AASIS
|
Arkansas Administrative Statewide Information
System
|
ABA
|
Arkansas Building Authority
|
A.C.A.
|
Arkansas Code Annotated
|
ACO
|
Administrative Compliance Officer
|
AP
|
Accounts Payable, Office of Finance and Administration,
Department of Health and Human Services
|
AR
|
Accounts Receivable, Office of Finance and
Administration, Department of Health and Human Services
|
BAA
|
Business Associate Agreement
|
GrO----------
|
-Contract OfficerCAP Contracting Automation
Platform
|
CAS
|
Contract Archival SystemGAP------------------Corrective
Action Plan
|
CB
|
Competitive Bid
|
GFDA-------
|
-Catalog of Federal Domestic Assistance
|
CMU
|
Contract Management Unit, Contract Support Section,
Office of Finance and Administration, Department of Health and Human
Services
|
COUGAR
|
-Contract and Grant Management, Tracking, and Reporting
system
|
CPO
|
Certified Procurement Official
|
CPU
|
Commodities Purchasing Unit, Contract Support Section,
Office of Finance and Administration, Department of Health and Human
Services
|
GRU---------
|
-Contract Review Unit, Contract Support Section, Office
of Finance and Administration, Department of Human Services
|
CSP
|
Competitive Sealed Proposal
|
CSS
|
Contract Support Section, Office of Finance and
Administration, Department of Health and Human Services
|
CSU
|
Central Support Unit, Contract Support Section, Office
of Finance and Administration, Department of Health and Human
Services
|
DAAS
|
Division of Aging and Adult Services, Department of
Health and Human Services
|
DBH
|
Division of Behavioral Health, Department of Health and
Human Services
|
DCCECE
|
Division of Child Care and Early Childhood Education,
Department of Health and Human Services
|
DCFS
|
Division of Children and Family Services, Department of
Health and Human Services
|
DCO
|
Division of County Operations, Department of Health and
Human Services
|
DDS
|
Division of Developmental Disabilities Services,
Department of Health and Human Services
|
DFA
|
Department of Finance and Administration
|
DHHS
|
Department of Health and Human Services, United States
Government
|
BHS---------
|
-Department of Human Services
|
DMS
|
Division of Medical Services, Department of Health and
Human Services
|
DOH
|
Division of Health, Department of Health and Human
Services
|
DOV
|
Division of Volunteerism, Department of Health and
Human Services
|
DSB
|
Division of Services for the Blind, Department of
Health and Human Services
|
DYS
|
Division of Youth Services, Department of Health and
Human Services
|
EEO
|
Equal Employment Opportunity
|
EOS----------
|
-Electronic Data Systems
|
EO
|
Executive Order
|
FH-----------
|
-Federal Early Intervention
|
FY
|
Fiscal Year
|
CHAPTER ONE
INTRODUCTION
To carry out some aspects of its mission, the Arkansas
Department of Health and Human Services (DHHS) uses a statewide network of
contracted service providers, ii
The purpose of this Contract Manual (hereinafter referred to as
"this Manual") is to provide a common frame of reference for the development of
Professional and Consultant Services (PCS) contracts and intra-agency
agreements . It is based on federal and state directives, as well as "best
practices" which have been standardized for use by DHHS program
divisions/offices (hereinafter referred to as "divisions").
The essential elements of each agreement are based on
mutually binding obligations between the two i parties: the service provider
eiie and the applicable DHHS division/office, using funds appropriated to carry
out the
nrnnram re[LESS THAN]:nrtn[LESS THAN]:ihilitip[LESS
THAN]: nfthat Hiviginnip
The Office of Chief Counsel (OCC) provides legal advisory
concerning procurement methods, service performance provisions, and any unique
terms and conditions or other proposed deviations from standard practices
described in this Manual.
The Office of Finance and Administration (OFA) provides
administrative direction to facilitate the successful completion of agreements
so that they iiiiliiil iiil meet requirements for coordination through the
Office of State Procurement (OSP), Department of Finance and Administration
(DFA) and review by the Arkansas state legislature, if necessary. OFA also
provides financial advisory and technical assistance through a network of
divisional Chief Fiscal Officers to assure compliance with the Financial
Management Guidee iee and the Accounting and Budgetary Procedures Law.
The Central Support Unit (CSU) of the Contract Support Section
(CSS) of OFA provides this Manual as an element of technical assistance. Please
direct all suggestions for corrections, additions and/or updates to:
Contract Support Section/Slot W345
P.O. Box 1437
Little Rock, AR 72203
Telephone: (501) 682-6293
CHAPTER TEN
PROFESSIONAL/CONSULTANT
SERVICES CONTRACTS
I.
Policy
See A.C.A. § 19-11-200 etseq., § 19-11-700 et seq.,
and § 19-11-1000 etseq.
II.
PCS Contracting
Requirements
A. PCS
Contracting
Formats
1.
Standard PCS Contracts
a. All PCS contracts
that exceed $25,000.00 in compensation (per
contractor, per fiscal year, per cost center) shall be executed on the
Form OSP-1. (All PCS contracts executed on the Form OSP-1
are referred to in this Manual as "standard PCS
contracts.")
b. Standard
PCS contracts that exceed $25,000.00 in compensation
must be submitted to DFA for review and approval.
c. Standard PCS contracts that do NOT exceed
$25,000.00 in compensation require DFA review and
approval ONLY IF THEY ARE SOLE SOURCE OR EMERGENCY CONTRACTS.
d. Standard PCS contracts that exceed
$25,000.00 total (compensation plus reimbursable) must
also be reviewed by the Legislative Council (or Joint Budget Committee when
legislature is in session).
(1.) Those
contracts with state agencies must be presented to the Performance
Evaluation and Expenditure Review (PEER) Subcommittee prior to approval
by DFA and prior to the execution date of such contract.
(2.) Those contracts with non-state agencies
must be presented to the Review Subcommittee prior to approval of
DFA and prior to the execution date of such contract.
(3.) The Legislative Council or the Joint
Budget Committee may elect to review or exempt any contract or group of
contracts.
2.
Stand-alone PCS PO's
a. All PCS contracts
that DO NOT exceed $25,000.00 in compensation should be executed on the PO
format and are referred to in this Manual as "stand-alone PO's". Agencies shall
not, however, split known quantities into smaller ($25,000.00 and below)
amounts to avoid a standard contract.
A division may execute a PCS contract
that does not exceed $25,t000.00 in compensation as a standard PCS contract on
the Form | OSP-1, if circumstances warrant.
b. Stand-alone PO's require neither DFA
review and approval nor legislative reviewr u-nless they exceed $25,000.00
total (compensation plus reimbursable). -However, multiple PO's to the
same contractor in the same fiscal year from the same cost center MUST be
reported to OSP to assist OSP in determining whether an agency is
issuing multiple PO's in an attempt to circumvent the requirement of
establishing a standard PCS contract. (See A.C.A. §19-11 -1012)
B.
Timeframes
1. All standard PCS
contract proposals should be negotiated, developed, and submitted to CSS in
sufficient time to allow for a thorough compliance review by CSS, approval by
the division, and signature by the contractor. This | review, approval, and
signature is required prior to the routing of the proposal to DFA, if
applicable,elile and prior to the effective date of the | contract
action.
2. For specific deadlines
for the submission of authorizations to F-OUCSS and | signed contracts to DFA,
refer to the Professional/Consultant Services Contract Deadlines
that is available from CSS--l. | Cooperation in meeting the published
deadlines will avoid possible delays in service and Suspension of the
Rules.
