Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 14 - Department of Finance (Administrative Services) › Rule 016.14.06-003 - Contract Manual for Professional / Consultant Services Contracts and Intra-Agency Agreements

Current through Register Vol. 49, No. 6, June, 2024
AASIS
Arkansas Administrative Statewide Information
						  System
ABA
Arkansas Building Authority
A.C.A.
Arkansas Code Annotated
ACO
Administrative Compliance Officer
AP
Accounts Payable, Office of Finance and Administration,
						  Department of Health and Human Services
AR
Accounts Receivable, Office of Finance and
						  Administration, Department of Health and Human Services
BAA
Business Associate Agreement
GrO----------
-Contract OfficerCAP Contracting Automation
						  Platform
CAS
Contract Archival SystemGAP------------------Corrective
						  Action Plan
CB
Competitive Bid
GFDA-------
-Catalog of Federal Domestic Assistance
CMU
Contract Management Unit, Contract Support Section,
						  Office of Finance and Administration, Department of Health and Human
						  Services
COUGAR
-Contract and Grant Management, Tracking, and Reporting
						  system
CPO
Certified Procurement Official
CPU
Commodities Purchasing Unit, Contract Support Section,
						  Office of Finance and Administration, Department of Health and Human
						  Services
GRU---------
-Contract Review Unit, Contract Support Section, Office
						  of Finance and Administration, Department of Human Services
CSP
Competitive Sealed Proposal
CSS
Contract Support Section, Office of Finance and
						  Administration, Department of Health and Human Services
CSU
Central Support Unit, Contract Support Section, Office
						  of Finance and Administration, Department of Health and Human
						  Services
DAAS
Division of Aging and Adult Services, Department of
						  Health and Human Services
DBH
Division of Behavioral Health, Department of Health and
						  Human Services
DCCECE
Division of Child Care and Early Childhood Education,
						  Department of Health and Human Services
DCFS
Division of Children and Family Services, Department of
						  Health and Human Services
DCO
Division of County Operations, Department of Health and
						  Human Services
DDS
Division of Developmental Disabilities Services,
						  Department of Health and Human Services
DFA
Department of Finance and Administration
DHHS
Department of Health and Human Services, United States
						  Government
BHS---------
-Department of Human Services
DMS
Division of Medical Services, Department of Health and
						  Human Services
DOH
Division of Health, Department of Health and Human
						  Services
DOV
Division of Volunteerism, Department of Health and
						  Human Services
DSB
Division of Services for the Blind, Department of
						  Health and Human Services
DYS
Division of Youth Services, Department of Health and
						  Human Services
EEO
Equal Employment Opportunity
EOS----------
-Electronic Data Systems
EO
Executive Order
FH-----------
-Federal Early Intervention
FY
Fiscal Year
FOU--------
-----Field Operations Unit, Contract Support Section,
						  Office of Finance and Administration, Department of Human
Services
GSA
General Service Administration, United States
						  Government
HIPAA
Health Insurance Portability and Accountability
						  Act
IG
Intergovernmental
IRS
Internal Revenue Service, United States
						  Government
MOA
Methods of Administration
OCC
Office of Chief Counsel, Department of Health and Human
						  Services
OFA
Office of Finance and Administration, Department of
						  Health and Human Services
OSP
Office of State Procurement, Department of Finance and
						  Administration
OST
Office of Systems and Technology, Department of Health
						  and Human Services
PASOS
Provider Audit Sign-off Sheet
PCS
Professional/Consultant Services
PEER
Performance Evaluation and Expenditure
						  Review
PHI
Protected Healthcare Information
PO
Purchase Order
RFP
Request for Proposal
RFQ
Request for Qualifications
RMU
Records Management Unit, Contract Support Section,
						  Office of Finance and Administration, Department of Health and Human
						  Services
SSBG
Social Services Block Grant
TEA--------
-----Transitional Employment Assistance
TIN
Taxpayer Identification Number
TWC
Together We CanVMX------------------Voice Mail
						  Exchange
CHAPTER ONE
INTRODUCTION
To carry out some aspects of its mission, the Arkansas
				Department of Health and Human Services (DHHS) uses a statewide network of
				contracted service providers, ii
The purpose of this Contract Manual (hereinafter referred to as
				"this Manual") is to provide a common frame of reference for the development of
				Professional and Consultant Services (PCS) contracts and intra-agency
				agreements . It is based on federal and state directives, as well as "best
				practices" which have been standardized for use by DHHS program
				divisions/offices (hereinafter referred to as "divisions").
