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DEPARTMENT OF ADMINISTRATIVE SERVICES DIVISION 055 STATE PURCHASING OAR
125-055-0005 Definitions
for Purchasing Policies Governing the Acquisition of Goods and Services from
Qualified Rehabilitation Facilities (1) As used in
OAR 125-055-0005 to 125-055-0045: (a)
“Accredited Vocational Consultant” means an individual who is
accredited as: (A) A Certified
Rehabilitation Counselor (CRC) by the Certification
of Disability Management Specialists Commission; (B) A Certified
Insurance Rehabilitation Specialist (CIRS) by the
Certified Insurance Rehabilitation Specialist Commission; or (C) A Certified
Vocational Evaluation Specialist (CVE) or a
Certified Work Adjustment Specialist (CWA) by the
Commission on Certification of Work Adjustment and Vocational Evaluation
Specialists. (b)
"Agency" means a public agency, as defined in ORS 279.011(7). (c)
“Competitive Employment” means work performed by an individual in
the competitive labor market on a full-time basis with no more than
reasonable accommodation (as required by the Americans with Disabilities Act,
42 USC §§12101 to 12213) for which the individual
is compensated within the range of customary wages and levels of benefits
paid in the community for the same or similar work performed by individuals
who are not disabled. (d) “Disabled
Individual,” as defined in ORS 279.835(3), means a person who has a
physical or mental impairment (a residual, limiting condition resulting from
an injury, disease or congenital defect) that so limits the person’s
functional capabilities (such as mobility, communication, self-care,
self-direction, work tolerance or work skills) that the individual is not
able to engage in normal competitive
employment over an extended period of time and, as a result, must rely on the
provision of specialized employment opportunities by qualified nonprofit
agencies for disabled individuals. (e)
"Price" means the cost to Agencies of the products and services
under contracts procured under the Products of Disabled Individuals Law, as
determined under OAR 125-055-0030. (f)
“Procurement List” means a listing of those nonprofit agencies
for Disabled Individuals that currently are qualified, under OAR
125-055-0015, to participate in the program created by ORS 279.835 to 279.850
and includes, as required by ORS 279.850(1), a list of the products and
services offered by QRFs and determined by the State Procurement Office,
under OAR 125-055-0020, to be suitable for purchase by Agencies. (g)
“QRF” means an activity center or rehabilitation facility,
certified as a community rehabilitation program or as a vocational service
provider through the Oregon Department of Human Services,
that the State Procurement Office has determined to be qualified under
OAR 125-055-015. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0010 Policy (1) As required
by ORS 279.850(1), Agencies that intend to procure a product or service that
is listed on the Procurement List must procure that product or service, at the
Price determined by the State Procurement Office, from a Qualified
Rehabilitation Facility if the product or service is of specifications
appropriate to the Agency’s procurement needs and is available within
the time required by the Agency. (2) It is the
policy of the Department to assist Qualified Rehabilitation Facilities (hereinafter
referred to as QRFs) by administering a program to: (a) Identify
contracting opportunities in the public sector for QRFs; (b) Ensure that
QRF programs meet the standards set forth in ORS 279.835 to 279.850; and (c) Assist and
facilitate Agencies in entering into contractual relationships with QRFs for
the provision of products and services. (3) In
administering the program created by ORS 279.835 to 279.850, the State
Procurement Office, Agencies and QRFs shall keep in mind the purpose of the
law: to encourage and assist disabled individuals to achieve maximum personal
independence through useful and productive gainful employment by assuring an
expanded and constant market for sheltered workshop and activity center
products and services. (4) In promoting
the policy of this section and ORS 279.850(2), the Chief Procurement Officer
may appoint uncompensated volunteer members to serve on an advisory council
for purchases from qualified rehabilitation facilities to review available
information on QRF programs and to make recommendations to the Chief
Procurement Officer concerning the facilitation and administration of the
program under ORS 279.835 to 279.850.
The Chief Procurement Officer’s authority to appoint advisory
council members includes the authority to remove and replace members in the
Chief Procurement Officer’s sole discretion. Meetings of the advisory council for
purchases from qualified rehabilitation facilities are not subject to the
public meetings law (ORS 192.610 to 192.710).
