The Attorney General’s Office, in cooperation with the System Office, has created standard templates for contracting use. These templates can be accessed by logging onto the CSCU website. Templates are revised frequently, therefore, users must access the website to ensure that the most up-to-date template is used.
Steps in Fiscal Contract Process:
- The department user asks contractor to sign a W-9 and provide a vendor profile.
- Determine which type of contract should be used:
- If the contract is between MCC and an individual or company that is providing a lecture, presentation or entertainment, then a Lecturer/Entertainer contract template is used.
- If the contract is between MCC and an individual or company that is providing services other than a lecture, presentation or entertainment, then a Cost/No Cost Agreement template is used.
- The Clinical Student Affiliation Agreement template is used for allied health student externships.
- The Client Services Agreement template is used when MCC will be collecting revenue from the client business for training courses provided.
- The department user prepares the necessary information and provides it to the Finance and Administrative Services department. The following information must be included:
- Signed purchase requisition (if cost contract)
- Contractor’s W-9
- Contractor’s contact information including phone number and email address
- Full description of services to be provided along with breakdown of the cost
- Invoice or quote (if cost contract)
- If the services exceed $10,000.00 and are less than $50,000.00, at least three written quotations are required. This does not apply to Client Services Agreements.
- Purchases greater than $50,000.00 must be based, when possible, on competitive bids or proposals obtained via a sealed bid process conducted by the Finance and Administrative Services Department. This does not apply to Client Services Agreements.
- The Finance and Administrative Services Department prepares the contract and sends it to the contractor for signature.
- Lecturer/Entertainer, Clinical Student Affiliation, and Client Services Agreements must include a currently dated and signed Non-Discrimination Form, either Form A for individuals or Form B for corporations.
- If contract value exceeds $25,000.00, the Finance Office will send the contract to the Attorney General’s Office for review and approval. The contract must be submitted to Finance and Administrative Services at least 60 days prior to the start date of the contract.
- If contract value is less than $25,000.00, the department user must submit the contract to Finance and Administrative Services for signature at least 45 days prior to the start date of the contract.
- The Contract-Late Justification Form must accompany all contracts that do not conform to the deadlines above.
- Each time service is rendered by the contractor and an invoice is received, the department user will submit the invoice to Finance and Administrative Services for payment.
- It is important that all department users submit contracts for approval prior to the start date of the contract period. Submitting a state contract for approval after the start of the contract period is a violation of state contracting policies and procedures.
Contracting Language Tips
- Bullets must never be used in contracting language, as every section, clause and item in a contract should be numbered so that each can be easily located.
- The contractor MUST adhere to the budget in the contract. The total maximum allowable payment under the contract must be stated and include all expenses and any applicable subcontracts.
- Payments must be conditional upon the department user’s review and approval of the contractor’s invoices, compliance with the terms and conditions of the contract, and satisfaction with performance under or deliverables of the contract.
- Description of services may include the phrase “including but not limited to.”
- Every contract must include a detailed description of services provided (who, what, where, when, how) listed in chronological order.
- Always use the directive “shall” to describe a required action.
Special Exceptions: State Employees
There are several limitations regarding contracting with state employees, set by State Statute.
“No public official or state employee or member of his immediate family or a business with which he is associated shall enter into any contract with the state, valued at one hundred dollars or more, other than a contract of employment, as a state employee or pursuant to a court appointment, unless the contract has been awarded through an open and public process, including prior public offer and subsequent public disclosure of all proposals considered and the contract awarded. Accordingly, no state employee may be offered a Personal Service Agreement unless the contract has been awarded pursuant to an appropriate bidding process.”
Contracts can be amended to change the terms, the length or the dollar value of the contract. However, an expired contract cannot be amended. All signatures on the amended contract must be dated before the expiration date of the original contract. Amendments require their own corporate resolution.
Any corrections made to a fully executed contract must be initialed and dated by both parties. A new signature page may be prepared as an alternative.