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CONTRACTS SECTION 300
LIHEAP MANUAL JANUARY 2022 22
301.1 b CONTRATUAL NON-COMPLIANCE
• If the Contractor's performance fails to meet the contractual requirements, the State Office will identify deficiencies and notify the Agency in writing of the deficiencies and the need for the Agency to submit, in writing, a Corrective Action Plan addressing specific planned correction AND a time frame for completion of the corrective actions.
• Upon review of the Corrective Action Plan by the State office, if the plan meets approval, the State office will provide technical assistance and/or site visits to monitor progress and assist with the plan.
• Upon review of the Corrective Action Plan by the State office, if the plan does NOT meet approval, the State office will provide technical assistance and/or site visits to develop a Corrective Action Plan that will correct contractual deficiencies in a timely manner. The State has the discretion to withhold funds.
• If the CAA fails to correct the deficiencies in a timely manner; payment will be withheld to the CAA until the CAA is in compliance with the Corrective Action Plan.
• If the CAA fails to meet contractual requirements; the contract will be terminated. A claim will be filed against the CAA’s Fidelity Bond and a refund to the State of any outstanding balances based on EAP and State accounting system figures must be made by the CAA. CONTRACTUAL SUSPENSION: Of the CAA fails to substantially provide the quality of services required or does not meet the specified completion schedule of duties required under the contract: • The State will move to suspend the contract. • Notify the CAA Board of the contract suspension. • Halt payment of any expenditure from the date of the suspension.
CONTRACTUAL TERMINATION: • If the State office exercises the right to terminate, the CAA will be notified in writing, specifying the reason for the termination and the effective date of contract termination. • Upon termination of the contract, the CAA must not incur any new expenditures.