It is difficult to determine what the effective date is for these contracts. There is potential for litigation with any contract. Although our review was limited, nothing came to our attention which indicates language in State Fund contracts does not properly protect the State's interests. While State Fund's contracts are valid, binding agreements, there is confusion as to when the actual effective dates are for some of the contracts. Standardization of this language for all State Fund contracts could eliminate confusion.
Different attorneys handle different contracts, so there are differences in style.
The use of standard boilerplate format for all sections will improve the efficiency of contract development. It will allow for easy location of sections. In addition, standardization of sections should help decrease the amount of time involved in drafting and reviewing contracts. We recommend State Fund develop a standard contract format and boilerplate language for use by all departments. Compliance with Contract Regulations Audit standards require reporting of noncompliance issues related to objectives.