Current through Register Vol. 49, No. 9, September, 2024
PART VI PROCUREMENT AND PURCHASING
DHS ADMIMISTRATIVE PROCEDURES MANUAL
Chapter 601
Title: DHS Purchasing Authority General Provisions
I.
PURPOSE: To provide the
Department of Human Services (DHS) with uniform departmental procedures for the
acquisition of goods (commodities) and technical services, in accordance with
Arkansas Procurement Law & Rules (Regulations) (Arl[LESS THAN]ansas Code
Annotated [A.C.A.] §§
19-11-101 et seq.) and the
Arlcansas Building Services Act.
II.
SCOPE:
A. These procedures are applicable to all DHS
divisions, offices, and facilities.
B. The DHS, Office of Finance and
Administration (OFA), Contract Support Section (CSS), Commodities Purchasing
Unit (CPU) has the authority for purchasing for:
1. The central offices and field
offices
2. The facilities, for
those purchases exceeding $25,000
C. DHS facility purchasing units have
authority for purchasing for their facility all purchases that do NOT exceed
$25,000 (EXCEPT for printing of any dollar amount, which MUST be
purchased by a CPU Purchasing Agent who has the proper delegation order from
Office of State Procurement (OSP) to purchase printing, or by DSP).
III.
PROCEDURES: ETHICS
A. Ethics requirements in public contracting
are found in A.C.A. §§
19-11-701 -716. Any employee who
knowingly violates any of the Ethics provisions may subject to criminal
prosecution.
B. The following
statement must be included in all contracts and solicitations for purchases
exceeding $5,000 (A.C.A. §
19-11-708) :
"It shall be a breach of ethical standards for a person to be
retained, or to retain a person, to solicit or secure a State contract upon an
agreement or understanding for a commission, percentage, brokerage, or
contingent fee, except for retention of bona fide employees of bona fide
established commercial selling agencies maintained by the contractor for the
purpose of securing business."
IV.
PROCEDURES: PURCHASING DOCUIVIENTS
NOTE:
a.)
As stated in the DFA Financial Management Guide, R2:
19-4-1210, Department of Finance
and Administration, Office of Accounting (DFA, OA) recommends using the "vendor
invoice with a purchase order" process whenever possible instead of the
direct-invoice payment method.
b.)
Agencies must prepare the proper purchasing documents BEFORE purchases are
made.
c.) Arkansas Administrative
Statewide Information System (AASIS) Is the State system in which purchases are
requested, purchase orders are created, and payment is made. The AASIS
purchasing roles include:
o Agency Procurement Technician o Agency Procurement Specialist
o Agency Procurement Manager
d.) For proper separation of duties,
individuals CANNOT possess purchasing roles that allow them to enter successive
purchasing transactions in AASIS.
A. Purchase
Requisition
1. The first step in the purchase
or procurement process is to formally request the purchase. In accordance with
any and al! purchasing requirements specific to the division, the Agency
Procurement Technician shall enter the requisition into AASIS.
2. The purchase requisition:
* Establishes a commitment of appropriations when the
requisition is created;
* Creates a unique requisition number for each
requisition;
* Allows users to suggest several potential vendors for
items;
* Tracks the progress of the requisition through AASIS.
3. An Agency Procurement Manager,
with proper level of authority in AASIS, shall review and approve the
requisition in AASIS as a legal expenditure of the State. For purchases that
exceed $25,000, a second approval by an Agency Procurement Manager with the
proper level of authority tn AASIS is required.
B. Purchase Order
1. Once the purchase requisition has been
entered and approved, the Agency Procurement Specialist (Purchasing Agent), in
accordance with the Arkansas Procurement Law and Rules and DHS policy, shall
create the purchase order.
a. Purchasing
Agents in CPU shall create the purchase orders for central office and field
offices and for those facility purchases exceeding $25,000.
b. Purchasing Agents in the facilities shall
create their purchase orders for purchases not exceeding $25,000 (EXCEPT for
printing of any dollar amount, which MUST be purchased by a CPU
Purchasing Agent who has the proper delegation order from OSP to purchase
printing or by OSP).
2.
The Agency Procurement Manager in CPU or the facility shall review and approve
the purchase order in AASIS. For those purchase orders that are coded as
Emergency or Sole Source, a second approval by OSP is required.
3. Once the purchase order has been approved,
the Agency Procurement Specialist (Purchasing Agent) shall print the purchase
order and send a copy to the vendor.