3. Contracts requiring
legislative review that are submitted to DFA after the due date must be
accompanied by a
Suspension of the Rules letter from the DHHS
Director (see sample letter in Appendix). This letter should contain the
following:
a. Contractor's name
b. Request for suspension of the rules
c. Explanation for failure to
submit the contract under regular procedures
d. Description of the service(s) being
purchased
e. Consequences if the
request is not granted
C. General requirements for all PCS contracts
include, but are not limited to, the following:
1.
DHHS standard is that initial
contracts shall not extend past the end of the fiscal year. Requests for
initial contracts to extend past the end of the fiscal year will be considered
by CSS on a case by case basis. In any case, the initial term of a PCS contract
shall not extend past the end of the biennium.
2. PCS contracts may be amended to extend for
a total period of no more than seven (7) years.
3. PCS cContracts with
individuals and sole
proprietorships are prohibited unless approved by OCC
and are, in any case, strongly discouraged. (A sole proprietor is one who owns
all of the assets of the business and is solely liable for all the debts of the
business.)
4. In many situations,
it is prohibited to increase the contractor's reimbursement rate without first
obtaining the approval of the Governor of Arkansas and the Chief Fiscal
Officer, DFA. Note: New contracts procured through a competitive process are
not subject to this requirement. Also, some fixed rates that function as
ceiling rates for services can allow for increases in payments that do not
constitute a rate increase above the ceiling rate. (See Chapter Nine
of this Manual.)
5.
For all contracts that were competitively procured and that exceed
$25,000.00, the contractor must submit (or have on file with CSS) a copy of its
Equal Employment Opportunity (EEO) policy. Contractors that do not have an
established EEO policy must submit a written statement attesting that
they
do not have an EEO policy. This EEO policy, or
statement, shall be made a part of the contract file and shall be submitted to
DFA, if necessary.
6. Certain PCS contracts require additional
approval beyond the normal procedure.
a.
Construction-related contracts require review by and approval from CSU and
ABA.
b. PCS contracts for
information systems technology and services (including the Ppurchase of
computer equipment) i ee requires review by and approval memo from the DHHS
Office of Systems and Technology (OST) prior to the development of the contract
(see iiil il DHS Policy 1022 for details.- Re-approval is required
for all amendments to applicable contracts.
c. Contracts for legal services require
review by and approval from OCC.
7. Standard PCS contracts are not binding,
and no payments will be made, until they are approved afld-i-by both
contracting parties (the contractoii and the lil division iDdirector), as well
as by a representative of DFA when applicable. Standalone PO's are considered
effective and, therefore, binding upon the contractor's acceptance of the
terms.
8. Funding amounts based on
Final Negotiated or Fixed unit rates should be computable to an even number of
units whenever practical. If the contract amount cannot be computed
into an even number of units, the number of full units possible should be
indicated, with a notation made that payment cannot exceed the contract
total. Funding amounts based on budgets should be exact, not
rounded. Contract totals that include more than one funding source should
reflect the exact total of the funding sources, not a rounded amount.
9. The prior written approval of
OCC is required for the contractor to assign the contract in whole or in part
or any payment arising out of it.
10. To be considered valid and binding, a
stamped or automated signature by a contracting party must be:
a. Unique;
b. Capable of being verified; and
c. Under the sole control of the signatory.
11. Contractors shall
insure non-discrimination and equal opportunity by | subcontractors in
compliance with all applicable federal laws, regulations, executive orders and
civil rights rules and regulations.
12. Standard PCS contracts with out-of-state
vendors ("foreign corporations") who | are transacting business in Arkansas
shall include verification of the vendor's Certificate of Authority from the
Arkansas Secretary of State.
D.
Ethics in Public Contracting
1. Ethics in public contracting is addressed
in A.C.A. §
19-11-701 through 717.
2. DHHS shall conform to high professional
standards and stringent procurement practices to sustain public trust in their
functions. Public employees must discharge their duties impartially so as to
assure fair competitive access to governmental procurement by responsible
contractors. Moreover, they should conduct themselves in such a manner as to
foster public confidence in the integrity of the state procurement
process.
E.
Reimbursement Guidelines
The contractor and division/office should agree upon the method
of reimbursement before a contract is developed. The following methods are
acceptable (see Financial Guidelines for Purchased Services for
greater detail): liie
1. Fixed Rates
a. Fixed rates are based on a rate schedule
approved by DHHS and standardized for a particular service or group of
services. Rate schedules are developed by the divisioni funding the program.
The division/office should adhere to the DHHS criteria for a cost
study.
b. The contractor rates
should fall within the range of allowable rates shown on the approved rate
schedule. Amendments to revise rates ithin this range are completed on a
prospective basis from | the effective date of the contract amendment. Fixed
rates based on federal approved rates such as Medicaid may be effective on the
date of approval by the federal agency.
c. All payments are final and no settlement
will be made upon expiration of the contract.
2. Final Negotiated Rates
There are a variety of approved methods to determine an
estimate of reasonable and necessary expenditures per unit of service being
purchased. These include, but are not limited to, the following:
a. A total operational budget allocated to
service component;
b. The published
rates of the contractor for non-contract clients;
c. The established community rate for a
similar service;
d. The previous
year's audit; and e. The contractor's cost study.
3. Actual Cost
a. Actual cost reimbursement is based on a
complete itemized listing of allowable program expenses.
b. The total itemized listing should equal
the total DHHS funding in the contract.
4. Scheduled Reimbursement
a. Scheduled reimbursement -
actual cost basis
(1.) Scheduled reimbursement on an actual
cost basis is based on a schedule of costs or a line-item budget that is on
file with the divisioni. Schedule shall include a statement | identifying the
basis for reimbursement.
(2.) The
schedule should include the total dollar amount allocated | to each program
with compensation and reimbursable indicated.
(3.) The schedule should clearly indicate
that payments are based | on actual expenditures incurred and no advance
payments are allowed.
(4.) The
schedule should indicate the anticipated date and amount | of each
payment.
(5.) Invoicing
requirements, expenditure reporting and payment adjustments shall be addressed
in the sSchedule as applicable. |
b. Scheduled reimbursement-
fee
basis
(1.) The schedule shall
include a statement identifying the basis for | reimbursement.
(2.) The schedule should sets payment limits
for the funding | sources listed.
(3.) Contractors should submit invoices with
documentation of services provided applicable to each of the funding sources.
Payment on each invoice is limited to the corresponding amount on the payment
schedule.
(4.) The schedule should
indicate the anticipated date of payment, | amount of each payment, and total
applicable funding
(5.) Payment
adjustments shall be addressed in the Schedule if applicable.
F.
Payment Limitations
The division/office may impose payment limitations on certain
funding sources m o be able to maintain payment capabilities
to all contractorsi and/or to levelize payments to contractors throughout the
contract period. Payment cuts to contractors necessitated by payment
limitations are restored in subsequent payments within the contract period.
Common payment limitations include Monthly Cumulative and Quarterly
Cumulative.
1. Monthly Cumulative
Payment to the contractoie is limited to 1/11 or 1/12 (to be
determined by the division/office) of the maximum annual contract liability for
each month of the contract on a cumulative basis- (e.g., at the end of the
first month of a 12 month contract, the payment limitation is 1/12 of the
contract liability; at the end of the second month the payment limitation for
the two month period is 2/12 of the maximum liability, etc.)
2. Quarterly Cumulative
Payment to the icontractor is limited to one quarter of the
maximum contract liability for each quarter of the contract on a cumulative
basis (e.g., at the end of the first quarter, the payment limitation is 25% of
the contract liability, at the end of the second quarter the payment limitation
for the six month period is 50% of the maximum liability, etc.)
III.
