2023 Connecticut General Statutes › Title 4 - Management of State Agencies › Chapter 55a - Consultants and Personal Service Agreements › Section 4-216. - Personal service agreements having cost of more than fifty thousand dollars or term of more than one year. Nonprofit provider contract incentives.

(a) No state agency may execute a personal service agreement having a cost of more than fifty thousand dollars or a term of more than one year, without the approval of the secretary. A state agency may apply for an approval by submitting the following information to the secretary: (1) A description of the services to be purchased and the need for such services; (2) an estimate of the cost of the services and the term of the agreement; (3) whether the services are to be on-going; (4) whether the state agency has contracted out for such services during the preceding two years and, if so, the name of the contractor, term of the agreement with such contractor and the amount paid to the contractor; (5) whether any other state agency has the resources to provide the services; (6) whether the agency intends to purchase the services by competitive negotiation and, if not, why; and (7) whether it is possible to purchase the services on a cooperative basis with other state agencies. The secretary shall approve or disapprove an application within fifteen business days after receiving it and any necessary supporting information, provided if the secretary does not act within such fifteen-day period the application shall be deemed to have been approved. The secretary shall immediately notify the Auditors of Public Accounts of any application which the secretary receives for approval of a personal services agreement for audit services and give said auditors an opportunity to review the application during such fifteen-day period and advise the secretary as to whether such audit services are necessary and, if so, could be provided by said auditors.
(b) Each personal service agreement having a cost of more than fifty thousand dollars or a term of more than one year shall be based on competitive negotiation or competitive quotations, unless the state agency purchasing the personal services applies to the secretary for a waiver from such requirement and the secretary grants the waiver in accordance with the guidelines adopted under section 4-215.
(c) The secretary shall establish an incentive program for nonprofit providers of human services that shall (1) allow providers who otherwise meet contractual requirements to retain any savings realized by the providers from the contracted cost for services, and (2) provide that future contracted amounts from the state for the same types of services are not reduced solely to reflect savings achieved in previous contracts by such providers. For purposes of this subsection, “nonprofit providers of human services” includes, but is not limited to, nonprofit providers of services to persons with intellectual, physical or mental disabilities or autism spectrum disorder. Any nonprofit provider of human services allowed to retain savings under the incentive program shall submit a report to the secretary on how excess funds were reinvested to strengthen quality, invest in deferred maintenance and make asset improvements.
(P.A. 93-336, S. 5, 13; 93-435, S. 83, 95; P.A. 96-268, S. 18, 34; P.A. 99-44, S. 1, 2; P.A. 09-210, S. 4; P.A. 17-122, S. 1; P.A. 19-127, S. 1; P.A. 21-65, S. 2; June Sp. Sess. P.A. 21-2, S. 339.)
History: P.A. 93-336 effective June 29, 1993; P.A. 93-435 amended Subsec. (a) by adding “and any necessary supporting information” to Subdiv. (7), effective June 28, 1993; P.A. 96-268 amended Subsec. (a) to replace “ten” with “fifteen” and “ten-day” with “fifteen-day” re time limit for action on applications, amended Subsec. (b) to add “or competitive quotations” and made a technical correction, effective July 1, 1996; P.A. 99-44 amended Subsec. (a) to require secretary to give Auditors of Public Accounts opportunity to review personal services agreement applications for audit services, effective July 1, 1999; P.A. 09-210 made a technical change in Subsec. (b), effective July 8, 2009; P.A. 17-122 added Subsec. (c) re establishment of incentive program for nonprofit providers of human services, effective July 1, 2017; P.A. 19-127 substantially amended Subsec. (c) including replacing “may establish an incentive program” with “shall establish a pilot incentive program”, deleting reference to contracts that do not exceed $1,000,000, deleting former Subdiv. (2) re requirement that at least 50 per cent of savings retained by providers be used to expand services, redesignated existing Subdiv. (3) as new Subdiv. (2), adding provisions re nonprofit providers of human services with contracts in certain amounts to be included in pilot incentive program, and replacing “state funded assistance programs” with “nonprofit providers of human services”, effective July 1, 2019; P.A. 21-65 amended Subsec. (c) by deleting reference to incentive program being pilot program, “a percentage of” in Subdiv. (1) and provisions re 8 nonprofit providers and amounts of contracts, effective July 1, 2021; June Sp. Sess. P.A. 21-3 made identical changes as P.A. 21-65 and further amended Subsec. (c) by requiring nonprofit providers to report on use of excess funds, effective July 1, 2021.