However, to facilitate attendance by members of the public, the State
Procurement Office will post, at least two business days prior to each meeting,
notice of the times and places of meetings of the advisory council on a
web-site maintained by the State Procurement Office. However, the State Procurement Office
reserves the right to change the meeting time and place after the posting of
notice of a meeting to address scheduling needs or for the convenience of
participants. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0015 Application
for QRF Participation (1) Initial
Application. A nonprofit activity
center or rehabilitation facility that seeks to participate in the program
created by ORS 279.835 to 279.850 must submit a completed application to the
State Procurement Office on forms prescribed by the State Procurement
Office. (2) Subsequent Annual
Reapplications. (a) A QRF that
seeks to continue participation in the program after having initially been
approved as qualified and placed on the Procurement List under this rule must
submit a completed reapplication to the State Procurement Office each year on
forms prescribed by the State Procurement Office. The QRF must submit the reapplication
within 120 calendar days of the close of the QRF’s fiscal year. (b) All
QRFs who have had, in the previous fiscal year of the QRF, contracts with
Agencies that yielded payments to the QRF that in the aggregate exceeded
$20,000 (Twenty Thousand Dollars) in that fiscal year, must also submit the
audit report required by OAR 125-055-0035 for that fiscal year with
their annual reapplications. A QRF who
must file an annual reapplication must submit the reapplication, together
with the audit report, within 120 days of the close of the QRF’s fiscal
year. (3) The
information to be submitted on or as part of the application or annual
reapplication must contain all information required by the application or
reapplication form, including: (a) Corporate or
organizational information, including legal name, business or mailing address
and other information to permit communication with the organization, name of
the executive director or other chief managing officer, federal tax
identification number and documentation of the organization’s status as
a nonprofit entity. (b) Information
concerning the organization’s status as an activity center or
rehabilitation facility that is certified as a community rehabilitation
program or as a vocational service provider through the Oregon Department of
Human Services. (c) Information
concerning the organization’s certification status under the federal
Javits-Wagner-O’Day Act program operated under 41 USC
§§46 to 48c. (d) For initial
applications, information concerning the organization’s employment of
Disabled Individuals during the organization’s last fiscal year, if the
organization has operated as a QRF throughout the last fiscal year, including
information sufficient to determine whether the organization qualifies or
will qualify as a nonprofit agency for Disabled Individuals under the direct
labor requirement of ORS 279.835(5).
If the applicant has not operated as a QRF throughout its last fiscal
year, then the applicant must submit information concerning its planned
employment of Disabled Individuals in the next fiscal year of the applicant,
including the measures it will take to ensure that the applicant will comply
with the direct labor requirement of ORS 279.835(5) in the next fiscal year
of the applicant. (A) To qualify
under this subparagraph, an applicant is required, during the
applicant’s fiscal year, to employ Disabled Individuals for not less
than 75 percent of the total work hours of direct labor required for the
manufacture or provision of the products or services produced by the
applicant. The 75 percent direct labor
requirement need not be met with respect to each product or service provided
by the applicant, or with respect to each contract the applicant enters into
under this program. (e) If the
applicant has contracts with Agencies that yield payments to the applicant
that in the aggregate exceed $20,000 (Twenty Thousand Dollars) in the
applicant’s fiscal year, information concerning whether the applicant
has had an independent audit of the applicant’s direct labor and, if
so, the date of the most recently conducted audit and a true and correct copy
of the audit report. An applicant who
must submit an annual reapplication must submit a true and correct copy of
the audit report for the preceding fiscal if the applicant’s contracts
exceeded the $20,000 threshold in that fiscal year. (f) A listing of
all contracts that exceed $500 (Five Hundred Dollars) the applicant has with
Agencies that includes the identity of each contracting Agency, the type of
product or service provided under each contract, the annual contract amount
for each contract year and the estimated contract amount for the current
contract year. (g) Certifications
by an authorized officer of the applicant that: (A) The
applicant qualifies as a “nonprofit agency for disabled
individual” as defined in ORS 279.835; (B) All
individuals claimed to be employed as Disabled Individuals by the applicant
have been determined to be Disabled Individuals as documented by information
maintained by the applicant in its file on each such individual. (C) The applicant complies with all applicable
