**M28-1, Part III March 2, 1988**

**CONTENTS**

**CHAPTER 8. CONTRACTS AND AGREEMENTS FOR REHABILITATION SERVICES**

**PARAGRAPH PAGE**

8.01 Authority to Negotiate Contracts 8-1

8.02 Prohibition Against Contracting Without Authority 8-1

a\. No General Contracting Authority to Other VR&C Staff Members 8-1

b\. Exception to Contracting Prohibition 8-1

8.03 When Contracting is Needed 8-1

a\. Guidance Centers 8-1

b\. Special Services 8-1

c\. Purchase of Equipment and Supplies 8-1

8.04 Contracts Not Required 8-1

a\. Criteria 8-1

b\. Statement for Contract File 8-1

8.05 Contracts Required 8-2

a\. When Contracts are Required 8-2

b\. Negotiation for Needed Training, Services and Supplies 8-2

8.06 Contracts Requiring Central Office Clearance Prior to Approval 8-2

a\. Annual Expense Is \$ 10,000 or More 8-2

b\. Anticipated Total Expense is \$200,000 or More 8-2

c\. Contracts with Other Federal Agencies of \$5,000 or More 8-2

d\. Letter Contracts of \$5,000 or More 8-2

e\. EDP Equipment Purchase of \$50,000 or More 8-2

8.07 Preparation of Contracts 8-3

a\. Case Manager's Responsibilities 8-3

b\. Technical and Legal Assistance in Contracting 8-5

8.08 Distribution of Contracts 8-6

8.09 Renewals and Supplements to Contracts 8-6

a\. No Change in Contract Provisions 8-6

b\. Change in Contract
Provisions\...\...\...\...\...\...\...\...\...\...\...\...\...\.... 8-6

**8-i**

**M28-1, Part III March 2, 1988**

**CONTENTS-Continued**

**CHAPTER 8. CONTRACTS AND AGREEMENTS FOR REHABILITATION SERVICESCon.**

**PARAGRAPH PAGE**

8.10 Termination of Contracts 8-6

a\. Notice to the Contractor 8-6

b\. VR&C Action Upon Delivery of Notice to Contractor 8-6

c\. Retention of Verification That Notice Was Delivered 8-7

8.11 Contracts for Special Services or Courses 8-7

8.12 Contracts for Correspondence Courses 8-7

a\. Contract Requirements 8-7

b\. No Enrollments Until Contract Is Signed 8-7

8.13 Agreements to Train Disabled Veterans Within VA and Other Federal
Agencies 8-7

a\. Training in Other Federal Agencies 8-7

b\. Training Within the VA 8-7

8.14 Use of Letter Contracts or Memorandum Agreements 8-7

8.15 Establishment File for On-job Training 8-8

**FIGURE**

8.01 Example of Schedule I to a Contract 8-5

**8-ii**

**March 2, 1988 M28-1, Part III**

**CHAPTER 8. CONTRACTS AND AGREEMENTS FOR REHABILITATION SERVICES**

**8.01 AUTHORITY TO NEGOTIATE CONTRACTS**

a\. Authority to negotiate, award, and administer contracts, purchase
orders, and other agreements for the expenditure of funds for vocational
rehabilitation services is delegated to Directors of field stations
responsible for the VR&C (Vocational Rehabilitation and Counseling)
activity.

b\. The Director may delegate this authority to the VR&C Officer,
specifying in writing the scope and limitations of the authority
delegated (VAAR 801.6).

**8.02 PROHIBITION AGAINST CONTRACTING WITHOUT AUTHORITY**

**a. No General Contracting Authority to Other VR&C Staff Members.**
Under no circumstances will VR&C staff members who have not been
delegated contracting authority commit the government to the purchase of
services, supplies or equipment. While a CP or VRS designated as a case
manager or other staff member will be involved in the process of
determining the quality, quantity, and delivery requirements for
specific purchases, he or she may not sign contracts or agreements
committing the government to a purchase nor may he or she make verbal
commitments to purchase. Unauthorized individuals making these
commitments may be held financially liable for the amount of the
obligation. (VAAR 801.601(b))

**b. Exception to Contracting Prohibition.** Only in rare and unusual
circumstances will authority to contract be delegated to a VR&C staff
member other than the VR&C Officer. In such situations, the scope and
limitations of the contractual authority must be in writing and signed
by the station Director and appropriate records must be maintained.