4. A purchase order is the basic document
used to complete the contractual obiigation between the buyer and seller. If
cancellation of or change to a purchase order is necessary, the Purchasing
Agent who created the purchase order should be the one to cancel or change it.
V.
PROCEDURES: APPROVALS
A. The following purchases require prior
approvals:
1.
Promotional Items
a. These are items:
(1.) That are provided as an incentive to an
individual, or to recognize or reward an individual for something he/she has
done. Items of this nature shall NOT be purchased for DHS employees; rather
they may be purchased for clients, residents, volunteers, potential foster
parents, and adoptive parents, OR
(2.) That are for promotion of specific
programs used in educating potential clients of available services.
b. Examples of promotional items
include trophies, certificates, gifts, prizes, t-shirts, aprons, tote bags,
refrigerator magnets, and coffee mugs.
c. In accordance with OSP Policy Directive
#02-03, the purchase of promotional items is allowable ONLY under the following
circumstances:
(1.) It is authorized in a
State or Federal grant, OR
(2.) It
is authorized by specific language in the agency's appropriation act.
d. Even if the purchase is
allowable under either of the above two circumstances, prior approval of the
DHS Chief Fiscal Officer (CFO) is still required. The request for approval
shall be submitted in the form of a memorandum or letter from the Division
Director to the DHS CFO, providing enough information so it can be ascertained
that the proposed expenditure is ultimately for the benefit of DHS
clients.
e. Requests for exceptions
to this policy shall be in the form of a letter of justification signed by the
Division Director, submitted to the DHS CFO for approval, and approved by the
OSP Director.
2.
Prepayment for Goods and Services
The Division Director must approve prepayments in a signed
memorandum. The Purchasing Agent must attach the approval memorandum, with an
invoice describing the purchase, cost, and the reason for prepayment, to the
purchase order and submit it to Accounts Payable Unit for processing.
3.
Memberships and
Subscriptions
a. In accordance with
R1: 19-4-1103 in the DFA Financial
Management Guide, all membership registrations and subscriptions must be in the
name of the division or DHS. Memberships and subscriptions in the name of an
employee, and memberships in community organizations, are NOT
ALLOWABLE.
b. The Division Director
shall approve all memberships and subscriptions. The request for his/her
approval shall justify the purchase, explaining how the membership/subscription
is in the best interest of the agency and necessary to carrying out the
agency's purposes. The Purchasing Agent shall attach the justification and the
approval to the purchase order.
4.
Tuition and Books for
Clients and Employees
a. These
expenses on behalf of clients are permissible as prescribed by law, regulation,
policy, court order, or official program plan. The cost should be well
documented in the case files as well as accounting records. The Division
Director must approve them.
b.
Payment of tuition and books for employees will be made only as
prescribed by official DHS personnel development policy and will be presented
to the DHS CFO for approval prior to obligating DHS. See DHS Policy 1048 and
R1-1 9-4-11 03, as found in the DFA Financial Management Guide, for more
information.
5.
Uniforms and Clothing for Employees
a.
In accordance with ACA §
19-4-1601, purchase of uniforms
and clothing for employees is allowed only when prescribed by State law In
Special Language. Such a purchase requires the prior approval of the DHS
CFO.
b. Payments will not be made
for the replacement of damaged clothing due to adverse incidents related to
client work in institutions; however, those employees have the right to file a
claim for damages with the Arkansas State Claims Commission.
c. Should an employee experience broken
eyeglasses, dentures, or some other health or physical damage not covered by
Workers Compensation benefits, the employee may file a request for
reimbursement of such with the Division Director through proper management
channels and provide an incident report to support the request. Upon his or her
approval, the Division Director shall provide a memorandum or letter to the DHS
CFO requesting that the employee be reimbursed for such expenses after
appropriate receipts are provided.
6.
Goods and Technical Services
Accepted/Rendered Prior to Date of Contract or Purchase Order
a. Goods and technical services shall not be
accepted or rendered prior to the acceptance of a contractual agreement (i.e.,
purchase order, contract, etc.)
b.
