Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 14 - Department of Finance (Administrative Services) › Rule 016.14.10-002 - DHS Contract Manual

Current through Register Vol. 49, No. 6, June, 2024
CONTRACT MANUAL for Professional and Consultant Services
				Contracts, Intra-agency Agreements, and Inter-agency Agreements
Contract Manual Acronyms and Abbreviations
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 Human Services
AR
Accounts Receivable, Office of Finance and
						  Administration, Department of Human Services
BAA
Business Associate Agreement
CAP
Contracting Automation Platform
CAS
Contract Archival System
CB
Competitive Bid
CMU
Contract Management/Comprehensive Annual Financial
						  Report Unit, Office of Finance and Administration, Department of Human
						  Services
CPO
Certified Procurement Official
CPU
Commodities Purchasing Unit, Contract Support Section,
						  Office of Finance and Administration, Department of Human Services
CSB
Competitive Sealed Bid
CSP
Competitive Sealed Proposal
CSS
Contract Support Section, Office of Finance and
						  Administration, Department of Human Services
CSU
Central Support Unit, Contract Support Section, Office
						  of Finance and Administration, Department of Human Services
DAAS
Division of Aging and Adult Services, Department of
						  Human Services
DBH
Division of Behavioral Health, Department of Human
						  Services
DCCECE"
Division of Child Care and Early Childhood Education,
						  Department of Human Services
DCFS
Division of Children and Family Services, Department of
						  Human Services
DCO
Division of County Operations, Department of Human
						  Services
DDS
Division of Developmental Disabilities Services,
						  Department of Human Services
DFA
Department of Finance and Administration
DHS
Department of Human Services
DMS
Division of Medical Services, Department of Human
						  Services
DOV
Division of Volunteerism, Department of Human
						  Services
DSB
Division of Services for the Blind, Department of Human
						  Services
DYS
Division of Youth Services, Department of Human
						  Services
EEO
Equal Employment Opportunity
EO
Executive Order
FY
Fiscal Year
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 Human
						  Services
OFA
Office of Finance and Administration, Department of
						  Human Services
OQA
Office of Quality Assurance, Department of Human
						  Services
OSP
Office of State Procurement, Department of Finance and
						  Administration
OST
Office of Systems and Technology, Department of Human
						  Services
PASOS
Provider Audit Sign-off Sheet
PCS
Professional and 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 Human Services
SSBG
Social Services Block Grant
TIN
Taxpayer Identification Number
CHAPTER ONE
INTRODUCTION
x
To carry out some aspects of its mission, the Arkansas
				Department of Human Services (DHS) uses a statewide network of contracted
				service providers.
The purpose of this Contract Manual (hereinafter referred to as
				"Manual") is to provide a common frame of reference for the development of
				Professional and Consultant Services (PCS) contracts, intra-agency agreements
				(i.e., agreements between two or more divisions within DHS), and interagency
				agreements (i.e., agreements between a DHS division and another state agency).
				This Manual is based on federal and state directives and agency policy as well
				as best practices which have been standardized for use by DHS program
				divisions/offices (hereinafter referred to as "divisions").
The essential elements of each agreement are based on
				mutually binding obligations between the two parties: the service provider and
				the applicable DHS division, using funds appropriated to carry out the program
				responsibilities of that division.
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 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 Guide and the
				Accounting and Budgetary Procedures Law.
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
* DHS requires fair and equal oppbrtunity in employment and
				service delivery regardless of race, color, religion, sex, age, national
				origin, political beliefs, or disability that impair one or more major life
				activities as defined in the Americans with Disabilities Act. DHS requires
				non-discrimination and equal opportunity in compliance with all applicable
				federal laws, regulations, executive orders and civil rights rules and
				regulations.
Contractors are required to comply with the promulgated Methods
				of Administration (MOA) for recipients of federal financial assistance as
				directed by the United States Department of Health and Human
				Services.
CHAPTER TWO
CONTRACTING FORMATS
I.
Definition
(from Rules and Regulations Implementing Governor's Executive
			 Order [EO] 98-04 and Act 34 of 1999)
"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
				(PO's), 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 DHS 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
				common contracting formats for services include:
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
etseq.
General Provisions
b.
A.C.A. §
																	19-11-201
etseq.
Procurement Law
c.
A.C.A. §
																	19-11-701
etseq.
Ethics in Public Contracting
d.
A.C.A. §
																	19-11-801
etseq.
Procurement of Professional Services
e.
A.C.A. §
																	19-11-1001
etseq
Professional and Consultant Services
f.
A.C.A. §
																	15-4-301
etseq.
Minority Procurement
g-
A.C.A. §
																	19-11-251
Alternate Format
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, counseling, etc.).
A.C.A. §
												19-11-203(14),
as amended in 2003, exempts certain professional services from
			 compliance with the procurement 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
per vendor, per cost center, per service shall be executed on
				the
Professional/Consultant Services Contract
form
(Form
				OSP-1)
and are commonly referred to as
"standard PCS
				contracts."
EXCEPTION:
In accordance
				with the rules and regulations promulgated under
ACA §
														19-11-251,
inter-agency
				agreements for professional or consultant services may be executed on an
				alternate format from the standard
Form OSP-1,
inter-agency
				agreements being defined as those between a DHS division and another
				state
agency. The alternate format designed for this purpose is the
DHS-9198
(and the
DHS-9198A
for amendments). Use of
				this alternate format requires the prior approval of the OSP Director
b. PCS contracts for which the
			 total compensation does NOT exceed
$25,000 per vendor, per cost center, per service may be
				executed on the 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 in compensation per vendor, per cost
				center, per service as a
"standard PCS contract"
if
				preferred.
5.
			 Routine PCS contracts are addressed in
Chapter Ten
of this Manual.
			 PCS inter-agency agreements executed on the alternate format are addressed in
Chapter Twelve
of this Manual.
B.
Intra-agency Agreements
1. Intra-agency agreements are used when one
			 DHS division purchases services from another DHS 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, Chapters 601
				through 609,
also governs contracts 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 typically
			 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, divisions should consult with
			 Commodities Purchasing Unit (CPU).
5. Technical services are not within the
			 scope of this Manual. For assistance on the development of technical services
			 contracts, divisions should 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, divisions should 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-grants 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 shall comply
			 with the Accounting and Budgetary Procedures laws of Arkansas.
3. In accordance with
A.C.A. §
												19-4-2201
and
2202,
the Legislative Review \ Subcommittee and the Legislative Council must
			 review non-exempt 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 DHS' mission.
c. If performance based standards 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 DHS as a grant does NOT necessarily mean DHS 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 contract is
				the more appropriate agreement format, divisions should consult with
				CSS.
C.
Construction Contracts
1. Construction
			 contracts are developed and approved in accordance with Arkansas Building
			 Authority (ABA) regulations.
2. For
			 details on construction contracts, divisions should consult with Central
			 Support Unit (CSU).
3. Construction
			 contracts are not within the scope of this Manual.