The essential elements of each agreement are based on
				mutually binding obligations between the two i parties: the service provider
				eiie and the applicable DHHS division/office, using funds appropriated to carry
				out the
nrnnram re[LESS THAN]:nrtn[LESS THAN]:ihilitip[LESS
				THAN]: nfthat Hiviginnip
The Office of Chief Counsel (OCC) provides legal advisory
				concerning procurement methods, service performance provisions, and any unique
				terms and conditions or other proposed deviations from standard practices
				described in this Manual.
The Office of Finance and Administration (OFA) provides
				administrative direction to facilitate the successful completion of agreements
				so that they iiiiliiil iiil meet requirements for coordination through the
				Office of State Procurement (OSP), Department of Finance and Administration
				(DFA) and review by the Arkansas state legislature, if necessary. OFA also
				provides financial advisory and technical assistance through a network of
				divisional Chief Fiscal Officers to assure compliance with the Financial
				Management Guidee iee and the Accounting and Budgetary Procedures Law.
The Central Support Unit (CSU) of the Contract Support Section
				(CSS) of OFA provides this Manual as an element of technical assistance. Please
				direct all suggestions for corrections, additions and/or updates to:
Contract Support Section/Slot W345
P.O. Box 1437
Little Rock, AR 72203
Telephone: (501) 682-6293
CHAPTER TWO
CONTRACTING FORMATS
I.
Definitions
(from Rules and
			 Regulations Implementing Governor's Executive Order (EO) | 98-04 and Act 34 of
			 1999)
Ai
-------"Contract shall mean any agreement
				entered into by and between a |
state agency and an individual or entity pursuant to which the
				agency agrees to purchase or lease tangible personal property, real property,
				or services, or any agreement for the disposal of commodities and services.
				Contract includes, but is not limited to, awards and notices of award;
				contracts of a fixed price, cost, or incentive type; contracts providing for
				the issuance of job or task orders, leases, lease purchase agreements, letter
				contracts, purchase orders, and professional or consultant services contracts.
				Contract also includes supplemental agreements with respect to any of these
				categories."
II.
Contracting Formats for Services
A purchase of services contract is a legally binding agreement,
				enforceable by law, between DHHS and a provider of services. A provider of
				services may be a private entity (i.e., an individual, partnership, or
				corporation) or a public entity (i.e., a governmental agency or entity). The
				agreement contains mutually binding obligations and a description of the
				services to be provided with payment contingent on delivery of services. The
				acceptable e contracting formats include:eeee |
A.
PCS Contracts
1. PCS contracts are governed by Arkansas
			 Procurement Law and applicable statutes (as found in the Arkansas Code
			 Annotated [A.C.A.]) and regulations, including but not limited to the
			 following:
a. A.C.A. §
												19-11-101 et seq. General
			 Provisions
b. A.C.A. §
												19-11-201 et seq. Procurement
			 Law
c. A.C.A. §
												19-11-701 et seq. Ethics in Public
			 Contracting
d. A.C.A. §
												19-11-801 et seq. Procurement of
			 Professional Services
e. A.C.A.
			 § 19-11-1000 et seq. Professional and Consultant Services
f. A.C.A. §
												15-4-301 ets eq. Minority
			 Procurement
2.
Professional Services
contracts are for the purchase of services
			 which are professional in nature and generally require that the provider have
			 some type of specialized training or license/certification (e.g., medical
			 services, social work, therapy, counseling, etc.). A.C.A. §
											19-11-203(14), as
			 amended in 2003, exempts certain professional services from compliance with the
			 purchasing law.
3.
Consultant Services
contracts are utilized when the service to be
			 rendered is primarily the giving of advice by the contractor on a particular
			 problem facing the agency.
4.
PCS Contract Formats
a. PCS
			 contracts for which the total compensation exceeds $25,000.00 per vendor, per
			 fiscal year, per cost center shall be executed on the
Professional/Consultant Services Contract
form
(Form OSP-1)
| and are commonly referred to as
"standard PCS
			 contracts."
b. PCS contracts
			 for which the total compensation does NOT exceed $25,000.00 should be executed
			 on the purchase order (PO) format, in which case they are referred to as
"stand-alone PO's."
A division
may
,
			 however, execute a PCS contract that does not exceed $25,000.00 in compensation
			 as a
"standard PCS contract"
on the
Form OSP-1,
if
			 circumstances warrant.
5. PCS contracts are addressed in
Chapter Ten
of this Manual.
B.
Intra-agency Agreements
1. Intra-agency agreements are used when one
			 DHHS division purchases services from another DHHS division.
2. Intra-agency Agreements are addressed in
Chapter Eleven
of this Manual.
C.
Technical Services Contracts
1. Contracts for technical services are
			 governed by the Arkansas Procurement Law and applicable statutes and
			 regulations, including but not limited to the following:
a.