In the event that goods or technical services not exceeding $5,000 are rendered
prior to the issuance of a contract/purchase order being in effect, Division
Director shall prepare a request to the DHS CFO for approval of a post-delivery
purchase order. The request shall address the following:
* The reason the goods or technical services were provided
without benefit of a contract/purchase order being in place;
* The amount of the charges that were incurred without a
contract/purchase order being in place;
* Request for approval of charges incurred in violation of
procurement law.
c. In the
event that goods or technical services exceeding $5,000 are rendered prior to
the issuance of a contract/purchase order being in effect, Division Director
shall prepare a request to the OSP Director for ratification of charges that
were incurred. The request shall address the following:
* The reason the goods or technical services were provided
without benefit of a contract/purchase order being in place;
* The amount of the charges that were incurred without a
contract/purchase order being in place;
* Confirmation, if applicable, that neither the vendor nor the
agency acted fraudulently or in bad faith;
* The steps taken by the division to prevent such an occurrence
in the future;
* Request for ratification of charges incurred in violation of
procurement law.
7. Temporary Contract Labor
a. Occasionally, an agency undertakes special
programs or is subject to seasonal fluctuations that temporarily increase the
workload beyond the capabilities of the agency's regular staff. Such situations
may necessitate utilizing contract labor from "Temporary Help" agencies to be
paid out of the maintenance and operations line item of the agency's
appropriation. The vendor will bill the user agency for the service at the end
of the contract.
b. In accordance
with R3: 19-4-1601 in the DFA Financial
Management Guide, no agency may employ contract labor for a period longer than
six consecutive weeks at intervals of no more than once per calendar quarter.
An individual hired as contract labor may work a maximum of 240 hours per
calendar quarter. The individual may work more than six consecutive weeks if
less than 240 hours have been worked during the quarter, but he or she may NOT
work more than 240 hours in any quarter,
c. Prior approval of the Division Director is
required if the temporary contract labor is clerical.
8. Funeral Expenses
DHS will only pay funeral expenses of a client or individual in
the custody or care of DHS. The Division Director must review and approve in
writing each request for payment prior to issuance of a purchase order.
B. Divisions must
obtain all approvals before entering requisitions into AASIS. Upon the receipt
in A AS IS of incomplete requisitions or requisitions lacking proper approval,
CPU shall retain the requisitions on their screens no longer than thirty days.
If corrections have not been made or approvals have not been entered at the end
of thirty days, Purchasing Agents may delete the requisition. Purchasing Agents
shall notify the division of any requisitions they delete.
VI.
PROCEDURES: IVIIIMORITY PURCHASES
A. The Minority Business Economic Development
Act (A.C.A. §§
15-4-312 -319) established an
annual procurement goal of ten percent for a State agency's minority purchases.
Arkansas law defines "minority" as "black or African American, Hispanic
American, American Indian or Native American, Asian, and Pacific
Islander."
B. When competitive bids
are taken, at least one shall be from a minority business, if
possible.
C. CPU is responsible for
creation of, and monitoring of progress in accordance v\/ith, the annual DHS
Minority Purchasing Plan.
VII.
PROCEDURES: PURCHASE ORDER CLOSE-OUT
A. Prior to the end of each fiscal year,
purchase orders with an outstanding balance must be reviewed and, if possible,
closed to invoicing. This releases all encumbered monies and will give an
accurate available funds account.
B. DHS facility purchasing units shall close
their own purchase orders. CPU shall close purchase orders for field offices
and central office, upon requests from the divisions.
VIII.
PROCEDURES: METHODS OF PROCUREMENT
The following procurement methods shall be utilized in
purchasing goods and technical services:
A. Small Procurement:
(See A.C.A.
§§
19-11-231 and 19-11-204[12]}
1. The Small Procurement (also known as the
Small Order [SO]) method shall be used for those purchases that do not exceed a
total purchase price of $5,000, that are not subject to Amendment 54 to the
Arkansas Constitution, and that are not included on State contract. SO
purchases may be procured without seeking competitive bids; however,
competition should be used to the maximum extent practicable.
2. Procurements shall NOT be artificially
divided so as to constitute Small Procurements.
NOTE: Purchase of commodities subject to Amendment
54 to the Arkansas Constitution (printing, stationery, and paper and ink used
to produce stationery) must be procured in accordance with Competitive Bidding
or Competitive Sealed Bidding, regardless of the amount.
B.
Competitive Bidding:
(See A. C.A. §
19-11-234 }
1. The Competitive Bid method, at a minimum,
shall be used for those purchases that exceed $5,000 but do not exceed $25,000.
If circumstances warrant, the procurement official MAY utilize the more
restrictive Competitive Sealed Bid for such purchases (see Competitive Sealed
Bid below).
2. Bids may be obtained
by:
a. Direct mail request to prospective
bidders and obtaining written bids
b. Telephone
c. Telegraph
d. Written form
e. Electronic media
3. A competitive bid form authorized by the
OSP Director must be utilized.