Development of Standard PCS Contracts (those executed on the Form OSP-1)
A. The DHHS standard is that CSS FOU-develops
-all standard PCS contracts upon receipt of iiil authorizations from the DHHS
divisionsierequesting such contracts.
NOTE:
CAP
is the electronic
system through which contracts are authorized, developed, reviewed, approved,
and signed.
* The division requesting contract development shall submit ALL
authorizations to CSS in electronic format.
* CSS shall develop and review contracts electronically.
* Division Director or designee shall review contracts and
indicate approval of such electronically.
* ACO shall print contracts for manual signature by the
contractors following electronic review and approval by division Director or
designee.
B. The following
procedures apply to development actions executed by CSS (for development
actions executed by the division, proceed to C. below).
1. Division shall include the following in
its authorization:eie eleeiieel ile
a.
Completed
lee Contract Authorization/Input Form, Form DHHS-9190
(1.) ar Most contracts must be entered into
Arkansas Administrative Statewide Information System (AASIS) as an outline
agreementa
PO.
(a.) If the
contract is to be entered into AASIS as a PO and 4f the division is doing
itsth#if own AASIS entry, the division shall create the outline agreement in
AASIS and enter the outline agreement number on the Form DHHS-9190
as the contract number.
(b.)
If the contract is to be entered into AASIS as a PO and CSSeei i is doing the
division's AASIS entry, the division shall leave blank the contract number
field on the Form DHHS-9190. ll e ll
(2.) Some Medicaid-related contracts are paid
through a third party and are NOT entered into AASIS as outline agreements, in
which case the division shall leave the contract number field blank. CSS shall
enter a unique, division-specific, ten-digit contract number on the
Form
DHHS-9190 upon receipt of the authorization. The contract number shall
be in the following format:
* 3-digit agency number (710 or 645)
* 2-digit division identifier (as identified in Form
DHHS-9190 instructions, e.g., DM, etc.)
* 2-digit fiscal year (FY) identifier (e.g., FY05 would be
"05", FY06 would be "06", etc.)
* 3-digit sequential numerical identifier starting with
001
(3.) Division shall
clearly identify the geographical service coverage area in the "Purpose of the
Action" portion of the form. Division shall identify the area in terms of
actual counties served or geographical portion of the state (ex., northwest
quadrant, etc.) as opposed to division-specific areas (ex., DCFS Area V, etc.)
If the contract covers services for the entire state, division shall identify
"statewide" as the service coverage area.
b. CSS approved performance indicators and
evidence of CSS approval or division certification;
c. A copy of the contractor's EEO policy (or
approved alternate statement), if the contract were competitively procured and
exceeds $25,000.00.
d. Any other
legal attachments, including required financial information;
e. Any additional information necessary
concerning billing, forms the iecontractor -is required to use, procurement
documentation, etc.
2.
Upon receipt of the authorization, assigned CSS individual(s) shall review the
authorization, consult with the contractor, complete the contract proposal, and
review the completed proposal for technical compliance and completeness.
C.
The complete
standard PCS contract shall include the following items:
1.
Form OSP-1;
a.
it is ABSOLUTELY CRITICAL that the
funding tally to the penny, that the
funding split is accurate, and that the
procurement methodology is correctly indicated !!!
Failure to have 100% accuracy in any of these three crucial areas will result
in the legislative review staff rejecting the contract!!
b. The contract name should be the complete,
legal name of the contractor as opposed to the "doing
business as" name. For incorporated entities, the legal name is found on the
contractor's incorporation papers and on the Arkansas Secretary of State
website (for Arkansas incorporated entities). The contract address should be
the address of the legal headquarters, as opposed to the "remit to" address.
2.
All attachments
referenced on Form OSP-1;
All attachments should be numbered in sequential and
consistent form. |
3.
Form PCS-Dile eiii-Df (for applicable contracts over $25,000.00);
a. All disclosures requiring pre-approval by
DFA should be resolved prior to completion of the contractiiiiii.
b. The
Form PCS-Dile eiii
shall not be made a legal attachment.
4.
Performance Indicators
(Required for applicable PCS contracts over $10,000.00l ee);
a. Performance indicators require approval of
CSS according to DHHS Policy 1066. This approval shouldeaft be in
the form of electronic mail submission, in which case a copy of the e-mail
submitting it should be attached to the approval.
b. For amendments or contracts using
previously approved performance indicators, the division/effoe shallwiW provide
certification of | performance indicators, in accordance with DHHS Policy
1066. If the division/office certifies for performance indicators
previously approved by CSS (prior to the development of this contract), a copy
of CSS's approval shall also be included e.
c.
Performance indicators
approval shall be made a legal attachment. CSS' approval and division
certification should be included in supporting documentsee iil ll
e e lel eiiiie eiile il ii.
5.
Terms and Conditions, Forms
DHHS-9193 and DHHS-9194;
a. This
document contains the legal and financial terms of the contract.
Form
DHHS-9193 is for contracts with a non-state agency;
Form DHHS-9194
is for contracts with a state agency.
NOTE: The state agency version (Form
DHHS-9194) is applicable to contracts with other states' agencies (ex.,
OK, TX, MS, etc.).not just Arkansas' state agencies.
b. The
Form DHHS-9193 or
Form DHHS-9194 shalle
iil be the current version provided by CSS (as
will be evidenced by the release date at the bottom of each page of the
formii). Referral to and/or consultation with OCC is required if an alternate
version eii is to be utilized.
c.This document shall be made a legal
attachment.
6.
Budget/Rate Information;
a. For
contracts reimbursed on an
Actual Cost basis
(1.) An itemized listing of allowable program
expenses and justification are required elements. The total itemized listing
should equal the total DHHS funding in the contract.
(2.) Each line-item expense should be
identified as either compensation or reimbursable expense, and the total
compensation and total reimbursable expense should be indicated on the itemized
listing.
(a.) If subcontractor costs are
included in the contractor's budget AND if those subcontractors are reimbursed
on an Actual Cost basis, the subcontractor costs should be split between
compensation and reimbursable as well, based on the subcontractor's budget that
must be included in the contract. If subcontractor costs are paid on a fee
basis, they shall be considered compensation.
(b.) Indirect Costs should normally be split
between compensation and reimbursable by the same percentages by which the
Direct Costs are split between compensation and reimbursable.
(3.) If the contract identifies
purchased services to DHHS clients, (i.e. indicates or refers to service(s) by
service name and service code on the
Form DHHS-9190) the itemized
listing should include:
(a.) service name(s);
(b.) service code(s); and
(c.) service unit definition(s).
(4.) The itemized listing of
expenses shall be indicated on the Form OSP-1 or made a legal
attachment.
b. For
contracts reimbursed on a
Fixed or Final Negotiated Rate basis
(1.) The contracted fee/rate schedule
4S-shall be included
(2.) If the
contract identifies purchased services to DHHS clients, (i.e. indicates or
refers to service(s) by service name and service code on the
Form
DHHS-9190) the itemized listing should include:
(a.) service name(s);
(b.) service code(s);
(c.) service unit definition(s);
and
(d.) unit rate(s).
(3.) The schedule should indicate
the number of units per service to be purchased, if applicable.
If the number of units per service cannot be evenly computed,
the number of whole units possible should be indicated, along with a notation
that payment cannot exceed the maximum liability.
(4.) For budget-based Final Negotiated
rates, the rate schedule should include a notation that it is based on a
budget that is on file with the divisionie. |
(5.) For non-budget-based Final
Negotiated rates, the basis for the rate should be noted in the rate
schedule.
(6.) Subcontractor |
costs should normally be considered as compensation for Fixed
or Final Negotiated rate contracts.
