BUDGET DETAIL

(Enter Budget Item Heading)

(Enter Heading)Column 1




A. Personnel

B. Fringe Benefits

C. Staff Travel

D. Consultants Services

F. Client Transportation

G. Office Expenses Outlay

I. Rental or Use of Space

J. Rental of Equipment

K. Maintenance Agreements

L. Insurance

M. Membership Fees & Subscriptions

N. Advertising

O. Client Educational & Training Tools

P. Other Allowable Costs

Q. _____________________

R. _____________________

$ TOTAL______________

C-9


PROJECT MATCH SUMMARY

(A). List each type of cost (or each element within a cost category, if appropriate) to be claimed as match.(B). List total expenditure for each type of cost to be claimed as match.(C). List percent of total expenditure to be claimed as match.(D). (Column D) = (Column C) X (total of Column B).

(A)

Match Line Items

(B)Total Expenditure

For Each Item

(C)Percent (%)

Match

(D)Total $ Amount

of Match

X =

C-10


Sample Letter to Request Purchase of Property

[Letterhead]

Date

Bureau ChiefBureau of AuditingDivision of Accounting and AuditingDepartment of Financial Services200 E. Gaines StreetTallahassee, Florida 32399-0371

Dear (insert the name of the current Bureau Chief):

Pursuant to Rule 60A-1.017, Florida Administrative Code (F.A.C.), the Department has determined that there is a demonstrated need to purchase tangible personal property, as defined in s. 273.02, F.S., through Department of Children and Families (DCF) Contract No. __________. The Department found it necessary to purchase the property, identified in DCF Contract No. __________, through the vendor as opposed to direct acquisition for the following reason(s):

___ 1. The property is solely intended for use by the vendor in the delivery of the contracted services. Continued use of this property is intended throughout its useful life by the same or different vendors under subsequent continuing contracts. It is not intended for direct use by Department staff.

___ 2. The property is critical to the delivery of the contracted services and the cost is more appropriately identified as a contract cost rather than Operating Capital Outlay by the Department.

___ 3. Direct purchase by the vendor is more efficient than Department purchase, which would include additional costs for storage, delivery, retrieval, disposal, etc.

___ 4.

The Department will maintain appropriate control, of property purchased with state funds, through contract terms and conditions which specify the means to identify, inventory, transfer ownership and/or dispose of said property.

Sincerely,

Appendix D to CFOP 75-2


AMENDMENT #_____

THIS AMENDMENT, entered into between the Florida Department of Children and Families, hereinafter referred to as the “department” and _______________, hereinafter referred to as the “provider”, amends contract #_____.

1. Page ___ Title of document ____________Section _____, is hereby amended to read:

2. This amendment shall begin on _______________, or the date on which the amendment has been signed by both parties, whichever is later.

All provisions in the contract and any attachments thereto in conflict with this amendment shall be and are hereby changed to conform with this amendment.

All provisions not in conflict with this amendment are still in effect and are to be performed at the level specified in the contract.

This amendment and all its attachments are hereby made a part of the contract.

IN WITNESS THEREOF, the parties hereto have caused this _____ page amendment to be executed by their officials thereunto duly authorized.

FLORIDA DEPARTMENT OF CHILDREN AND FAMILIES

PROVIDER:

______________________________________

SIGNED SIGNEDBY: BY:

NAME: NAME:

TITLE: TITLE:

DATE: DATE:

FEDERAL ID NUMBER:

Appendix E to CFOP 75-2


FLORIDADEPARTMENT OF CHILDREN AND FAMILIES

CONTRACT RENEWAL #_________

ORIGINAL CONTRACT #_________

THIS RENEWAL is entered into between the State of Florida, Department of Children and Families, hereinafter referred to as the “department” and______________________________________________________________________,hereinafter referred to as the “provider.”

As stated on Page ____, Section _____, Paragraph ______ of Contract # _______, the department is exercising its option to renew this contract if mutually agreed to by both parties. This renewal will begin on ____________, _____ and end on _____________, ______

(month & day) (year) (month & day) (year)

and the contract amount for this renewal period will not exceed $_______________.

All terms and conditions of said original Contract and any supplements and amendments thereto shall remain in force and effect for this renewal.

IN WITNESS THEREOF, the parties have executed this Renewal by their undersigned officials as duly authorized.