occupational health and safety standards required by the laws of the (D) The
applicant will conduct an annual direct labor audit by an independent
certified public accountant to determine the applicant’s compliance
with ORS 279.835(5)(c), if the payments to the applicant under Agency
contracts in the aggregate exceed $20,000 (Twenty Thousand Dollars) annually; (E) The
applicant will comply, if any of its products or services are placed on the
Procurement List, with the applicable requirements of ORS 279.835 to 279.850
and OAR 125-055-0005 to OAR 125-055-0040; and (F) The
applicant has submitted no false or misleading information in connection with
the application and will submit no false or misleading information in
connection with the submission of information concerning the
applicant’s continuing qualifications to maintain the listing of its
products or services on the Procurement List. (4) The State
Procurement Office will evaluate each application submitted by an entity
seeking a determination of its QRF status and addition to the Procurement List. The State Procurement Office reserves the
right to require applicants to provide information in addition to the
information required by this rule that is pertinent to making the
determination whether an applicant is qualified. (5) In
conducting the evaluation, the State Procurement Office will consider the
particular facts and circumstances in each case to determine whether the
applicant is qualified for QRF status and addition to the Procurement List
under the following standards: (a) The
applicant must be organized under the laws of the (b) The net
income of the applicant must not inure, in whole or in part, to the benefit
of any shareholder or other individual;
(c) The applicant must
comply with all applicable occupational health and safety standards
required by the laws of the United States or of the State of Oregon; and (d) The
applicant must satisfy the direct labor requirement of ORS 279.835(5) or, in
the case of a start-up applicant, demonstrate that it will satisfy the direct
labor requirement of ORS 279.835(5) in the ensuing fiscal year of the
applicant. (6) If
the State Procurement Office determines that the entity is qualified, it
shall send notice of QRF status to the applicant and add the applicant to the
Procurement List. If the State
Procurement Office does not find the applicant qualified for QRF status, it
shall reject the application and notify the applicant in writing of the criteria
the applicant did not satisfy or adequately demonstrate. (7)(a) Within
thirty (30) calendar days from the date of the State Procurement
Office’s notice of the rejection of an application or reapplication,
the applicant may appeal the decision by submitting a written appeal to the
State Procurement Office. The appeal
shall include a copy of the State Procurement Office’s notice and shall
state the applicant’s grounds for appealing the decision. If the applicant does not appeal the State
Procurement Office’s decision within the 30-day period from the date of
the State Procurement Office’s notice of the rejection of the
application or reapplication, the applicant shall not be placed on the
Procurement List or, in the case of a reapplication, on the 31st
day, the applicant shall be removed from the Procurement List. (b) On appeal,
if the State Procurement Office determines that the applicant is then
qualified, it shall send the applicant notice of qualification for QRF status
and add the applicant to the Procurement List. If the State Procurement Office does not
find the applicant qualified, it shall provide the applicant a written
decision that states the reasons for that determination and that denies the
applicant placement on the Procurement List or, in the case of a
reapplication, removes the applicant from the Procurement List. The State Procurement Office’s
written decision under this subsection constitutes a final order under ORS
183.484. (8) The State Procurement Office may re-evaluate the decision to grant
approval for QRF status if the State Procurement Office discovers pertinent
information that was not available when the initial decision was made. If the State Procurement Office determines
that there is sufficient cause to revoke QRF status, it shall issue notice to
cure to the QRF. If the QRF does not
satisfactorily effect cure within 30 calendar days of the date of the State
Procurement Office’s notice or such longer time as may be permitted by the
State Procurement Office, the State Procurement Office may then initiate
proceedings to revoke QRF status by providing written notice of the proposed
revocation and removal of the entity from the Procurement List. An entity may appeal the notice to cure or the
proposed revocation and removal by submitting a written appeal to the State
Procurement Office in the manner provided in subsection (7) of this rule. (9) If a QRF is
removed from the Procurement List under subsections (5) to (8) of this
section, no Agency shall award or renew a contract made with that QRF under
ORS 279.835 to 279.850, and the removal from the Procurement List shall
constitute sufficient grounds for an Agency to terminate any outstanding
contract with the QRF that was established under ORS 279.835 to 279.850. The State Procurement Office will post, on