(7.) The fee/rate schedule shall be indicated
on the
Form OSP-1 or | made a legal attachment.
Note: If the division/office has a specific request and
justification for | including program-specific budgets and/or a full-disclosure
budget as a part of the contract, they may be added as legal attachments. CSS
will review the program-specific budgets, but not | the full-disclosure
budgets.
c. For
contracts reimbursed on a
Scheduled Reimbursement basis
(1.) The schedule shall include a statement
indicating the basis for the scheduled reimbursement (actual cost or fee
basis).
(2.) For scheduled
reimbursement on an actual cost basis, the total amount allocated to each
program shall be indicated, with compensation and reimbursable
identified.
(3.) The schedule shall
indicate the total amount of applicable ifunding, the amount of each payment,
and the dates of | payments. The first payment should be no earlier than three
weeks after the effective date of the contract.
(4.) The schedule of payments should include
expenditure reporting requirements and payment adjustment conditions, if
applicable.
(5.) The schedule shall
be indicated on the Form OSP-1 or made a legal
attachment.
d. The
method of reimbursement shall be correctly identified on the Form
DHHS-9193 or Form DHHS-9194
D. Other elements may be required to complete
the standard PCS contract. They include, but are not limited to:
1.
Sole Source Justification;
Sole Source PCS contracts, except for those for performing
artists and lecturers, must be justified.
a. For "Sole Source by law,"
reference the mandating legislation or the court order on page 1 of
Form OSP-1.
b.
For "Sole Source by Intent to Award", include a copy of OCC's approval,
the advertisement, and the iie e dates the | advertisement ran.
c. For "Sole Source by Justification
Approved by OSP," includeattacb | a copy of OSP's approval of the
six-point justification.
d. The
advertisement or justification and approvals shall not be made a legal
attachment.
2.
Prior Approval for CSP or RFQ Selection;
a. Prior approval from DFA is required for
CSP and RFQ procurements (except for contracts for architect, engineer, land
surveying, or legal services, in the case of RFQ.)
b. This prior approval shall not be made a
legal attachment.
3.
EEO Policy
a.
Contracts that were
competitively procured and that exceed $25,000.00 must include a copy of the
contractor's EEO policy, or a statement from the contractor attesting that they
do not have an EEO policy.
b.
This information shall not be
made a legal attachment.
4.
Certification Regarding Lobbying,
Form DHHS-9350;
a. Certification is
required for all contractors that receive in excess of $100,000.00 in federal
funds per Federal fund source per fiscal year. This pertains to
all federal funds received by the contractor, not just the federal
funds in this contract.
b.
Certification should be indicated on Form DHHS-9350eiiieii, unless
provided elsewhere in the contract, i.e., on the Form DHHS-9193 or Form
DHHS-9194.iieii
c. Certification requires an original
signature and date by the contractor.
d. Certification shall be made a legal
attachment to the contract.
5.
Funding Availability;
a.
A Funding Availability
statement should be added to any contract that has funding within the
contract with effective dates (beginning and/or ending dates) that differ from
that of the overall contract.
b.
The Form DHHS-9196, Funding Availability, or any similar format
that clearly states the necessary information may be used for this purpose.
c. The Form DHHS-9196
(or alternate format for the same purpose) iililiee shall
be made a legal attachment to | the contract.
6.
Matching Terms;
a. Specification of matching terms is
required when funds included in the contract have a required match from state
and/or local funds. (If the standard, OCC-approved Form DHHS-9193
or Form DHHS-9194 eii are utilized, no additional
documentation | regarding matching arrangements is required.)
b. This specification shall be made a legal
attachment.
7.
Reimbursement Rate Increase Approval, Form DHHS-1951;
a. Rate increase approvals are not effective
until the date of signature by the Governor of Arkansas on the Form
DHHS-1951.
b. An approved
Form DHHS-1951 is required for rate increases for services. Note
exceptions in Chapter Nine of this Manual.
c. The Form DHHS-1951 shall not
be made a legal attachment.
8.
Independent Contractor Checklist,
Form DHHS-9356; -
a. This form should
be completed by divisioni if contractor is an individual or sole proprietor
contracting to provide services.
b.
This form is used to assess the status of the individual or sole proprietor as
an independent contractor rather than a DHHS employee.
c. The Form DHHS-9356 shall not
be made a legal attachment.
9.
Waivers of Policy;
a. The requesting division/office Director or
designee should obtainsufemit ee approvals for waivers of any DHHS promulgated
policy tofrom the DHHS /OFA/Chief Fiscal Officer or designee l.
b. Waiver approvals shall not be made legal
attachments.
10.
Certificate of Authority from the Secretary of State; |
a. The Certificate of Authority
or documentation of its issuance is required for contracts with
out-of-state corporations transacting business in Arkansas, (see "Foreign
Corporations Transacting Business in Arkansas" in Appendix)
b. If the out-of-state contractor does not
provide services in Arkansas or is otherwise exempt -(see
"Foreign Corporations Transacting | Business in Arkansas" in
Appendix), a Certificate of Authority is not necessary.
c. This certificate shall not be made a legal
attachment.
11.
Suspension of the Rules Letter (see sample letter in Appendix); |
a. This letter is required for all contracts
requiring legislative review that are submitted to DFA after the due-date due
to DFA. |
b. This letter shall not
be made a legal attachment.
12.
Business Associate Agreement (BAA),
Form DHS-4001;
a. BAA's, when
required, are to be signed by the contractor to demonstrate their compliance
with the Health Insurance Portability and Accountability Act (HIPAA) and
included as legal attachments to the standard PCS contract.
b. BAA's are required for ALL new standard
PCS contracts with the following divisions:
(1.) Division of Children and Family Services
(DCFS);
(2.) Division of
Developmental Disabilities Services (DDS);
(3.) Division of Behavioral Health
(DBH);
(4.) Division of Health
(DOH)
(5.) Division of Youth
Services (DYS); and
(6.)
DMS.
c. BAA's are
required for new standard PCS contracts with the following divisions ONLY IF
those contracts deal with protected healthcare information (PHI)t:
(1.) DHHS
(2.) OFA
(3.) OCC
d. BAA's are NOT required for new standard
PCS contracts with the following divisions:
(1.) Division of Childcare and Early
Childhood Education (DCCECE);
(2.)
Division of Services for the Blind (DSB);
(3.) Division of Volunteerism
(DOV);
(4.) Division of County
Operations (DCO); and
(5.) Division
of Aging and Adult Services (DAAS).
13.
Tobacco Settlement Attachment.
|
In accordance with Act 1586 of 2003, standard PCS contracts
funded by Tobacco Settlement funds (which shall be clearly identified on the
Forms OSP-1 - and categorized as "Other"), shall
include a legal attachment stating:
"The Division of______________is not obligated to continue
funding this contract paid from the proceeds of the Tobacco Settlement in the
event that Tobacco Settlement funds are not sufficient to finance the contract.
State funds will not be used to replace Tobacco Settlement funds when such
funds expire unless appropriated by the General Assembly and authorized by the
Governor."
IV.
Signing and Routing of Standard PCS
Contracts
A. The division shall secure
electronic approval of the division Director or designee on the contract
proposal.
B. CSS ACO shall secure
the signature of the contractor on the contract proposal.
C. CSS shall route the signed contract to
Records Management Unit (RMU) for processing.
D. RMU shall route to DFA those contracts for
which DFA review is required.
V.
Legislative and DFA Review of
Standard PCS Contracts |
A. Following
their review of the standard PCS contract, DFA will forward those | contracts
that are over $25,000.00 for legislative review at the next regularly scheduled
Review or PEER subcommittee meeting.
a. Review
Subcommittee usually meets the first Wednesday of each month.
b. PEER Subcommittee usually meets the first
Thursday of each month.
