	Risk Prevention and Management

Introduction

Administration and Management

Service Delivery Administration Standards

Service Standards

PA-RPM 9: Contracts and Service Agreements*

The agency enters into contracts and service agreements with due regard for practices that promote efficient use of resources.

Interpretation: PA-RPM 9 is not applicable to contracts with individual consultants and independent contractors, which are addressed in PA-HR

PA-RPM 9.01

Availability of contract funds is announced through a request for information (RFI)/request for proposals (RFP) or a formal bidding process, that includes, unless prohibited by law or regulation:

open, public solicitation of bids;
selection/award criteria; and
formal procedures for rating proposals, selecting contract providers, and awarding contract funds.

PA-RPM 9.02

The pursuit of contracts for services is consistent with the agency's mission and purpose, and the agency:

establishes a system of standardized contracting practices;
conducts due diligence in contracting activities, including review of possible risks; and
assigns a qualified individual to oversee contracts.

Interpretation: The agency assigns each contract to a specific qualified individual who is charged with monitoring the progress and outcomes of each service contract.

PA-RPM 9.03

Written contracts contain all significant terms and conditions in accordance with applicable law.

Interpretation: “Significant terms” can include, but are not limited to:

roles and responsibilities of participating agencies;
services to be provided;
clearly defined performance goals;
measurable outcomes;
service authorization, including eligibility criteria;
provisions for training and technical support, as necessary;
duration of contract, including delineation of follow-up services;
policies and procedures for sharing information;
methods for resolving disputes;
a plan and procedure for timely payment, and consequences for failure to pay;
documentation necessary for, and means of reporting to, funding or oversight bodies; and
conditions for termination of the contract.

PA-RPM 9.04

All contracts are reviewed by legal counsel or another qualified individual prior to signing.

Interpretation: Other qualified individuals may include the agency head, CFO, procurement officer, or a member of the management team. 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.

PA-RPM 9.05

Non-contractual service agreements include, as appropriate:

services exchanged or provided, and/or the goals and objectives of such collaborations;
roles and responsibilities of each organization, including reporting responsibilities;
procedures for sharing information;
confidentiality protections, including signed written consent forms;
assignment of case coordination responsibilities;
service authorization procedures, including accepting or rejecting cases; and
how to resolve communication difficulties.

Interpretation: This standard applies to non-contractual arrangements, also known as Memorandums of Understanding (MOUs), in which agencies 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 agency’s facility to provide weekly smoking cessation classes.

NA The agency does not enter into non-contractual service agreements.

PA-RPM 9.06

When an agency enters into a service agreement with a provider that operates adventure-based activities with a significant degree of risk; the agency 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 agency does not enter into service agreements with providers that operate adventure-based activities.

PA-RPM 9.07

Contracts for the provision of network services also include:

the network's requirements regarding provider participation in network quality improvement activites;
access to case record provisions;
utilization management protocols;
required levels of insurance; and
agreement to participate in network training.

NA The agency is not a network management entity.

QUICK JUMP TO


	PURPOSE: Comprehensive, systematic, and effective risk prevention and management practices reduce the agency's risk, loss, and liability exposure.

RELATED FILES


	PREVENTION Actions taken to minimize and/or eliminate social, psychological, or other conditions. Prevention can occur at the individual, group, community, and societal levels and enhances opportunities to achieve positive fulfillment.


	PRACTICE Established actions or ways of proceeding in the regular performance of organizational duties. Policies and procedures often guide practice.


	CONTRACT A formal written agreement between two or more parties that specifies the services, space, or products to be provided in exchange for some form of compensation. Also known as "purchase of service arrangement."


	SERVICE One or more organization-operated programs or activities that have a common general objective and deploy the organization's material and human resources in a planned and systematic manner. An organization that publicly promotes or identifies itself in writing as offering a service, is licensed to deliver a service, assigns personnel and/or space to a service, or allocates financial resources to a service is considered to offer that service.


	CONSULTANT A person who provides specialized or technical advice or services to an organization for specific purposes on a contractual or fee basis, or who provides such services as a volunteer with an agreement to provide services on a pro bono basis.


	INDEPENDENT CONTRACTOR An independently employed individual who contracts with an organization to do a piece of work according to his/her own methods and is subject to an employer's control only as to end product or final result of the work, not as to the means whereby it is to be accomplished.


	CRITERIA Systematically developed, objective, and quantifiable statements used to assess the appropriateness of specific decisions, services, and outcomes.


	DUE DILIGENCE Performance of a process or review with the measure of prudence, activity, or assiduity properly expected from and ordinarily exercised by a reasonable person under particular circumstances. Due diligence is not measured by any absolute standard, but depends on the relative facts of a special case or situation.


	MONITORING An evaluation involving a periodic review of consumer services, organizational activities, or conduct. Specifically, monitoring is an activity of case coordination, whereas more broadly, monitoring is an evaluation technique used in overall quality assurance.


	PERFORMANCE A measure of how well an organizational system provides services to consumers. Performance is often based on key indicators, such as rates of service, cost per consumer, degree of satisfaction with services, and extent of consumer access to services.


	MANAGEMENT See ADMINISTRATION


	LIABILITY An obligation, responsibility, or debt.


	ELIGIBILITY The degree to which an individual, family, group, or community meets the specific criteria and qualifications required to receive goods, benefits, or services.


	TRAINING Instruction so as to make fit, qualified, or proficient in a skill or body of knowledge.


	OBJECTIVE A sub-goal stated in operational terms, i.e., a statement that makes clear what expected results are to be measured or assessed.


	CONFIDENTIALITY An ethical and practice principle that requires the protection of information shared within a professional-client relationship. An organization that upholds confidentiality prohibits personnel from disclosing information about persons served without their written consent.


	CASE A general term used to designate clients (including individuals, families, and groups) served by an organization for purposes of monitoring the provision of services. A foster care case is generally based on the placement of an individual child, although casework for the child may include services to the child's family. A child protective services case is based on an entire family household if a family assessment model is used; otherwise a case is defined as a child.


	ACCREDITATION The formal evaluation of an organization against accepted criteria or standards. A professional society, non-governmental organization, or a governmental agency may conduct accreditation activities. A COA-accredited organization has undergone a period of rigorous self-study and is capable of providing programs and services that meet or exceed COA standards.


	CERTIFICATION Assurance from a state or professional association that a person or organization possesses certain attributes, knowledge, or skills.


	QUALITY In this context, the extent to which contemporary and generally recognized standards for professional practice are met and exceeded, and desirable service outcomes achieved.


	CASE RECORD A written compilation that describes the client and the services delivered. Records can be in hard copy and/or electronic format. The case record can be used as a source of information for quality improvement or other evaluation activities, for research purposes, or to demonstrate accountability to funding bodies.


	PROTOCOLS Instruments and procedures used to accomplish a particular goal, activity, or purpose.