a web-site or other accessible on-line posting address administered through
the State Procurement Office, notice of the removal of a QRF from the
Procurement List. (10) Nothing in
this rule shall be construed as prohibiting the State Procurement Office and
an applicant or QRF from resorting to informal dispute resolution measures
such as non-binding arbitration or mediation in addition to the appeal
procedures prescribed by subsections (7) and (8) of this rule. (11) The State
Procurement Office will publish and maintain a Procurement List that
identifies the nonprofit activity centers and rehabilitation facilities the
State Procurement Office determines, under this section, to be qualified to
participate in the program. The State
Procurement Office shall distribute this Procurement List or make it
available, electronically or otherwise, to all Agencies. (12)
After a denial or revocation of an applicant’s or QRF’s qualified
status and listing on the Procurement List, the applicant or QRF may re-apply
only after one year from the date the denial or revocation determination
became final. (13)
Once listed on the Procurement List, a QRF will remain listed, subject to the
State Procurement Office’s re-examination of the QRF’s qualified
status each year, based on the information provided with the QRF’s annual
reapplication. Additionally, the State
Procurement Office may terminate the listing under the procedures provided by
this rule as the result of the State Procurement Office’s discovery of
pertinent information that was not available when the initial, or any
subsequent reapplication decision was made, or if the QRF ceases to do
business as a QRF. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0020 Determination
of Suitability of Product or Service (1)
The State Procurement Office will publish and maintain a Procurement List
that identifies the products and services of QRFs the State Procurement
Office has determined to be suitable for procurement by Agencies under this
section. No Agency shall enter into
or renew a contract under the QRF program created by ORS 279.835 to 279.850
for products or services that are not on the Procurement List. No QRF shall offer to contract to provide,
or renew any contract to provide, under the program created by ORS 279.835 to
279.850, products and services that are not on the Procurement List. (2)
A QRF proposing to offer one or more products or services under ORS 279.835
to 279.850 shall deliver a written request to the State Procurement Office
that specifies the products or services proposed to be offered. (3)
For a product or service to be suitable for addition to the Procurement List,
each of the following criteria must be satisfied: (a)
Qualified Rehabilitation Facility (QRF).
A QRF proposing to furnish a product or service must be a qualified
nonprofit agency for disabled individuals approved under OAR 125-055-0015. (b)
Ownership. A QRF must own the product
or directly provide the service that the QRF proposes to provide to Agencies
through the program created by ORS 279.835 to 279.850. For example, a product or service will not
be determined to be suitable for procurement by Agencies where the QRF
operates merely as a broker, distributor, licensor or sales agent for another
person or entity in providing a product to an Agency. (c)
Tied Products. A QRF’s contract
to provide a service cannot obligate an Agency to buy a product tied to that
service unless the product is incidental to, or consumed in, the performance
of the service. (d)
No Excessive Prices. The pricing proposed to be charged by the QRF for the
product or service must not be excessive.
In cases in which proposed pricing appears arguably excessive, as
determined in the discretion of the State Procurement Office, the State
Procurement Office may require the QRF to demonstrate that the proposed
pricing is not excessive. The
QRF’s demonstration may include reliable evidence of comparative
pricing in the market for the same or similar products or services. (e)
Purpose, Value, Capability. The QRF
desiring to furnish the product or service must demonstrate to the State
Procurement Office that the QRF meets the purpose of the Products of Disabled
Individuals Law and State Procurement Office quality standards and delivery
schedules. The QRF must demonstrate
capability by submitting to the State Procurement Office a written plan that
addresses: (A)
Purpose of the Law. The purpose of the
law is to further the policy of this state to encourage and assist disabled
individuals to achieve maximum personal independence through useful and
productive gainful employment by assuring an expanded and constant market for
sheltered workshop and activity center products and services, thereby
enhancing their dignity and capacity for self support and minimizing their
dependence on welfare and need for costly institutionalization. To ensure that a QRF achieves this goal,
the QRF must demonstrate: (i) The extent of the labor operations to be performed in
connection with the QRF’s provision of the product or service; and (ii)
That appreciable value will be added to the product or service by Disabled
Individuals; the term “appreciable value” means a measurable
addition of value, or an objectively observable improvement, enhancement or
change, to the final product or service.
