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1000.28 TANF MANUAL 10/06 PAGE 96

E. Payment and Reimbursement

The specific terms of contract reimbursement are part of the contract negotiation process and a budget along with payment for a contract should always be linked to contract performance. Payments are typically prorated according to quantifiable rates of progress and/or performance. Most of the time, expenses are submitted for reimbursement. Under specific but rare circumstances, advances are allowed. A detailed budget should be attached to the contract.

F. Contract Duration

Contracts can be negotiated for any period of time agreeable to both the agency and the contractor so long as they terminate by the end of the fiscal year. To allow local agencies maximum flexibility in operating the Employment Services Program, contracts may be negotiated for a period of six months (or less) rather than for a year. Agencies who choose to contract for 12 months and who later become dissatisfied with the contractor's performance may terminate the contract by providing notice as stated in the contract.

G. Contract Requirements

A contract is made up of the following elements; the approved contract format, a scope of services description for each service to be contracted including the costs for that service, and an overall program budget showing the contractor’s planned expenditures by category.

1) Format

The agency must use the standard contract format approved by the Attorney General's Office in contracting (See Appendix B, page 6 of this chapter). Other contracts can be utilized in addition, if required by the local government but the standard contract format must always be used. The contract must show the total cost for all contracted services between the agency and the contractor. If more than one service is to be provided, the separate cost for each should be included in the scope of services descriptions and detailed in the overall contract budget.

2) Scope of Services Description

Each service to be provided by the contractor must be described in full. Agencies contracting out more than one service will need to develop a scope of services description for each service.

The description must contain a:

a) Summary of activities included in the service;

b) Explanation of roles of the contractor and agency in providing the service;

c) Explanation of the contractor's responsibility regarding required reporting;

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