A.C.A. §
																19-11-101 etseq.
General Provisions
b.
A.C.A. §
																19-11-201 etseq.
Procurement Law
c.
A.C.A. §
																19-11-301 etseq.
Bidding - State Industry Priority Goods
d.
A.C.A. §
																19-11-601 etseq.
Federal Government Surplus Property
e
A.C.A. §
																19-11-701 etseq.
Ethics in Public Contracting
f.
A.C.A. §
																15-4-301 etseq.
Minority Procurement
g-
A.C.A. §
																19-11-901 etseq.
Purchases of Workshop Made Products and
						  Services
h.
A.C.A. §
																15-4-301 etseq.
Minority Procurement
DHS Administrative Procedures Manual, Chapter 604, DHS
				Purchasing Authority-Contracts and Leases,
also governs cContracts for
				technical | services.
2.
			 "Technical services" are described by A.C.A. §19-11 -203(34) as:
a. Work accomplished by skilled individuals
			 involving time, labor, and a degree of expertise, in which performance is
			 evaluated based upon the quality of the work and the results
			 produced;
b. Work performed to meet
			 a demand, including, but not limited to, work of a recurring nature that does
			 not necessarily require special skills or extensive training, or;
c. The furnishing of labor, time, or effort
			 by a contractor or vendor, not involving the delivery of any specific end
			 product other than reports that are incidental to the required
			 performance.
3. Examples
			 of services that are llypically considered technical in nature include drug
			 screening, criminal background checks, elevator service, janitorial service,
			 pest control service, translator service, nursing, occupational therapy,
			 physical therapy, speech therapy, housekeeping, training, and office machine
			 maintenance.
4. When in doubt if a
			 particular service should be considered technical or professional, consult with
			 Commodities Purchasing Unit (CPU) ii or CSU.
5. Technical services are not within the
			 scope of this Manual. For assistance on the development of technical services
			 contracts, consult with CPU.
D.
Interlocal Agreements
1. Interlocal Agreements are authorized under
			 A.C.A. §
											25-20-104.
2. The purpose of Interlocal Agreements is to
			 facilitate cooperation and sharing of resources at the local level between
			 state agencies.
3. For information
			 regarding Interlocal Agreements, consult with CSS prior to
			 development
4. Interlocal
			 Agreements are for highly specific situations and the details on their
			 development are not within the scope of this Manual.
III.
Other
			 Agreement Types
A.
Medicaid
			 Provider Agreements
1. Medicaid
			 Provider Agreements establish an individual or entity as a Medicaid provider
			 and are specific to each service being provided. Contractors may have multiple
			 contracts if they provide more than one of the approximately forty available
			 services.
2. Medicaid Provider
			 Agreements are managed by the Division of Medical Services (DMS) and are
			 governed by Medicaid regulations and rates.
3. Medicaid Provider Agreements are not
			 within the scope of this Manual.
B.
Sub-grants
1. Sub-gGrants are written agreements to
			 provide money or property to eligible | recipients under specific federal or
			 state legislation authorizing such assistance.
2. The sub-grant award process complies with
			 the Accounting and Budgetary Procedures laws of Arkansasiiiiili
			 iiiiiieleie.
3. In accordance with
			 A.C.A. §
											19-4-2201 and 2202, the Review
			 Subcommittee and the Legislative Council must review non-exempt iei |
			 discretionary sub-grants prior to implementation.
4. Some of the factors to consider when
			 determining if a particular situation warrants a sub-grant or a contract
			 include the following:
a. Sub-grants are for
			 ASSISTANCE while contracts are for ACQUIRING (PURCHASING) SOMETHING.
b. Sub-grants are often considered to be an
			 award of resource assistance to fulfill the SUB-GRANTEE'S mission, while
			 contracts are often put in place to fulfill DHHS' mission.
c. If performance indicators are needed, with
			 the extra degree of specificity regarding what is to be done and remedies for
			 failure to perform, a contract is probably more appropriate than a
			 sub-grant.
d. Just because the
			 funding comes to DHHS as a sub-grant from the federal government does NOT
			 necessarily mean DHHS should put it out to the vendor as a sub-grant.
5. Sub-grants are not within the
			 scope of this Manual.
NOTE:
If there is doubt as to whether a sub-grant or a contractil i
				is the most appropriate agreement format, consult with
				CSS.
D.
Construction Contracts
1. Construction
			 contracts are developed and approved in accordance with Arkansas Building
			 Authority (ABA) regulations.
2. For
			 details on construction contracts, consult with CSU.
3. Construction contracts are not within the
			 scope of this Manual.