**8.03 WHEN CONTRACTING IS NEEDED**

**a. Guidance Centers.** There are instances (see pt. II, ch. 10), where
fee basis guidance centers are needed to assure that counseling services
are available to all veterans within a regional office's jurisdiction.
Contracts with agencies, educational institutions, and qualified
practitioners are negotiated for this purpose.

**b. Special Services.** To provide rehabilitation services to disabled
veterans, contracts and agreements may be entered into with individuals
and organizations for such assistance as reader service, tutoring
service, independent instruction, and extended evaluation. For programs
of independent living services, contracts may be negotiated only with
nonprofit organizations and with individuals.

**c. Purchase of Equipment and Supplies.** Purchase orders and
agreements may be required for the procurement of equipment and supplies
necessary for participants to pursue rehabilitation programs.

**8.04 CONTRACTS NOT REQUIRED**

**a. Criteria.** A contract is not required with a school or other
institution when both of the following circumstances are met:

**(1)** The services or courses are provided by means other than
correspondence *(**NOTE**: An independent study course, as described in
38 CFR 21.128, is not a course provided by correspondence);* and

**(2)** All required costs for tuition, fees or services are published
in a school catalog or other document.

**b. Statement for Contract File.** When a contract is not required, a
statement will be prepared and placed in the contract file in accordance
with RCS (Records Control Schedule) VB-1, Part 1, item No. 07-620.010,
indicating that charges will be in accordance with the catalog or other
published document. This statement will contain the maximum cost limit
which cannot be exceeded, the probable date on which training or other
rehabilitation services will be concluded, and the signatures of the
VR&C Officer and a responsible official of the institution. **8-1**

**M28-1, Part III March 2,1988**

**8.05 CONTRACTS REQUIRED**

**a. When Contracts Are Required.** A contract is required under any of
the following circumstances:

**(1)** The facility does not have a catalog or other document in which
charges for services are published;

**(2)** The services procured are being furnished by an individual who
is the contracting party;

**(3)** Services are being furnished by correspondence, or

**(4)** Services are furnished by a rehabilitation facility.
Rehabilitation facilities include sheltered workshops and rehabilitation
centers.

**b. Negotiation for Needed Training, Services and Supplies**

**(1)** If there is no catalog or other document in which charges for
services are published, the amount and method of payment will be
negotiated and included in the terms and conditions of the contract.

**(2)** Contracts for courses or services by correspondence may include
tuition, books, supplies, and other allowable expenses charged by the
institution.

**(3)** A contract for rehabilitation services will be negotiated only
by the persons authorized in VAAR 801.6.

**8.06 CONTRACTS REQUIRING CENTRAL OFFICE CLEARANCE PRIOR TO APPROVAL**

The following categories of contracts, supplements and
agreements-including renewals and extensions-require Central Office
clearance as indicated below prior to execution by the regional office.
A copy of each proposed contract, supplement or agreement and all
supporting documentation must be submitted to reach the Director,
Vocational Rehabilitation and Education Service (227) at least 30 days
before the date the agreement is to go into effect. (VAAR
801.602-71(c)(1))

**a. Annual Expense Is \$10,000 or More.** All single contracts and
renewals for which the expenditure of \$10,000 or more annually is
anticipated, and changes, supplements and extensions of these contracts
and renewals which would result in the annual expenditure of \$10,000 or
more must have clearance from the Director, Vocational Rehabilitation
and Education Service.