B. It is very important for the division to
have knowledgeable representatives | in attendance at the committee meeting to
answer programmatic and budgetary questions about the specific contracts on the
agenda as well as more general questions concerning the entire program. Typical
questions that can be anticipated include:
1.
What was the procurement method?
2.
If the procurement were Sole Source, why was a competitive method not
utilized?
3. If the procurement
were competitive, how many responses were received and | how did the other
responses compare to that of the selected entity (including, at times, the
relative comparison of cost proposals)?
4.
What are the services being provided and how will contractor
performance be monitored?
5. Where are the services provided?
6. What source of funding is being utilized,
and what are the future plans for this program?
7. lf an out-of-state contractor were
selected, what steps were made to find a qualified in-state vendor?
C. Upon completion of their
review, the Review and PEER Subcommittees will send | their recommendations to
the Legislative Council for consideration.
D. Legislative Council, which usually meets
the third Friday of each month, reviews the | contract and provides OSP a
report on their review and their findings as to the propriety of the contract.
E. Following receipt of the
Legislative Council's reporti, DFA will approves or denyies the PCS
contract.
VI.
Entry
of Standard PCS Contracts into AASIS
A. For athese standard PCS contracts
over $25,000.00 e eilie eee
iI:
T
1. Upon approval
of the contract by DFA, division shall approve the outline agreement, if
necessary.
2. CSS shall coordinate
OSP's approval of the outline agreement.
3. Contract Management Unit (CMU) or the
division shall create the PO, if applicable.
4. CSS shall coordinate OSP's approval of the
PO, for those PO's CMU creates.
B. For a standard PCS contracts
$25,000.00 and under: |
1. Upon approval of the contract by DFA,
division shall approve the outline agreement, if necessary.
2. CMU or the division shall create the PO,
if necessary.
NOTE: The PO must ele accurately reflect the standard PCS
contract in every | aspect, including the compensation/reimbursable breakout,
contractor name and address, and total funding.
VII.
Distribution
of Standard PCS Contracts
A. Upon
approval of the contract by DFA, RMU shall ill receive the original approved
contract from DFA and post it to the DHHS Contract Archival System
(CAS).
B. RMU shall distribute a
copy of the signed contract to the contractor.
C. RMU shall notify the division, the CSS
Supervisor, and CMU that the contract is available on CAS.
D. RMU shall maintain the T-he-original
contract le iie on file iin the Records Room. All requests for contract
information from the RMURecords Room should reference the contract number.
VIII.
Amendments
to Standard PCS Contracts
A.
Timeframes
Amendments to standard PCS contracts should adhere to the same
timeframes outlined for the development of new contracts.
B.
General Amendment
Requirements
1. Amendments to standard
PCS contracts are required when any element on the Form OSP-1 or
any of the legal attachments is revised to the extent that it materially
affects the contractor or DHHS in any way. The contracting parties shall
mutually agree upon amendments.
2.
Contracts can NOT be amended to add services that are outside the realm of the
procurement for the original contract (ex., a division CANNOT procure for
counseling services, develop a contract for
counseling services, then add therapy
services to the contract at a later date just because the need
arises.)
3 Minor revisions or
administrative corrections that affect only the internal administration of a
contract do not require an amendment; these may be accomplished as "change"
actions.
4. Changing a
contractor's Taxpayer Identification Number (TIN) cannot be accomplished as a
-change- or an amendment. To change a contractor's TIN, the contract with the
former TIN must be closed and a
new contract with the new TIN must
be created.
For this to be allowable without re-procuring, however,
iethatr-the new contractor must be is-stiW-virtually the same as the former in
every respect except for the TIN. The new contractor shall complete
a Form PCS-D, if required, -aftand an individual
authorized by the contractor shall signsigfis an affidavit attesting to the
following:
a. {44 There has been no
material change in ownership and the new contractor, although its corporate
name may be different, is the same as the former contractor except for the TIN,
AND
b. T[GREATER THAN] The new
contractor will abide by all terms stated in the underlying | procurement
document(s) and any response(s) made by the original contractor.
If the new contractor is NOT virtually the same as the former
contractor and/or the new contractor does not sign the affidavit, the
divisioneshallmust re-procure.
5. PCS contracts that have expired cannot be
amended.
6. An amendment to extend
a standard PCS contract is allowable only if the original contract contains
language supporting the extension (the extension clause is found in Section 12
of the
Form OSP-1) AND if the procurement included information
relative to the extension possibility.
NOTE: The extension period added to a contract by
an amendment should not cross the biennium.
7. All amendments to standard PCS contracts
that add money require an amendment to the corresponding outline agreement and
PO in AASIS, if applicable.
8. For
every amendment to applicable PCS contracts over $25,000.00, a current signed
and dated Form PCS-Dile eiii- shall be submitted for the
contractor and all subcontractors receiving over $25,000.00 who are affected by
this amendment.
9. Amendments to
PCS contracts are not binding until they are approved and ie
by the DHHSOHS Director or designee and contractor and approved by DFA, if
applicable.
10. The effective date
of an amendment to extend an otherwise expiring contract shall be no
later than the expiration date of the expiring contract.
11. Divisions should initiate all amendments,
except for those necessitated for administrative purposes only and for
amendments to contracts for the Together We Can (TWC) program.
12. For every amendment, the division should
submit an electronic authorization to CSS to develop the amendment. (In those
instances where the division developed their own PCS contract, they shall also
develop the amendments to that contract.)
C.
Development of Amendments to
Standard PCS Contracts
1. The
following procedures apply to amendment development actions executed by CSS
(for amendment development actions executed by the division, proceed to 2.
below).
a. The amendment authorization from
the division is required to include:
(1.)
Completed Form DHHS-9190
(2.) Any revised or additional attachments to
the Form OSP-1, if applicable
(3.) Approval/certification of performance
indicators |
(a.)
Performance Based
Contracting Certification
completed by division/office staff, for current, unchanged
performance indicators (the Form DHS-1366 may be used for
certification.)
(b.) CSS
approval for new or revised performance | indicators
b. Upon receipt of the amendment
authorization, assigned CSS | individual(s) shall review the authorization,
consult with the contractor, complete the amendment proposal, and review the
completed amendment proposal for technical compliance and completeness.
2.The complete amendment
package shall include:
a.
Amendment to
Professional or Consultant Services Contract, (Form OSP-1A)
NOTE: It is ABSOLUTELY CRITICAL that, if applicable, the
funding tally to the penny and that the
funding split is accurate !!! Failure to have 100%
accuracy in either of these crucial areas will result in the legislative review
staff rejecting the amendment!!!
3. Other elements that may be required to
complete the amendment include but are not limited to the following:
a.
Form PCS-D
All amendments to non-exempt standard PCS contracts greater
than $25,000.00 require disclosure on the contractor and on all subcontractors
receiving over $25,000.00 who are affected by the amendment.
b.
Performance Based Contracting
Certification
This is required from divisioni for current performance |
indicators not changed by this amendment. Form DHHS-1366 may be
used for this purpose.
Note:
New or revised performance
indicators require current CSS approval.
c. New or
Revised Attachments
Any new or revised attachments to the Form OSP-1
should be included and referenced appropriately on the Form OSP-1
A.
(1.) An attachment is
considered "new" when it is being added to the contract with this amendment. A
new attachment "stands on its own" and does not replace any attachment that is
already in the contract. A new attachment should be numbered consecutively in
accordance with the existing attachments and should reflect an effective date
commensurate with the effective date of the amendment.
