CFC 1109 Contracting _ Service Agreements by lanyuehua


									Series:              1100 Network Administration
Policy Name:         Contracting and Service Agreements
Policy Number:       1109
Origination Date:                        Revision Date:

Policy:        It is the policy of CFC to enter into contracts for Network services
               according to established procedures and with due regard for standards of
               best practice.

CFC Policy 1109 Contracting and Service Agreements                              Page 1

Contracting Standards

   1. Contracts for Network services over $25,000 in value require three independent
      written bids or as required by state or federal funding sources. The lowest bid
      will not necessarily be the one selected, but cost effectiveness is to be the main
      consideration in the selection process. A detailed cost analysis will be conducted
      on all sub-recipients in excess of $100,000. All sub-recipient contracts will be
      competitively procured for new services in excess of $300,000.

   2. The Contract Manager is responsible for enforcing performance of the contract
      terms and conditions and acts as the liaison between the network provider and

   3. Contract Management tasks include the management of contracts listed below:
         a. Contract development and negotiation
         b. Formulation of policies and procedures that govern contractual agencies
             and administrative practices
         c. Monitoring and reviewing evidence of contractual compliance in the areas
             of Environment of Care, Case Review, Financial, Administrative,
             Personnel, and Quality.
         d. Provision of in-service training and technical assistance to network
         e. Recommendation and monitoring of corrective action plans as necessary
         f. Incident reporting monitoring and follow-up
         g. Tracking and monitoring performance outcomes

   4. Contract staff involved in contracting and monitoring of services for CFC will
      maintain the highest ethical standards in the practice of their duties, which are:
         a. Perform or coordinate the timely performance of contract monitoring in
             accordance with program requirements;
         b. Initiate appropriate action after learning that a network provider’s actions,
             or lack thereof, have created a serious threat to the health, safety, or
             welfare of any client, employee, or member of the public.
         c. Report, discuss, or document the failure of a network provider to comply
             with material contract requirements, or breach of contract.
         d. Terminate the contract of a network provider who has failed to meet
             established contract performance standards or comply with any other
             material contract provision, and failed to timely correct performance
             deficiencies according to the approved corrective action plan.
         e. Employees are prohibited from soliciting or accepting anything of value
             from network providers that would cause them to be influenced in the
             discharge of their responsibilities.

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          f. Employees will disclose any conflicts of interest including engaging in or
             carrying on a business with a client, person, or agency doing business
             with CFC
          g. Employees will maintain the privacy and confidentiality of client names
             and other confidential information from network provider records that is
             discovered or becomes known to them through the course of their duties.

Terms and Conditions of the Contract

   1. The contract will include:
         a. all terms and conditions governing the nature and delivery of services
         b. network provider performance specifications
         c. performance evaluation methodology
         d. record keeping requirements
         e. reporting requirements
         f. payment methodology
         g. penalties for the network provider’s non-compliance

   2. All terms necessary to govern the relationship between CFC and the network
      provider will be presented in the contract document.

   3. All pertinent information relating to the contract will be maintained in the contract
            a. The files maintained by the Contract Manager are the official files of
               record and will be maintained for a minimum of six (6) years after the
               termination of the contract.
            b. If an audit has been initiated and audit findings have not been resolved at
               the end of six years, the records will be maintained until resolution of the

The Performance Contract – Terms and Conditions

   1. The Performance Contract is a contract document that contains the following
      terms and conditions:
          a. specific program description
          b. payment methodology
          c. standards and evidences of service provision
          d. performance standards
          e. staffing requirements.

   2. The following is a description of each major section of the Performance Contract:
         a. General Description
                 i. Purpose-this section provides a general statement of the service
                     to be provided.
                 ii. Authority—this section provides reference to the relationship that
                     CFC, has that resulted in the subject subcontract.

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                  iii. Scope of service-this section specifies client eligibility, client
                        determination, and contract limitations.
                  iv. Program goals-this section outlines the major programmatic goals
                        for service provision which correspond directly to the performance
                        measures in the contract.
                  v. Service provision-this section outlines the specific service
                        standards and the evidence by which they will be measured. This
                        section clearly states what the Contract Monitoring Team will be
                        looking for to demonstrate compliance at the time of monitoring.
                  vi. Service delivery-this section details the logistics of service delivery
                        relevant to location, changes in location, service times, and
                  vii. Reports-this section details the specific reports which will be
                        submitted to the contract manager periodically throughout the
                        contract year. This section will state the specific content
                        requirements, the frequency by which they will be submitted, and
                        the specific location and contact person to whom they should be
                  viii. Records and documentation-this section pertains to the
                        documentation and record keeping requirements of client case
                        files. It outlines the minimum requirements that will be found in
                        each record.
         b.   Performance Measures
                  i. Monitoring and evaluation methodology
                  ii. Enforcement, corrective action, and termination language.
         c.   Method of Payment
                  i. This section describes the service units used for billing purposes,
                        the minimum number of units provided per contract
                  ii. The payment clause by which services will be reimbursed to the
                        network provider.
                  iii. This section also contains the effective dates of the contract.
         d.   Staffing Requirements
                  i. Credentialing-this section outlines the required staff qualifications
                        and training requirements specific to the service provided.
                  ii. Screening-this section describes the required screening
                        procedures which will be followed by the program for staff relevant
                        to the type of work or job description.
                  iii. Staffing changes-provides for notification of the Contract Manager
                        within specific time frames when the executive director or
                        equivalent of the network provider vacates the position.
                  iv. Personnel records-contains the required contents of the provider’s
                        personnel records.
                  v. Subcontractors-describes if and how subcontracting for services
                        under the contract can occur.
                  vi. Training--outlines the requirements provider staff will meet related
                        to training expectations
         e.   Official Payee and Representatives

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                  i.     network provider name and address
                  ii.    financial and administrative contact person
                  iii.   representative responsible for program administration
                  iv.    contract manager
                  v.     signature page by which the contract will be executed.
                  vi.    provider federal tax identification number.