PROVIDER FLORIDA, DEPARTMENT OF CHILDREN AND FAMILIES

SIGNED BY: SIGNED BY:

NAME: NAME:TITLE: TITLE:

DATE: DATE:

RENEWAL IS NOT VALID UNTIL SIGNED AND DATED BY BOTH PARTIES

Appendix F to CFOP 75-2


(C&F Letterhead)

DATE

PROVIDERPROVIDER’S ADDRESS

Mr./Ms. ____________ :

The Department of Children and Families wishes to exercise its option to renew the (service) contract as stated on Page ________, Section _______, Paragraph ___________ of Contract # _____________. This renewal will begin on ______________, _____ and end on ______________, _____ and the contract (Month/Day) (Year) (Month/Day) (Year)

amount for this renewal period will not exceed $________________.

If you agree to this renewal, please sign below and return to the Department by (date to be returned/received by Department). All terms and conditions of the original contract and any supplements and amendments shall remain in force and effect for this renewal.

If you have any questions, please call me at _______________.(phone #)

Sincerely,

(Contract Signer)

PROVIDER:

SIGNED BY:NAME:TITLE:

DATE:

F-2


Instructions for Preparation and Submission of Settlement Agreements(For Failure to Certify Emergency or Noncompliance Within 30 Days)

A. General Information.

1. The period to be covered by the Settlement Agreement will be from the date service began to the date the contract was executed.

2. The Settlement Agreement covers payment for services rendered without a valid contract and from the State Chief Financial Officer’s perspective, is not a contract payment. Consequently, the State Chief Financial Officer’s records will not reflect payments made under Settlement Agreements as a contract expenditure. Each payment under a Settlement Agreement will result in a reconcilable item for the Department.

a. The vendor will need to separately invoice for payment of services rendered prior to the date of contract execution.

b. The Department will be required to prepare separate vouchers for payment of the Settlement Agreement and payment for services rendered following contract execution. (NOTE: The Settlement Agreement must be vouchered from one fund. Any “internal” distribution of expenditures should be made by the Department using a journal transfer.)

3. All Settlement Agreements will be processed by the State Chief Financial Officer’s, Bureau of Auditing, Tallahassee, Florida. The field offices will not process a settlement. Send the finalized Settlement Agreement package to the Administrative Services Support Center for processing. The Administrative Services Support Center will transmit the package to the Department of Financial Services in accordance with standard procedures.

4. Prior to approving any of the subject Settlement Agreements, the State Chief Financial Officer will have to verify that applicable procurement laws have been complied with and appropriate procurement procedures were followed. This will be accomplished through review, by the State Chief Financial Officer, of a copy of the contract, the certification, and other documents routinely submitted as part of the contract voucher payment process.

5. The Settlement Agreement will be processed, approved/disapproved, and paid by a different office than the one which will process and pay the contract vouchers.

6. NOTE: A Settlement Agreement is not entered into “in lieu” of a contractual agreement.

B. List of Documents Required for a Settlement Agreement. Submit the following documents as follows:

1. Copy of executed contract, modifications, and exhibits.

2. Copy of completed Department of Children and Families Form (CF1122) with appropriate attachments (e.g., solicitation tabulation).

a. If a solicitation document, copies of the solicitation tabulation, the solicitation document, and other required documentation supporting the processes followed.

b. If exceptional purchase, copy of appropriately completed/approved PUR 1010, Notice of Non-Compliance.

Appendix G to CFOP 75-2


3. Settlement Agreement. Pages G-5 and G-6 are provided as a sample Settlement Agreement. NOTE: Settlement Agreements which are signed by both parties and accompanied by sufficient documentation when submitted to the Chief Financial Officer will expedite the process. The Bureau of Auditing is aware that there will be instances in which you have a special need to submit a draft to them for comment. The Bureau will review, comment, identify any problems, and return the draft (Provisional Settlement Agreement) to you. Final approval will be given by that office when the final Settlement Agreement is submitted (with all necessary documentation).

4. A cover letter, addressed to Chief, Bureau of Auditing, see address above, requesting review and approval of the Settlement Agreement and a brief explanation of the events that lead up to the agreement and why the settlement is in the State’s best interest under the circumstances. NOTE: The Bureau of Auditing requests that you provide a contact person’s name and telephone number in this cover letter. This will be very important if questions arise during the review of your Settlement Agreement.

5. Approved invoice for payment for services rendered prior to the date of contract execution and including appropriate supporting documentation. (The vouchered amount, totals of invoices/receipts, date(s) of service, and the Settlement Agreement amount must be equal/agree.)