**b. Anticipated Total Expense Is \$200,000 or More.** Contracts for
which the expenditure of \$200,000 or more is anticipated must have
clearance from either the General Counsel or the Office of Procurement
and Supply (VAAR 801.602-70). A different threshold exists for proposed
contracts for electronic data processing equipment purchased from other
than a Federal Supply Service contract (see subpar. e below).

**c. Contracts With Other Federal Agencies of \$5,000 or More.**
Contracts and agreements with other Federal agencies involving the
expenditure of VA funds of \$5,000 or more annually must have clearance
from the General Counsel.

**d. Letter Contracts of \$5,000 or More.** All proposed letter
contracts and ensuing formal contracts based on the letter contract
involving expenditure of \$5,000 or more must have clearance from the
General Counsel.

**e. EDP Equipment Purchase of \$50,000 or More.** Proposed contracts to
obtain \$50,000 or more electronic data processing equipment from other
than a Federal Supply Service contract list will be revealed and
concurred in by both the Office of Procurement and Supply and the
General Counsel.

**8.07 PREPARATION OF CONTRACTS**

**a. Case Manager's Responsibilities.** The case manager will develop
information in the negotiation of rehabilitation contracts. This
includes the following responsibilities:

**8-2**

**March 2, 1988 M28-1, Part III**

**(1) VA Form 22-1903.** When a contract is negotiated for
rehabilitation services under chapter 31, VA Form 22-1903, Contract for
Education and Training, will be used.

**(2) Number of Copies of Contract.** Contracts will be prepared in an
original and at least two copies.

**(3) Contract Identification Number.** Each contract will bear the
symbol "V" to designate the VA, followed by the number of the field
station, followed by another "V" designating the Vocational
Rehabilitation Program. Following this will be a hyphen and the number
of the contract. Contract numbers will be assigned in numerical
sequence.

**(4) Equal Opportunity Assurance.** VA Form 27-8206, Statement of
Assurance of Compliance With Equal Opportunity Laws (Under Title VI,
Civil Rights Act of 1964), will be secured for any school or training
facility not approved by the State approving agency and for individual
instructors, tutors, and readers with whom VA Form 22-1903 is
individually negotiated. Individual contractors should sign VA Form
27-8206 once and not each time a new contract is negotiated with them.
The signed statement will remain with regional office records and filed
in the contract file in accordance with RCS VB-1, part 1, item No.
07-620.010. A copy will be provided to the contractor.

**(5) Central Office Submissions.** Contracts which must be submitted to
Central Office for clearance (see par. 8.06) should include the full
address of the contractor (street number, city, ZIP Code), telephone
number with area code, and an estimate of the amount of the contract in
Schedule I of VA Form 22-1903. One copy of the proposed contract
completed and signed by the contractor, but not signed by the VA
contracting officer, must be forwarded to Central Office.

**(6) Contracts Not Requiring Central Office Approval.** Contracts which
do not require Central Office clearance will be retained by the VR&C
Division in its contract files in accordance with RCS VB-1, part 1, item
No. 07-620-010.

**(7) FAR Clauses Incorporated by Reference.** The FAR (Federal
Acquisition Regulation) clauses listed below will be incorporated in the
contract by reference:

> **FAR Subject**
>
> **(a)** 52.201-1 Definitions
>
> **(b)** 52.203-5 Covenant Against Contingent
>
> **(c)** 52.203-1 Officials Not to Benefit
>
> **(d)** 52.203-3 Gratuities
>
> **(e)** 52.219-8 Utilization of Small Business Aged
>
> Business Concerns
>
> **(f)** 52.219-13 Utilization of Women-Owned
>
> Small Businesses
>
> **(g)** 52.220-1 Preference for Labor Surplus
>
> Area Concerns
>
> **(h)** 52.220-3 Utilization of Labor Surplus
>
> Area Concerns
>
> **(i)** 52.222-1 Notice to the Government of
>
> Labor Disputes
>
> **(j)** 52.222-3 Convict Labor
>
> **(k)** 52.2224 Contract Work Hours and
>
> Safety Standards Act Over-time
>
> CompensationGeneral
>
> **(1)** 52.222-26 Equal Opportunity
>
> **(m)** 52.222-36 Affirmative Action for
>
> Handicapped Workers
>
> **(n)** 52.222-35 Affirmative Action for Special
>
> Disabled and Vietnam Era Veterans
>
> **(o)** 52.229-3 Federal, State and Local Taxes