The Standard Contract – Terms and Conditions

   1. The standard contract is the a contract document that contains:
         a. all standard specifications
         b. standard contract language
         c. standard responsibilities and agreements made by the network provider
             and CFC
         d. standard provisions that will appear in all network provider contracts and
             are passed through to network providers by virtue of CFC obligation to
             comply with them.

   2. Exhibits are specific to the network provider, the services under contract, and
      included for reference. Exhibits usually include:
          a. Eligibility, admission and discharge criteria
          b. Incident reporting policy and procedure
          c. Security Agreement Form
          d. Financial and Compliance Audit
          e. Required reports or other documents that will be submitted to CFC, by the
              network provider

   3. Performance measures will be objective and quantifiable so that they are
      specific, time related and measurable. Performance measures will:
         a. Be clearly defined
         b. Be based on accurate data sources
         c. Be based on data sources that have their origin in the routine
              performance of the provider’s work.
         d. Conform to the applicable performance measures outlined in the various
              contracts under which the subcontracting is authorized.

Selection Based on Responses to Invitations to Negotiate

CFC has several methods of procurement types to select from; Invitation to Bid (ITB),
Request for Proposal (RFP), Invitation to Negotiate (ITN), Request for Qualifications and
Request for Information (RFI).

   1. All methods may be posted on the website and mailed to current and prospective

   2. The types of information to be included is as follows:
         a. Contact information for the agency.

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                    i. Name
                   ii. Address
                  iii. Phone number
          b.   Form of organization.
                    i. Public/nonprofit
                   ii. Partnership
                  iii. Location where it is organized
                  iv. Names of principals, officers, and directors of the agency
          c.   Key personnel.
                    i. Names of key personnel and respective titles
                   ii. Experience
                  iii. Periods of service with the agency.
          d.   Statement of qualifications.
                    i. A narrative statement of its qualifications for the proposed contract
          e.   Availability.
                    i. A brief statement of the availability of key personnel to undertake
                       the proposed project
          f.   Current contracts.
          g.   References.
                    i. Names and telephone numbers of persons whom CFC can call for
                       references regarding past performance, preferably providing
                       similar services.

   3. Ranking: CFC, Executive Management Team and outside reviewers then rank
      the providers response to the method of procurement.

   4. Selection: Supplementing the responses with the results of reference checks
      and, in some cases, interviews, CFC then selects one or more of the top-ranked
      agencies and begins negotiations or requests a formal proposal.

Selection Based on Responses to Procurement

   1. CFC, may issue one of the procurement methods for the expansion of current
      services and/or the addition of new services.
         a. CFC, may notify network providers of the need for service;
         b. CFC, may notify out-of-network community providers by mailing the
             procurement method to potential bidders, posting at the CFC’s office and
             on the website, and/or announcing the request at Community Alliance

   2. The procurement method may specify the specific services needed, the tasks of
      the contract agencies, and the payment structure.

   3. Providers will indicate an interest in providing one or more services specified in
      the procurement method, submit an application for network membership (if they
      are not already in the network) and provide all information requested in the
      procurement method.

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   4. CFC will convene a Review Panel to evaluate, score, and select potential

   5. CFC may select more than one potential provider.

   6. Upon selection of the winning provider, the network application, contracting, and
      orientation processes will begin.

   7. If CFC decides to rebid any service during the first contract term of a selected
      provider, CFC reserves the right to consider previously submitted applications
      prior to competitive procurement.

Contract Development and Routing

   1. When a contract is issued, the Contract Manager originates the contract routing
      packet and forwards it for review and approval which will include legal review as

   2. The Contract Manager will draft contracts which contain:
         a. A general description of services containing standards and evidence of
            service provision
         b. Program goals
         c. Performance measures and outcomes
         d. Staffing requirements
         e. Method of payment, official payee and representatives.

   3. Each team member signs their approval on the Contract Routing form.

   4. Upon receipt of the completed Contract Routing form, the contract packets are
      scanned and emailed to the network provider for signature prior to execution by

   5. The network provider’s designee will print and sign an original and return it to the
      Contracts Unit of CFC. The network provider may print and sign an additional
      copy of the contract for CFC to sign and return as the provider’s original contract,
      otherwise CFC will provide a copy of the original contract to the provider.

   6. CFC’s CEO is the authorized signer of contracts for CFC, and is the last
      signature obtained for execution of a given contract.

   7. Following obtaining the CEO’s signature, the original fully executed contract
      packet is filed in the Contract Unit’s office, one original is returned to the network
      provider and a copy is distributed to DCF.

Emergency Procurement

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   1. If determined by CFC in writing by the CEO that an immediate danger to public
      health, safety or welfare of the children we serve exists, the procurement of
      services may be obtained without competition.

   2. Pricing information must be obtained from at least two prospective sources,
      unless CFC determines that the time used to obtain pricing information will
      increase the danger or loss.

   3. The authority to approve emergency procurements for CFC is only the CEO or

Approved_______________________________           Date_____________________
            Judith Karim, CEO

CFC Policy 1109 Contracting and Service Agreements                              Page 8

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