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COMMENT DUE DATE:  

March 2, 2010

DATE: 

February 9, 2010

Pam Jennings SSD (405) 522-5338

Dena Thayer   PMU Manager   (405) 521-4326

Pat McCracken   PMU Specialist   (405) 522-1017

RE:  

APA WF 10-04

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org

The proposed policy is  Permanent .  This proposal will go to the Commission meeting on

CHAPTER 2. ADMINISTRATIVE COMPONENTS

Subchapter 13. Contracts and Purchasing Unit

Part 1. Contracts and Purchasing Unit [REVOKED]

OAC 340:2-13-10 through 340:2-13-14.11 [REVOKED]

OAC 340:2-13-14.13 through 340:2-13-14.15 [REVOKED]

OAC 340:2-13-14.17 through 340:2-13-14.18 [REVOKED]

Part 5. Products and Nonprofessional Services [REVOKED]

OAC 340:2-13-47 through 340:2-13-48 [REVOKED]

OAC 340:2-13-50 [REVOKED]

OAC 340:2-13-53 through 340:2-13-59 [REVOKED]

Part 7. Contracts and Purchasing [NEW]

OAC 340:2-13-75 through 340:2-13-105 [NEW]

OAC 340:2 Appendix K.Professional Service Contract Affidavit Form [REVOKED]

(Reference APA WF 10-04)

 

SUMMARY: The proposed revisions to Subchapter 13 of Chapter 2 amend and create rules to:(1) modify the dollar threshold related to certain purchasing procedures; (2) ensure compliance with the Oklahoma Central Purchasing Act; (3) reflect current contract and purchasing practices; and (4) improve readability and clarity of the rules.Rules are amended to reorganize rules in a more logical order, revoke language that is obsolete or internal Oklahoma Department of Human Services (OKDHS) procedure, and revoke an obsolete appendix.

340:2-13-10 through 340:2-13-14.11, 340:2-13-14.13 through 340:2-13-14.15, 340:2-13-14.17 through 340:2-13-14.18, 340:2-13-47 through 340:2-13-48,340:2-13-50, and 340:2-13-53 through 340:2-13-59 are revoked as language is obsolete or internal Oklahoma Department of Human Services (OKDHS) procedure.New rules are created to update rules and reorganize them in a more logical order.

340:2-13-75 is a new Section that describes purpose and legal base for OKDHS contracting and purchasing procedures.

340:2-13-76 is a new Section that describes the delegation of authority to OKDHS to procure certain needed products and services.

340:2-13-77 through 340:2-13-79 are new Sections that address how funding for acquisition is determined, records retention, and OKDHS audit responsibilities.

340:2-13-80 is a new Section that describes the penalties for noncompliance of purchasing procedures.

340:2-13-81 is a new Section that includes definitions of current words and terms used in regard to purchasing and contracts.

340:2-13-82 is a new Section that depicts general contracting and purchasing provisions used by OKDHS.

340:2-13-83 and 340:2-13-90 are new Sections that provide suppliers information and requirements regarding: (1) open solicitations; (2) poor performance or non-compliance; (3) solicitation instructions; (4) solicitation response; (5) award of contract; and (6) protest of an award.

340:2-13-91 through 340:2-13-93 are new Sections that describes OKDHS procurement procedures in regard to the: (1) State Use Committee procurement schedule; (2) statewide contracts; and (3) Oklahoma Correctional Industries.

340:2-13-94 is a new Section that depicts professional services exempt from competitive bidding.

340:2-13-95 is a new Section that addresses sole source or sole brand acquisitions.

340:2-13-96 through 340:2-13-100 are new Sections that describe the current dollar acquisition thresholds and the requirements for each level.

340:2-13-101 is a new Section that address emergency purchases.

340:2-13-102 through 340:2-13-105 are new Sections that address:(1) contract monitoring; (2) the purchase card; and (3) trade-in of OKDHS equipment.

340:2 Appendix K is revoked as it is obsolete.

 

PERMANENT RULEMAKING APPROVAL IS REQUESTED.

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 85.1 through 85.45k and Sections 84.45o through 85.45s of Title 74 of the Oklahoma Statutes; and HB 1032 of the 1st Session of the 52nd Legislature.

OKLAHOMA DEPARTMENT OF HUMAN SERVICES

Rule Impact Statement

To:Dena Thayer, Programs Administrator

Policy Management Unit

From:Adele Jack, Division Director

Support Services Division

Date:February 17, 2010

Re:CHAPTER 2. ADMINISTRATIVE COMPONENTS

Subchapter 13. Contracts and Purchasing Unit

Part 1. Contracts and Purchasing Unit [REVOKED]

OAC 340:2-13-10 through 340:2-13-14.11 [REVOKED]

OAC 340:2-13-14.13 through 340:2-13-14.15 [REVOKED]

OAC 340:2-13-14.17 through 340:2-13-14.18 [REVOKED]

Part 5. Products and Nonprofessional Services [REVOKED]

OAC 340:2-13-47 through 340:2-13-48 [REVOKED]

OAC 340:2-13-50 [REVOKED]

OAC 340:2-13-53 through 340:2-13-59 [REVOKED]

Part 7. Contracts and Purchasing [NEW]

OAC 340:2-13-75 through 340:2-13-105 [NEW]

OAC 340:2 Appendix K.Professional Service Contract Affidavit Form [REVOKED]

(Reference APA WF 10-04)

Contact:Pam Jennings, Acting Programs Coordinator405-522-5338

A.Brief description of the purpose of the proposed rule:

Purpose.  The proposed revisions to Subchapter 13 of Chapter 2 amend and create rules to:(1) modify the dollar threshold related to certain purchasing procedures; (2) ensure compliance with the Oklahoma Central Purchasing Act; (3) reflect current contract and purchasing practices; and (4) improve readability and clarity of the rules.Rules are amended to reorganize rules in a more logical order, revoke language that is obsolete or internal Oklahoma Department of Human Services (OKDHS) procedure, and revoke an obsolete appendix.

Strategic Plan impact.The proposed rule revisions amend OKDHS rules to ensure public resources are administered in a fiscally responsible and ethical manner.

Substantive changes.

340:2-13-10 through 340:2-13-14.11, 340:2-13-14.13 through 340:2-13-14.15, 340:2-13-14.17 through 340:2-13-14.18, 340:2-13-47 through 340:2-13-48,340:2-13-50, and 340:2-13-53 through 340:2-13-59 are revoked as language is obsolete or internal Oklahoma Department of Human Services (OKDHS) procedure.New rules are created to update rules and reorganize them in a more logical order.

340:2-13-75 is a new Section that describes purpose and legal base for OKDHS contracting and purchasing procedures.

340:2-13-76 is a new Section that describes the delegation of authority to OKDHS to procure certain needed products and services.

340:2-13-77 through 340:2-13-79 are new Sections that address how funding for acquisition is determined, records retention, and OKDHS audit responsibilities.

340:2-13-80 is a new Section that describes the penalties for noncompliance of purchasing procedures.

340:2-13-81 is a new Section that includes definitions of current words and terms used in regard to purchasing and contracts.

340:2-13-82 is a new Section that depicts general contracting and purchasing provisions used by OKDHS.

340:2-13-83 and 340:2-13-90 are new Sections that provide suppliers information and requirements regarding: (1) open solicitations; (2) poor performance or non-compliance; (3) solicitation instructions; (4) solicitation response; (5) award of contract; and (6) protest of an award.

340:2-13-91 through 340:2-13-93 are new Sections that describes OKDHS procurement procedures in regard to the: (1) State Use Committee procurement schedule; (2) statewide contracts; and (3) Oklahoma Correctional Industries.

340:2-13-94 is a new Section that depicts professional services exempt from competitive bidding.

340:2-13-95 is a new Section that addresses sole source or sole brand acquisitions.

340:2-13-96 through 340:2-13-100 are new Sections that describe the current dollar acquisition thresholds and the requirements for each level.

340:2-13-101 is a new Section that address emergency purchases.

340:2-13-102 through 340:2-13-105 are new Sections that address:(1) contract monitoring; (2) the purchase card; and (3) trade-in of OKDHS equipment.

340:2 Appendix K is revoked as it is obsolete.

 

Reasons.House Bill (HB) 1032 amended the Oklahoma Central Purchasing Act modifying the dollar threshold related to certain purchasing procedures.The proposed amendments to Subchapter 13 ensure rules incorporate purchasing procedures and comply with the Oklahoma Central Purchasing Act.

Repercussions.The revision will positively impact the clarity of the rules and reflect current practices.

Legal authority.Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 85.1 through 85.45k and Sections 84.45o through 85.45s of Title 74 of the Oklahoma Statutes; and HB 1032 of the 1st Session of the 52nd Legislature.

Permanent approval.Permanent rulemaking approval is requested.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are the general public. The affected classes of persons will bear no costs associated with implementation of the rules.

C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are the general public.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in improved clarity of rules.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for complying with this provision rules.

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rules will maintain compliance with the Oklahoma Central Purchasing Act and have a positive impact on the public as the proposed revisions will reflect current practices and improve clarity and readability.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: If the proposed rule amendments are not implemented, OKDHS will have outdated unclear rules.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared January 13, 2010. Modified January 20, 2010. Modified February 9, 2010.

SUBCHAPTER 13. CONTRACTS AND PURCHASING UNIT

 

PART 1. CONTRACTS AND PURCHASING UNIT [REVOKED]

 

340:2-13-10. Purpose [REVOKED]

(a) The Contracts and Purchasing Unit's responsibilities are to:

(1) develop and update policies and procedures for DHS contracts, grants, and agreements;

(2) provide a format for standard contract provisions;

(3) review proposed contracts and acquisitions for compliance with DHS policies and procedures;

(4) monitor progress of acquisitions through the contract process, DHS, Cabinet Secretary, Department of Central Services;

(5) receive and review as appropriate, copies of financial audits and program evaluations of vendors;

(6) spot check contract monitoring and enforcement activity by divisions;

(7) participate, when requested, in contract negotiations;

(8) monitor compliance with contract terms and other aspects of the Department's dealings with contractors and grantees;

(9) provide technical assistance in the development of solicitation documents;

(10) participate in major projects involving acquisitions procuring professional services;

(11) avoid, neutralize, or mitigate organizational conflicts of interest by preventing:

(A) the existence of conflicting roles that might bias a contractor's judgment; and

(B) unfair competitive advantage, such as an advantage existing where a contractor competing for award of a contract possesses proprietary information obtained from a state official without proper authorization or source selection information that is relevant to the contract but not available to all competitors and such information assists that contractor in gaining award of the contract; and

(12) ensure funding is available and is encumbered prior to processing the acquisition.

(b) The Contracts and Purchasing Unit ensures DHS follows uniform policies and procedures relating to the procurement of supplies, equipment, construction, and professional and nonprofessional services required by the Department for the effective discharge of its responsibilities.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-10

1.The objectives of the Contracts and Purchasing Unit are to:

(1) secure beneficial and efficient contracts, agreements, and improved provider performance for the Department;

(2) maximize the purchasing value of public funds;

(3) obtain the benefits of competition to the maximum practicable extent;

(4) ensure the fair and equitable treatment of providers and potential providers; and

(5) ensure that DHS acts within state and federal laws, maintaining ethical standards concerning the contracting process.

 

340:2-13-11. Definitions [REVOKED]

The following words and terms, when used in this Subchapter, have the following meaning, unless the context clearly indicates otherwise:

"Change order" means a written transaction that modifies an original purchase order.

"Closing date" means the date and time an invitation to bid or request for quotation specifies after which bids or quotations will not be accepted.

"CPO" means a certified procurement officer certified by the Department of Central Services, Central Purchasing Division Director authorized to make acquisitions for a state agency.

"DCS" means Department of Central Services which is the state agency authorized by Title 74 of the Oklahoma Statutes, Central Purchasing Act as the procurement agency for state government.

"Fixed rate" means a rate that has been established for contracts for services a supplier provides to persons directly benefiting from the services.

"High technology system" means advanced technological equipment, software, or services that a state agency uses or intends for use by a unit or group within the state agency.

"ITB" means invitation to bid, the document submitted to DCS by the agency, used in solicitation for competitive bids, containing all contractual requirements and specifications.Department of Central Services attaches the DCS invitation to bid form and distributes the form to potential bidders.

"Noncollusion affidavit" means a document pursuant to the Oklahoma Central Purchasing Act the supplier submits for all contract acquisitions.

"Nonencumbered contract" means a contract that the State Purchasing Director or a state agency establishes that provides for an unspecified quantity of items or services, or an unspecified delivery date of goods and services.

"Oklahoma Corrections Industries" means a program of the State Board of Corrections for utilization of prisoners for the manufacture of items or products for use by state agencies.

"Open market acquisition" means an acquisition a state agency or the State Purchasing Director makes from a supplier from the open market.

"OSF" means Office of State Finance, the state agency authorized by Title 62 of the Oklahoma Statutes to encumber and disburse agency funds.

"Registered supplier" means a supplier that registers with the Central Purchasing Division pursuant to Department of Central Services Central Purchasing procedures.

"Request for proposal" means a request a state agency or the State Purchasing Director sends to suppliers for submission of proposals for acquisitions.

"Services" or "contractual services" means directly engaging the time and effort of a supplier for the primary purpose of performing an identifiable task rather than furnishing an end item.

"Sole brand" means an acquisition that by specifications restricts the acquisition to one manufacturer or brand name.

"Sole source" means an acquisition which by specification restricts the acquisition to one supplier.

"Split purchase" means breaking up, failing to consolidate, or making incremental purchases of a known quantity of an acquisition into components with the intent to and for the purpose of evading the dollar amount at which the Oklahoma Central Purchasing Act requires competitive bidding or agency rules require solicitation of quotations from three or more suppliers.

"State Use Committee" means a committee that certifies severely disabled individuals and sheltered workshops as eligible participants, and establishes the State Use Committee procurement schedule for state agency use.

"Statewide contract" means a contract, for specific acquisitions, entered into by state agencies during a specified period with a provision allowing agencies to place orders for items, products, services or contractual services when the state agency needs them.

"Supplier (vendor) complaint" or "performance evaluation"means information provided to the Contracts and Purchasing Unit or Central Purchasing Division that indicates supplier performance for acquisitions.

340:2-13-12. Legal base [REVOKED]

Contracting procedures are established pursuant to Section 85 of Title 74 of the Oklahoma Statutes.Procedures stated become effective upon review and approval of the Director of Department of Central Services pursuant to Section 85.39 of Title 74 of the Oklahoma Statutes.Further agency approvals are also required.