6. Voucher stamped “SETTLEMENT AGREEMENT.” (NOTE: If the settlement amount is $10,000 or less, please use bookkeeping indicator “A.”)

7. Other documents as required by Department of Financial Services for payment.

8. Additional information as requested by the Department of Financial Services pursuant to s. 17.03, F.S, may include such items as:

a. Copies of Department of Financial Services rejects, if applicable,

b. Copies of legal documents as they pertain to official complaints and/or lawsuits, and

c. Copies of Delegations of Authority to sign for the Department

G-2


Bureau of Auditing’s List of Key Items Reviewed When Processing Settlement Agreements

This list represents a sample of the documentation required by the Bureau of Auditing of agencies submitting Settlement Agreements for the approval of the Department of Financial Services. It is recommended that each item below be thoroughly addressed prior to submission. However, pursuant to Comptroller’s Memorandum Number 4, (1987-88), Item 5, “any other information...”may be requested to “properly perform its duties...”

_____ 1. Is a description of the transaction(s) or event(s) that resulted in the claim and a statement explaining why this is in the State’s best interest attached? Please provide a contact person’s name and telephone number.

a. Settlement Agreements are applicable (but not limited to) untimely execution of contracts, renewals, amendments, exceptional purchases, single sources, etc.

b. Provide a copy of Comptroller Return/Rejection forms and address the issues accordingly.

_____ 2. Is a copy of the Settlement Agreement signed by both parties enclosed, and if so, does it appear to release the state from further claims and otherwise appear appropriate?

a. Other recommended appropriate language within the Settlement Agreement is a provision stating that “the agreement is subject to the approval of the Department of Financial Services pursuant to s. 17.03, F. S.”

b. All changes to the Settlement Agreement must be initialed and dated by the vendor and authorized by Department personnel.

_____ 3. Does the individual who signed on behalf of the agency have delegated signature authority, and if not, has this authority been further delegated and a copy attached?

_____ 4. Is the Settlement Agreement the result of a lawsuit, and if so, are we in compliance with s. 45.062, F. S., Comptroller’s Memorandum No. 14 (1993-94), and Items 3 and 4 of Comptroller’s Memorandum No. 4 (1987-88)? Are copies of the complaint, referenced case documents, and/or final judgment attached?

_____ 5. Do the Settlement Agreement amount and voucher schedule agree?

_____ 6. Does the payment cover the date services commenced up to the date the contract was fully executed?

_____ 7. Are copies of the contract, modifications/amendments, single source, Notice of Non-Compliance form (PUR 1010), and invoices attached?

_____ 8. If the Settlement Agreement requires the payment of interest, it must be coded on a separate Voucher Schedule.

a. Object code 4992 must be used for all Settlement Agreement interest payments.

b. Settlement payments are not subject to s. 215.422, F.S., “Warrants, vouchers, and invoices, processing time limits, dispute resolution, agency compliance...”

G-3


SAMPLE LETTER OF BEST INTEREST TO THE STATE

(Letterhead)

Chief, Bureau of AuditingDepartment of Financial Services200 East Gaines StreetTallahassee, Florida 32399-0350

Attention: Settlement Agreement

Dear: (Insert current bureau chief’s name)

Pursuant to Comptroller’s Memorandum No. 4 (1987-88), the Department of Children and Families is seeking Department of Financial Services' approval for the settlement of the claim of (insert the provider’s name).

Attached you will find the following:

1. Settlement Agreement

2. Voucher Schedule

3. Approved Invoice

List the reasons unique to the circumstances which surround your request for a Settlement Agreement. Answer, based on factual information, why it is in the best interest of the State of Florida to enter into a Settlement Agreement with the provider.

A SAMPLE explanation of why a proposed settlement is in the best interest of the state is below:

Immediately following the expiration of the previous contract, there were unanticipated delays in the solicitation process, thereby, delaying execution of contracts for the provision of (list the service to be provided here). Due to the nature of this specific program, (provider’s name) was requested to provide this necessary service. If this service was not done, the condition would have resulted in the need for (list the service) at a much greater cost to the Department of Children and Families. As a result, (provider’s name) was requested to provide services without the benefit of an executed contract.

Approval of this settlement agreement will prevent the need for litigation which may be more costly to the state.

