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1000.28 TANF MANUAL 12/22 PAGE 95

1000.28 CONTRACTS

Agencies may enter into financial agreements with individuals or organizations to operate portions of their Employment Services program. Agencies are bound by State statutes set forth in the Virginia Public Procurement Act and by any local procedures that may supplement the Act. Contracts made with other state entities, including community colleges and Workforce Innovation and Opportunity Act (WIOA) agencies are not subject to the requirements of the Virginia Public Procurement Act, but may be subject to local procurement procedures.

A financial arrangement between a local social service agency and any other entity for the provision of VIEW activities and services is a contractual relationship and can be entered into only if the standard contract format in Appendix B is used. No other agreement or written arrangement, including a Memorandum of Agreement (MOA) or a Memorandum of Understanding (MOU), can be substituted for the use of the standard contract.

Note: A MOA or a MOU is a document describing an agreement or understanding between two or more parties. It expresses a partnership between the parties, indicating an intended common line of action. It is often used in situations where the parties cannot create a legally enforceable agreement or where parties do not imply a legal commitment. A MOA or MOU is a generally accepted form of a commitment or commitments between governmental entities. A MOA is used when there is monetary compensation involved and a MOU is used when there is an exchange of goods and/or services between two or more parties. However, legally the terms are interchangeable. If a MOA or MOU is needed, then seek assistance from a contract specialist or legal counsel.

Contracts negotiated at the time the Employment and Training Annual Plan is developed will be sent to the agency’s TANF/VIEW Regional Practice Consultant with the VIEW Plan. Contracts developed outside this timeframe will be sent to the Regional Practice Consultant as soon as the contract has been signed by both parties. The Employment and Training Annual Plan will be modified as necessary and sent to the Regional Practice Consultant.

The Regional Practice Consultant will provide technical assistance to the agency in developing and/or negotiating contracts as needed.

A. Consideration in Contracting

Prior to contracting, the agency must determine what is to be contracted and why. The agency must determine that the contractor can provide services of an equal or higher quality and/or at a lower cost than the agency itself. Care should be taken to insure that the contract represents an extension of services, rather than compensation for services previously provided at no cost. If the contract is with an agency or organization that serves TANF recipients or other economically disadvantaged populations, the contract must contain a certification from the provider that the services being contracted for are not otherwise available from the provider at no cost.

B. Services That Can be Contracted

Any program activity or service may be contracted as long as the agency is able to justify the contract in terms of quality of services, cost, and anticipated outcomes. However, any contract that includes initial client assessment normally the responsibility of an ESW, and/or overall on-going case management of all or part of the agency’s VIEW population, must have prior approval by the Regional Practice Consultant in consultation with the Home Office.

Transmittal 76