340:2-13-13.General contracting procedures as pertains to professional service

requirements [REVOKED]

(a) General requirements.The contract must contain terms and conditions consistent with DHS rules.The requisitioning unit is responsible for ensuring that the content of all contracts has been reviewed and found acceptable by the Contracts and Purchasing Unit.The Contracts and Purchasing Unit may give prior approval for an entire group of specified contracts for which the format has been previously approved.However, when the Contracts and Purchasing Unit has given prior approval for signing of a form contract, the requisitioning unit must furnish a copy of the contract with original signatures.In the case of provider contracts, and other frequently awarded contracts, the requisitioning unit is responsible for ensuring that the basic contract format and any departures from it are cleared by General Counsel and Contracts and Purchasing Unit staff.If any clauses are on separate documents, three originals are required with original signatures and notary seals, if appropriate.As the Department engages in many types of contracts, the requisitioning unit may consult the Contracts and Purchasing Unit for advice, but requirements generic to most professional services contracts are:

(1) three original signed copies of the contract or agreement;

(2) contract work plan, if contract amount exceeds $25,000;

(3) Form ADM-87, Contract Requisition Justification, if contract amount exceeds $25,000;

(4) Form ADM-2, Department of Human Services Requisition, indicating funding, coordination, and clearance with all affected units and divisions;

(5) Form ADM-S-32, Sign-Off Slip, when documents require submission to the Director;

(6) three original noncollusion affidavits which include the non-kickback clause and assurance that the contractor will not employ state employees that participated in the contract development;

(7) advance acquisition approval document from federal grantor agency if required or if the contract supports a new program or project;

(8) applicable clauses as listed in OAC 340:2-13-14.10; and

(9) OSF Form 25, Professional and Personal Services Contract Exemption Request, if a purchasing freeze has been declared by the Governor or Director and acquisition is not exempt as a freeze exception.

(b) Coordination and clearance.Form ADM-2 is the vehicle used by the Contracts and Purchasing Unit to ensure that proper coordination and clearance of a professional service contract has occurred.Requisitioning units originating contracts, agreements, and grants are responsible for coordinating contractual documents with affected entities who have responsibilities related to the subject matter addressed.Contracts, agreements, or grants reaching the Contracts and Purchasing Unit without appropriate review are returned to the requisitioning unit for completion. Form ADM-2 becomes part of each official contract file.Form ADM-S-32 is required when any part of the contractual packet requires review or approval from the Director.The division administrator, the person coordinating contracts within that division, as well as all divisions affected by the proposed contract must indicate approval prior to submission of the contract packet to the Contracts and Purchasing Unit.Signature delegation is authorized by separate memorandum from the Director.Prior to specific written delegation, only the Director is authorized to obligate the Agency contractually.

(c) Use of Contracts and Purchasing Unit files and records.The Contracts and Purchasing Unit is the official repository for all original agreements, contracts, and grants except those for which repository is authorized by the Director.Contract files are maintained a minimum of three years.Therefore, divisions or requisitioning units must forward any agreement, contract or grant in their files to the Contracts and Purchasing Unit.A standardized format of the agreement is on file and any changes are coordinated with the Contracts and Purchasing Unit.Any correspondence affecting the contract must also be forwarded to the Contracts and Purchasing Unit.Contracts and Purchasing Unit staff provide copies of any documents desired from the files.The Contracts and Purchasing Unit central file contains:

(1) official record copy of the contract;

(2) amendments;

(3) compliance audits or reviews;

(4) historical vendor performance;

(5) Form ADM-2; and

(6) other related documents.

(d) Contract restrictions - former state employees.The Agency may not enter into a professional services contract with any person who has been employed by DHS within one year after the termination date of the individual's state employment unless specifically exempted by statute.

(e) Performance evaluation.An annual performance evaluation is required of the services provided under a professional service contract with emphasis on issues of poor performance.Unsatisfactory performance includes, but is not limited to, failure to comply with terms or conditions of the contract or lack of supporting documentation regarding reports, claims, and similar documents.An example of a problem that may be encountered is evidence of financial instability of the vendor such as the vendor's inability to pay incurred debts.

(1) Annual evaluations address the deficiencies of the performance of the vendor during the contractual period.Evaluations are completed by the division or requisitioning unit responsible for initiating the contract within 90 days after the end of each contract year or the end of the term of the contract.

(2) The designated contract monitor reviews vendor performance on a regular basis as appropriate to the individual contract.Pertinent issues are addressed as discovered, rather than at year end.The designated contract monitor documents any confirmed performance deficiencies in writing and forwards the written documentation with any extenuating circumstances cited, to the Contracts and Purchasing Unit for inclusion in the vendor's files and transmits them to DCS, if applicable.

(f) Report.If the work product of a contract is a report, two copies of the report are delivered to the Contracts and Purchasing Unit, which files a copy with the State Librarian and Archivist.

(g) Needs assessment justification.Prior to the contract process, the requisitioning unit must complete a needs assessment justification and develop the requirements and work plans to determine the appropriate procurement method.

(h) Contract revisions.Contracts must not be revised after printing.The use of correction fluid is prohibited in the contract or agreement.Any revisions must be initialed by all parties, with one line drawn through the original information, on all contract originals.

(i) Coordination with DCS.All contacts, either written or verbal, by DHS staff directed to DCS regarding contractual issues are coordinated via the Contracts and Purchasing Unit CPO.

(j) Payments against service contracts.Any payment request for contracted services is audited diligently by the program division to ensure that the claim strictly adheres to the terms and conditions of the contract.Claims are to correspond with the line item budgets submitted by the provider with the original contract.Any claim submitted for a cost reimbursement contract must include proper receipts.If a revision of the contract becomes necessary, a claim is not processed reflecting that revision prior to final approval of the revision by all affected entities, including DCS if applicable.A contract may not be executed for professional services providing for nonuniform payments throughout the duration of the contract if the services throughout the duration of the contract are similar and consistent without specific authorization and written justification by the Director of Central Purchasing Division, DCS.Payment for services pursuant to a contract are made only after services are rendered.

(k) Contract payment methods.Regardless of the method utilized to secure a contract, such as competitive bid, fixed rate, sole source or sole brand or inter-agency agreement, payment methods differ according to the particular requirements of an individual contract.A brief explanation of the various contract payment methods traditionally utilized are given in (1) - (3) of this subsection.

(1) Cost-reimbursement payment.The cost-reimbursement payment method provides for payment to the contractor of reasonable, allocable, and allowable costs incurred in the performance of the contract, to the extent prescribed in the contract.A specific budget is ratified at contract execution, and any deviation from the budget requires DHS approval unless otherwise specified in the contract.Vendors must provide documentation that supports claims prior to approval and payment of claims.Maximum amount specified in contract award is for budgetary purposes only.Vendors receive reimbursement only for allowable costs incurred.Funds utilized to remit payment must be associated with the specific service period.

(2) Fixed-rate payment.The fixed-rate payment method provides payment per unit of service as specified in the contract. Vendors normally provide documentation regarding clients served, hours performed, and other pertinent information, and payment is not contingent upon actual costs incurred by the individual vendor.All related expenses such as travel expenditures and per diem are inclusive in rate unless otherwise specified in the original contract.Funds utilized to remit payment must be associated with the specific service period.

(3) Payment by deliverables.In the payment by deliverables method, payment is remitted upon satisfactory acceptance by DHS of individual phase, component, or percentage of total project by increment completed and approved by the DHS project manager.These contracts are usually competitively bid.Bidders quote price per phase, component, or total project and payment is limited to original bid quotation, regardless of actual expenses incurred by the vendor.Payments based upon completion of deliverables may be remitted from funds encumbered for contract when originally issued, if valid, and are not associated with any service period.Any services provided exclusive of the specific deliverables, if allowable per the contract terms, must reflect funding associated with the period in which services were provided, usually hourly increments.

(l) Material and equipment furnished contractually.It is unlawful to enter into a contract in which DHS furnishes material and equipment to be used by the vendor or provider in the performance of the contract if the contract allows the vendor or provider to acquire ownership of the material or equipment during or after the term of the contract other than through competitive bidding or a public sale procedure, except in inter-governmental agreements.

340:2-13-14. Methods of contracting for professional services [REVOKED]

Formal solicitation as authorized by statutes is the preferred method of procurement when offers of service must be considered.Situations in which non-competitive awards may be appropriate and requirements relating to selection of procedure methods are defined by Oklahoma's Central Purchasing Act, Section 85 of Title 74 of the Oklahoma Statutes and briefly listed as:

(1) exempt professional services.Specific professions that are exempt from competitive bid are described in Section 803 of Title 18 of the Oklahoma Statutes;

(2) fixed rate contracts.As specified in the Central Purchasing Act, the contract must provide direct services to clients and be approved by the Commission for Human Services and DCS;

(3) contracts in which both parties are governmental entities;

(4) sole source or sole brand contracts.These contracts are utilized only when one source or one brand is singularly and peculiarly qualified;

(5) a service requirement.A service requirement is not repetitive and the total cost does not exceed $2,500; and

(6) training registration.

(A) Registration fees for conferences, workshops, seminars, and the like are exempt from the Oklahoma Central Purchasing Act bidding requirements if all the criteria listed in (i) - (iv) are met.

(i) Training is generic, for example, not scheduled exclusively for DHS staff.

(ii) Training is billed by individual employee and no other fees are billed, such as travel and per diem for trainer.

(iii) Registration fees do not include any provision for meals or lodging.

(iv) Any associated agreements do not require any obligation of payment prior to attendance.

(B) Training conferences involving numerous divisions and staff are consolidated when possible. Requisitioning units may submit claims not exceeding $2,500 cumulatively directly to DHS Office of Finance for direct payment, and consult with Office of Finance staff for complete instructions.When the total Agency obligation exceeds $2,500, or in the event vendors require any Agency issued purchase order prior to registration, the procedures included in (i) and (ii) of this paragraph apply.

(i) The registration packet consists of a completed Form ADM-2, Department of Human Services Requisition, with the names of the prospective attendees, date of training, and total amount of the seminar or conference.A copy of a brochure, agenda, or similar document must be attached.

(ii) The Contracts and Purchasing Unit CPO(s) reviews the packet, produces a Form CP-3C, Contract, and distributes the form to the requisitioning unit, DHS Office of Finance, and the vendor.

340:2-13-14.1.Competitive bid procedures utilized for acquisitions of professional services requirements exceeding $25,000 [REVOKED]

In order to process those contracts requiring competitive bid, the steps in (1) - (2) of this Section are required.

(1) Written request and contract justification.If the final product of the contract is a study or a written proposal, the requisitioning unit completes Form ADM-89, Professional Services Contract Affidavit.¢ 1The requisitioning unit initiates the contract packet which consists of a written request for the contract in the form of:

(A) an invitation to bid (ITB);

(B) Form ADM-87, Contract Requisition Justification;

(C) a detailed work plan including designation of the individual(s) responsible for monitoring contractor performance;

(D) Form ADM-2, Department of Human Services Requisition; and

(E) suggested prospective bidders, including full name and address.

(2) Bids.Bid specifications and statements of work for professional service contracts are originated within the requisitioning unit and subsequently reviewed by the Contracts and Purchasing Unit.The requisitioning unit must be as specific as possible describing contractual goals and requirements as the ITB, in conjunction with the successful bid, serves as the contract upon award. DCS mandates specific terms and conditions which apply only to the purchase of hardware and software.Upon request, DHS Contracts and Purchasing Unit provides assistance in preparing the ITB, furnishing language as required by DCS.No underlying agreements are entered into by the Agency with the vendor or bidder.Underlying agreements are held by DCS as illegal contracts.Therefore, all contractual requirements and conditions of the requisitioning unit must be inserted into the ITB and not addressed by way of a separate agreement after the successful bidder is selected.Initial coordination with the Contracts and Purchasing Unit and DCS ensure timely processing and alleviate future problems.If the requisitioning unit wishes to evaluate bids and recommend awards of contract, the request must be indicated on Form ADM-2.

(A) Advertising of ITB.Requisitioning units may wish to advertise the ITB in order to obtain bids from all sources.By coordinating with the Contracts and Purchasing Unit, the requisitioning unit ascertains the ITB number and deadline date assigned by DCS.After securing the appropriate divisional approval, the advertisement providing the bid subject, name, and telephone number of the appropriate DCS agent, and deadline date may then be placed by the requisitioning unit.

(B) Pre-bid conference.The requisitioning unit may determine the ITB warrants a pre-bid conference with all prospective bidders.The request must be noted within the ITB.The DCS agent coordinates the conference and indicates the date, time, and location when processing the ITB.This is a formal hearing in which prospective bidders may request clarification of issues specified in the ITB. An Agency representative familiar with contracting procedures as well as an individual familiar with the ITB must be in attendance along with the cognizant CPO.Information provided by the Agency must only involve issues addressed in the original ITB in order to maintain the integrity of the competitive bid process.The ITB may be amended if the DCS agent determines that the information requires notification of all prospective bidders.The bid deadline date may be extended to allow sufficient preparation time.The requisitioning unit must require attendance of the pre‑bid conference to ensure all bidders are provided the same information.DCS serves as the authorized agent in the entire bid process.Any bidder inquiries must be referred to DCS to ensure a competitive process.

(C) Evaluation of bids.The State Purchasing Director may authorize any agency to complete part or all of the evaluation process, but DCS is the sole authority determining any such recommendation.When requesting this authorization, the ITB must contain objective evaluation criteria.The weighted evaluation tool utilized by the evaluation committee must be attached for review by DCS.

(D) Transmission of bids.After the bids are reviewed by the DCS agent, the Contracts and Purchasing Unit coordinates the transmittal of bid copies to the requisitioning unit.

(E) Scoring of bids.Each evaluator reviews the bids independently and scores each item listed on the tool appropriately.The committee may request that staff of Internal Audit of the DHS Office of Inspector General evaluate the financial portion of the bids and provide that information to all members of the committee prior to review of the bids.The committee members must then convene and determine the best bid at the lowest cost.Alternate bids provided by the same bidder are reviewed and scored separately.

(F) Committee recommendations.The committee discusses only those bids in which there is a wide variance among members.Committee members may then explain the reasoning for their position.If clarification warrants, a committee member may then revise his or her recommendation, avoiding any influence from other committee members.If it becomes apparent that some additional clarification from a specific bidder is required, the committee may request that DCS contact the bidder.If the bid contains mathematical errors or other omissions, the committee evaluates the bid as originally submitted.