Sincerely,

Melissa P. Jaacks, CPA Assistant Secretary for Administration

G-4


SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE

SETTLEMENT AGREEMENTBETWEEN

STATE OF FLORIDA, DEPARTMENT OF CHILDREN AND FAMILY SERVICESAND

(enter the provider’s name)

THIS AGREEMENT made this _____ day of _______________, 20xx, between the State of Florida, Department of Children and Family Services, an agency of the State of Florida, enter the department’s address, e.g., 1317 Winewood Boulevard, Tallahassee, Florida 32399-0700, (hereinafter referred to as “DEPARTMENT”), and enter the provider’s name, address, city, state, and zip code, (hereinafter referred to as “PROVIDER”).

WHEREAS, on month/day/year, the DEPARTMENT and the PROVIDER entered into Contract Number enter Contract Number to provide enter a complete description of the services contracted for; and,

WHEREAS, the PROVIDER has performed the services requested by the DEPARTMENT; and

WHEREAS, the DEPARTMENT has not paid for the performance of said additional requested services; and

WHEREAS, the PROVIDER has made demand for payment for said services and the DEPARTMENT has determined that the Provider has asserted a colorable legal claim in support of its demand for payment for the services performed;

WHEREAS, the DEPARTMENT, by entering into this agreement admits no liability for payment for the services performed by the PROVIDER under the contract;

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. The PROVIDER, for himself, his attorneys, heirs, executors, administrators, successors and assigns, does hereby fully, finally and forever release and discharge the State of Florida, the Department of Children and Family Services, and their agents, representatives, and attorneys, of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, arising out of or in any way related to the Contract and work performed thereunder, and any invoices for such work, including, but not limited to, those claims asserted or other claims that were or might have been asserted in any federal, state, or administrative action in any federal, state, or local agency or court, by or on behalf of the PROVIDER, against those parties hereinabove released relating to these facts or circumstances whatsoever.

2. The DEPARTMENT herein agrees to submit to the Department of Financial Services for payment of the lump sum amount of write out dollars and w rite out cents ($Arabic numerals) in full and satisfaction of any amounts or costs associated with the services performed by the PROVIDER and any claims and invoices associated therewith, or with interest and costs and fees associated with the claim matters referenced herein.

3. This agreement is contingent upon approval by the Department of Financial Services. Until such approval is received, the DEPARTMENT has no obligation to make any payments pursuant to this agreement.

G-5


4. The parties to this agreement further agree and covenant that this agreement is binding on the parties, their heirs-at-law, and their assigns and successors in interest as evidenced by their signatures and lawful executions below.

5. All terms and conditions of this settlement as fully set forth in this document and no other material terms of settlement exist outside this document.

PROVIDER DEPARTMENT

Settlement Party Name Department of Children and Family Services

Assistant Secretary for AdministrationTitle Title

Date Date

Attest Attest

Attorney General Counsel

Date Date

G-6


COST OR PRICE ANALYSIS

A brief guide to cost and price analysis follows:

A. Cost analysis is the review of the potential Provider's cost elements to determine their appropriateness and reasonableness. Cost analysis includes review of:

1. Need for categories of personnel proposed.2. Reasonableness of personnel work time proposed.

3. Need for other costs listed, e.g., computer time. 4. Are “reasonable and necessary rates of pay proposed for the specific individual who will

perform the work?5. Is the indirect cost appropriate and is the base to which rates are applied appropriate?6. Are other costs listed “reasonable and necessary”?7. Are cost submitted allowable according to the appropriate cost principles?8. Compare estimated costs with prior actual costs.

B. Price analysis is the process of examining and evaluating a prospective price without evaluation of the separate cost elements and proposed profit of the potential Provider. Price analysis is conducted in the following ways:

1. The comparison of price quotations submitted.2. The comparison of prior quotations (and prior contract prices) with current quotations.3. Comparison of prices set forth in published price lists issued on a competitive basis,

published market prices of commodities.4. Comparison of proposed prices with estimated cost independently developed by

personnel within the contracting activity.

Appendix H to CFOP 75-2


Sample SAC/LAC Letter

Dear Provider:

Thank you for your interest in serving Florida’s most vulnerable citizens. We appreciate your willingness to join the Florida Department of Children and Families in improving the quality of life for all Floridians and especially for our clients.

We believe that it is important for you to know that the State of Florida wants to protect the rights of all of our citizens. One way the state does this is through the activities of our Statewide Advocacy Council (SAC) and through their local counterparts, the Local Advocacy Councils (LAC). Sections 402.164-167, Florida Statutes, establish these Councils and prescribe their duties. Among other responsibilities, the Councils may monitor by site visit and inspection of records the delivery and use of services, programs or facilities contracted by any state agency that provides client services. Visits involving the inspection of records may be unannounced if conditioned upon a complaint. Routine monitoring and reviews which do not require an examination of records may also be unannounced.

