SECTION 340:100-3-26. Contracting and purchasing

  The Department of Human Services/Developmental Disabilities Services Division (DDSD) procures services and commodities from private corporations, individuals and governmental entities in addition to directly delivering services to fulfill its mission.

(1)   All contracts and purchases executed by DDSD are in compliance with general Department of Human Services (DHS) contracting and purchasing rules, OAC 340:2-13, and state purchasing law including but not limited to 74 O.S. 85 et.seq. and 74 O.S. 4243.

(2)   All DDSD purchases of services or commodities are based upon a valid written contract between the contractor and DHS, except one time purchases under $750 that have been exempted in writing by the Division Administrator.

(3)   All DDSD employees involved in purchasing services or commodities conduct themselves in an ethical manner, avoiding conflict of interest and maintaining compliance with pertinent state employee ethics laws to include but not be limited to 74 O.S. 4241 and 74 O.S. 4242.

(4)   DDSD purchase of all services and commodities is contingent upon the availability of sufficient funds.

(5)   All DDSD purchases of services and commodities are made with due consideration given toward obtaining maximum benefit for minimum cost.

(6)   Contracts for the purchase of services or commodities are not executed for a period which exceeds 12 months.

(7)   Unless otherwise approved by the Division Administrator/designee, contracts are not executed for a period which extends across state fiscal years.

(8)   All purchases in excess of $2,500 are competitively bid through the Oklahoma Department of Central Services (DCS) unless exempted by state law. All non-exempt purchases between $750 and $2,500 are informally bid by DDSD in accordance with DCS policy.

(A)   Purchases of exempt professional services as defined in 18 O.S. 803 are exempted from competitive bidding.

(B)   Purchases made through DCS approved "fixed-rate" contracts are exempt from competitive bidding.

(C)   Purchases made from federal, state or local governmental entities are exempt from competitive bidding.

(D)   Purchases of services or commodities which can only be supplied by one contract provider ("sole-source") are exempt from competitive bidding.

(E)   Purchases made to remedy an unexpected emergency which endangers the health or safety of any individual or public property are exempt from competitive bidding.

(9)   DDSD requires a prospective contractor to submit evidence of financial solvency and ability to successfully deliver the specified service/commodity prior to the initial execution of any contract in excess of $50,000.

(10)   DDSD offers preference to qualified corporations to provide contract residential or vocational services in accordance with state law as set forth in 56 O.S. 227.

(11)   DDSD does not directly contract with state employees for the provision of services or commodities with the following two exceptions.

(A)   DDSD may contract directly with state employees to supply foster care or respite services.

(B)   DDSD may contract directly with OUHSC employees to supply medical or professional health services.

(12)   All DDSD contracts are approved by the Division Administrator and officially executed by the DHS Director.

(A)   Contracts for purchases in excess of $25,000 are reviewed by the Legal Division prior to approval by the Division Administrator.

(B)   The Division Administrator may delegate contract approval authority. Such delegation is made in writing, with a copy maintained in the Division's State Office contract files.

(13)   All DDSD contracts define the amount of service/commodity to be supplied, the rate of payment for the service/commodity to be supplied, the specifications to which the service or commodity must conform and the expectations with which the contract provider must comply.

(A)   Contract terms are sufficiently specific to enable an objective determination of contract provider compliance.

(B)   The expectations with which the contract provider must comply are consistent with DDSD mission and policy.

(14)   Any amendment to a DDSD contract is made in writing and is approved by the Division Administrator and executed by the DHS Director. The Division Administrator may delegate the authority to approve contract modifications. Such delegation is made in writing, with a copy maintained in the Division's State Office contract files.

(15)   All correspondence with the contract provider regarding a material change in the status of DDSD contracts is issued under the signature of the Division Administrator. The Division Administrator may delegate the authority to sign correspondence regarding material changes in contract status. Such delegation is made in writing, with a copy maintained in the Division's State Office contract files.

(16)   A fully executed copy of all contracts and related correspondence is maintained in a designated repository.

(A)   The State Office maintains the official record for all Division service contracts and State Office commodity contracts.

(B)   The Resource Centers and Area Offices maintain the official record for their commodity contracts.

(C)   Contract records are retained for a minimum of six years or until any pending litigation related to the respective contract is resolved.

(17)   DDSD regularly monitors contract providers to determine if the service/commodity supplied is in compliance with the terms of the contract and to ensure that the contractor maintains fiscal solvency.

(A)   Contract providers are required to cooperate with DDSD in accessing necessary information to assess contract compliance/fiscal solvency.

(B)   Results of the monitoring are documented in writing and stored in central State Office file.

(C)   Monitoring results are considered prior to renewal of any service or commodity contract.

(18)   If the contract provider fails to materially comply with terms of the contract the Division Administrator may:

(A)   Withhold payment until provider achieves compliance; or

(B)   reduce payment rate by ten percent for the period in which provider fails to comply; or

(C)   refuse to make any payment for services/commodities supplied during period of non-compliance; or

(D)   terminate the current contract for cause.

(19)   Contract providers may appeal adverse action taken by DDSD against the provider except for contract termination without cause.

(A)   Contractors submit written appeal to DDSD within 14 days of adverse action.

(B)   The Division Administrator reviews written contractor appeal and issues a final DDSD appeal disposition.

[Source: Amended at 8 Ok Reg 2163, eff 5-13-91 (emergency); Amended at 9 Ok Reg 1549, eff 4-27-92; Amended at 10 Ok Reg 2505, eff 5-24-93 (emergency); Amended at 11 Ok Reg 2303, eff 5-26-94]