(G) Submission of recommendations to Contracts and Purchasing Unit. The final recommendation is submitted to the appropriate division administrator of the requisitioning unit, with all original individually signed scoring sheets, summary, and associated documents such as results from confirmation of references.¢ 2

(H) Contracts and Purchasing Unit review.All information is reviewed, approved, or both, by a CPO of the Contracts and Purchasing Unit and routed for appropriate signature.If the total award(s) exceeds the original estimate significantly, the packet may be submitted to the Director for approval, or decisions made regarding rejecting the bids and starting the process again.

(I) Bidder inquiries.Any inquiries from bidders must be directed to DCS.

(J) Awards of contract.If recommendations are approved by DCS, awards are distributed by DCS to the successful bidders and DHS Contracts and Purchasing Unit.¢ 3

(K) Renewal process.If specified in the original ITB, the contract may be renewed annually by DCS Form CP-CO-1, Change Order.

(i) In addition to the standard information routinely required, data which must also be included is:

(I) identification of which year of the total agreement period is being renewed, for example, second or third;

(II) description of the proposed renewal contract period and the total contract agreement period; and

(III) associated funding codes related to the renewal contract period.The original purchase order number applies for the entire contract period.

(ii) Any revisions to the terms of the original contract requires formal modifications, with approval signatures of all parties.[OAC 340:2-13-14.11]

INSTRUCTIONS TO STAFF 340:2-13-14.1.

1.Upon approval of all documents, the Contracts and Purchasing Unit encodes all pertinent information in the Requisition File System, prints DCS Form CP-2, Purchasing Requisition, and transmits the packet to DCS.

2.An original and one copy of all evaluation committee documents and a summary of the bids, as well as proper justification for deviating from the lowest bid that meets the ITB specifications, is submitted to the Contracts and Purchasing Unit, with a memorandum of approval from the requisitioning unit's division administrator attached.

3.The Contracts and Purchasing Unit distributes copies to affected units.

 

340:2-13-14.2. Sole source or sole brand contracts [REVOKED]

(a) Utilization.Sole source or sole brand contracts are utilized only when the products or services are very specialized or for which great acquired expertise is needed and only one person or entity is singularly and peculiarly qualified to provide such products or services.If any doubt exists regarding the unique nature of the contractor, competitive bids must be sought.A court order requiring the purchase of certain products or services, but which does not specify specific vendors or providers are not acceptable as a substitute for Form ADM-88, Sole Source or Sole Brand Acquisition Affidavit, or otherwise invalidate the requirement for competitive bid procedures.The steps in (b) of this Section are taken to process this type of contract.

(b) Contract, justification, and affidavit.The requisitioning unit initiates the contract packet which consists of:

(1) Form ADM-90, Contract.Form ADM-90 is a standardized contract for most professional services.To ensure that the requisitioning unit has completed the proper coordination and clearance, Form ADM-2, Department of Human Services Requisition, is attached to the contract;

(2) Form ADM-87, Contract Requisition Justification, for professional and nonprofessional services contract as justification for the contract.A detailed work plan is attached to this form when the requirement is for professional services.The work plan is in outline form, addressing each section of Form ADM-87 and includes designation of the individual(s) responsible for monitoring contractor performance;

(3) Form ADM-86, Product Requisition Justification, is attached to the requisition if a product is requisitioned;

(4) Form ADM-89, Professional Service Contract Affidavit, if the final product of the contract is a study or a written proposal.The purpose of this form is to ensure the vendor has not previously entered into a contract with DHS or any other state agency which would result in a substantial duplication of the final product required by the proposed contract;

(5) Form ADM-88, Sole Source or Sole Brand Acquisition Affidavit, if sole source or sole brand acquisition;

(6) Form ADM-2, Requisition; and

(7) OSF Form 25, Professional and Personal Services Contract Exception Request, if applicable.Contracts and Purchasing Unit staff secures the Cabinet Secretary's signature on OSF Form 25 during the approval process.

(c) Contracts and Purchasing Unit actions on sole source or sole brand acquisitions exceeding $2,500 but not exceeding $25,000.The Contracts and Purchasing Unit reviews the packet and takes the actions described in (1) - (3) of this subsection.

(1) Form ADM-88 is reviewed by the appropriate Contracts and Purchasing Unit staff.All attempts to obtain alternate sources must be documented.The appropriate division administrator must approve Form ADM-88 prior to submission to the Contracts and Purchasing Unit.The Contracts and Purchasing Unit CPO documents the reasons a sole source or sole brand acquisition is necessary and retains a written record for three fiscal years following the end of the fiscal year during which the sole source or sole brand acquisition was awarded.

(2) If the CPO determines that the acquisition is in fact a sole source or sole brand acquisition, Form ADM-88 is forwarded for signature by the Director or designee in the Director's absence.

(3) Upon approval by the Director, the Contracts and Purchasing Unit issues a purchase order and retains all documents for three years following the acquisition completion date.

(d) Contracts and Purchasing Unit actions on sole source or sole brand acquisition in excess of $25,000.The Contracts and Purchasing Unit reviews the packet and takes the actions described in (1) - (2) of this subsection.

(1) Contracts and Purchasing Unit staff reviews Form ADM-88 for adequacy, evidence of division administrator or level of higher authority signature, and if appropriate, forwards the documents to the Director for approval and signature.

(2) After approval by the Director, the Contracts and Purchasing Unit submits the contract packet to DCS for review and issuance of a contract.DCS distributes the contract to the vendor and Contracts and Purchasing Unit.The Contracts and Purchasing Unit makes further distribution of the contract to the requisitioning unit and file.

340:2-13-14.3. Professional services method [REVOKED]

(a) Utilization.Professional service contracts are utilized when the service needed is predominantly advisory or intellectual in character or involves client support rather than manual work or the supplying of equipment, supplies, or other merchandise.Professional services include those services requiring special, usually advanced education and skill.The two types of professional services contracts utilized by the Agency are exempt and non-exempt.

(b) Professional services contracts-exempt.The professional services within the definition of exempt are:

(1) physician, surgeon, or doctor of medicine;

(2) osteopathic physician or surgeon;

(3) chiropractor;

(4) chiropodist-podiatrist;

(5) optometrist;

(6) veterinarian;

(7) architect;

(8) attorney;

(9) dentist;

(10) public accountant;

(11) psychologist;

(12) physical therapist;

(13) registered nurse;

(14) professional engineer;

(15) land surveyor;

(16) registered pharmacist;

(17) speech pathologist or speech therapist;

(18) audiologist;

(19) occupational therapist; and

(20) perfusionist.

(c) Bidding.The requirement for competitive bidding may not be avoided by the expedient choice of one of the professional categories.The fact that someone engaged to perform non-exempt services may also be licensed to perform exempt professional services is immaterial.

(d) Professional services contract-exempt procedures on acquisitions in excess of $25,000.In order to process exempt professional service contracts through the system, the requisitioning unit initiates the contract packet which consists of the forms listed in (1) - (5) of this subsection.

(1) Form ADM-90, Contract, a standardized contract for most personal or professional services, is completed according to the instructions for the form.To ensure that the requisitioning unit has completed the proper coordination and clearance, Form ADM-2, Department of Human Services Requisition, is attached.

(2) Form ADM-87, Contract Requisition Justification, is completed as a justification for the contract.A detailed work plan is attached to Form ADM-87.The work plan must designate an individual with responsibility for monitoring the contract.

(3) A copy of a current license or certification pertaining to the particular profession for which the contract is requested must be attached.

(4) Form ADM-89, Professional Service Contract Affidavit, is used if the final product of the contract is a study or a written proposal to ensure that the vendor has not previously entered into a contract with DHS or any other state agency which would result in a substantial duplication of the final product.

(5) OSF Form 25, Professional and Personal Services Contract Exception Request, if applicable, is completed.Contracts and Purchasing Unit staff secures the Cabinet Secretary's signature on this form during the approval process.

340:2-13-14.4.Professional services contracts non-exempt in excess of $25,000 [REVOKED]

Non-exempt professional services contracts are processed via the competitive bid method.In order to process these contracts, the procedures described in OAC 340:2‑13‑15 are followed.

340:2-13-14.5.Contracts or agreements with other governmental entities [REVOKED]

(a) Competitive bidding exception.A contract or agreement with another governmental entity, such as a state agency, state university, or county is exempt from the competitive bidding requirement. The agreement must be specific as to the method of service delivery and describe in detail the specifications required for successful performance. DHS must approve the method of selection regarding subcontractors utilized by the governmental entity.¢ 1

(b) Contract.The requisitioning unit initiates the contract packet, which consists of:

(1) three original sets of the contract or agreement, with original signatures affixed by the other governmental party;

(2) Form ADM-2, Department of Human Services Requisition, is attached to ensure that the requisitioning unit has completed the proper coordination and clearance; and

(3) Form ADM-S-32, Sign-Off Slip, is required prior to submission to the Director or designee.

(c) Contract exceptions.Form ADM-87, Contract Requisition Justification, work plan, noncollusion affidavits or any assurances such as debarment or suspension are not required when contracting with another governmental subdivision.However, five clauses which must be included in contracts with other governmental subdivisions are:

(1) Americans with Disabilities Act;

(2) termination;

(3) modification;

(4) unavailability of funding; and

(5) billing.¢ 2

(d) Non-financial agreements.All agreements with governmental or private entities, whether financial or non-financial, must be submitted to the Contracts and Purchasing Unit prior to approval by the Director or designee.¢ 3

INSTRUCTIONS TO STAFF 340:2-13-14.5

1.Staff makes reasonable efforts to avoid the appearance of evading sole source or bid requirements by not executing agreements solely for the purpose of securing services or goods from a particular supplier through agencies or public universities that are exempt from the Oklahoma Central Purchasing Act.

2.(a) Staff completing contracts seek advice from Contracts and Purchasing Unit staff regarding exceptions on an individual basis.

(b) Contract content.The Contracts and Purchasing Unit reviews, approves, and encodes pertinent data in the Requisition File System.Funding is verified.Form CP-3C, Contract, is printed and held, pending receipt of approved contract from the Director or designee.

(c) Distribution of contract.Upon approval by the Director or designee, the Contracts and Purchasing Unit distributes Form CP-3C and corresponding agreement to all DHS affected units and the vendor.No document is submitted to DCS.

3.The Contracts and Purchasing Unit reviews all agreements for appropriateness and submits to the Director or designee for signature.The agreement is returned to the Contracts and Purchasing Unit for distribution, and the original is maintained in the Contracts and Purchasing Unit master file.

 

340:2-13-14.6. Contracts under $25,000 [REVOKED]

In order to be exempt from the sealed competitive bid process administered by DCS, an entire project must not exceed $25,000.An agreement must be in place prior to procurement of professional services in excess of $2,500.If the requisitioning unit is aware initially that the total cost of the entire requirement exceeds the Agency limit, inclusive of any option period renewals, competitive bids must be obtained via DCS, regardless of the number of individual clients involved.As per the Central Purchasing Act, separate contracts or acquisitions for the individual components of a total project or service or split purchasing for the purpose of evading the requirement of competitive bidding is deemed a felony.[74 O.S. 1991, Section 85.7 (A)(1)]As professional service requests are rarely exempt from the competitive bid process, requisitioning units must contact the Contracts and Purchasing Unit for coordination and approval.

(1) Contracts not exceeding $2,500.A contract for one-time services which does not exceed $2,500 is exempt from the competitive bid requirement.To process these contracts through the system:

(A) submit two original sets of the contract or agreement, with original signatures affixed by the supplier.The agreement must describe in detail all requirements, and the method of service delivery; and

(B) attach Form ADM-2, Department of Human Services Requisition, to ensure that the requisitioning unit has completed the proper coordination and clearance. Form ADM-87, Contract Requisition Justification, work plan, and noncollusion affidavit are not required when the total contract does not exceed $2,500.¢ 1 Form CP-3C, Contract, is printed by the Contracts and Purchasing Unit and distributed to the contractor and the requisitioning unit.

(2) Contracts in excess of $2,500 but not exceeding $10,000.Contracts in excess of $2,500 but not exceeding $10,000 are used when the service exceeds $2,500 but not $10,000 cumulatively.In order to process this type of contract, the steps in (A) through (F) of this paragraph are required.

(A) The requisitioning unit solicits price quotations from at least three vendors, either orally or in writing.If quotations are solicited in writing, Form CP-11, Request for Quotations (RFQ), is utilized.Complexacquisition solicitations must be in writing and copies of specifications provided suppliers when requested.Quotations solicited orally are documented on Form CP-12, Quotation/Proposal Checklist.

(i) Upon the vendor's request, vendors are afforded at least 24 hours in which to prepare and provide a quotation.

(ii) Solicited vendors are provided with a noncollusion affidavit.The vendor submits with the quotation a notarized sworn statement of noncollusion with the original signature prior to specified closing date of quotations.

(iii) The contract is awarded to a vendor providing the lowest and best or best value quotation.If the contract is awarded to other than the bidder offering the lowest price, detailed written documentation is submitted to the Contracts and Purchasing Unit justifying the decision.

(B) A record containing forms mentioned in paragraph (2)(A) of this section is made for each acquisition completed under the procedures in paragraph (2) of this subsection and documentation is forwarded to the Contracts and Purchasing Unit within 24 hours to verify compliance with the rules established by the Director of Central Purchasing Division, DCS.Each record includes:

(i) two original agreements, with original signatures affixed, describing in detail all contractual requirements and specifications.Coordination with the Contracts and Purchasing Unit is suggested regarding applicable clauses and requirements;

(ii) the name, address, federal employer identification (FEI) number, and telephone number of each solicited vendor, identifying minority vendors as such;

(iii) date, time, and amount of each quotation, the first and last name of the person providing each quotation, and the first and last name of the person receiving and recording each quotation;

(iv) written explanation for requiring a sole vendor or for selection of other than the lowest quote; and

(v) any other data or information that is required or necessary to indicate compliance with the requirement listed in paragraph (2) of this Section.