No product or service may be determined to be suitable for addition to
the Procurement List where the process of the manufacture, assembly or
production of the product or of the rendition of the service contains or is
affected by any procedure, device or artifice under which the work of
Disabled Individuals does not contribute, in a substantial, economically
meaningful manner, to the value of the product or to the performance of the
service, or under which the work of Disabled Individuals is not a logical
element of the chain of production. (iii)
The range of salaries, rates of pay or other applicable measure of
compensation that the QRF will pay for work performed in providing the
product or services proposed. (B)
Subcontractor Disclosure. The QRF must disclose subcontractor utilization,
partnerships or planned joint ventures, if any, the character and portion of
the labor to be performed by, and the equipment to be used or supplied by,
any subcontractor, partner or joint venturer
(collectively, “subcontractor”).
If a subcontractor performs direct labor or provides personnel that
perform direct labor in the manufacture or assembly of a product or in the provision
of a service to be provided to an Agency under the program created by ORS
279.835 to 279.850, the QRF must submit reliable documentation that
demonstrates that: (i) The combined productive activities of that
subcontractor and the QRF in the performance of the subcontract between them together
meet the standards of OAR 125-055-0015(3)(d) and OAR
125-055-0020(3)(e)(A)(ii); and (ii)
The performance of work by non-QRF participants and persons who are not
Disabled Individuals will not cause the QRF that participates in such a
combination to violate the direct labor requirement of OAR 125-055-0015(3)(d)
or result in a violation of OAR 125-055-0020(3)(e)(A)(ii). For purposes of this subparagraph, a person
or entity that merely serves as a supplier of raw materials, parts or
components of a product, or of supplies that are used or consumed in the
performance of a service, is not a subcontractor. A person or entity that only leases
facilities or productive equipment to a QRF, and provides no labor or personnel
that participate in the manufacture or assembly of a product or in the
provision of a service, is not a subcontractor. (C)
Quality Standards and Delivery Schedules.
The QRF must demonstrate that the QRF has the capability to meet the
applicable specifications and to make the product or services available
within the time required for supplying Agencies. (D)
Additional Information. The State
Procurement Office may require other pertinent data in the QRF plan such as
the projected employment potential, start up costs and estimated cost
recovery, product/service pricing, market research conducted by the QRF for
the product or service, if any, identification of business space dedicated to
the product or service, and other pertinent information that may be requested
by the State Procurement Office. In
conducting determinations of suitability, the State Procurement Office may
conduct on-site investigations of the QRF’s work-sites and production
processes. (4)
Based on the request, including the written plan required by subparagraph
(3)(e) of this rule, and any additional information submitted in response to
the State Procurement Office’s request under subparagraph (3)(d)(D),
the State Procurement Office will determine whether the proposed product or
service satisfies the criteria in
subsection (3). If the State
Procurement Office determines that the product or service satisfies the
criteria in subsection (3), it shall record that determination on a form
prescribed by the State Procurement Office.