It is possible that members of the SAC or your local LAC may visit your location while performing their duties. If someone from one of the Councils visits your location we would encourage you to afford them every courtesy and to cooperate with their request as follows: If a Council member asks to inspect records which contain confidential information, and provides a written authorization from the subject, the subject’s guardian, or the subject’s legal representative, you may provide the records for inspection. After providing the Council with the information, contact the contract manager immediately to inform him/her of the request. If a Council member does not have a written authorization and you do not believe that you may permissibly grant them access to these records, please contact your contract manager immediately. The contract manager will, after consultation with Legal, instruct you on how to respond to the request.

Our goal is to work cooperatively with everyone who wants to help our clients and citizens improve their lives, and we know that you share this goal. We appreciate all that you do for our clients and we especially appreciate your consideration of this request. If you have any questions do not hesitate to bring them to the attention of your contract manager.

Appendix I to CFOP 75-2


INDEX.....................................................................................................................PARAGRAPH

A

Ad Hoc Reports.......................................................................................................12-7, 12-10Addendum...............................................................................................................GlossaryAdvance Payments.................................................................................................9-3, GlossaryAdvance Payments, Sample Schedule of...............................................................9-3Amendment Format.................................................................................................Appendix HAmendment.............................................................................................................10-9, 10-10, GlossaryApproval of Subcontract Assignments.....................................................................11-3Approvals................................................................................................................5-11Attachment Is:.........................................................................................................7-6

And Contract Clauses.......................................................................................9-2Definition of.......................................................................................................GlossaryExhibits.............................................................................................................7-7Other Attachments............................................................................................7-7Program Specific Model Attachment I...............................................................7-5Statement of Work Format................................................................................7-6

Audits...................................................................................................................... 9-6, GlossaryAudits, Financial and Compliance...........................................................................ASC Website

B

Bid(s) ...................................................................................................................... 5-5Bond, Posting for Protests.......................................................................................6-4Breach of Contract..................................................................................................11-10, GlossaryBudget Summary Instructions.................................................................................Appendix F

C

Category..................................................................................................................GlossaryCentral Office Contract Administrator-ASCO..........................................................GlossaryCertification Regarding Debarment and Suspension............................................... 10-4,11-2, 11-3, ................................................................................................................................ GlossaryCertification Regarding Lobbying............................................................................ 10-4,11-2, 11-3, Certification of Emergency......................................................................................4-5, 7-8, 10-12Certification of Non-Compliance..............................................................................7-8, 10-12, 11-4, Certified Minority Business Enterprise (CMBE).......................................................GlossaryCivil Rights Compliance Questionnaire...................................................................11-3Clauses:

Advance Payments...........................................................................................9-3Attorney’s Fees.................................................................................................9-8Bonding.............................................................................................................9-8Conference Travel.............................................................................................9-2Contract Renewal.............................................................................................9-8Cost Reimbursement........................................................................................9-2Energy Efficiency Standards and Policies, Federal Funding.............................9-9,9-10Expenses..........................................................................................................9-2Federally Funded Contracts..............................................................................9-9Federally Funded Subcontracts........................................................................9-10Fees for Services..............................................................................................9-4Fixed Price........................................................................................................9-2Information Technology Resources..................................................................1-10, 9-8Monitoring Requirements..................................................................................11-6

Index to CFOP 75-2


Multiple Year Contract......................................................................................7-8, Glossary Nonexpendable Property..................................................................................9-8Patent Requirements and Regulations, Federal Funding.................................9-9Performance Standards Statement...................................................................7-6Postage and Reproduction Expenses...............................................................9-2Prescriptive Medical Property, Title To.............................................................9-8Professional Services Fees...............................................................................9-2Record Retention Statement (Greater Than Six Years)....................................9-10Renewal............................................................................................................9-8, 10-11,..........................................................................................................................Appendix IService Delivery Documentation.......................................................................9-2Support Services..............................................................................................9-8Tangible Personal Property, Purchase of.........................................................Appendix GTitle to Prescriptive Medical Property................................................................9-8Title to Vehicles (Transportation Disadvantaged).............................................9-8Transportation Disadvantaged..........................................................................9-8Travel................................................................................................................9-2

Client Services........................................................................................................GlossaryCommunity Based Care..........................................................................................9-6Competitive Procurement........................................................................................Chapter 5Computers, Acquisition of........................................................................................9-8Contact Person.......................................................................................................11-3Contract:

Administrator.....................................................................................................GlossaryAdministrator’s Log...........................................................................................GlossaryAmendments.....................................................................................................10-10Breach of..........................................................................................................11-10, GlossaryClause...............................................................................................................GlossaryCloseout............................................................................................................ 11-3,Glossary

Considerations..................................................................................................4-4Default...............................................................................................................11-9, GlossaryDefinition of.......................................................................................................GlossaryDocument Profile..............................................................................................7-3Document Requirements (Minimum)................................................................7-3Documentation Requirements..........................................................................1-6Documents........................................................................................................Chapter 7Duration.............................................................................................................7-8, GlossaryEvaluation Teams.............................................................................................GlossaryExceptions........................................................................................................7-4Execution..........................................................................................................10-8Extension..........................................................................................................10-10File.................................................................................................................... 1-6, 11-4Increases..........................................................................................................10-10Information File.................................................................................................12-6Information Inquiry............................................................................................12-5Legal Services..................................................................................................1-15Log....................................................................................................................GlossaryManagement.....................................................................................................Chapter 11Manager............................................................................................................11-3, GlossaryManager’s File..................................................................................................11-4, GlossaryManager’s Training...........................................................................................11-3Modification.......................................................................................................7-4Monitoring.........................................................................................................11-6Number.............................................................................................................GlossaryNumbering, Multi-District Rate Contracts..........................................................8-6Numbering, Renewal Contracts........................................................................10-11Other Governmental Agency............................................................................4-7

Index-2


Performance Unit..............................................................................................GlossaryRelated Documents..........................................................................................GlossaryRenewal(s)........................................................................................................9-8, 10-11,..........................................................................................................................Appendix I,..........................................................................................................................GlossaryReporting Requirements...................................................................................Chapter 12Review Form (CF 1122 Form)..........................................................................10-2, 12-2,..........................................................................................................................GlossaryReview and Approval Process..........................................................................Chapter 10Revisions..........................................................................................................7-3, 7-5, 10-9Signer................................................................................................................10-8, Glossary,..........................................................................................................................Appendix DStaff..................................................................................................................11-2State Term........................................................................................................4-6Termination.......................................................................................................11-11

Contract Information File.........................................................................................12-5Contract Information Inquiry....................................................................................12-5Contract Manager:

File.................................................................................................................... 11-4Monitoring Role.................................................................................................11-6Responsibilities.................................................................................................11-3Training.............................................................................................................11-3

Contract Oversight Unit...........................................................................................11-6Contract Staff..........................................................................................................11-2Contractor...............................................................................................................GlossaryConvicted Vendor List.............................................................................................1-14, GlossaryCorrective Action, Performance Contracting...........................................................11-5Cost or Price Analysis.............................................................................................Appendix KCost Reimbursement...............................................................................................9-3, Glossary Court Reporter Contracts................................................................................................................. 1-15

D

Debarment and Suspension, Certification Regarding..............................................Glossary, ASC websiteDebarred or Suspended Providers..........................................................................1-14Decision to Contract................................................................................................1-2Default, Contract.....................................................................................................11-9, GlossaryDelegation of Authority............................................................................................Appendix D,................................................................................................................................ GlossaryDeliverables............................................................................................................7-6 Department Contract Administrator (ASCA)............................................................GlossaryDepartment Obligations (RFP/ITB)..........................................................................5-4, 5-5Development of PSMAIs.........................................................................................7-5Development of Standard Contract.........................................................................7-4District/Region Contract Administrator (DASG).......................................................GlossaryDuration of Contracts...............................................................................................7-8

E

Emergency Certification for Retroactive Payment...................................................10-12, GlossaryEmergency Procurement.........................................................................................4-5, GlossaryEmergency Relief Plan............................................................................................11-3, 11-4Employee Ethics.....................................................................................................1-13Ethics, Employee....................................................................................................1-13Ethics, Provider.......................................................................................................1-14

Index-3


Exceptional Purchase..............................................................................................GlossaryExecuted Contract...................................................................................................GlossaryExempt Services.....................................................................................................Chapter 4,................................................................................................................................ GlossaryExemptions, Regulated...........................................................................................4-8Exhibit..................................................................................................................... 7-7, GlossaryExpenses.................................................................................................................9-2Extension.................................................................................................................10-10................................................................................................................................ Glossary

F

Federally Funded Contracts, Required Clauses......................................................9-9Federally Funded Subcontracts, Required Clauses................................................9-10Fees for Services....................................................................................................9-4File:

Contract............................................................................................................11-4Contract Manager’s..........................................................................................11-4Procurement.....................................................................................................11-4

Financial and Compliance Audit Form.....................................................................ASC WebsiteFinancial Review.....................................................................................................10-5Fixed Fee Contracts................................................................................................9-2Fixed Price Contracts..............................................................................................9-2, GlossaryFLAIR......................................................................................................................GlossaryFLAIR Contracts and Grants Subsystems...............................................................Chapter 12Formal Written Agreement......................................................................................Glossary

G

Governmental Agency Contracts............................................................................4-7

H

Health Care Practitioners........................................................................................1-15Home District/Region...............................................................................................8-6, GlossaryHealth Insurance Portability and Accountability Act (HIPPA) .................................9-6

I

Informal Solicitation.................................................................................................GlossaryInformation Technology Resources.........................................................................1-15, 9-8

Instrumentality of Government................................................................................GlossaryInterest Earned........................................................................................................9-3

J

K

Index-4


L

Legal Review...........................................................................................................10-6Legal Services Contracts.........................................................................................1-15, 4-8Legislative Direction................................................................................................ iLetter of Agreement.................................................................................................7-2, Glossary

M

Manner of Service Provision...................................................................................7-5, 7-6, ................................................................................................................................ GlossaryMemorandum of Negotiation...................................................................................11-4, GlossaryMethod of Payment.................................................................................................7-5, GlossaryMethod of Procurement Decision Tree....................................................................1-11Minority Person.......................................................................................................GlossaryMissing Children (Required Actions) ......................................................................9-8Modification (PSMAI)...............................................................................................7-5, GlossaryModification (Standard Contract).............................................................................7-4, GlossaryMonitoring:..............................................................................................................11-6

Activity..............................................................................................................11-6Definition...........................................................................................................11-6,GlossaryFrequency.........................................................................................................11-6Performance Standards Statement...................................................................7-6Program............................................................................................................11-6Reporting..........................................................................................................11-6

Multi-District Rate Contracts:...................................................................................8-5Definition of.......................................................................................................GlossaryNotice of Intent to Participate In........................................................................Appendix HProcessing Procedures.....................................................................................8-6Special Provisions of the Contract....................................................................8-6

Multi-/Multiple Year Contracts..................................................................................7-8,Glossary

N

Non-Compliance, Certification of ............................................................................10-12,GlossaryNon-Expendable Property.......................................................................................9-8Notice of Intent to Participate In a Multi-District Rate Contract................................Appendix E

O

Offeror.....................................................................................................................GlossaryOffice of Primary Responsibility (OPR)....................................................................7-4,GlossaryOther Attachments..................................................................................................7-7Other Governmental Agency Contracts...................................................................4-7Other Than Competitive Procurements...................................................................Chapter 4

P

Payment Inquiry......................................................................................................12-4Payment Clauses:

Advance Payments...........................................................................................9-3Cost Reimbursement........................................................................................9-2

Index-5


Fixed Price........................................................................................................9-2Retroactive Payment.........................................................................................10-12

Penalties, Contract Staff..........................................................................................11-7Performance Specifications.....................................................................................7-6Performance Standards..........................................................................................7-6Performance Standards Statement.........................................................................7-6, Postage and Reproduction Expenses.....................................................................9-2Posting Bond...........................................................................................................6-4Price-Level Increases..............................................................................................10-10Procurement:...........................................................................................................1-8

Competitive.......................................................................................................Chapter 5Decision Tree (Chart)........................................................................................1-11Definition of.......................................................................................................GlossaryEmergencies (of)...............................................................................................4-4Exemptions (of) (Regulated).............................................................................4-7File.................................................................................................................... 11-3Health Care Professional Services (of).............................................................1-15Information Technology Resources (of)............................................................1-15, 9-11Legal Services (of)............................................................................................1-15Methods of........................................................................................................1-9Officer...............................................................................................................GlossaryOverview...........................................................................................................Chapter 1Protest..............................................................................................................Chapter 6, GlossaryRelated Documents..........................................................................................GlossaryStatutes, Regulations, and Rules......................................................................1-12Training.............................................................................................................11-3

Production Reports..................................................................................................12-7Program Specific Model Attachment Is:

And Contract Clauses.......................................................................................9-2Criteria for.........................................................................................................7-5Definition of.......................................................................................................GlossaryDevelopment of.................................................................................................7-5Distribution of ...................................................................................................7-5Mandatory Use of.............................................................................................7-5Modification of...................................................................................................7-5Purpose of........................................................................................................7-5Statement of Work Format................................................................................7-6