(C) The Contracts and Purchasing Unit is the official repository for the records and documentation required by this section and all records and documentation are made available to the Director of DCS or designee, and to the State Auditor and Inspector, upon request.Records are maintained a minimum of three years. All records are considered public records in accordance with the Open Records Act.[51 O.S. 1992, Section 24A.1 et seq.]¢ 2

(3) Contracts in excess of $10,000 but not exceeding $25,000.Procedures detailed in paragraph (2) of this Section are followed in the solicitation of quotations for acquisitions in excess of $10,000 but not exceeding $25,000.At least three suppliers must be solicited for quotations and the supplier with whom a contract is executed is required to complete a contract noncollusion affidavit with original signature.Individuals soliciting quotations are encouraged to utilize DCS, Central Purchasing Division's registered supplier listing.Access to this listing is available on the DHS Office of Finance AS400 mainframe system.

INSTRUCTIONS TO STAFF340:2-13-14.6

1.Coordination with the Contracts and Purchasing Unit is suggested in determining which clauses are applicable.Contracts and Purchasing Unit review the agreement and encode pertinent data in the Requisition File System.

2.The Contracts and Purchasing Unit reviews all documents, approves and prepares Form CP-3C, Contract, and distributes all documents to the requisitioning unit and DHS Office of Finance.

 

340:2-13-14.7. Fixed rate contracts [REVOKED]

A contract for a service furnished to persons directly benefiting from that service may be qualified for a fixed and uniform rate and is not subject to competitive bid procedures.The exception to competitive bid procedures must not be used to employ consultants or to purchase products.The steps in paragraphs (1) - (2) of this section are taken to process a fixed rate contract that is awarded individually by DCS.

(1) The requisitioning unit initiates the contract packet consisting of:

(A) Form ADM-90, Contract, or a standard contract previously approved by the Contracts and Purchasing Unit and General Counsel;

(B) Form ADM-2, Department of Human Services Requisition, to ensure that proper coordination and clearance has occurred and funding is indicated;

(C) Form ADM-87, Contract Requisition Justification, as justification for the contract.A detailed work plan is attached to this form.The work plan is completed in outline form, addressing each section of Form ADM-87; and¢ 1

(D) Form ADM-91, Affidavit (Fixed Rate), stating that the rate for this service has been established at a uniform rate and is not subject to the competitive bid process.¢ 2

(2) The award of contract is issued by DCS.¢ 3

INSTRUCTIONS TO STAFF 340:2-13-14.7

1.The work plan designates an individual with responsibility for monitoring of the contract.

2.The Contracts and Purchasing Unit reviews, approves, and encodes pertinent data in the Automated Requisition File, verifies funding, and prints DCS Form CP‑2, Purchasing Requisition.The packet is then submitted for signature according to current signature delegation policies.Upon receipt of signed contract, the Contracts and Purchasing Unit submits the packet with FormCP-2 to DCS for approval and the award of contract is issued.

3.When DCS routes the award of contract to the Contracts and Purchasing Unit, it is copied and distributed to the requisitioning unit.

340:2-13-14.8. Master fixed rate contracts [REVOKED]

DHS is authorized to make payment for several categories of direct client services internally via the DHS Finance Computer System, rather than the Office of State Finance. Department of Central Services has agreed to award master contracts, with one award per category of standardized contracts, such as foster care.Prior approval from DHS Office of Finance and Contracts and Purchasing Unit is required.

(1) Contract, justification, and affidavit.The requisitioning unit initiates the contract packet, which consists of:

(A) a completed blank standard contract previously approved by the Contracts and Purchasing Unit and General Counsel;

(B) a completed Form ADM-2, Department of Human Services Requisition, to ensure proper coordination and clearance has occurred;

(C) a completed Form ADM-87, Contract Requisition Justification, as justification for the contract.A detailed work plan is attached to this form;¢ 1

(D) Form ADM-91, Affidavit (Fixed Rate), stating that the rate for this service has been established at a uniform rate and is not subject to the competitive bid process; and

(E) a complete listing of all providers, including full name, address, and federal employer identification (FEI) number.Providers are instructed to provide the same FEI number and name they provide the Internal Revenue Service in reporting income.

(2) Form ADM-2.The Form ADM-2 indicates that no funds will be encumbered by the master contract award.¢ 2

(3) Submission to DCS.Upon receipt of signed Form ADM-2, the Contracts and Purchasing Unit submits the packet with DCS Form CP-2, Purchasing Requisition, to DCS for approval and the award of contract is issued and distributed to appropriate units.The vendor on the award is listed as the Department of Human Services.

(4) Provider additions.Requests must be submitted to Contracts and Purchasing Unit periodically, listing providers, including addresses and IRS identifying numbers, that have been added since the initial master contract was awarded.The Contracts and Purchasing Unit submits information to DCS for inclusion in the original provider list.

(5) Contract authorization.In order to ensure that no payments are issued to fixed rate service providers without benefit of a contract, every individual provider contract listed in the master contract require an individually-generated internal contract number, issued by the Contracts and Purchasing Unit.¢ 3

INSTRUCTIONS TO STAFF 340:2-13-14.8

1.The work plan is completed in outline form, addressing each section of Form ADM-87.The work plan must designate an individual with responsibility for monitoring the contract.

2.The Contracts and Purchasing Unit reviews, approves, and encodes pertinent data in the Automated Requisition File, and prints DCS Form CP-2, Purchasing Requisition.The packet is then submitted for signature to the DHS Director or designee.

3.Upon receipt of an approved provider contract, the requisitioning unit must encode all pertinent contract information in the Finance AS-400 System, prior to submission to the Contracts and Purchasing Unit, and route two original contracts to the Contracts and Purchasing Unit.The Contracts and Purchasing Unit reviews the contract for appropriateness, and encodes all data, generating a unique contract number from the Finance System.The Contracts and Purchasing Unit returns one of the contracts to the requisitioning unit, with the assigned contract number indicated, and maintains one for the file.

340:2-13-14.9. Local projects [REVOKED]

(a) Introduction.Local project funding contract is defined in Executive Order 95-26 as an agreement to accomplish a public purpose and where the direct benefits of such a contract accrue primarily to the local population rather than the state as a whole.The order provides that local project funding contracts are awarded on the basis of merit, as measured by the Agency's objective criteria and that Agency rules and procedures for making such awards are adopted through rules, as provided by law.

(b) Submission of contracts.When DHS determines that a local project should be funded and is prepared to submit a contract to the Office of State Finance (OSF) for encumbrance, the Agency attaches a completed OSF Form 81, Local Project Funding Notification of Award of Contract, to each contract submitted.

(c) Responsibilities of DHS Contracts and Purchasing Unit.The Contracts and Purchasing Unit is charged with reviewing and monitoring the local project funding contracts and awards to ensure selection is based upon merit.This includes sign-off authority that each award program contains programmatic goal guidelines based upon:

(1) a criteria for use of local project funding;

(2) local project advertised as prescribed by OSF;

(3) Contracts and Purchasing Unit ensuring proper procedures are followed; and

(4) Contracts and Purchasing Unit submitting DCS Form OSF-81 for the Director's signature.

 

340:2-13-14.10. Contract clauses [REVOKED]

Coordination with Contracts and Purchasing Unit staff regarding contract clauses is suggested, as the requirements vary according to type and nature of the contract.Inclusion of clauses not applicable to individual contracts create potential conflicts that may result in award protests and disputes with contractors.

(1) Access and retention of records.The supplier agrees to maintain sufficient books, records, ledgers, and documentation for the purpose of inspection, monitoring, auditing, and evaluating the expenditures by the supplier.Financial records must accurately account for the revenues and related expenditures per approved budget by DHS contract and by service type using accepted accounting procedures.The supplier agrees to make such books, records, ledgers, and documentation records accessible at reasonable times to representatives of the Department for inspection, audit, and certification as it is deemed necessary by the Department.Fiscal and program records are maintained during the term of this contract and for a period of three years following termination of the contract.If an audit, litigation, or other action involving such records is started before the end of the three-year period, the records are maintained until all issues arising out of the action are resolved or the end of the three-year period, whichever is later.

(2) Equal opportunity employer.The vendor is an equal opportunity employer, a provider of services, assistance, or both, and is in compliance with the 1964 Civil Rights Act, Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, as amended, and Executive Orders 11246 and 11375.The provider ensures compliance with the American with Disabilities Act of 1990 [Public Law 101-336], and amendments to, and all requirements imposed by regulations pursuant to this Act.

(3) Energy efficiency.Suppliers receiving over $100,000 in federal funding are required to comply with energy efficiency laws.The language inserted in all contracts which exceed $100,000 in federal funding is:"The contractor agrees to meet mandatory standards and policies relating to energy efficiency in compliance with the Energy Policy and Conservation Act."[P.L. 94-165]

(4) Environmental protection.Suppliers receiving over $100,000 in federal funding are required to comply with environmental protection laws.The language inserted in all contracts which exceed $100,000 in federal funding is: "If the payments pursuant to the contract are expected to exceed $100,000, the contractor must comply with Section 306 of the Clean Air Act [42 U.S.C. 1857 (L)], Section 508 of the Clean Water Act [33 U.S.C. 1638], Executive Order 11738, and Environmental Protection Agency (EPA) Regulations [40 C.F.R. Part 15], which prohibit the use under nonexempt federal contracts, grants or loans of facilities included on the EPA list of Violating Facilities."

(5) Construction contracts.The laws and regulations given in (A) - (C) of this paragraph provide requirements for construction contracts.

(A) Copeland Act.If the contract calls for construction or repair, the supplier must comply with the Copeland "Anti-Kickback" Act [18 U.S.C. 874] as supplemented in Department of Labor regulations.[29 C.F.R., Part 3]

(B) Davis-Bacon Act.If the contract calls for construction in excess of $2,000, the supplier must comply with the Davis-Bacon Act [40 U.S.C. 27a to 1-7] as supplemented by Department of Labor regulations.[29 C.F.R., Part 5]

(C) Contract work hours.If the contract calls for construction in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers, the supplier must comply with sections 103 and 107 of the Contract Work Hours and Safety Standards Act [40 U.S.C. Sections 327-330] as supplemented by the Department of Labor regulations.[29 C.F.R., Part 5]

(6) Termination.It is agreed by both parties that this agreement may be terminated by notice in writing by either party 30 days before termination date.

(7) Cancellation.Only subparagraph (A) or subparagraph (B) of this paragraph is applicable.Subparagraph (A) applies to all non-governmental contracts and subparagraph (B) applies to all governmental contracts.In the event the supplier fails to meet the terms and conditions of the contract or provide services in accordance with the provisions of the contract, the Department of Human Services:

(A) Via the awarding authority, DCS, may cancel the contract upon written notice of default to the supplier.Such cancellation is not an exclusive remedy but is in addition to any other rights and remedies provided by law.In the event a Notice of Cancellation is issued, the supplier has the right to request a review of such decision as provided by the rules and regulations promulgated by DCS, Central Purchasing Division; or

(B) may cancel the contract upon written notice of default to the supplier.Such cancellation is not an exclusive remedy but is in addition to any other rights and remedies provided by law.

(8) Modification.Only subparagraph (A) or subparagraph (B) of this paragraph is applicable when a contract is modified.Subparagraph (A) applies to all non-governmental contracts and subparagraph (B) applies to all governmental contracts.

(A) Any modification or amendments to the contract must be in writing, agreed to by both parties, and approved by DCS.

(B) Any modification or amendments to the contract must be in writing and agreed to by both parties.

(9) Compliance with law.The supplier is subject to all applicable state and federal laws, rules and regulations, and all amendments.The supplier agrees to devote special attention to its responsibilities under state statutes.Observance of the compliance with the requirements of state statutes is the responsibility of the supplier, without reliance on or direction by the Department.

(10) Subcontracting.The services to be performed under the contract are not subcontracted in whole or in part, to any other person or entity without written approval by the Department.The terms of this contract and such additional terms as the Department may require are included in any subcontract, and approval of the subcontract does not relieve the supplier of any responsibility for performing this contract.

(11) Grievance.Suppliers providing direct care services to Department of Human Services' clients are required to operate a system of resolving grievances by service recipients.The language utilized in direct care service contracts is:"The supplier operates a system for resolution of grievances by recipients of the services provided under the contract regarding the substance or application of any written or unwritten policy or rule of the supplier, or any decision, behavior or action by contractor, its agents or employees.The grievance system used by the supplier is subject to approval by the Department."

(12) Travel.The travel expenses to be incurred by the supplier or grantee pursuant to the contract for services are included in the total amount of the contract award.DHS only pays travel expenses, including per diem, specified in and charged against the total amount of the contract award.In addition, the Department does not reimburse travel expenses in excess of the rate established by the Oklahoma State Travel Reimbursement Act.The supplier or grantee is responsible for all travel arrangements and provides supporting documentation when submitting claims for reimbursement.

(13) Lobbying.If the payments pursuant to the contract are expected to exceed $100,000, the supplier must certify that federal funds have not been nor will be used to influence making of the award as prohibited by 31 USCA 1352.A standard disclosure form is submitted for any non-federal funds used for influencing the award as required by 31 USCA 1352.

(14) Debarment and suspension.In accordance with 31 USCA 6101, Executive Order 12549, the supplier certifies that they are not presently or have not in the last three years been debarred, suspended, proposed for debarment, declared ineligible by any federal department or agency, or convicted of a fraud related crime.

(15) Drug-free workplace.Inclusion of this clause differs among the various governing federal agencies and must be verified with the requisitioning unit's federal liaison.The drug-free workplace language utilized is:"In compliance with the Drug-free Workplace Act, 102 Stat. 4304, suppliers agree to provide a drug-free workplace by establishing policies, awareness programs, and notification processes. Suppliers also agree that they do not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance."

(16) Nepotism.Contracts with non-profit agencies contain the language addressing nepotism.The language utilized is:"The supplier, the supplier's governing board or body, or both, agrees to develop a written policy addressing any and all nepotism situations."Nepotism situations include, but are not limited to:

(A) rent or leasing;

(B) staffing;

(C) board membership;

(D) contracted services;

(E) acquisition of real property and equipment;

(F) client-staff relationships;

(G) board membership to staff employment;

(H) auditing; and

(I) other situations which might fairly represent a conflict of interest.

(17) Renewal clause.Divisions which competitively bid services and wish to renew those services on an annual basis insert the renewal clause:"DHS reserves the unilateral right to renew competitively bid contracts annually, for a period not to exceed three years."

(18) Audit clause.The provider employing two or more individuals to supply services through a contract that also expends in excess of $300,000 in federal funds per year has a certified independent audit conducted in accordance with Government Auditing Standards and OMB Circular A-133.