(2.) An attachment is considered a "revision"
when it replaces an attachment that is already in the contract. It should be
assigned the same attachment number as the attachment it replaces and should
reflect an effective date commensurate with the effective date of the
amendment.
(3.) An attachment is
considered an
"addendum" to an existing attachment when it is
being added to the contract with this amendment. An addendum is similar to a
"new" attachment in that it does not replace any existing attachment BUT it
closely relates to an existing attachment to which it is made an addendum. An
addendum should be numbered as a subset of the relative attachment (ex.,
Attachment 1a, or Attachment 1, Addendum 1.) An addendum should
reflect an effective date commensurate with the effective date of the
amendment.
Reimbursement Rate Increase Approval,
d.
Form (DHHS-1951)
An approved Form DHS-1951 is required if the
amendment increases rates for services. Note exceptions in Chapter Nine
of this Manual.
e.
Suspension of the Rules Letter
This letter is required for all amendments requiring
legislative review that are submitted to DFA after the dye-date to DFA (see
sample letter | in Appendix).
f.
Certification Regarding Lobbying,
Form DHHS-9350eiiieii
This certification is required if the amendment results in
contractor's funding exceeding $100,000.00 in federal funds per federal fund
source per fiscal year. Certification should be indicated on Form
DHHS-9350, unless provided elsewhere in the contract, i.e., on the
Form DHHS-9193orFormDHHS-9194.
4. Signing and Routing of Amendments to
Standard PCS Contracts Same as for standard PCS contracts above.
5. Legislative and DFA Review of Amendments
to Standard PCS Contracts
An amendment to a standard PCS contract requires review and
approval by DFA, and review by the Review or PEER Subcommittee if, and only
if:
a. The original contract required
review and the amendment increases the dollar amount to a resultant total that
is higher than any amount previously approved by DFA; or
b. The original contract did not require
review but the amendment increases the total to exceed $25,000.00.
6. Entry of Amendment to Standard
PCS Contracts into AASIS
Upon approval of the amendment, CMU or division shall revise
the outline agreement and PO accordingly, if necessary.
7. Distribution of Amendment
a. Upon approval of the contract by DFA, RMU
shall receive the original approved amendment from DFA and post it to CAS.
b. RMU shall distribute a copy of
the signed amendment to the contractor.
c. RMU shall notify the division, the CSS
Supervisor, and CMU that the contract is available on CAS.
d. RMU should maintain the original contract
on file in the Records Room. All requests for contract information from the RMU
Records Room should reference the contract
number.
IX.
Changes to Standard PCS
Contracts
A. Minor revisions or
administrative corrections may be accomplished by aft iii -change- action.
-Change- actions affect only the internal administration of a contract and do
not materially affect the contractor or DHHS in any way.
1. Any change in financial
amount (either an increment or decrement in total obligation or a
zero-sum reallocation of compensation and reimbursable expenses) MUST be
executed as an amendment action.
2.
Any change in the percentage of state/federal funds
MUST be executed as an amendment action.
3. Any change that creates a material impact
on either contracting party MUST be executed as an amendment action.
B. CSS shalleel develop -change-
actions for all standard PCS contracts upon receipt of iiil authorizations from
the divisionierequesting such -change- actions. For those contracts that are
developed by the division/office, e--e l the division/office shall develop the
-change-action.
C. The following
procedures apply to change actions executed by CSS (for change actions executed
by the division, proceed to D. below).
1.
Division shall submit authorizations electronically. Required elements for the
authorization for CSS to develop a change action include:
a.
Form DHHS-9190; and
b. Explanatory memo explaining
change, if necessary,
2.
Upon receipt of the authorization, assigned CSS individual(s) shall review the
authorization, notify the contractor of the change, complete the change
proposal, and review the completed proposal for technical compliance and
completeness.
D. The
complete -change- packet shallii include, at a minimum:
1.
iiI Form
(DHHS-9190;)
2. Copy of
written notification to the contractor advising of the change; and
3. Explanatory memo from division/office
requesting change, if applicable. |
E.
E-.- ACO should submit
the completed change proposal to CMU and should notify Supervisor/designee of
completion of the assignment. Ieelee eilie il ee -iii-lliiliil il
F. Upon receipt of the change
packet, CMU should:
1. Verify completeness of
the -change- packet (andl-----forward
Il incomplete change proposals l to the CMU Manager for
resolution);
2. Input the
-change- into the systemT and initial the Form
DDHSHHS-9190;
3. Forward the
original -change- packet to RMU for inclusion in the contract; and
4. Forward a copy of the initialed Form
DHHS-9190 to the ACOCOv's Supervisor, upon which .-Supervisor shall
wtW-forward copies to the ACOCOv and the division .
X.
Line Item
Adjustments to Standard PCS Contracts
A.
Policy
1. Line item adjustments pertain to actual
cost reimbursement contracts only and do NOT‹©t changeaffect the
total reimbursable expenses,
total | compensation
expenses, or total liability of the
contract.
2. Line item adjustments
should have prior approval from CSSeeiee before adjustments are
implemented.
3. If deviation from
the amount budgeted will not exceed $500.00 or 10% of the line item from which
funds are being moved (whichever is greater), no line item adjustment is
necessary.
4.
An amendment,
rather than a line item adjustment, -is required for any | budget revision
that:
a. Affects the total liability of
the agreement;
b. Affects the
overall rate per unit of service;
c. Changes totals of compensation and/or
reimbursable expenses;
d. Adds a
new fund source (fund, fund center, or commitment item); or
e. Affects the contractoie or DHHS in a
material way. I
B.
Procedure
1. Line item adjustments should be initiated
by the divisionie or by the contractor (in which case the division/office
should indicate approval on the line item adjustment authorization.)
2. CSS shalll develop line item adjustments
for all PCS contracts that CSS developed upon receipt of electronic iiil
authorizations from the divisionsie requesting such line item adjustments. For
those contracts that wereafe developed by the divisioniee--e l, the
division/office shall develop the line item adjustments.
3. The following procedures apply to line
item adjustments executed by CSS (for line item adjustments executed by the
division, proceed to 4. below).
a. Division
shall submit authorizations for line item adjustment electronically. Required
elements for the authorization for CSS to develop a line item adjustment
include:
(1.) Request from the division;
and
(2.) Revised budget reflecting
the adjustment.
b. Upon
receipt of the line item adjustment authorization, assigned CSS individual(s)
shall review the authorization, consult with the contractor, review the revised
budget for technical compliance and completeness
4. The completed line item adjustment shall
include:
a. Division's request for a line item
adjustment;
b. Revised budget with
indication of CSS' approval added
5. CSS shall distribute approved line item
adjustment as follows:
a. Original shall be
submitted to RMU;
b. Copy shall be
sent to contractor;
c. Copy shall
be sent to ACO.
XI. Stand-alone
PO's for Professional
and Consultant
Services
A. General
requirements for
stand-alone
PO's for professional and consultant
services÷
1. Divisions
typically negotiate with the contractor the terms of the stand-alone PO's.
2. Any PCS contract that DOES NOT
exceed $25,000.00 in compensation | should be executed in the stand-alone PO
format. A division
may, however, if circumstances
warrant, execute a PCS contract that does not exceed $25,000.00 as a "standard
PCS contract" on the
Form OSP-1.
Agencies shall NOT split known quantities into smaller |
($25,000.00 and below) amounts to avoid a standard contract.
3. Stand-alone PO's require neither DFA
review and approval nor legislative | review. However, multiple PO's to
the same contractor in the same fiscal year from the same cost center MUST be
reported to OSP to assist OSP in determining whether an agency is
issuing multiple PO's in an attempt to circumvent the requirement of
establishing a standard PCS contract.