**8-3**

**M28-1, Part III March 2, 1988**

> **(p)** 52.232-1 Payments
>
> **(q)** 52.232-11 Extras
>
> **(r)** 52.232-17 Interest
>
> **(s)** 52.232-23 Assignment of Claim
>
> **(t)** 52.224-2 Privacy Act
>
> **(u)** 52.224-1 Examination of Records by
>
> Comptroller General
>
> **(v)** 52.224-1 Examination of Records by
>
> Comptroller General
>
> **(w)** 52.223-2 Clean Air and Water (for contracts
>
> in excess of \$100,000)
>
> **(x)** VAAR 852.203-70 Ethics in Government Act
>
> **(y)** FPR Temp Regulation 66 Prompt payment Act(Federal
>
> Acquisition Circular No. dated
>
> March 30, 1984)

**(8) Clauses Incorporated in Full Text.** The following representations
and certifications (all dated April 1984) are made a part of the
contract and are incorporated in full text:

**(a)** Small Business Concern;

**(b)** Small Disadvantaged Business Concern;

**(c)** Independent Price Determination;

**(d)** Nonsegregrated Facilities; and

**(e)** Women-Owned Small Business.

**(9) Amendments, Modifications, and Other Interactions.** Contracts
will not be accepted in which the printed provisions of the contract
form are in any manner amended, modified, or abrogated. Erasures,
interlineations, and other alter-nations, whenever made in the typed
provisions of the contract or its attachments will be properly
authenticated by the initials of both parties of the contract.

**(10) Terms and Period of the Contract Must Be Clear.** All charges,
services and other terms of the contract will be stated clearly and
concisely. The period of the contract will not exceed I year.

**(11) Schedule I.** As required in article I of VA Form 22-1903,
Schedule I will be prepared and attached to each copy of the contract.
This schedule will include complete information with respect to courses
and charges. See figure 8.01 for an example of Schedule I.

**(12) Basis for Compensation.** Article I(e) of the contract form will
state concisely the basis under which the VA will compensate the
contractor for books, supplies, and equipment furnished the trainee. If
the contractor is not authorized to provide books, supplies or
equipment, the contract will state this.

**(13) Method of Payment.** Article 2(a) of the contract form will set
forth clearly and concisely the method of payment to the contractor.

**(14) Proration of Charges.** A statement regarding the proration of
charges when a veteran withdraws or is separated from the course prior
to completion will also be included in the contract.

**(15) Institutional or Corporate Certification.** If the contractor is
an institution or corporation, the certification on page 8 of the
contract will be executed.

**8-4**

**March 2, 1988 M28-1, Part III**

**SCHEDULE I**

**TO CONTRACT V301V-9999**

1\. It is understood and agreed that the Contractor will offer
independent instruction in the course Furniture Upholsterer,
780.381-018, and Furniture Refinisher, 763.381-018, under the provisions
of chapter 31, title 38, U.S.C., to disabled veteran TICKMAN, Titus A.,
C-30 777 771, when authorized by the VA for this training.

2\. Course Name: Furniture Upholsterer/Refinisher

3\. Length of Course: 12 months

4\. Method of Instruction: Independent Instructor

5\. Schedule of Instruction and Place of Instruction:

a\. The contractor shall provide the veteran a total of 312 hours of
independent instruction during the 12-month period of the course.

b\. Instruction will normally be provided on a weekly and monthly basis
not to exceed a total of 312 hours. Instruction shall be given at a time
and place mutually agreed upon by the VA and the Contractor.

6\. Charges:

a\. Tuition: \$15 per hour for hours of instruction given, not to exceed
\$4,680 for 312 hours of instruction for the course.

b\. The contractor will furnish books and consumable supplies not to
exceed \$400 for the total course.