(A) The provider that receives in excess of $25,000 in state or federal funds also has a certified independent audit of its entire operations conducted in accordance with Government Auditing Standards.The financial statements are prepared in accordance with Generally Accepted Accounting Principles and the report includes a supplementary Schedule of State Awards listing all state revenues and expenditures by contract and a Supplementary Schedule of Revenue and Expenditures by function and funding source.For cost-reimbursed or cost-settled contracts, a separate schedule of revenue and expenditures is prepared by contract period.The certified independent audit covers the period for which the contract was in effect.The audit is performed by a certified public accountant or public accountant who has a valid and current permit to practice accountancy in the State of Oklahoma.The Department retains the right to approve the selection of and examine the work papers of the auditor.Approval is not withheld unreasonably.

(B) The provider submits three copies of the annual audit report to the Office of Inspector General, P.O. Box 25352, Oklahoma City, Oklahoma73125, plus a copy of the management letter, within 90 days of the conclusion of the provider's fiscal year.

(C) The provider, at the request of the Agency, State Auditor, or both, provides books, records, documents, accounting procedures, practices or any other items of the service provider relevant to the contract for examination.

(19) Liability insurance and indemnification clauses.Only subparagraph (A) or subparagraph (B) of this paragraph is applicable.

(A) The provider is not required to purchase liability insurance for the benefit of DHS, its employees, and its agents as a condition of the contract.However, the provider agrees to indemnify and hold harmless DHS, its employees, and its agents for any and all claims or causes against the same that may arise from the provider's performance of the contract.

(B) The contractor or grantee is required to carry liability insurance in an amount and form satisfactory to DHS to adequately compensate persons for injury to their person or property occasioned by an act of negligence by the contractor or grantee, its agent, employee, or the like.A "Certificate of Insurance" is attached showing the State of Oklahoma as a certificate holder.The insurance policy must contain provisions that the Agency is notified if the insurance carrier intends to cancel or not renew the policy.Further, the contractor agrees to indemnify and hold harmless DHS against any and all bodily injuries and property damages, deficiencies, or liabilities resulting from any negligence on the part of the contractor or nonfulfillment of any term or condition of this contract.The contractor indemnifies and holds harmless DHS under the contract from any and all assessments, judgments, costs, legal and other reasonable expenses incidental.

(20) Americans with Disabilities Act.The provider ensures compliance with the Americans with Disabilities Act of 1990 [Public Law 101-336] and all amendments and requirements imposed by the regulations issued pursuant to this act.

(21) Client confidentiality.The provider ensures compliance with DHS' requirements pertaining to the protection, use, and release of personal information. The provider holds confidential all personal information regarding individuals, including lists of names, addresses, photographs, records of evaluation, and all other records of the client.This information may not be disclosed, directly or indirectly, without written consent.

(22) Material or equipment purchased contractually.Cost-reimbursement contracts contain the language:"Any equipment or other tangible object purchased with the funds provided by this contract is the property of the Department of Human Services and is held, maintained, and insured by the contractor for the benefit of the Department.Upon termination, for whatever reason, the Department may demand the return of such equipment or materials at the contractor's sole cost and expense. The provider ensures notification of the Department prior to relocation or substantial alteration of such equipment or materials."

(23) Disclosure of bid content.If a bid response contains information that the respondent does not want used by the Department of Human Services for any other purpose than evaluation of the bid, the pages containing such information are marked by the respondent with the statement:"This information must not be duplicated or used in whole or part for any purpose other than evaluation of the bid."The contract itself is a public document available for public inspection in accordance with the Open Records Act.

(24) Preclusion from resulting contracts.Bidders that have provided any consulting services or technical assistance that resulted in any specifications or concepts in this ITB, either directly or via a subcontractor, is precluded from the award of such contract and from securing a subcontractor that has provided such services.

(25) Force majeure.The vendor is not liable for any damages resulting from any delay in delivery or failure to give notice of delay which directly or indirectly results from the elements, acts of nature, delays in transportation, delays in delivery by any cause beyond the reasonable contract of the vendor.

(26) Disallowance of claims.In the event that any payments are subsequently disallowed by federal or state authorities due to negligence of performance of the supplier, supplier agrees to reimburse DHS in an amount equal to the disallowance.

(27) Supporting documentation.The contractor ensures that all costs billed are supported by documentation that includes copies of paid invoices, payroll records, and time reports and approved methods for application of indirect costs.The supplier further ensures that all billings are based on actual costs incurred.

(28) Supplier relationship. The contract does not create an employment relationship.Individuals performing services required by the contract are not employees of the State of Oklahoma nor the Department of Human Services. Supplier's employees are not considered employees of the State of Oklahoma nor the Department of Human Services for any purpose and are not eligible for benefits accruing to state employees.

(29) Billing.Claims for reimbursement of services must be submitted within 90 calendar days from the provision of services.Supporting encumbrances may be canceled upon a lapse of six months from the actual provision of services, unless specified otherwise in the contract.If the Department of Human Services or the State of Oklahoma finds that an overpayment or underpayment has been made to the supplier, the Department may adjust any subsequent payments to the supplier to correct the account.A written explanation of the adjustment is issued to the supplier with an explanation as to the manner in which a request for reconsideration may be made.The Department may withhold a part or all of a final payment until the account is settled, or to ensure compliance with all the terms of the contract.

(30) Alcohol and drug testing.When a contract requires the transportation of 16 or more clients in one vehicle, the language included in the contract requiring alcohol and drug testing is:"Supplier ensures compliance with Section 6, Public Law 102-143, 49 CRF 1.51, requiring random alcohol and drug testing of certain commercial drivers."

(31) Competition.When award or sub-award of a contract is made to institutions of higher learning include the language:"All procurement transactions are conducted in a manner to provide, to the maximum extent practical, open and free competition.The recipient is alert to organizational conflicts of interest as well as noncompetitive practices among suppliers that may restrict or eliminate competition or otherwise restrain trade.In order to ensure objective supplier performance and eliminate unfair competitive advantage, suppliers that develop or draft grant applications, or contract specifications, requirements, statements of work, invitations to bid, requests, or both, for proposals are excluded from competing for such procurements.Awards are made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality, and other factors considered.Solicitations clearly state all requirements that the bidder or offeror will fulfill in order for the bid or offer to be evaluated by the recipient.Any and all bids or offers may be rejected when it is in the State's interest to do so."

 

340:2-13-14.11.Contract addenda pertaining to professional services contracts [REVOKED]

Any modification to the awarded contract terms must be approved by both parties and by DCS with the exception of increases of service requirements in fixed rate contracts and select contracts initiated by the Commodities Distribution Unit.

(1) Request for contract change.A modification of contract terms is drafted and approved by the provider or vendor.Any modification must be authorized by those parties that originally signed the contract.Note exceptions stated in this subsection. The requisitioning unit attaches Form CP‑CO-1, Change Order, providing pertinent reference numbers for DCS to the modification and submits it to the Contracts and Purchasing Unit.The same requirements apply for modifications as the original contract concerning original signatures, number of copies, and the like.

(2) Budget revisions.All requests for cost-reimbursement contract budget revisions must be submitted to the Contracts and Purchasing Unit for review and transmittal to DCS.DCS must approve and maintain on file each contract budget revision.Total line-item budget revisions generally do not exceed ten percent of the contract not-to-exceed amount.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-14.11

1.(a) Accounting change.In order to release encumbered funds or revise accounting codes such as object of expenditure code, the requisitioning unit completes the Form CP-CO-1, Change Order, and submits it to the Contracts and Purchasing Unit.If the Form CP-CO-1 is returned by DCS for clarification prior to action, the Contracts and Purchasing Unit attempts to resolve the issue and returns Form CP-CO-1 to the requisitioning unit if clarification or revision is necessary.Upon receipt from DCS, the Contracts and Purchasing Unit revises the information encoded in the Requisition File System.Funds cannot be released in the Requisition File System prior to notification from DCS.

(b) Distribution.The Contracts and Purchasing Unit distributes copies of the Form CP-CO-1 to affected units upon receipt from DCS.

340:2-13-14.13. Initiation of services [REVOKED]

Services must not be initiated by a provider or vendor whose contract is pending final award.Providers must be cautioned that receipt of the provider contract does not ensure an approved award of contract and services must not be initiated until the approved award of contract is received.In the event it is discovered that services may have been authorized prior to issuance of a proper contract, the requisitioning unit immediately contacts the Contracts and Purchasing Unit for coordination with the Office of General Counsel to determine the Department's liability in the issue.The DHS Office of Finance coordinates with the Contracts and Purchasing Unit concerning any claims presented for payment that exceed the statutory or Agency limits that appear to have been authorized without benefit of a contract.

340:2-13-14.14. Contract monitoring [REVOKED]

(a) Each division must assign sufficient staff to conduct periodic monitoring of services provided under a contract.These individuals must provide extensive support to new providers without prior experience in governmental accounting to assure that the services provided under the contract are in accordance with the terms and that the clients receive the maximum benefit from the contractual services.Contractual records must be established in accordance with the A.I.C.P.A. Audit and Accounting Guide for State and Local Governmental Units.

(b) The contract monitor must serve as a liaison, resolving any issues upon discovery related to generally accepted accounting and auditing practices.The monitor is also responsible for periodic on-site review of provider programmatic records, assuring compliance with all contract terms throughout the contract period.

340:2-13-14.15. Conflict of interest [REVOKED]

All agency employees must avoid any appearance of a potential conflict of interest by refraining from:

(1) serving on the board of any agency in which a contract is in effect between any agency and that employee's assigned division; and

(2) serving as an officer of the Board if any DHS division has a current contract in effect with the agency in question.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-14.15

1.State Officials Code of Conduct

(a) As per Executive Order #91-3, each employee must adhere to the State Officials Code of Conduct, with specific attention to matters regarding procurement of services, equipment and supplies.

(b) Each state official will:

(1) demonstrate the highest standards of personal integrity, truthfulness, honesty and fortitude in all public activities in order to inspire public confidence and trust in public institutions;

(2) not realize inappropriate personal gain from the performance of official duties, in concert with the letter and spirit of State Ethics laws;

(3) avoid any interest or activity which is in conflict with the conduct of official duties;

(4) support, implement and promote selection based on merit in employment and programs of affirmative action to ensure equal employment opportunity by recruitment, selection and advancement of qualified persons from all elements of society;

(5) eliminate all forms of illegal discrimination, fraud and mismanagement of public funds, and support the efforts of co-workers and others to correct such discrimination, fraud, mismanagement or abuse;

(6) serve the public with respect, concern, courtesy and responsiveness, recognizing that service to the public is beyond service to oneself;

(7) respect and protect the privileged information which is used in the course of official duties;

(8) exercise authority granted by law to promote the public interest; and

(9) strive for personal professional excellence and accept as a personal duty the responsibility to keep up to date on emerging issues and to administer the public's business with professional competence, fairness, impartiality, efficiency and effectiveness.

 

340:2-13-14.17.Prohibited acts - state employees, agencies, and elected officials [REVOKED]

Refer to State Ethics Commission Rules for rules regarding prohibited acts of state employees, agencies, and elected officials in the contracting process.

 

340:2-13-14.18. Cancellation of contracts [REVOKED]

(a) Department of Central Services (DCS) is the sole authority for the awarding, amending, and cancellation of contracts.When a division desires to cancel a contract prior to the original ending date, the procedures in (1) - (4) of this subsection are followed.

(1) The requisitioning unit submits a memo with signature by the division administrator to the Contracts and Purchasing Unit requesting the contract cancellation and provides background information justifying the request and the effective date for cancellation.As per terms of the contract, a minimum of 30 days notice must be provided to the contractor by DCS.

(2) The Contracts and Purchasing Unit advises DCS of the cancellation request.

(3) DCS mails the cancellation notice to the contractor by certified mail, return receipt requested, citing the cancellation effective date.

(4) After all outstanding claims for services provided prior to the cancellation effective date have been settled, the requisitioning unit prepares Form CP-CO-1, Change Order, to liquidate any outstanding balance and submits it to the Contracts and Purchasing Unit.

(b) If the cancellation procedures are not followed and the requisitioning unit sends written notice of cancellation to the contractor, the cancellation is not valid nor binding.

PART 5. PRODUCTS AND NONPROFESSIONAL SERVICES [REVOKED]

 

340:2-13-47.Procedures for processing requisitions for other than professional services to the Contracts and Purchasing Unit [REVOKED]

Form ADM-2, Department of Human Services Requisition, is used for requisitioning services, equipment, and supplies through the Contracts and Purchasing Unit.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-47

1.Explicit instructions for completion of Form ADM-2, Department of Human Services Requisition, are on the back of the form.The item(s) being procured and the estimated price determine the method of purchase.

 

340:2-13-48. Methods [REVOKED]

(a) Ordering products available from state wide contracts.Unless specifically exempted by statute or DCS State Purchasing Director, all products available from state wide contracts must be purchased under the procedures in this Section.

(1) To requisition products available from state wide contracts, the requisitioning unit submits Form ADM-2, Department of Human Services Requisition, to the Contracts and Purchasing Unit.

(2) The Contracts and Purchasing Unit reviews Form ADM-2 for adequacy and either enters the necessary information into the automated requisition file for printing of a release document or transmits a DCS Central Purchasing Form 2, (CP-2), Purchasing Requisition, to Central Purchasing Division (CPD) for processing by CPD.

(3) Upon receipt of Form CP-2, CPD issues a release against the appropriate state wide contract.

(4) The CPD, DHS Contracts and Purchasing Unit, or both, provides copies of the release to vendor, DHS Office of Finance, requisitioning unit, and the official Contracts and Purchasing Unit file.

(b) Products not exceeding $25,000.Purchases in which the product is not available from the procurement schedule established by the State Use Committee, mandatory use state wide contracts, or Oklahoma Corrections Industries, the product needed is a one time acquisition, and the cost of the product, including shipping and handling, does not exceed $25,000 are exempt from processing by CPD.Separate purchases for individual components of a total project, services, or split purchasing for the purpose of evading the competitive bid requirement constitutes a felony. These purchase methods may be utilized by requisitioning units as delegated by administrators down to division levels except for the acquisition of products or services procured through CPD as scheduled buys or through lease purchase agreements. Requisitioning units not desiring to accomplish purchase actions may submit their requirements to the Contracts and Purchasing Unit for processing according to procedures described in paragraphs (1) - (3) of this subsection. Requisitioning units who choose to accomplish purchases in accordance with rules in this Section process the acquisitions according to procedures described in paragraphs (4) - (5) of this subsection.