4. Procurement regulations apply to
stand-alone PO's just as they do to standard PCS contracts, including the
requirement for prior approval by OSP foref any procurement method other than
CB.
5.
Performance
lindicators
a. Performance indicators
are required for stand-alone PCS PO's except for those which are as
followslieel:
(1.) -li Procured by the
Sole Source by Law method;
(2.) -le ie Eexecuted as Emergency
| contracts;
(3.) -l- Ffor
Architectural and Engineering | services, which are awarded using ABA criteria;
or
(4.) -l Ffor $10,000.00
or less
b.
Performance indicators shall beam added to stand-alone PO's in the following
manner:
(1.) The division/office shall review
the
Contractor Certification Concerning Performance,- (Form
DHHS-9353
for a PO with a state agency or Form DHHS-9354 for
a PO with a non-state agency) with the contractor and secure the contractor's
signature on the Form DHHS-9353 or DHHS-9351 eiii. (A Form
DHHS-9353 or DHHS-
9354eiii with an original signature is required
for each and every stand-alone PO for professional and consultant services
above $10,000.00.)
(2.)
Division shall attach aA copy of the applicable performance indicators ll o the
Form DHHS-9353 or DHHS-9354eiii as Attachment I to
the PO. (-l CSS approval of performance indicators is required, as it is for
standard PCS contracts.)
(3.)
Division shall retain tThe original Form DHS-9353 or
DHS-9354eiiill i in the division/office files.
5. For those
stand-alone PO's for professional and consultant services funded by SSBG, the
division/office shall obtain the contractor's signature on the
Certification of Compliance for Social Services Block Grant (SSBG)
Funding, Form DHHS-9357.
a. One
signature per contractor per fiscal year is sufficient. If a contractor has
more than one PO with SSBG funding, a copy of the signed certification for each
subsequent PO is sufficient. Faxed signatures are acceptable.
b. The division/office shall retain the
original Form DHHS-9357eiii in their files, giving a copy to the
contractor.
c. In creating the PO
in AASIS, the creator shall add the following text: "Vendor must adhere
to all State and Federal laws and regulations applicable to Social Services
Block Grant funding."
6. Stand-alone PO's for professional and
consultant services require BAA's | under the following conditions:
a. Those for the following divisions require
BAA's IF the PO deals with PHI:
-DCFS-
-DDS
-DBMHS
-DOH
DYS
-DMS
-OFA
-OCC
* OST eie Ie eliee
ele ii
b.
Those for the following division do NOT require BAA's:
DCCECE
-DSBT
D-DOV
* -DCO
DAAS i*
7. For sStand-alone PO's for professional and
consultant services that contain
Tobacco Settlement funding-,
division shall add the e e following text eo the PO in AASIS:
"The Division of______________is not obligated to continue
funding this contract paid from the proceeds of the Tobacco Settlement in the
event that Tobacco Settlement funds are not sufficient to finance the contract.
State funds will not be used to replace Tobacco Settlement funds when such
funds expire unless appropriated by the General Assembly and authorized by the
Governor."
B.
Development of Stand-alone PO's for Professional and Consultant
Services
1. Upon selection of a
contractor through appropriate procurement means and after direct communication
with the contractor concerning the terms of the agreement reached, the
division/office shall enter a requisition into AASIS | reflecting all of the
details that need to be incorporated into the PO.
2. Division/office shall create their own PO
in AASIS from the requisition or forward the requisition in AASIS to CSSMU for
the creation of the PO.
XII.
Site Visits for PCS Contracts
|
A.
Definition
Site visits are a means of on-site contract monitoring by
CSSF-OU of the following:
1. All
ose-PCS contracts over $5,000.00 developed by CSS; and
2. Tthose PCS contracts over $5,000.00 liiiie
hat contain SSBG funding which are developed by the division.
Site visits are not required for ABA-related PCS
contracts.
B.
Purpose
The purpose of site visits is to monitor contract activitys and
assist contractors in achieving and maintaining compliance with billing and
client eligibility requirements of the contracts. Site visits address fiscal,
administrative and legal | advisories and eligibility/billing audits.
C.
Policy
For each applicable PCS contract requiring a site visit, ACOCOr
should make a minimum of one site visit per contract year. This pertains to
standard PCS contracts as well as stand-alone PCS PO's.
XIII.
Billing for PCS
Contracts |
ArFor those PCS contracts developed by CSS, CSS shall:
A. Provide instructions on billing, if
necessary;
B. Explain any special
requirements for specific funding sources (ex., SSBG);
C. Supply billing forms or letter bill
format, if necessary
XIV.
Records Retention for PCS
Contracts
A. DHHS should retain all PCS
contract information for a minimum of five years after the contract ends or is
terminated. Contracts containing HIPAA-related information must be retained for
a minimum of six years. This includes, but is not limited to, the following
information:
1. Original contract, amendments,
and all related documents, correspondence, etc.;
2. Contractor billings;
3. Site visit reports;
4. Audit reports and findings; and
5. Procurement
documentation.
B. In the
event any audit, litigation, or other action is initiated before the end of the
five year period, records should be retained until all issues arising out of
the action are resolved or until the end of the five (or six) year period,
whichever is later.
CHAPTER TWELVE
GRANTS
I.
Procedures
A. For those
contract payments processed through CMU, It takes approximately seven to ten
working days from the time an invoice reaches CMU for a warrant to be printed
and ready to mail. Before any invoice is approved for those payments processed
through CMU, the following requirements must be met:
1. CMU should have access to the legal
document for use in monitoring the payment request. All original signed
contracts should be on file in the CSS Records Room and available in the
archival system.
2. Each contractor
should have a Request for Taxpayer Identification Number and
Certification form (W-9) on file with OFA before payment can be
processed. W-9 Forms may be obtained from the Internal Revenue
Service office.
3. Providers should
comply with the DHHS audit requirements as outlined in
Arkansas
Department of Health and Human Services Audit Guidelines. Copies
may be obtained from
Arkansas Department of Health and Human Services Office of
Chief Counsel Audit Section P.O. Box 1437-Slot S270 Little Rock, Arkansas
72203-1437
4. Invoices
should be submitted to the division with which the contractor has a legal
agreement unless the contractor is given other instructions.
5. The division should check all invoices and
indicate their approval with a full, legible signature, date, and the words
"Approved to Pay". These should be routed to CMU as soon as possible for
processing.
B.
Summary of DHHS Invoice Procedures
1.
An original invoice is required to process a payment. If the
invoice is handwritten (smaller companies), the invoice must have an original
signature, title, and date.
2.
The name of the company or
payee must be on each invoice.
3.
All services must be paid by
way of a PO.
4.
The PO number shall be indicated on the invoice.
5. All invoices must be billed to
the agency.
6. The invoice must
have a complete description of the goods or services being billed.
7. Invoices for services must have the
date(s) of service.
8. The invoice
must have the unit price and number of units billed or the lump sum price being
billed; this information must agree with the terms of the |
applicable contract or sub-grant. The invoice must also include
the total amount billed.
9.
If two or more names, corporate entities and/or addresses are printed on the
invoice (for example, in the case of collaboratives, coalitions, etc.) the
letterhead used for invoices must be that specifically of the payee, matching
the applicable Form W-9 and AASIS vendor number.
10. The invoice must not contain
abbreviations. These are not standardized and may cause AP staff to return the
invoice for explanation.
11. If the
invoice is to be paid by direct deposit, the invoice should include the
notation "DIRECT DEPOSIT" in the upper right hand corner.
12. If the invoice is to be paid separate and
apart from other invoices, the invoice should include the notation "SEPARATE
PAYMENT" in the upper right hand corner.