**Figure 8.01 Example of Schedule I to a Contact**

**8-5**

**M28-1, Part III March 2, 1988**

**(16) Signing the Contract.** When preparation of the contract is
completed, all copies will be signed by the contractor and his or her
witnesses. Then, the Director or his or her designee will sign all
copies. If the Director must sign the contract, the VR&C Officer will
recommend the contract for approval If the VR&C Officer signs as the
Director's designee, the case manager will recommend the (contract for
approval).

**b. Technical and Legal Assistance in Contracting.** The general area
of contracting has become more complex in recent years and it is
expected that this trend will continue. Because of this, the VR&C
Officer is encouraged to consult with the servicing Supply Chief and
with the District Counsel for technical and legal assistance.

**8.08 DISTRIBUTION OF CONTRACTS**

Contracts which do not require Central Office clearance and contracts
which have received clearance by Central Office will be prepared in an
original and two or three copies and distributed as follows:

**a.** The original will be routed to the Chief of the Finance activity
in the regional office in accordance with RCS Office of Budget and
Finance, MP-4, Part 1, item No. 5-1a.

**b.** Copy I will be sent to the contractor;

**c.** Copy 2 will be retained by VR&C Division in the contract files in
accordance with RCS VB-1, part 1, item No. 07-620.010 and

**d.** Copy 3 will be filed on left flap of the
Counseling/Evaluation/Rehabilitation folder in accordance with RCS VB-1,
part 1, item No. 07-630.010. Copy 3 is optional and the need for it will
be determined by the VR&C Officer on a case-by-case basis. If copy 3 is
not used, it will be destroyed in accordance with RCS VB-1, part 1, item
No. 13-052.100.

**8.09 RENEWALS AND SUPPLEMENTS TO CONTRACTS**

**a. No Change in Contract Provisions.** Provided there is no change in
the provisions as originally consummated, contracts may be renewed from
year to year by completion of VA Form 28-1973, Renewal Agreement, no
later than 30 days prior to the expiration of the contract.

**b. Change in Contract Provisions.** Supplements may be negotiated to
provide for changes in courses, services, and charges at any time during
the contract period. These changes will be documented on VA Form
28-1972, Supplemental Agreement.

**c. Distribution of VA Form 28-1973 and VA Form 22-1972.** Both VA Form
28-1973 and VA Form 22-1972 will be distributed in the same manner as
described in paragraph 8.08 above.

**8.10 TERMINATION OF CONTRACTS**

The contracting officer, by written notice, may terminate a contract in
whole or part when it is in the best interest of the Government (see
article 6, VA Form 22-1903). When regional office management considers
that fraud has been committed or that the contractor is not furnishing
the services as required by the contract and the contractor has refused
to correct the condition, the best interest of the Government will be
served by the withdrawal of rehabilitation participants and the
termination of the contract. Termination notices will be individually
typed in an original and five copies and will be signed by personnel
authorized to sign contracts. Matters relating to suspected fraudulent
claims will be referred to the Assistant Inspector General Office of
Investigations (51) for investigation and referral to the Department of
Justice (VAAR 833.009).

**a. Notice to the Contractor.** The original and one copy of the
termination notice will be forwarded to the Contractor by registered
mail (return receipt requested), with a request that the copy be signed
and returned as an acknowledgement of receipt of the notice. The
remaining copies will be held in the VR&C Division until receipt of the
notice is verified in accordance with RCS VB-1, part 1, item No.
13-005.000. 8-6

**M28-1, Part III March 2, 1988**

**b. VR&C Action Upon Delivery of Notice to Contractor.** When the
contractor acknowledges receipt within 30 days from the date of the
termination notice and has not filed an appeal of the termination, the
remaining copies will be marked as certified true copies, dated, signed
with respect to the certification by an appropriate authority, and
distributed following the schedule for contracts in paragraph 8.08
above. If neither an acknowledgment nor an appeal is received within 30
days from date of the termination notice, but the requested receipt for
registered mail delivery has been returned, the copies will be marked as
true copies and distributed as above.