(1) To requisition the purchase, the requisitioning unit submits Form ADM-2 to the Contracts and Purchasing Unit.

(2) The Contracts and Purchasing Unit reviews the requirement for adequacy of the description of the requirement and prepares and issues Form ADM‑106, Authority to Purchase, or Form CP-3C, Contract, as appropriate.

(3) The Contracts and Purchasing Unit forwards a copy to the requisitioning unit, vendor, contractor, or both, and maintains the official Contracts and Purchasing Unit file.

(4) Purchases not exceeding $2,500 accomplished by requisitioning units are processed as required by the Department of Human Services, Office of Finance.

(5) Purchases in excess of $2,500 but not exceeding $10,000 are processed as described in (A) - (E) of this paragraph.

(A) The requisitioning unit determines if the acquisition is available from a mandatory statewide contract, a State Use Committee procurement schedule, Oklahoma Correction Industries, scheduled acquisition, or nonencumbered contract.Acquisitions are made from one of these sources if the product or service is available.The requisitioning unit determines if the product or service is available from a nonmandatory statewide contract to determine if the open market price exceeds the price of the nonmandatory statewide contract.If the acquisition is available from a nonmandatory statewide contract at a lower price than can be obtained from an open market vendor, it is purchased from the nonmandatory statewide contract if the vendor can make delivery by the required delivery date.In the event a statewide contract vendor cannot provide the product or service in a manner suitable to the Department, the statewide contract price is annotated on Form CP-11, Request for Quotations (RFQ), or Form CP-12, Quotation/Proposal Checklist, for documentation of purchases prior to forwarding the required documents to the Contracts and Purchasing Unit.

(B) The requisitioning unit solicits price quotations from three or more vendors, either orally or in writing.If quotations are solicited in writing, Form CP-11 is utilized.Complex acquisition solicitations for quotations must be in writing and copies of specifications provided to suppliers.Quotations solicited orally are documented on Form CP-12.Upon the supplier's request, the supplier must be afforded at least 24 hours in which to prepare and provide a quotation.

(C) The purchase must be made from the solicited vendor providing the lowest and best or best value quotation. A detailed, written explanation of the reason must be documented if the purchase is being made from other than the vendor offering the lowest price. Certified minority businesses are entitled to bid preference of five percent

(D) A record is made of each acquisition completed under the procedures in this subsection and documentation is forwarded to the Contracts and Purchasing Unit within 24 hours to verify compliance with the rules established by the Director of CPD, DCS, and for the issuance of Form CP-3C.Each record includes:

(i) a description of the goods or services;

(ii) the name, address, federal employer identification (FEI) number, and telephone number of each solicited vendor, identifying minority vendors as such;

(iii) the date, time, and amount of each quotation including:

(I) the name, first and last, of the person providing each quotation; and

(II) the name, first and last, of the person receiving and recording each quotation;

(iv) a written explanation or Form ADM-88, Sole Source or Sole Brand Acquisition Affidavit, for selection of other than the lowest bid; and

(v) any other data or information that is required or necessary to show compliance with this subsection.

(E) The Contracts and Purchasing Unit is the official repository for the records and documentation required by this subsection and all records and documentation are made available to the director or designee of DCS, the State Auditor and Inspector, or both, upon request.Records are maintained for a minimum of three years.All records are considered public records in accordance with the Open Records Act.[51 O.S., Supp. 1990, Section 24A.1 et seq]

(6) For contracts in excess of $10,000 but not exceeding $25,000, procedures detailed in the paragraph (5) of this subsection are followed in solicitation of quotations in excess of $10,000 but not exceeding $25,000.At least three suppliers must be solicited for quotations andthey must be provided with a noncollusion affidavit to be submitted by the supplier before quotation closing.Individuals soliciting quotations are encouraged to utilize DCS, CPD's registered supplier listing.Access to this listing is available on DHS Office of Finance AS400 mainframe system.Procedures established in paragraph (5) of this subsection are also adhered to when acquiring specifically prescribed nonmedical assistive technology related items for individuals under 16 years of age who are recipients of Supplemental Security Income which are prescribed by a physician, qualified sensory aids specialist, or qualified special education instructor.

(c) Competitive bid contracts.This type of contract is used when the product or service requirement is not available through state wide contracts, other mandatory sources, and the estimated cost of the product or service is more than $25,000.In order to process this type of purchase the processes outlined in paragraphs (1) - (3) of this subsection are accomplished.

(1) The requisitioning unit completes and submits Forms ADM-2 and ADM-86, Product Requisition Justification, or ADM-87, Contract Requisition Justification, and OSF Form 25, Professional and Personal Services Contract Exemption Request, freeze exception documentation, if applicable, to the Contracts and Purchasing Unit.

(2) The Contracts and Purchasing Unit reviews Forms ADM-2, ADM-86, and ADM-87 for adequacy, prepares DCS Form CP-2, and obtains necessary approvals.

(3) The Contracts and Purchasing Unit forwards a copy of DCS Form CP-2 to CPD, the requisitioning unit, and maintains an official record in the unit.Central Purchasing Division forwards the Contracts and Purchasing Unit and vendor a copy of the resultant award document.In turn, Contracts and Purchasing Unit provides copies to DHS Office of Finance, the requisitioning unit, and maintains a copy for the file.

(4) Construction services requirements must be processed through DCS Construction and Properties Division.Requisitioning units may solicit written quotations on requirements not exceeding $12,500, provide the written quotations and Form ADM‑2 or CAP Form 102, Project Requisition, necessary plans and specifications to DHS Contracts and Purchasing Unit for review and transmittal to the Construction and Properties Division for award of a contract.Projects estimated to exceed $12,500 must be competitively bid by the Construction and Properties Division.Twenty five copies of plans and specifications along with Form ADM-2 or CAP Form 102 are submitted to DHS Contracts and Purchasing Unit for review and transmittal to Construction and Properties Division.For assistance in preparing adequate plans and specifications, contact DHS Architectural and Engineering of the Facilities Management Unit.

340:2-13-50. Telephone calling card [REVOKED]

The Contracts and Purchasing Unit is responsible for reviewing, issuing, and controlling telephone calling card requests for the Agency.¢ 1

INSTRUCTIONS TO STAFF340:2-13-50

1.Procedures established for requesting, issuing, and monitoring telephone calling cards are described in (1) - (3) of this Instruction.A memo is required containing sufficient justification indicating that a calling card is essential to the performance of the employee's duties.Position or classification alone is not sufficient justification for issuance.

(1) County directors or levels of higher authority within DHS submit a memo for each individual to the Contracts and Purchasing Unit listing:

(A) the name of individual requesting a calling card;

(B) work location address;

(C) contact telephone number; and

(D) the individual's social security number.

(2) Upon receipt and review of each request, the Contracts and Purchasing Unit issues a calling card to each individual employee.A memo is included in each envelope that contains the calling card.Acknowledgment of receipt is mailed to Contracts and Purchasing Unit in a sealed envelope marked "Confidential."If acknowledgment is not received within ten days of issuance, the calling card is canceled.

(3) The Contracts and Purchasing Unit maintains records of issuance and cancellation of calling cards.Cancellation of a calling card is required when:

(A) a calling card is lost or stolen.

(i) The employee immediately calls the Contracts and Purchasing Unit requesting cancellation of the calling card.

(ii) A follow-up memo signed by the employee must be submitted to Contracts and Purchasing Unit requesting cancellation of the calling card; or

(B) the employee's last day on duty.

(i) The employee calls the Contracts and Purchasing Unit requesting cancellation of the calling card.

(ii) A follow-up memo signed by the employee must be submitted to the Contracts and Purchasing Unit requesting cancellation of the calling card.

340:2-13-53. Emergency purchases [REVOKED]

(a) Rules of DCS Central Purchasing Division, define an emergency as an unforeseen occurrence, condition, or serious environmental situation.Requisitions pursuant to this section are not required prior to emergency acquisitions not exceeding $35,000.The procedures listed in paragraphs (1) - (4) of this subsection are adhered to in processing of emergency requests that are within the purview of the Central Purchasing Act.

(1) During normal State Office work hours, any division administrator who becomes aware that an emergency as defined in this Section exists, declares an emergency.All facts are presented by telephone to the Contracts and Purchasing Unit.The Contracts and Purchasing Unit coordinates the situation with the Contracts and Purchasing Unit Administrator for direction, makes notifications, and takes action as required.

(2) After normal State Office work hours, if it is determined that an emergency exists, a division administrator or designee takes action necessary to resolve the situation.

(3) In either situation described in paragraphs (1) and (2) of this subsection, it is understood that in-house capabilities or resources are used or referred to for guidance or assistance to remedy the situation.

(4) The next work day, a memo describing the emergency, Form ADM-2, Department of Human Services Requisition, and supporting documentation are forwarded to the Contracts and Purchasing Unit for processing to DCS Central Purchasing Division.

(b) Emergency purchases exempt from the provisions of the Public Competitive Bidding Act processed under the purview of the DCS Construction and Properties Division.

(1) The Chief Administrative Officer, Director, of DHS may declare an emergency situation in which event the provisions of the Competitive Bid Act with reference to bids do not apply, but such authority is not extended to any contract exceeding $25,000, and the Commission for Human Services (Commission) has delegated such authority by two thirds of all members.

(2) The President Pro Tempore of the State Senate and Speaker of the House of Representatives are notified of such action within ten 10 days.Notification includes a statement of the reasons for the action and it is recorded in the official minutes of the Commission.

(3) The Commission declares by a two thirds vote of all members of the Commission that an emergency exists.No monetary threshold on the emergency contract amount applies.

(4) Reasons for declaring an emergency and not complying with the provisions of the Public Competitive Bidding Act are entered into the official minutes of the Commission.Copies of the minutes are provided to the State Construction Administrator of DCS.

(5) The Contracts and Purchasing Unit submits a requisition to the State Purchasing Director within five days following the acquisition together with a statement of emergency.

340:2-13-53.1. Purchase of client clothing [REVOKED]

Although exempt from the Central Purchasing Act, clothing requirements for the Department's clients are bid whenever deemed feasible by Department officials in charge of the various programs.Competitive bids are solicited when it is determined that large quantities of clothing for clients are required.Individual one time clothing acquisitions for clients may be procured at the discretion of the responsible official for the program.

340:2-13-53.2. Purchase of food by DHS group homes [REVOKED]

Purchase of food for group homes operated by the Department are not included within the purview of the Central Purchasing Act and are not subject to competitive bid requirements.Group home employees may make purchases as delegated by program officials.Processing of claims will be in accordance with the procedures established by DHS Office of Finance, Claims Processing Section.Purchases shall be made from the available local sources.Use of alternate sources is encouraged if economically feasible.

340:2-13-54. Additional coordinations, reviews, and approvals [REVOKED]

(a) Purchase Review Committee.During periods of severe budget constraints, as determined by the Governor or DHS Director, a Purchase Review Committee reviews proposed purchases and approves or disapproves the acquisition based upon need. Requisitioning units are advised when a purchasing freeze has been initiated and types of commodities affected.The requisitioning unit routes requisitions to the Contracts and Purchasing Unit for transmittal to the Purchase Review Committee.

(b) Data processing requisitions.In accordance with DHS:2-41-1(6), requisitions for all computer software, hardware, or both, require review and approval of the Data Services Division (DSD) prior to submittal to the Contracts and Purchasing Unit for processing.Requisitions received without DSD coordination are returned to the requisitioning unit for compliance.

340:2-13-55. Inspection and rejection [REVOKED]

The requisitioning unit inspects all goods at the time of delivery.Any goods which are damaged, fail to meet contract specifications, or contain latent defects are not accepted if detected while delivery is made.

(1) When the requisitioning unit receives or rejects goods or services that do not fulfill the requirements of the contract, the requisitioning unit contacts the vendor to resolve the matter.If the matter cannot be resolved between the requisitioning unit and the vendor, the Contracts and Purchasing Unit is notified in writing within a reasonable time.All pertinent facts are provided, specifically the discrepancy in the goods or services ordered and the goods or service received, the name and telephone number of the person or vendor contacted concerning the discrepancy, and a concise statement of facts.The Contracts and Purchasing Unit makes every effort to rectify problems on orders issued by this office and requisitioning units are notified of the results.The Contracts and Purchasing Unit reviews documentation on problems encountered with vendors issued contracts by DCS Central Purchasing Division (CPD), Form CP-3, Vendor Performance Quality Report Form, and forwards the form to CPD for action with an information copy to the receiving activity.

(2) It is the responsibility of the vendor to remove the defective goods and replace them with conforming products within a reasonable time after notice of rejection.All related costs are the responsibility of the vendor.

340:2-13-56.Change orders [REVOKED]

Change orders are not processed against contracts when it increases the total acquisition price in excess of ten percent, with the exception of fixed rate social services contracts as defined in Section 85.7A.(11) of Title 74 of the Oklahoma Statutes.Fixed rate contracts may be increased in excess of ten percent if the total amount revised is based upon actual utilization of services.In this instance, a signed bilateral modification is not required.

(1) Change order forms.Form CP-CO-1, Change Order, is submitted to the Contracts and Purchasing Unit.The requisitioning unit requesting the change order is responsible for ensuring the change order information reflects all contract documents, such as purchase order, previous change order information, and any claims history including outstanding or pending claims.

(2) Authorized signature.Upon receipt of Form CP-CO-1 in the Contracts and Purchasing Unit, the form is processed as required.

(3) Discrepancies.Any requests for cancellation of unexpended balances are verified via the Office of State Finance Automated Outstanding Purchase Order File.If the information provided on Form CP-CO-1 differs from that listed by Office of State Finance by more than $10, the Form CP-CO-1 is returned to the requisitioning unit for clarification.If unable to resolve the issue, the unit contacts the DHS Office of Finance for assistance.Sufficient funding must remain to support all expenditures related to that specific purchase order.

(4) Revision of DHS files.Upon notification from DCS, the Contracts and Purchasing Unit revises the DHS Requisition file on Finance AS-400 System records to reflect the change.No funds are released until receipt of enacted change order from DCS.

(5) Bulk purchases.Purchases of bulk items such as meat, poultry, fuels, and printed material do not require a Form CP-CO-1 to allow for an overshipment of less than 10% of the purchase order.The claim for payment may be submitted to the DHS Office of Finance without the requirement for a change order to increase or decrease the purchase order.