If the State Procurement Office determines that the product or service
does not satisfy the criteria in subsection (3), it shall notify the
requesting party in writing of the criteria the QRF did not meet or
adequately demonstrate that it met. (5) Within ten (10)
calendar days from the date of the State Procurement Office’s notice of
the criteria that a requested product or service failed to meet or that the
QRF failed to satisfactorily demonstrate that it met, the QRF may appeal the
decision by submitting a written appeal to the State Procurement Office. The appeal shall include a copy of the
State Procurement Office’s notice and shall state the QRF’s
grounds for appealing the decision. On
appeal, if the State Procurement Office determines that the product or
service satisfies the criteria, it shall send notice to the QRF of its
decision and add the product or service to the Procurement List. If the State Procurement Office does not
find that the product or service satisfies the criteria, it shall provide the
QRF a written decision that states the reasons for that determination. The State Procurement Office’s
written decision under this subsection shall constitute a final order under
ORS 183.484. (6) At least
fourteen (14) calendar days prior to the effective date of the listing of a
product or service on the Procurement List, the State Procurement Office
shall give notice of the proposed listing on an accessible on-line posting
address administered through the State Procurement Office. A person or entity who will be adversely
affected by the listing in its ability to compete for public contracts for
the product or service proposed to be listed may, within the fourteen-day
period, submit a written protest of the listing of the product or service to
the State Procurement Office. The
written protest must state the facts that demonstrate how the listing will
adversely affect the person’s or entity’s ability to compete for
public contracts for the product or service proposed to be listed and must
demonstrate how the product or service to be listed fails to satisfy the
criteria stated in subsection (3) of this rule. If the State Procurement Office receives no
protest concerning the proposed listing by the close of business on the
fourteenth day after the first day on which the State Procurement Office
first posted the form, then the listing shall automatically become effective
on the next business day after the fourteenth day. (7) If the State
Procurement Office receives a written protest concerning the proposed listing
of a product or service from a person or entity who has demonstrated in
writing that it will be adversely affected by the listing in its ability to
compete for public contracts for the product or service proposed to be
listed, the State Procurement Office will consider the protest and issue a
written response to the protest. The
State Procurement Office will not consider a protest not made in writing and
received by the State Procurement Office by the close of business on the
fourteenth day after the first day on which the State Procurement Office
first posted the proposed listing under subsection (6) of this rule. In considering a timely protest, the State
Procurement Office may request further information and comment from the
complaining party and from the QRF that submitted the application for the
listing of the product or service. (a) The State
Procurement Office’s response to the protest will confirm the listing
of the product or service, modify the listing of the product or service, or
withdraw the proposed listing of the product or service. The State Procurement Office will make its
written determination available, by mail or by electronic means,
to the complaining party and to the QRF whose product or service is the
subject of the protest. (b) A protester
or QRF who is adversely affected or aggrieved by the State Procurement
Office’s response under this subsection may request that the State
Procurement Office institute contested case proceedings under ORS 183.413 to
183.470 by delivering to the State Procurement Office a written request for a
contested case within fourteen (14) calendar days of the date of issuance of
the response. The written request for
a contested case must describe how the requesting party is adversely affected
or aggrieved by the response and why the Division’s response is
incorrect. The contested case will be
limited to the issues raised before the State Procurement Office in the
protest proceedings. (8) Nothing in
this rule shall be construed as prohibiting the State Procurement Office, a
QRF and a protester from agreeing to resort to informal dispute resolution
measures such as non-binding arbitration or mediation in addition to the
appeal procedures prescribed by subsections (5) and (7) of this section. (9) No
determination under this section that a product or service is suitable and no
placement of a product or service on the Procurement List shall act to
displace a contractor under an existing public contract with an Agency for
the same product or service prior to the expiration or other termination of
the contractor’s contract with the Agency. (10) Once a
product or service has been placed on the Procurement List, it will remain on
the list until: (a) Five years
have elapsed from the date of the listing of the suitability determination,
or such earlier time as the State Procurement Office may prescribe for
expiration of the listing at the time it makes the determination of
suitability; (b) The State
Procurement Office has determined, under OAR 125-055-0020 or OAR
125-055-0025, that the product or service is not suitable for procurement by
Agencies; (c) The product
or service no longer is offered by the QRF that requested a determination of
its suitability; or (d) The QRF is
removed from the Procurement List. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0025 Review
of Suitability Determinations (1) The State
Procurement Office reserves the right, to be exercised in its sole discretion,
to review suitability determinations as changes in pertinent circumstances,
which include but are not limited to changes in rules, laws, market
conditions and QRF contractor performance, occur. Should the State Procurement Office
identify information that was not available during the initial determination
that negatively impacts a previous determination of suitability, it may
notify the QRF and conduct a review of the determination. The review may result in removal of the
product or service from the Procurement List.
A QRF may appeal a decision to remove a product or service from the
Procurement List in the manner provided in OAR 125-055-0020(5). (2) The State
Procurement Office may review a determination that a product or service is
suitable if the State Procurement Office discovers pertinent information that
was not available when the initial decision was made. Within 10 calendar days after the receipt
of written notice from the State Procurement Office of a determination to
remove a product or service from the listing, the affected QRF may appeal the
determination by submitting a written appeal to the State Procurement
Office. The appeal shall include a
copy of the State Procurement Office’s notice, and the QRF’s
grounds for appealing the determination.
