Oregon Administrative Rules › Chapter 125 - DEPARTMENT OF ADMINISTRATIVE SERVICES › Division 246 - GENERAL PROVISIONS FOR PUBLIC CONTRACTING › Section 125-246-0576 - Payment Authorization for Cost Overruns for Services Contracts

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Payments on Contracts for Trade or
			 Personal Services that exceed the maximum contract consideration (Cost
			 Overruns) require approval (Approval). If the aggregated value of the Contract,
			 including Cost Overruns, does not exceed $250,000, the Designated Procurement
			 Officer of the requesting Authorized Agency may approve the Cost Overruns in
			 accordance with Section (2) of this Rule. If the aggregated value of the
			 Contract, including Cost Overruns, exceeds $250,000, the State Chief
			 Procurement Officer may approve the Cost Overruns in accordance with Section
			 (2) of this Rule. The Cost Overruns may also require approval from the
			 Department of Justice pursuant to ORS
			 291.047 and
			 291.049.
(2) Approval may be provided if:
(a) The Original Contract was duly executed
			 and, if required, approved by the Department and the Attorney
			 General;
(b) Payments relate to
			 Services that were provided during the term of the Contract;
(c) The cost overrun is not associated with
			 any change in the Statement of Work set out in the Original Contract;
(d) The cost overrun arose out of
			 extraordinary circumstances or conditions encountered in the course of contract
			 performance that were reasonably not anticipated at the time the Original
			 Contract, or the most recent Amendment, if any, was signed. Such circumstances
			 include, but are not limited to: emergencies arising in the course of the
			 Contract that require prompt action to protect the Work already completed,
			 compliance with official or judicial commands or directives issued during
			 contract performance or insurance that the purpose of the Contract will be
			 realized;
(e) The cost overrun was
			 incurred in good faith, results from the good faith performance by the
			 Contractor, and is no greater than the prescribed hourly rate or the reasonable
			 value of the additional Work or performance rendered;
(f) The aggregated value of the Contract,
			 including the Cost Overrun, and the Contract's objective are within the
			 Authority of the Authorized Agency pursuant to OAR 125-246-0170, and the
			 Authorized Agency currently has funds available for payment under the Contract;
			 and
(g) The Agency must prepare a
			 Written report that describes the Authorized Agency's discovery of the Cost
			 Overrun, the reasons for the Cost Overrun, and the Agency's satisfaction of the
			 conditions set forth in this Section (2) (Report). The Authorized Agency must
			 maintain this Report in its Procurement File and make this Report available to
			 the Department upon request.
(h)
			 The Designated Procurement Officer of the Authorized Agency approves in Writing
			 the payment of the overrun, or such portion of the overrun amount as the
			 Designated Procurement Officer of the Authorized Agency determines may be paid
			 consistent with the conditions of this Rule. If the Designated Procurement
			 Officer of the Authorized Agency has signed the Contract, or has immediate
			 supervisory responsibility over performance of the Contract, that Person must
			 designate an alternate delegate to grant or deny Written approval of
			 payment.