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45A.695 Personal service contract procedures -- Tax incentive agreements.
(1)
(2)
(3)
(4)
(5)
Except as provided in subsection (8) of this section, no one shall begin work on
a personal service contract entered into by any contracting body or incur
expenditures under a tax incentive agreement until notification of the personal
service contract or tax incentive agreement is filed with the committee. Each
personal service contract shall have a cancellation clause not to exceed thirty
(30) days notice to the contractee.
Each personal service contract, tax incentive agreement, and memorandum of
agreement shall be filed with the committee prior to the effective date and shall
be accompanied by a completed proof of necessity form as established by the
committee by promulgation of an administrative regulation, or equivalent
information if submitted electronically. The proof of necessity form shall
document:
(a) The need for the service or benefit to the Commonwealth of the tax
incentive agreement;
(b) For personal service contracts and memoranda of agreement, the
unavailability of state personnel or the nonfeasibility of utilizing state
personnel to perform the service;
(c) The total projected cost of the contract or agreement and source of
funding;
(d) The total projected duration of the contract or tax incentive agreement;
(e) Payment information, in detail;
(f) In the case of memoranda of agreement or similar device, the reason for
exchanging resources or responsibilities; and
(g) Such other information as the committee deems appropriate.
Adequate notice of the need for a personal service contract shall be given by
the contracting body through a request for proposals. The request for
proposals shall describe the services required, list the type of information and
data required of each offeror, state the relative importance of particular
qualifications, and include the reciprocal preference for resident bidders
required by KRS 45A.494.
The head of the contracting body or his or her designee may conduct
discussions with any offeror who has submitted a proposal to determine the
offeror's qualifications for further consideration. Discussions shall not disclose
any information derived from proposals submitted by other offerors.
Award shall be made to the offeror determined by the head of the contracting
body, or his or her designee, to be the best qualified of all offerors based on
the evaluation factors set forth in the request for proposals and the negotiation
of fair and reasonable compensation. If compensation cannot be agreed upon
with the best qualified offeror and if proposals were submitted by one (1) or
more other offerors determined to be qualified, negotiations may be conducted
with the other offeror or offerors in the order of their respective qualification
ranking. In this case, the contract may be awarded to the next best ranked
offeror for a fair and reasonable compensation. All determinations of the
qualification rankings of offerors by the head of the contracting body or a
designee of the officer based on evaluation factors set forth in the request for
proposals shall be made in writing. Written documentation shall be maintained
concerning the final results of negotiation with each vendor and reasoning as to
why each vendor was chosen.
(6) The committee shall maintain a record or have readily accessible records of
the date on which each personal service contract, tax incentive agreement, and
memorandum of agreement was received and shall maintain or have access to
electronic or paper files on all personal service contracts, tax incentive
agreements, and memoranda of agreement. Except for records exempt from
inspection under KRS 61.870 to 61.884, all personal service contracts, tax
incentive agreements, and memoranda of agreement shall be made available
for public inspection.
(7) Payment on personal service contracts, tax incentive agreements, and
memoranda of agreement submitted to the committee for approval shall not be
made for services rendered or projects undertaken after committee
disapproval, unless the decision of the committee is overridden by the
secretary of the Finance and Administration Cabinet or agency head, if the
agency has been granted delegation authority by the secretary of the Finance
and Administration Cabinet. All personal service contracts, tax incentive
agreements, and memoranda of agreement shall contain a provision that
stipulates that payments on personal service contracts and memoranda of
agreement shall not be authorized for services rendered after committee
disapproval, unless the decision of the committee is overridden by the
secretary of the Finance and Administration Cabinet or agency head, if the
agency has been granted delegation authority.
(8) In the event of a governmental emergency as defined under KRS 45A.690,
work may begin prior to filing notification of the personal service contract with
the committee, if the secretary of the Finance and Administration Cabinet or his
designee determines that the time involved in the normal review process would
be detrimental to the Commonwealth's ability to act or procure the services and
the normal process will not accommodate the governmental emergency.
Payment shall not be made until written notification and explanation of the
reasons for this action are forwarded to the committee.
(9) If a governmental emergency exists as defined under KRS 45A.690 and work
is authorized to begin on a personal service contact immediately, a copy of a
statement, approved by the secretary of the Finance and Administration
Cabinet or his designee, setting forth in detail the nature of the emergency
shall be filed with the committee, along with a copy of the personal service
contract.
(10) (a) No payment shall be made on any personal service contract unless the
individual, firm, partnership, or corporation awarded the personal service
contract submits its invoice for payment on a form established by the
committee.
(b) Invoices shall be submitted every ninety (90) days, unless the personal
service contract specifies a different submission time period.
(c) Separate invoices shall be submitted for each distinct matter covered by
the personal service contract, and shall be signed by the individual
responsible for that matter.
(d)
(e)
(f)
Each invoice shall contain the following information:
1.
A description of the matter covered by the invoice;
2.
The date each service was performed;
3.
A full description of each service;
4.
The name and title of each individual who worked on the matter,
and the time the individual spent on the matter;
5.
The subject matter and recipient of any correspondence;
6.
A full description of any work product produced, designating the way
in which the work product is associated with the matter being
invoiced;
7.
The hourly rate for each individual working on the matter, and the
total charge for that individual for each matter invoiced;
8.
An itemized list of all disbursements to be reimbursed by the state
for each matter invoiced;
9.
The total charge for each matter;
10. The combined total for services and disbursements for the billing
period;
11. The tax identification number of the entity awarded the personal
service contract; and
12. An indication on each invoice of whether or not the invoice is final.
The issuance of an invoice to the Commonwealth constitutes an
affirmation by the individual, firm, partnership, or corporation awarded the
personal service contract that the invoice truly and accurately represents
work actually performed and expenses actually incurred.
The head of the contracting body shall approve the invoice, indicating that
the charges in the invoice reflect the value of the work performed, and all
recorded costs and disbursements were reasonably and necessarily
incurred in connection with the matter invoiced.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 55, sec. 4, effective April 5, 2010; and ch. 162
sec. 15, effective July 15, 2010. -- Amended 2009 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 49, effective June 26, 2009. -- Amended 1998 Ky. Acts ch. 486,
sec. 3, effective July 15, 1998, prevails over ch. 120, sec. 16, effective July 15,
1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 33, effective May
30, 1997. -- Amended 1992 Ky. Acts ch. 55, sec. 11, effective July 14, 1992. -Created 1990 Ky. Acts ch. 496, sec. 15, effective July 13, 1990.
Legislative Research Commission Note (7/15/2010) This section was amended
by 2010 Ky. Acts chs. 55 and 162 which do not appear to be in conflict and have
been codified together.
Legislative Research Commission Note (7/15/98). This section was amended by
1998 Ky. Acts Chs. 120 and 486 which are in conflict. Under KRS 446.250, Acts
ch. 486, which was last enacted by the General Assembly, prevails.
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