340:2-13-57. Department of Central Services contact [REVOKED]

All communication, either written or verbal, by DHS staff directed to DCS concerning contractual matters, are coordinated via the Contracts and Purchasing Unit CPO(s).

340:2-13-58. Payment against purchase orders or contracts [REVOKED]

Payment for products or services pursuant to a purchase order or contract is made only after products have been provided or services rendered.Contact the Contracts and Purchasing Unit for specifics regarding advance payments.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-58

1.Subscription services may be paid in advance and other services as determined appropriate by DHS Office of Finance or Office of State Finance.

340:2-13-59. Equipment furnished to the Vendor [REVOKED]

It is unlawful to enter into a contract in which a state agency furnishes material/equipment to be used by the vendor in the performance of the contract if the contract allows the vendor to acquire ownership of the material/equipment during or after the term of the contract in any manner other than through competitive bidding or a public sale procedure.

 

PART 7. CONTRACTS AND PURCHASING

340:2-13-75. Purpose and legal base

Issued 7-1-10

(a) Purpose.The purpose of this Subchapter is to describe the rules governing the contracting and purchasing requirements of the Oklahoma Department of Human Services (OKDHS). The Contracts and Purchasing Unit is an internal unit of OKDHS and provides the mechanism for the acquisition of goods, equipment, and non-professional and professional services for the operation of OKDHS. These rules are superseded by the Oklahoma Department of Central Services (DCS) Purchasing Administrative Rules (OAC 580:15) whenever DCS has final approval of an acquisition.

(b) Compliance.OKDHS complies with provisions of the Oklahoma Central Purchasing Act, State Use Committee, State Purchase Card Procedures, other statutory provisions and rules of the of the Central Purchasing Division (CPD) for OKDHS acquisitions.Except as otherwise provided, all contractual services, supplies, materials, and equipment which are used, consumed, or spent by OKDHS in performance of its official functions, are made in conformance with this policy and paid with OKDHS funds.

(c) Legal base.OKDHS contracting and purchasing procedures are established pursuant to Section 85.1 et seq. of Title 74 of the Oklahoma Statutes (O.S.) and become effective upon review and approval of the DCS State Purchasing Director pursuant to Section 85.39 of Title 74 O.S.

340:2-13-76. Delegation of OKDHS

Issued 7-1-10

The authority to procure certain needed products and services is delegated to Oklahoma Department of Human Services (OKDHS) from the Oklahoma Department of Central Services (DCS) Central Purchasing Division (CPD).

340:2-13-77. Funding

Issued 7-1-10

Funding for acquisition is determined in accordance with approved budget work program allocations. Necessary internal budget transfers for unexpected acquisitions are completed prior to the purchase of any good or service.

340:2-13-78. Records retention

Issued 7-1-10

(a) The Oklahoma Department of Human Services (OKDHS) retains records for each acquisition and contract in accordance with OAC 580:15-6-4.OKDHS retains purchasing records in the Contracts and Purchasing Unit for all acquisitions of goods or services.The records include the contract, evaluations, and all supporting and required documentation.Associated payment records are retained in the OKDHS Finance Division.

340:2-13-79. OKDHS audit responsibilities

Issued 7-1-10

Acquisition records are made available by the Oklahoma Department of Human Services (OKDHS) for audit by the Department of Central Services Audit Division and the State Auditor and Inspector Audit Team.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-79

Issued 7-1-10

1.OKDHS provides:

(1) workspace for the audit team(s);

(2) records for all purchases during the time period requested by the audit team(s); and

(3) a Certified Procurement Officer (CPO) who is available to assist the audit team(s) as requested.

340:2-13-80.Penalties for noncompliance of purchasing procedures

Issued 7-1-10

The Oklahoma Department of Human Services (OKDHS) complies with the Department of Central Services (DCS) requirements regarding purchasing procedures.

(1) The DCS Director may:

(A) require retraining of OKDHS procurement officers;

(B) reduce the purchasing competitive bid limit;

(C) transmit written findings of noncompliance to the State Auditor and Inspector for further investigation.

(2) If the DCS Director reasonably believes any purchase reported by the DCS State Purchasing Director constitutes a criminal violation of the Oklahoma Central Purchasing Act by OKDHS employees, the certified procurement officer, or vendor, the DCS Director transmits the report to the Attorney General for investigation.

340:2-13-81. Definitions

Issued 7-1-10

The following words and terms, when used in this Subchapter, shall have the following meaning, unless the context clearly indicates otherwise:

"Acquisition" means all types of purchases necessary to perform the duties assigned to the Oklahoma Department of Human Services (OKDHS), to include every means by which OKDHS obtains any materials, supplies, services, or equipment.

"Award" means the issuance of a purchase order to the selected supplier.

"Best value" means an award method that uses criteria established by the Oklahoma Central Purchasing Act and outlined under Section 85.2(2) of Title 74 of the Oklahoma Statutes.

"Certified procurement officer" or "CPO" means a state employee authorized to make acquisitions for a governmental entity by the Oklahoma Department of Central Services (DCS).

"Commodity code" means a system of words and numbers designed to identify and list commodities or services by classes and sub-classes and used to identify products or services to be purchased by the state.

"Contract" means all types of agreements, regardless of what they may be called, used for the procurement or disposal of goods or services.

"Contracts and Purchasing Unit" means the Unit authorized by DCS as responsible for all agency procurement for OKDHS.

"Customer" means OKDHS employee generating the necessary documents and activities to acquire a desired good and/or service.

"DCS" means Department of Central Services

"Director" means the Director of OKDHS.

"Equipment" means all personal property acquired for use by OKDHS which is in the nature of a tool, device, or machine and is deemed to include all personal property used or consumed by OKDHS which is not included within the category of materials and supplies.

"Exempt professional service" means those professional services exempt from competitive bidding pursuant to Section 85.7(2) of Title 74 and Section 803 of Title 18 of the Oklahoma Statutes.

"Goods" means products, material, supplies, and includes all property except real property acquired by OKDHS.

"Invitation to Bid" or "ITB" means a type of solicitation a governmental entity or the State Purchasing Director sends to suppliers for submission of bids for acquisitions.

"Modification" means all types of written alterations to a provision of a contract, regardless of what they may be called, accomplished by mutual agreement of the parties to the contract.

"Non-collusion certification" means the signed declaration by a supplier that they nor anyone subject to their direction or control has paid, given or donated, or agreed to pay, give, or donate to any office or employee of the State of Oklahoma any money or other thing of value, either directly or indirectly, in procuring a contract.

"Non-professional service" means services which are predominately physical or manual in nature and are, generally, not licensed and may involve the supplying of products.

"Non-responsive" means a response or offer that does not conform to the mandatory or essential requirements contained in the solicitation.

"Professional service" means services which are predominantly advisory or intellectual in nature, or involve support rather than supplying equipment, supplies, or other merchandise. Professional services include services to support or improve OKDHS policy development, decision making, management, administration, or the operation of management systems.

"Governmental entity" means any department, commission, council, counsel, court, board, bureau, committee, institution, legislative body, agency, government corporation, or other entity of the executive, legislative, or judicial branch of the jurisdiction.

"Real property" means land and it's permanently affixed buildings or structures or any property which is not personal property.

"Request for proposal " or "RFP" means a type of solicitation a governmental entity or DCS issues to suppliers requesting proposals for goods or services.

"Request for quotation " or "RFQ" means a solicitation where quotes are obtained from suppliers without formal advertising and for expenditures within OKDHS authority.

"Requestor" means the individual within OKDHS initiating the contract

"Solicitation" means a request for goods or services via an ITB, request for proposal, or request for quotation.

"Supplier" or "vendor" means an individual or business entity that sells or desires to sell goods or services to governmental entities.

340:2-13-82. General contracting and purchasing provisions

Issued 7-1-10

(a) The Oklahoma Department of Human Services (OKDHS) has the statutory authority to directly purchase or acquire goods, services, or equipment in compliance with the provisions of the Oklahoma Central Purchasing Act.

(b) Goods, services, and equipment for OKDHS are acquired by and in accordance with the statutes of the State of Oklahoma by:

(1) statewide contracts;

(2) State Use Committee procurement schedule;

(2) inter-governmental;

(3) authority order;

(4) fixed rate;

(5) exempt professional services;

(6) competitive solicitation;

(7) sole source or sole brand acquisitions; and

(8) donations.

340:2-13-83. Supplier registration

Issued 7-1-10

Suppliers wanting to be notified of open solicitations with the Oklahoma Department of Human Services (OKDHS) must register with Department of Central Services Central Purchasing Divisions (DCS CPD).

340:2-13-84. Reports of supplier non-compliance to DCS

Issued 7-1-10

Reports of supplier poor performance or non-compliance must be reported by the Oklahoma Department of Human Services (OKDHS) to Department of Central Services (DCS) and may affect a supplier's opportunity to provide future services to the State of Oklahoma.

340:2-13-85. Contact with suppliers

Issued 7-1-10

Contact by an Oklahoma Department of Human Services (OKDHS) employee with potential suppliers is not prohibited.However, it is strongly discouraged because any supplier that provides information used in a solicitation or receives information from OKDHS about a future solicitation creates the appearance of impropriety.These suppliers could be precluded from future contract awards. The appearance of bias is created by such meetings regardless of intent.

340:2-13-86. Internal solicitation

Issued 7-1-10

If a supplier wishes to submit a response to a solicitation, the supplier must comply with the instructions provided in the solicitation. It is the supplier's responsibility to read and understand the instructions and terms and conditions provided in the solicitation. Failure to comply with the instructions and terms and conditions in the solicitation may deem the bid non-responsive. Questions must be directed to the Oklahoma Department of Human Services (OKDHS) Contracts and Purchasing Unit certified procurement officer (CPO) listed in the solicitation.

340:2-13-87. Solicitation response submission

Issued 7-1-10

(a) Solicitation responses may be submitted in person, by fax, e-mail, or mail service to the Oklahoma Department of Human Services (OKDHS).Responses must be received at the location and by the date and time stated on the solicitation. It is the sole responsibility of the supplier to ensure delivery requirements are met.OKDHS is not responsible for the receipt of late responses.Responses not received prior to the due date and time shown on the solicitation are deemed non-responsive, without exception.

(b) The response must be:

(1) submitted in strict conformity with the instructions to the supplier;

(2) signed by an authorized representative of the supplier;

(3) signed in ink with full knowledge and acceptance of all its provisions; and

(4) typewritten or written in ink, and corrections must be initialed by a representative of the supplier prior to the submission of the bid.Penciled bids are not accepted.

(c) The Department of Central Services (DCS) Form 004, Certification for Competitive Bid and/or Contract (Non-Collusion Certification), must be completed and returned.

(d) All responses are stamped with the date and time upon receipt in the Contracts and Purchasing Unit.

(e) Responses are reviewed after the designated date and time of closing by the appropriate Contracts and Purchasing Unit certified procurement officer (CPO).

(f) Awards are made upon conclusion of the response evaluation.

(g) Any questions pertaining to the clarification of the solicitation are directed to the CPO shown on the solicitation.

(h) Any manufacturer, trade names, brand names, information, and/or catalog numbers listed in the specification are for information and are not intended to limit competition. The supplier may offer any brand which meets or exceeds the specification for any item(s). If necessary, the suppliers must explain in detail the reason(s) why the proposed requirements may be satisfied with a substitute product. Bids lacking any written indication of intent to quote an alternate brand are received and considered in complete compliance with the specifications as listed on the solicitation.

(i) A response constitutes a legal offer which becomes part of the contract upon acceptance by OKDHS pursuant to OAC 340:2-13-88(j).

340:2-13-88. Award of contract

Issued 7-1-10

(a) The responses are forwarded to the requestor for review to determine compliance with the solicitation specifications. The requestor makes a recommendation of award. The recommendation is reviewed by Contracts and Purchasing Unit certified procurement officer (CPO) to ensure compliance with all Oklahoma Department of Human Services (OKDHS) rules, policies, and procedures.

(b) The CPO has the right to waive minor deficiencies or informalities in a response provided that, in the CPO's judgment, the best interest of the state would be served without prejudice to the rights of the other supplier(s).

(c) Tie responses may develop between suppliers. If these suppliers are equal in price and all specifications, the award is determined by a coin toss.

(d) OKDHS reserves the right to award based on best value as defined inSection 85.7 of Title 74 of the Oklahoma Statutes and pursuant to the provisions of the Oklahoma Department of Central Services, rules OAC 580:15-4-11(h).

(e) The solicitation may be awarded on an all or none basis or by item or groups of items, as specified in the solicitation.OKDHS also reserves the right to award to more than one supplier.

(f) OKDHS reserves the right to reject, in part or whole, any response.

(g) The OKDHS Contracts and Purchasing Unit CPO sends a purchase order as acceptable notification of a valid and binding contract with a supplier.

(i) All awards are made under the terms and conditions as outlined in OAC 340:2-13-89 and any additional terms and conditions as described in the solicitation.

(j) The purchase order, solicitation, and the successful supplier's response constitute a binding contract and will be interpreted under Oklahoma Law.

(k) All ethics rules and laws related to conflicts of interest and conducting business with public officials apply to any acquisition by OKDHS.

340:2-13-89. Terms and conditions for acceptable responses

Issued 7-1-10

(a) All responses submitted are subject to the terms and conditions as listed in the solicitation.

(b) Supplier may not alter terms and conditions as stated in the solicitation.

340:2-13-90. Protest of award

Issued 7-1-10

(a) Suppliers that submitted responses have ten business days from contract award to submit a written protest to the Oklahoma Department of Human Services (OKDHS) Contracts and Purchasing Unit containing reasons for said protest.

(b) OKDHS Contracts and Purchasing Unit programs coordinator reviews the protest and contract award documentation and responds to the protesting supplier.

340:2-13-91.State Use Committee

Issued 7-1-10

If a product or service required by the Oklahoma Department of Human Services (OKDHS) is included in the State Use Committee procurement schedule, OKDHS secures the product or service from a qualified nonprofit agency providing employment to people with severe disabilities, providing the product or service is available within the period required per Sections 3001 et seq. of Title 74 of the Oklahoma Statutes.