4.
If three bids are not obtained, the bid form must show the names of at least
three firms contacted or show why three firms were not contacted.
5. Only firms that offer or sell the goods or
technical services shall be contacted.
6. Competitive Bidding shall NOT be used for
legal, architectural, engineering, construction management, and land
surveying.
7. The award shall be
given to the bidder who has submitted the lowest bid and who meets the
requirements, criteria, and specifications.
8. Repeated SO procurements to circumvent the
competitive bid limits are prohibited.
9. Goods and services may be procured by the
competitive bid method, regardless of whether or not an option for extension(s)
is included, as long as the value of the initial agreement does not exceed
$25,000 annually and none of the individual extension periods exceed $25,000
annually.
Details regarding the statutory and regulatory
requirements are delineated in A.C.A. § 19-11-234 and must be
followed.
C.
Competitive Sealed Bidding:
(See A.C.A. §
19-11-229 }
1. The Competitive Sealed Bidding metiiod, at
a minimum, must be used for tiiose purchases that exceed $25,000.
2. OSP has authority for procurements for
central office, field offices and facilities for purchases of goods and
technical services that exceed $25,000.
3. The Competitive Sealed Bidding method
requires:
a. Issuance of an invitation for
bids with a purchase description and all contractual terms and conditions
applicable to the procurement
b.
Public notice
c. Public,
contemporaneous opening of bids at a pre-designated time and place
d. Unconditional acceptance of a bid without
alteration or correction, from all "responsible", "responsive" bidders (i.e.,
those capable of performing the contract and those meeting the minimum
requirements set forth in the procurement)
e. Award to the responsible, responsive
bidder who has submitted the lowest bid that meets the requirements and
criteria set forth in the invitation for bids
4. The notice inviting bids shall be given
not fewer than five calendar days nor more than thirty calendar days preceding
the date for the opening of bids by publishing such notice at least one time in
at least one newspaper having general circulation in the State or posting by
electronic media.
5. Bids shall be
opened publicly in the presence of one or more witnesses at the
time and place designated in the invitation for bids.
6. The invitation for bids shall set forth
the evaluation criteria to be used in evaluation, and bids shall be evaluated
solely on the requirements set forth in the invitation for bids.
EXTENSIVE detail regarding the statutory and regulatory
requirements is delineated in A.C.A. § 19-11-229 and must be
followed.
D.
Competitive Sealed Proposal
fSee/I.C./l. §
19-11-230)
1. With the Competitive Sealed Proposal
method, award is made to the responsible respondent whose proposal is
determined to be the most advantageous considering price AND the other
evaluation criteria set forth in the request for proposals.
2. Public notice shall be given in the same
manner as for the Competitive Sealed Bid method.
3. The request for proposals shall include a
description of the item or service to be purchased, the specific criteria to be
used to evaluate the proposals, the relative importance of price and other
evaluation factors, the closing time and date, and other significant
information.
4. Award shall be made
to the responsible respondent v\/hose proposal is determined to be the most
advantageous to the State, taking into consideration price, the other
evaluation factors set forth in the request for proposals, and the results of
any discussions conducted with responsible respondents. No other factors or
criteria shall be used in the evaluation.
5. Negotiation with respondents is allowable
only upon the approval of the OSP Director.
Extensive detail regarding the statutory and regulatory
requirements is delineated in A.C.A. § 19-11-230 and must be
followed.
E.
Sole Source: (See
A.C.A. §
19-11-232 }
1. The Sole Source method shall be used only
when, by virtue of the performance specifications, the goods or services are
available from a single source.
2.
Use of the Sole Source method requires prior approval by the OSP Director.
Documentation required to request prior approval includes:
a. A copy of the purchase order;
b. Justification;
1.) The reason the goods/services are
needed;
2.) Methods used to
determine that a lack of responsible/responsive competition exists for the
goods/service;
3.) How it was
determined that the provider possesses exclusive capabilities;
4.) Why the goods/service are
unique;
5.) Whether or not there
are patent or proprietary rights which make the required goods/service
unavailable from other sources;
6.)
What the agency would do if the provider/service were no longer available;
7.) Any program considerations
which make the use of a "Sole Source" critical to the successful completion of
the agency's task.
c.
"Contract and Grant Disclosure and Certification Form", if applicable.
