The organization enters into contracts and service agreements with due regard for practices that promote efficient use of resources.
Note: Please see Tip Sheet: Contracting in the Tools Index for additional assistance with this standard.
The pursuit of contracts for services is consistent with the organization's mission and purpose, and the organization:
Interpretation: The organization assigns each contract to a specific qualified individual who is charged with monitoring the progress and outcomes of each service contract.
Written contracts contain all significant terms and conditions in accordance with applicable law.
Interpretation: “Significant terms” include, as appropriate to the type of contract:
All contracts are reviewed by legal counsel or another qualified individual prior to signing.
Interpretation: Depending on the organization's resources and policy, the organization's CEO or a member of the Board or management team may be qualified to review contracts. The review should ensure that the contract is both legal and the terms of the contract are clearly understood and agreed upon by both parties.
Non-contractual service agreements include, as appropriate:
Interpretation: This standard applies to non-contractual arrangements, also known as Memorandums of Understanding (MOUs), in which organizations collaborate with providers to deliver specific services to a person or persons. For example, a service in which a provider voluntarily comes into the host organization’s facility to provide weekly smoking cessation classes.
NA The organization does not enter into non-contractual service agreements.
When an organization enters into a service agreement with a provider that operates adventure-based activities with a significant degree of risk; the organization requests proof of accreditation, licensure, or certification with a nationally recognized authority for the activity being conducted.
Interpretation: Adventure-based activities with a significant degree of risk can include, white water rafting, climbing walls, or ropes courses.
NA The organization does not enter into service agreements with providers that operate adventure-based activities.
Contracts for the provision of network services also include:
NA The organization is not a network management entity.