340:2-13-92. Statewide contracts

Issued 7-1-10

(a) If the product or service required is on a mandatory statewide contract, the Oklahoma Department of Human Services (OKDHS) certified procurement officer (CPO) purchases the product or service from that contract, regardless of price.¢ 1

(b) If the product or service required is on a non-mandatory statewide contract, the product or service may be purchased from the contract, but it is not required.¢ 2

INSTRUCTIONS TO STAFF 340:2-13-92

Issued 7-1-10

1.The certified procurement officer (CPO) may submit a written request to the State Purchasing Director to waive requirements to use a mandatory statewide contract.Purchases from other sources will not be allowed prior to the receipt of a waiver issued by the State Purchasing Director.A requisition is required.

2.Employees must compare the statewide contract price with other supplier prices to ensure that OKDHS is receiving the best value.A requisition form is required for statewide contracts.

340:2-13-93. Oklahoma Correctional Industries

Issued 7-1-10

(a) If the product or service is available from the State Use Committee procurement schedule and from the Oklahoma Correctional Industries (OCI), OKDHS makes the purchase from the State Use Committee procurement schedule.

(b) If OCI can provide a comparable product or service, they must be one of the suppliers from whom a bid is solicited.

340:2-13.94.Exempt professional service contracts

Issued 7-1-10

(a) The professional services exempt from competitive bidding pursuant to Section 85.7(2) of Title 74 and Section 803 of Title 18 of the Oklahoma Statutes are:

(1) physician, surgeon, or doctor of medicine;

(2) osteopathic physician or surgeon;

(3) chiropractor;

(4) podiatrist;

(5) optometrist;

(6) veterinarian;

(7) architect;

(8) attorney;

(9) dentist;

(10) public accountant;

(11) psychologist;

(12) physical therapist;

(13) registered nurse;

(14) professional engineer;

(15) land surveyor;

(16) pharmacist;

(17) occupational therapist;

(18) speech pathologist;

(19) audiologist;

(20) perfusionist;

(21) professional counselor;

(22) marital and family therapist;

(23) social worker; and

(24) dietician.

(b) The Oklahoma Department of Human Services (OKDHS) requires proof of current, Oklahoma professional certification or license of all suppliers providing exempt professional services described in this Section.

(c) The requirement for competitive bidding may not be avoided by entering into a contract with an individual licensed in one of the professional categories identified in this Section to perform non-germane services. For example, a lawyer may not be awarded a contract to serve as an investment counselor without competitive bidding.

340:2-13-95. Sole source or sole brand acquisitions exceeding $5,000 and not exceeding $50,000

Issued 7-1-10

(a) The Oklahoma Department of Human Services (OKDHS) is not required to seek competitive solicitations for goods or services, if the customer affirms that the goods or services may only be obtained from a single or sole source.

(b) OKDHS must seek competitive solicitations for sole brand acquisitions.Criteria which may be sufficient to justify a sole source or sole brand contract are:¢ 1

(1) only a specified make, model, or brand will meet OKDHS needs, even though the makes, models, or brands are available from multiple vendors.A brand name description or other purchase description to specify a particular brand name, product, or feature of a product, peculiar to one manufacturer does not provide for full and open competition regardless of the number of vendors solicited.This restricts competition in that only suppliers able to supply a specified make, model, or brand are permitted to compete;

(2) market research clearly shows that there is only one responsible vendor and it can be demonstrated that no other supplies or services satisfies OKDHS requirements;

(3) requirement is for additional units or replacement parts of specified makes and models of technical equipment and only one vendor is available;

(4) OKDHS needs to purchase supplies or services from the original vendor in the case of a follow-on contract because award to any other supplier would result in substantial duplication of costs that would not be recovered through competition or in unacceptable delays in fulfilling agency requirements;

(5) purchase of a brand name commercial item that is used for authorized resale;

(6) OKDHS has an unusual and compelling urgency for supplies or services and would be seriously injured unless permitted to limit the number of suppliers from which it solicits bid/proposals; or

(7) OKDHS needs to acquire services of an expert, such as expert services to support a current or anticipated litigation or dispute, involving OKDHS in any trial, hearing, or proceeding whether or not the expert is expected to testify.

INSTRUCTIONS TO STAFF 340:2-13-95

Issued 7-1-10

1.(a) After the supervisor approves a request to purchase a product or service, the requestor completes and submits appropriate documents to the Contracts and Purchasing Unit.

(b) The Oklahoma Department of Human Services (OKDHS) Director signs the sole source certification, Department of Central Services (DCS) Form 002, Sole Source or Sole Brand Acquisition Certification.

(c) The certified procurement officer (CPO) issues a purchase order.

(d) The CPO complies with the reporting requirements of Section 85.45j.A.8 and 9.B. of Title 74 of the Oklahoma Statutes

340:2-13-96. Acquisitions of $5,000 or less

Issued 7-1-10

(a) Any acquisition for an amount of $5,000 or less is exempt from competitive solicitation procedures. The items may be acquired via an authority order or purchase card, when possible, and pursuant to the provisions of the Oklahoma Department of Central Services rules OAC 580:15-6-6.However, all acquisitions of service, or those containing a service component, in any amount, require a supplier specific purchase order issued by the Contracts and Purchasing Unit.

(b) Split purchases may not be made for the purpose of evading the dollar threshold for competitive solicitations.

340:2-13-97. Acquisitions in excess of $5,000 and not exceeding $10,000

Issued 7-1-10

(a) If the acquisition is for an amount exceeding $5,000, but is not more than $10,000, the certified procurement officer (CPO) determines if the goods or services are available from a mandatory statewide contract or State Use supplier, a governmental agency, or non-mandatory statewide contracts. If the goods or services are available through one of these methods, the Oklahoma Department of Human Services (OKDHS) acquires the goods or services in this manner.

(1) If the acquisition is not available utilizing one of the methods stated in this Section, OKDHS acquires the goods or services by an open market solicitation.

(2) The CPO solicits quotes from at least three suppliers, if available, from the registered supplier list in the appropriate commodity classification that is maintained by the Department of Central Services (DCS) Central Purchasing Division.Additional potential suppliers may also be solicited.

(3) The CPO secures written price quotations and delivery dates from suppliers.

(4) If OKDHS and the supplier execute a contract for the acquisition, the supplier submits DCS Form 004, Certification for Competitive Bid and/or Contract (Non-Collusion Certification), pursuant to Section 85.22 of Title 74 of the Oklahoma Statutes.

(5) OKDHS pays the supplier within 45 days following receipt, inspection, and acceptance of the acquisition.

(6) OKDHS retains documents and records of each acquisition for three years following acquisition date.

(7) All records and documentation are made available to the State Auditor and Inspector or the DCS State Purchasing Director upon request.All contracting and purchasing records required to be open under the Open Records Act are available.

(c) OKDHS may not make split purchases for the purpose of evading the dollar threshold for competitive solicitations.

(d) OKDHS may issue change orders to increase a purchase order for an acquisition not to exceed ten percent of the original purchase order total price unless the solicitation is based on a per unit price.In that case, increases may be made in excess of ten percent.

340:2-13-98. Acquisitions in excess of $10,000 and not exceeding $25,000

Issued 7-1-10

(a) If the acquisition is for an amount exceeding $10,000, but is not more than $25,000, the certified procurement officer (CPO) determines if the goods or services are available from a mandatory statewide contract, State Use supplier, another governmental agency, or non-mandatory statewide contracts. If the goods or services are available through one of these methods, the Oklahoma Department of Human Services (OKDHS) acquires the goods or services in this manner.

(1) If the acquisition is not available utilizing one of the methods stated in this Section, OKDHS acquires the goods or services by an open market solicitation.

(2) The CPO solicits quotes from at least ten suppliers, if available, from the registered supplier list in the appropriate commodity classification that is maintained by the Department of Central Services (DCS) Central Purchasing Division. Solicited suppliers are rotated.Additional potential suppliers may also be solicited.

(3) The CPO secures written price quotations and delivery dates from suppliers.

(4) If OKDHS and the supplier execute a contract for the acquisition, the supplier submits DCS Form 004, Certification for Competitive Bid and/or Contract (Non-Collusion Certification), pursuant to Section 85.22 of Title 74 of the Oklahoma Statutes.

(5) OKDHS pays the supplier within 45 days following receipt, inspection, and acceptance of the acquisition.

(6) OKDHS retains documents and records of each acquisition for three years following acquisition date.

(7) All records and documentation are made available to the State Auditor and Inspector or the DCS State Purchasing Director upon request.All contracting and purchasing records required to be open under the Open Records Act are available.

(c) OKDHS may not make split purchases for the purpose of evading the dollar threshold for competitive solicitations.

(d) OKDHS may issue change orders to increase a purchase order for an acquisition not to exceed ten percent of the original purchase order total price unless the solicitation is based on a per unit price.In that case, increases may be made in excess of ten percent.

340:2-13-99. Acquisitions in excess of $25,000 and not exceeding $50,000

Issued 7-1-10

(a) If the acquisition is for an amount exceeding $25,000, but is not more than $50,000, the certified procurement officer (CPO) determines if the goods or services are available from a mandatory statewide contract, State Use supplier, another governmental agency, or non-mandatory statewide contracts. If the goods or services are available through one of these methods, the Oklahoma Department of Human Services (OKDHS) acquires the goods or services in this manner.

(1) If the acquisition is not available utilizing one of the methods stated in this Section, OKDHS acquires the goods or services by an open market solicitation.

(2) The CPO solicits quotes from all currently registered suppliers from the registered supplier list in the appropriate commodity classification that is maintained by the maintained by the Department of Central Services (DCS) Central Purchasing Division. Additional potential suppliers may also be solicited.

(3) The CPO secures written price quotations and delivery dates from suppliers.

(4) If OKDHS and the supplier execute a contract for the acquisition, the supplier submits DCS Form 004, Certification for Competitive Bid and/or Contract (Non-Collusion Certification), pursuant to Section 85.22 of Title 74 of the Oklahoma Statutes.

(5) OKDHS pays the supplier within 45 days following receipt, inspection, and acceptance of the acquisition.

(6) OKDHS retains documents and records of each acquisition for three years following acquisition date.

(7) All records and documentation are made available to the State Auditor and Inspector or the DCS State Purchasing Director upon request. All contracting and purchasing records required to be open under the Open Records Act are available.

(c) OKDHS may not make split purchases for the purpose of evading the dollar threshold for competitive solicitations.

(d) OKDHS may issue change orders to increase a purchase order for an acquisition not to exceed ten percent of the original purchase order total price unless the solicitation is based on a per unit price.In that case, increases may be made in excess of ten percent.

340:2-13-100. Acquisitions in excess of $50,000

Issued 7-1-10

Products and services with an estimated cost of over $50,000 are sent to Department of Central Services (DCS) Central Purchasing to bid the requisition, award the purchase order and process change orders after contract award.

340:2-13-101. Emergency purchases not exceeding $100,000

Issued 7-1-10

Any emergency acquisition or contract is approved by the Oklahoma Department of Human Services (OKDHS) Director.¢ 1

INSTRUCTIONS TO STAFF 340:2-13-101

Issued 7-1-10

1.(a) The requesting division supervisor submits in writing to the Purchasing and Contracts Unit certified procurement officer the facts and circumstances giving rise to the emergency.

(b) The Oklahoma Department of Human Services (OKDHS) Director directs the CPO to either make the emergency purchase from the selected vendor or follow the purchasing procedures in the previous sections.

(c) The primary CPO must submit a requisition to the Department of Central Services (DCS) State Purchasing Director within five days following the purchase with a statement of the emergency.

340:2-13-102. Contract monitoring and evaluation

Issued 7-1-10

Service contracts are monitored by the project monitor as named on the Work Plan submitted with the requisition.The project monitor ensures that services are obtained in accordance with the contract requirements.

340:2-13-103. Purchase card

Issued 7-1-10

(a) All purchase card acquisitions must comply with the provisions of the State of Oklahoma Purchase Card Procedures as issued by the Department of Central Services Central Purchasing Division.¢ 1

(b) The Oklahoma Department of Human Services (OKDHS) retains records for each acquisition and contract in accordance with State of Oklahoma Purchase Card Procedures.

INSTRUCTIONS TO STAFF 340:2-13-103

Issued 7-1-10

1.Refer to OKDHS:2-11-31 through OKDHS:2-11-49 for regulations regarding the Purchase card Program.

340:2-13-104. Trade-in of equipment

Issued 7-1-10

The Oklahoma Department of Human Services (OKDHS) may use agency items of equipment as trade-in when making a like acquisition with prior written approval of the Department of Central Services (DCS) State Purchasing Director.Fair market value is determined and that amount may be used to offset cost of the new item.The DCS Director of Central Purchasing may assist on determination of fair market value of an item.

340:2-13-105. Summary of required forms

Issued 7-1-10

Forms necessary for the acquisition of goods or services are detailed on the Contracts and Purchasing Forms Checklist found on the Oklahoma Department of Human Services (OKDHS) Forms drive.


APPENDIX K. PROFESSIONAL SERVICE CONTRACT

AFFIDAVIT FORM [REVOKED]

State of Oklahoma

Department of Human Services

PROFESSIONAL SERVICE CONTRACT

AFFIDAVIT

PA#

I, _____________________________, FEI/SS# _____________________________

have not previously entered into a contract with the agency or any other state agency which would result in a substantial duplication of the final product required by the proposed contract.

SIGNED: ______________________ _

STATE OF _____________________________ SS.

COUNTY OF _____________________________

Before me, the undersigned, a Notary Public, in and for said County and State, on this ____ day of _____________________________, 19 __ , personally appeared _____________________________ to me known to be the identical person who subscribed the name of the maker thereof to the within and foregoing instrument as its _____________________________ and acknowledged to me that he executed the same as h____ free and voluntary act and deed and as the free and voluntary act and deed of such agency, for the uses and purposes therein set forth.

Given under my hand and seal of office the day and year above written.

_____________________________

Notary Public

My Commission expires: ____________________


PROFESSIONAL SERVICE CONTRACT AFFIDAVIT FORMAdm-89

Purpose of Form

Any person prior to entering into a professional services contract with a state agency for which the final product is a written proposal or study shall sign a sworn statement certifying, to the best of his/her knowledge, that he/she has not previously entered into a contract with the Department of Human Services or any other state agency which would result in a substantial duplication of the final product required by the proposed contract.

Instructions for Preparation of Form

The form is prepared in ink or typewritten. This form is prepared by requesting unit.

PA#: Enter the purchase authorization number. Number is obtained from the budget system and is used on all documents pertaining to agreement.

I, : Enter the name of the person providing services.

FEI/SS# : Enter vendors federal employer identification or social security number.

SIGNED: For vendors signature.

Notary Public: To be filled out by notary at time the vendor signs.

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