3. For Centra! Office
and Field Offices, and for facility purchases that exceed $25,000, the division
shall forward the detailed justification electronically to CPU along with the
requisition in A AS IS for processing. CPU shall enter the purchase order into
AASIS as a Sole Source purchase order, attach the justification and "Contract
and Grant Disclosure and Certification Form", and forward the request in AASIS
to OSP for its review and approval.
4. For facility purchases that do not exceed
$25,000, the facility requestor shall electronically attach the Sole Source
justification to the AASIS requisition and shall notify CPU Supervisor by
telephone or by e-mail of the requisition number so he/she can go into AASIS
and review the Sole Source justification. Upon his/her approval of the Sole
Source justification, the CPU Supervisor shall notify the facility to proceed
with the processing of its Sole Source purchase order. CPU Supervisor shall
also send an e-mail to OSP notifying them of his/her review and approval. Upon
receipt of the Supervisor's approval AND of the purchase order in AASIS, OSP
will review the purchase order and justification in AASIS. If OSP approves,
they will approve the purchase order in AASIS.
Details regarding the statutory and
regulatory requirements are delineated in A.C.A. § 19-11-232 and must be
followed.
F.
Exempt Purchases:
(See A.C.A. §
19-1 7-203 and ACA
§
19-11-251}
1. Certain goods and technical services are
exempt from the procurement law. A complete listing of the exempt goods and
services can be found at A.C.A. §
19-11-203(14).
2. State agencies and other governmental
agencies are exempt from the procurement law and can, therefore, be utilized as
providers of services or commodities without competitive procurement.
G. Emergency Purchases:
(See A.C.A. §
19-11-232 }
1. Emergency purchases are those, which, if
not immediately initiated, will endanger human life or health. State property,
or the functional capability of a State agency.
2. CPU must be notified by telephone at the
earliest possible time to register the emergency. Approvals and other
procedures will be followed as circumstances permit.
3. The division must, at a minimum, receive
three competitive bids unless the emergency is critical. If three bids are not
obtained, the bid form must show the names of at least three firms contacted or
show why three firms were not contacted.
4. The division must submit justification for
approval by the OSP Director. This justification shall include:
a. A copy of the purchase order
b. A copy of the bid form, and
c. A written explanation of the emergency.
Note: Approvals do not need to be given for an item that is
"exempt from procurement" (EL), e.g., medical and physicians' fees. However,
any purchase requires a purchase order or contract for payment unless a written
request is submitted and approved by the OSP Director, on a case-by-case basis,
justifying the services as a true emergency.
IX.
PROCEDURES: PREPAYMENT
A. Prepayment may be made only for
subscriptions, registration fees not directly billed, and agency membership
dues in the name of the department or division. Other disbursements may not be
made until services have been performed or goods received.
B. Any exceptions must be approved by the CFO
of the State and must be requested by memorandum from the appropriate Division
Director. The request must explain why prepayment is the only possible method
of payment and should include information on the goods or service needed, its
cost, and name of the supplier.
X.
PROCEDURES: RECEIVING
Vendors will not be paid until the appropriate receipt of goods
or services has been entered into AASIS.
XI.
PROCEDURES: SPLITTING PURCHASES
Procurement units are responsible for consolidating requests
for certain goods and services and then competitively procuring as appropriate.
Repeated small procurements to circumvent the formal procurement threshold or
failure to conduct procurement without justification are violations of the
State Procurement Law.
XII.
PROCEDURES: VENDOR PERFORMANCE REPORT
A. To report unsatisfactory performance by a
vendor, staff should provide as much detail as possible to CPU (or to the
facility purchasing unit, for facility purchases not exceeding $25,000). After
direct comnnunication between the Purchasing Agent and the vendor, and if the
vendor has failed to resolve the problem, the Purchasing Agent shall complete a
Vendor Performance Report detailing the circumstances.
B. He or she shall forward the Vendor
Performance Report to OSP and shall forward a copy to the vendor, giving the
vendor seven calendar days to respond to the complaints listed in the Report.
For those contracts they have procured, OSP shall issue a final ruling. For
those contracts procured by DHS, the DHS Purchasing Agent shall issue the final
ruling.
C. Vendor Performance
Reports become a permanent record in the vendor's file at OSP or at DHS and are
to be reviewed when considering any future contract actions with the involved
vendor.
NOTE: Vendor Performance Reports may also be used to report
extraordinary performance by a vendor.
XIII.