**c. Retention of Verification That Notice Was Delivered.** The copy of
the notice and any returned receipt, acknowledging receipt by the
contractor will be retained by the VR&C Division in the contract file in
accordance with RCS VB-1, part 1, item No. 07-620.010.

**8.11 CONTRACTS FOR SPECIAL SERVICES OR COURSES**

Special services or courses, which may be requested by the VA, are over
and above those customarily required by the institution for similarly
circumstanced nonveterans, but are considered necessary for the
rehabilitation of the veteran. The contract for these special services
or courses will be negotiated as in any other instance when services are
not described and charges are not listed in a facility's published
catalog or other document.

**8.12 CONTRACTS FOR CORRESPONDENCE COURSES**

**a. Contract Requirements.** Contracts for correspondence courses
authorized under chapter 31 will be negotiated for I year for named
veterans only. Contracts will not be renegotiated or extended unless
there is another specific veteran for whom the course will be used. VA
Form 22-1903 will be used for the agreement. VA Form 22-1972 will be
used to change the terms of the agreement. VA Form 22-1972 will also be
used if there is an existing agreement and the course is to be
authorized for another veteran. VA Form 28-1973 will be used for renewal
without change in the terms of the agreement.

**b. No Enrollments Until Contract Is Signed.** VA Form 28-1905,
Authorization and Certification of Entrance or Reentrance Into
Rehabilitation and Certification of Status, will not be sent to the
school until a signed copy of the agreement is received by the field
station.

**8.13 AGREEMENTS TO TRAIN DISABLED VETERANS WITHIN VA AND OTHER FEDERAL
AGENCIES**

**a. Training in Other Federal Agencies.** Standard training programs of
other Federal agencies which have been approved by the VA may be
utilized for the training of veterans under chapter 31 without the
necessity or further formal agreement. Procedures for entering veterans
into programs of nonpay or nominally paid Federal work experience or
on-job training will follow those for standard on-job programs.

**b. Training Within the VA.** Standard on-job apprenticeship programs
conducted within the VA may be utilized for the training of disabled
veterans under chapter 31 without the necessity of a formal written
agreement. Procedures for nonpay or nominally paid work experience or
on-job training within the VA will follow those of standard on-job
training. When there is no standard program and an individual program
must be developed, the procedures to develop an institutional or on-job
training program will be followed. When a program has been developed
which meets the requirements for training under chapter 31, necessary
approval of responsible officials will be obtained in the same manner as
for other prospective employees.

**8.14 USE OF LETTER CONTRACTS OR MEMORANDUM AGREEMENTS**

A letter contract is a written preliminary contractual instrument which
authorizes the immediate provision of services. Use of a letter contract
is limited to schools with which a contract is required when it is
determined that the veteran's rehabilitation program would be
jeopardized by withholding rehabilitation services pending completion of
a formal contract with the school. VA Form 21E‑1971, Memorandum
Agreement, may be used to enter into a temporary letter contract or
agreement. These agreements must be superseded by a definitive contract
at the earliest practicable date, but no later than 90 days from the
date of the letter contract. **8-7**

**M28-1, Part III March 2, 1988**

**8.15 ESTABLISHMENT FILE FOR ON-JOB TRAINING**

An establishment file will be maintained in the VR&C Division. An
establishment folder will be created and kept in this file for each
on-job training establishment with which a training agreement has been
executed. The folder will contain VA Form 22-1904, Agreement to Train on
the Job Disabled Veterans, copies of reports, and correspondence
pertaining to the agreement with the facility. A copy of the training
approval will be sent to the Education Liaison activity along with the
VA Form 27-8206. Folders will be uniquely numbered and indexed to allow
easy reference to specific folders, and will be maintained and disposed
of under RCS VB-1, part 1, item No. 07-661.040.

**8-8**