Code of Massachusetts Regulations › 815 CMR - COMPTROLLER'S DIVISION › Title 815 CMR 8.00 - Contingent Contracts For Non-tax Revenue Maximization › Section 8.04 - Contract Terms and Conditions

Current through Register 1525, July 5, 2024
(1) The Office of the Comptroller will furnish "standard" contract terms and conditions to be used for all contingency contracts. Also the Comptroller's office will furnish "standard" terms and conditions to be used in each Interdepartmental Service Agreement required to support a contingency contract. Any modification to such standard terms and conditions requires the prior written approval of the Comptroller.
(2) Contingency contracts, or Interdepartmental Service Agreements relating to contingency contracts, must be personally signed by the Comptroller. In a situation where the Comptroller's office is a party to a joint venture, the Comptroller will co-sign the contract after the signatures of relevant department heads, as members of the joint venture, are obtained. In a situation where the Comptroller's office had delegated in writing the authority to issue an RFP to other departments, the Comptroller will evidence final approval to such contracts by personally signing the documents prepared by those parties. It is expected that a typical contingency contract may thus demonstrate multi-party participation and have requisite signatures from departments and the Comptroller's office.
(3) All contingency contracts will specify the maximum obligation of the Commonwealth to the outside party. In addition to maximum obligation, contingency contracts may specify compensation as a percent of the increase of federal financial participation or other reimbursement only over the measurement basis. It is expected that most contingency contracts will be structured as a percent of the increase of federal financial participation or other reimbursement only over the measurement basis not to exceed the maximum obligation; however in some cases fee for service arrangements may be appropriate. Within the compensation structure, a differential set of percentages related to differential increments over the measurement basis is allowable.
(4) All contingency contracts, including multi-year contracts will specify additional elements including but not limited to:
(a) the time period for which the project or engagement will be undertaken,
(b) the time period against which the measurement basis used to calculate the increased revenue associated with the contingency contract is applied,
(c) an explicit (and if possible quantified) definition of the measurement basis for the contingency contract,
(d) an explicit (and if possible quantified) reference to the expectations for base revenues and maximized revenues associated with the program for which the contingency engagement is being undertaken,
(e) specific performance criteria and definitions and timing of deliverables by the outside party,
(f) specific criteria to determine the acceptance by the department of each deliverable,
(g) an estimate of the increased revenue by source,
(h) assignments of key personnel to be made by the vendor and (i) procedures for resolving future period disallowances.