PROCEDURES: DISCLOSURE TO COMPLY WITH EXECUTIVE ORDER
98-04
A. Executive Order 98-04 requires
that any provider of goods and technical services receiving in excess of
$25,000, either as contractor or subcontractor, must, as a condition of doing
business with the State, complete a "Contract and Grant Disclosure and
Certification Form" regarding past or present service as a legislator,
constitutional officer, or State employee by the provider or his or her
immediate family member(s).
Note: Governmental entities and public schools are exempt from
the requirement to complete a "Contract and Grant Disclosure and Certification
Form".
B. CPU is
responsible for ensuring the completion of the "Contract and Grant Disclosure
and Certification Form" by the contractor on new contracts and on contract
extensions, when applicable.
C.
Questions concerning completion of the forms shall be directed to CPU at P.O.
Box 1437, Slot W302, Little Rock, AR 72203.
XIV.
PROCEDURES: ILLEGAL IIVIIVIIGRANT CERTIFICATION
A. Contracts/purchase orders for technical
services exceeding $25,000 require the contractors to certify on the OSP
website that they do not contract with or employ any illegal
immigrants.
B. if the
contract/purchase order is to exceed $25,000.00
AND
is for technical services, as opposed to goods {commodities},
Purchasing Agent shall check the Illegal Immigrant Certification site on-line
to determine if the contractor has certified.
1. If the Purchasing Agent cannot determine
that the contractor has a current certification on file, the Purchasing Agent
shall notify the contractor that certification is a requirement for the
contract (purchase order) to be finalized.
NOTE: "Current" is defined as having been
entered by the contractor within 30 days prior to the date the Purchasing Agent
checlcs the screen.
2. If
the contractor has still not certified after 5 business days, Purchasing Agent
shall consult with his/her Supervisor and shall notify the requestor of the
reason for the delay.
XV.
PROCEDURES: STATE CONTRACTS
A. Some goods are on State contracts which
are procured and managed by OSP.
B.
Some State contracts are considered "mandatory", in that the goods or services
available on the contract MUST be bought from the vendor listed on the contract
unless an exemption is granted from OSP.
C. When feasible, items that are closely
fitting in description to (or are the approved equal of) items on a State
contract should be purchased from the State contract.
XVI.
PROCEDURES: MULTI-YEAR CONTRACTS
see A.C.A.19-11-238}
A. The original term of a multi-year contract
shall terminate no later than the last day of the current biennium. Any
renewals shall not exceed the next succeeding biennium.
B. Unless otherwise provided by law, a
contract for goods or services may be entered into for a total period of not
more than seven years if funds for the first fiscal year of the contemplated
contract are available at the time of contracting. Payment and performance
obligation for succeeding fiscal years shall be subject to the availability and
appropriation of funds.
C.
Determination Prior to Use
Prior to the utilization of a multi-year contract, it shall be
determined in writing that:
1.
Estimated requirements cover the period of the contract and are reasonably firm
and continuing;
2. Such a contract
will serve the best interest of the State by encouraging effective competition
or otherwise promoting economies in State procurement;
3. In the event of termination for any
reason, the contract provides for cessation of services or surrender by the
State of the goods (commodities) and repayment to the State of any accrued
equity.
D. Termination
Due to Unavailability of Funds in Succeeding Years
Original terms of such multi-year contracts shall terminate on
the last day of the current biennium and any renewals by the State based upon
continuing appropriation shall not exceed the next succeeding biennium. When
funds are not appropriated or otherwise made available to support continuation
of performance in a subsequent year of a multi-year contract, the contract for
such subsequent year shall be terminated and the contractor may be reimbursed
for the reasonable value of any nonrecurring costs incurred but not amortized
in the price of the goods or services delivered under the contract. The cost of
termination may be paid from:
1.
Appropriations currently available for performance of the contract
2. Appropriations currently available for
procurement of similar commodities or services and not otherwise
obligated
3. Appropriations made
specifically for the payment of such termination costs
XVII.
PROCEDURES: CONTRACT
RENEWALS
A. Contracts for goods or
services are sometimes procured with the option to renew for additional time
periods. If a renewal is desired, the division must make a request in writing
with its Assistant Director or Director's signature. The renewal option must be
requested at least thirty days prior to the expiration of the contract.
Renewals may require the approval of OSP or Arkansas Building Authority. The
renewal is a mutual agreement between the Department
and the vendor. Once the vendor accepts the terms for renewal, a written
addendum is added to the contract. No contract can be extended once
all the renewals authorized in the procurement have been
depleted.
B. A
contract that is procured without a renewal option cannot be renewed in any
instance. Offers by the original vendor to renew the contract cannot be
accepted.