Prohibited Transactions...........................................................................................1-14Project Budget Summary, Instructions, and Forms.................................................Appendix FProtest(s):................................................................................................................Chapter 6

Content of Formal Written.................................................................................6-5Definition of.......................................................................................................GlossaryResolution of ....................................................................................................6-7Response to......................................................................................................6-6

Provider...................................................................................................................GlossaryPublic Entity Crime..................................................................................................1-14, GlossaryPurchase.................................................................................................................GlossaryPurchase Order.......................................................................................................GlossaryPurchasing Category Threshold Amounts...............................................................Appendix A,GlossaryPurchasing Forms:Purpose of CFOP 75-2............................................................................................ i

Q

Index-6


R

Rate Contract(s)......................................................................................................Chapter 8Definition of.......................................................................................................GlossaryManagement Procedures..................................................................................8-3Multi-District......................................................................................................8-5Numbering of.....................................................................................................8-6Payment of........................................................................................................8-4

Records Retention...................................................................................................1-6, 9-10Regulated Exemptions............................................................................................4-8, GlossaryRenewal(s)..............................................................................................................9-8,Glossary,................................................................................................................................ Appendix IReport Distribution System (RDS)...........................................................................12-10Reporting (Monitoring).............................................................................................11-6Reporting Requirements.........................................................................................Chapter 12Reports:

Ad Hoc..............................................................................................................12-7Production.........................................................................................................12-7Request For......................................................................................................12-7

Reproduction Expenses, Postage and....................................................................9-2RESPECT...............................................................................................................GlossaryResponsible Offeror................................................................................................GlossaryResponsive Offer....................................................................................................GlossaryResponsive Offeror.................................................................................................GlossaryRetroactive Payment Situations, Emergency Certification of..................................10-12Revisions, PSMAIs..................................................................................................7-5Revisions, Standard Contract..................................................................................7-3

S

Services to be Provided..........................................................................................7-6, GlossarySettlement Agreements...........................................................................................10-13,................................................................................................................................ Appendix JSingle Source Procurement....................................................................................4-4, GlossarySmall Purchases......................................................................................................Chapter 3, GlossarySpecial Provisions...................................................................................................9-8, 9-9

Approved Special Provisions Clauses..............................................................9-8Definition of.......................................................................................................GlossaryFederally Funded Contracts..............................................................................9-9Federally Funded Subcontracts........................................................................9-10Multi-District Rate Contracts.............................................................................8-5Section of Attachment I.....................................................................................7-5

Standard Contract...................................................................................................7-4, 9-1Attachments (Attachment I/PSMAI)..................................................................7-5Definition of GlossaryExceptions to the Mandatory Use of.................................................................7-9Mandatory Use of.............................................................................................7-4Other Attachments/Exhibits..............................................................................7-7Purchase Order in Lieu of.................................................................................7-4

Standards................................................................................................................7-5Standards, Contract Staff........................................................................................11-2State Term Contracts..............................................................................................4-6Statement of Need (RFP/ITB).................................................................................GlossaryStatement of No Involvement..................................................................................ASC WebsiteStatement of Work:

Attachment I......................................................................................................7-6

Index-7


Definition of.......................................................................................................GlossaryFormat..............................................................................................................7-6

Subcontract Special Provisions (Federal Funding)..................................................9-10Subcontractors........................................................................................................9-5Supporting Documentation Requirements...............................................................9-2

T

Tangible Personal Property.....................................................................................9-8Tangible Personal Property, Purchase of................................................................Appendix GTarget Group...........................................................................................................GlossaryTerm Contract.........................................................................................................4-6, GlossaryTermination, Contract..............................................................................................11-11Threshold Amounts, Purchasing Category..............................................................Appendix ATraining:

Contract Manager.............................................................................................11-3Contracts..........................................................................................................1-15, Glossary

Transportation Disadvantaged................................................................................9-8Travel Clause..........................................................................................................9-2Travel, Conference Clause......................................................................................9-2

U

Unit Cost................................................................................................................. 9-2User District/Region................................................................................................8-6

V

Vehicles, Title To (Transportation Disadvantaged)..................................................9-8Vendor.....................................................................................................................GlossaryVendor Ombudsman...............................................................................................Glossary

W

Welfare Transition Program....................................................................................Glossary

X

Y

Z

Index-8