13. For contracts reimbursed on an actual
cost basis, the invoice should identify all expenses as
compensation or
reimbursable.
14. CMU staff will correct payment requests
submitted without all of the above information if possible. All verbal changes
agreed to by the program division and the contractor/sub-grantee should be
documented on the invoice. The CMU staff person should indicate "Approved to
Pay," sign and date the request, and forward to AP.
15. Prior to the end of the state's fiscal
year, CMU should submit information to all contract service providers and to
all divisions regarding instructions for end-of-year billings.
II.
Contractor Expenditure Reports
A.
Contractors may be required by the terms of the contract to submit periodic
expenditure reports. These reports should be submitted as required or payment
requests will be held in a pending status. The format of the expenditure report
should agree with the budget in the contract. Reports should be mailed to
Arkansas Department of Human Services Contract Support Section
P.O. Box 1437-Slot W205 Little Rock, Arkansas 72203-1437
B. For contracts reimbursed on a scheduled
reimbursement basis, CMU may reconcile actual expenditures against the payment
schedule and offset scheduled payments, if required by the terms of the
contract.
III.
Monitoring for Contract Compliance
Requests for payment not complying with all terms of the signed
agreement will be held in pending status by CMU or AP until resolved.
IV.
Recovery of
Overpayments
All recognized overpayments should be forwarded to the
Accounting Supervisor, CMU. The Accounting Supervisor will draft collections
correspondence for signature by the Assistant Director, CSS, and route recovery
of funds through AR.
V.
Settlements
All agreements that require settlement should be reconciled as
soon as possible following expiration of the agreement. Each contractor should
be notified in writing of all amounts payable or receivable requirements and
the procedures necessary to accomplish the settlement.
VI.
Internal Revenue Service (IRS)
Levies
All IRS levies will be forwarded to CMU. The CMU Accounting
Supervisor will receive and forward all payments specified to the IRS until
notified that the levy has been satisfied or released.
State of Arkansas SECRETARY OF STATE
State Capitol Little Rock, Arkansas 72201-1094
FOREIGN CORPORATIONS TRANSACTING BUSINESS IN
ARKANSAS
A foreign corporation may not transact
business in this state until it obtains a Certificate of Authority from the
Secretary of State.
The following activities, among others, do not constitute
transacting business as stated in A.C.A. §
4-27-1501(B):
1. Maintaining, defending, or settling any
proceeding;
2. Holding meetings of
the board of directors or shareholders, or carrying on other activities
concerning internal corporate affairs;
3. Maintaining bank accounts;
4. Maintaining offices or agencies for the
transfer, exchange, and registration of the corporation's own securities or
maintaining trustees or depositaries with respect to those
securities;
5. Selling through
independent contractors;
6.
Soliciting or obtaining orders, whether by mail or through employees or agents
or otherwise, if the orders require acceptance outside this state before they
become contracts;
7. Creating or
acquiring indebtedness, mortgages, and security interests in real or personal
property;
8. Securing or collecting
debts or enforcing mortgages and security interests in property securing the
debts;
9. Owning, without more,
real or personal property;
10.
Conducting an isolated transaction that is completed within thirty (30) days
and that is not one in the course of repeated transactions of a like
nature;
11. Transacting business in
interstate commerce.
Corporations which fail to obtain a Certificate of Authority
may not maintain a proceeding in any court in this state based on a cause of
action arising from the transaction of business and may be found liable for
civil penalties ranging from $100 to $5,000.
For information regarding the application seeking authorization
to do business in this state please write,
Secretary of State
Corporation Department
Room 058
State Capitol
Little Rock, Arkansas 72201-1094
(501) 682-3409
(DHHS letterhead)
DISCLOSURE PRE-APPROVAL SAMPLE LETTER
(date) |
Office of State Procurement
Arkansas Department of Finance and
Administration
P.O. Box 2940
Little Rock, AR 72203
RE: Executive Order 98-04 Disclosure
Requirements
Dear (name of reviewing party)
;
Attached is a copy of the Disclosure Form for:
(provider's name).
This form indicates the following disclosure requiring
pre-approval of DFA:
1.
2.
3.
This agreement is a: (sub-grant or
Professional/Consultant Services contract)
The terms of the agreement are: (beginning and ending
dates)
The amount of the agreement is: (maximum
liability)
The procurement method for this agreement was:
(IFB, RFP-CSP, RFQ, Sole Source, QtheEmergency, Request for Application
[for sub-grants]).fr If Sole Source or EmergencyQther-,
indicate brief explanation for the Sole Source or EmergencyQther-
determination.)
Please make a determination as to whether an agreement
with this provider is | prohibited under EO-98-04. Please forward your response
to: (sender's name, title, address, and FAX#.)
Thank you.
Sincerely,
(name)
(title) |
(telephone number)
i
I(DHHS Letterhead) REQUEST FOR
SOLE SOURCE PROCUREMENT FOR PCS CONTRACTS SAMPLE MEMORANDUM
(must be in electronic format)
MEMORANDUM
TO: Joe Giddis, Director
DFA Office of State Procurement
FROM: Division Directoii
Director of (division
name)______________iiii
DATE: (cu rre nt d ate)
SUBJ: Request for Sole Source Procurement
(re: Contract with American Center for the Study of Widget
Policy)
1.
Why is this service
needed? Federal court enforcement of a settlement agreement which
stipulated that a nationally-recognized "watchdog" organization be contracted
for a five-year period to monitor this state's implementation of standardized
protocols for the delivery of widget services to eligible clients.
2.
What method(s) were used to
determine that a lack of responsible/responsive competition exists for this
service? Binding federal arbitration resulting from a class action
lawsuit.
3.
How was it
determined that this provider possesses exclusive capabilities? During
federal arbitration, plaintiff counsel recommended this organization as the
most qualified. The recommendation was accepted by defense counsel, validated
by the arbitrator, and included in the resultant federal court
decree.
4.
Why is this
service unique? It is a mandatory element of judicial enforcement of a
binding federal arbitration agreement.
5.
Are there patent or proprietary
rights that make the required service unavailable from other sources?
No.
6.
What would the
agency do if the provider/service were no longer available and what, if any,
program considerations make the use of a Sole Source critical to the successful
completion of the agency's task? Coordinate through the assigned federal
arbitrator to determine a replacement oversight agency acceptable to the
plaintiffs counsel. If DHS fails to uphold the federal court decree pertaining
to oversight of widget services, it will be held in contempt by the U.S.
8th Circuit Court of Appeals. Sanctions might
include loss of the state's share of federal funding from the Widget Service
Block Grant ($2,947,368 for FFY02), as well as assessment of actual and
punitive damages to aggrieved clients.
I
(DHHS Letterhead)
(date) SUSPENSION OF THE RULES
SAMPLE LETTER
The Honorable_______________, Co-Chairman
The Honorable_______________, Co-Chairman
Committee on Review Arkansas Legislative Council 315 State
Capitol Building Little Rock, AR 72201
SUBJECT: REQUEST FOR SUSPENSION OF THE RULES (CONTRACTOR
NAME)
Dear Co-Chairmen:
I am requesting a suspension of the rules in conjunction with
the required review process for the attached Professional Services contract
because negotiation of the terms delayed its submission. Consequently a
suspension of the rules is necessary in order to expedite the contract's
effective date of_____________.
This contract, developed by the Department of Health and Human
Services, Division of
______________________, proposes to provide
___________________ -
(service)_____________________________
(Provide a clear explanation of the critical nature of
the contract and the reason it could not be processed within the established
timeframes)
Your favorable consideration and review of this contract is
appreciated. Sincerely,
- (DHHS Director)