If the State Procurement Office determines, on reconsideration, that
the product or service is suitable for procurement by public agencies, the
State Procurement Office shall send notice of approval to the QRF and
maintain the publication of the product or service on the Procurement
List. If the State Procurement Office
finds the product or service not suitable for procurement by public agencies
under the criteria of OAR 125-055-0020(3), the State Procurement Office shall
give written notice to the QRF of the criteria that were not satisfied. The State Procurement Office’s
written decision under this subsection shall constitute a final order under
ORS 183.484. (3) In no event
may an Agency and a QRF agree to change the specifications in, or amend, a contract
established under the program created by ORS 279.835 to 279.850 in a manner that alters the
character or scope of the product or service so that the product or service
no longer is essentially the same product or service that was the subject of
the determination of suitability. In
cases where such a change is sought, the Agency and the QRF must first
request and receive from the State Procurement Office a new or revised
determination that the product or service, as changed, is suitable under this
section. In cases where the change in
specifications or amendment appears to affect the Price of a product or
service as determined under OAR 125-055-0030, the State Procurement Office
also may conduct a new Price determination in response to the request. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0030 Determination
of Price (1) Under ORS
279.845(1)(a), the State Procurement Office shall
determine the Price of products and services offered for sale to Agencies
that the State Procurement Office has determined to be suitable for
procurement by Agencies and placed on the Procurement List. (2)
Determination of Price. The Price determined by the State Procurement Office
shall be a reasonable and adequate Price that will recover for the QRF the
cost of: (a) Raw
materials; (b) Labor; (c) Overhead
that is allocable to the particular product or service for which the Price
determination is being made, including the actual, reasonable costs of
complying with the independent audit requirements of OAR 125-055-0040(1) (For
purposes of this subparagraph, overhead cost is allocable to a particular
product or service to the extent the overhead costs are chargeable to the
production of the product or the performance of the service in accordance
with the relative benefits received by the product or service program as
compared to the overall activities of the QRF); (d) Delivery
costs; and (e) An amount
held in reserve for inventory and equipment replacement. (3) Initial
Price Determination Procedures: (a) For products
or services the State Procurement Office has determined to be suitable for
purchase by Agencies, an Agency or the State Procurement Office shall provide
the QRF with a solicitation document and an annotated pricing tabulation that
covers the period of the proposed contract for those products or services,
the expiring contract, or the most recent solicitation. Additionally, an Agency or the State Procurement
Office shall provide the QRF with the scope of work and specifications, if
any, that will cover the initial period during which the QRF expects to
provide the product or service. (b) The QRF
shall submit its proposed Price to the Agency or the State Procurement
Office, based on the volume or scope of the work and specifications
acceptable to the Agency, as prescribed in the proposed contract between the
QRF and an Agency. The contract may
propose to serve a single Agency or multiple Agencies. Where the contract proposes to serve multiple
Agencies, the QRF’s disclosure of costs under subparagraph (c) of this
subsection must address the costs of serving all Agencies the QRF proposes to
serve under the contract. The State
Procurement Office reserves the right to review and amend a Price
determination in light of reductions in or additions to the Agencies served
under a multiple Agency contract. (c) In
submitting its proposed Price to the Agency or the State Procurement Office,
the QRF must make full disclosure of known costs. The disclosure must include
documentation, on a form prescribed by the State Procurement Office, that the
costs proposed will result in a Price that will permit the QRF to recover the
amounts prescribed in subsection (2) of this section and ORS 279.845(1)(a). (d) As part of
the disclosure, an authorized officer of the QRF must certify that the costs
claimed are, to the best of the officer’s knowledge, reasonable and
adequate, and that the proposed Price will permit the QRF to recover the
amounts prescribed in subsection (2) of this section. (e) If the QRF
and the Agency agree on the terms and conditions of a proposed contract and
the price for the products or services to be provided under the proposed contract, the QRF and the
Agency must present the proposed contract (including the agreed price) to the
State Procurement Office for review and a determination of the Price. (4) Based on the
volume or proposed scope of work and the costs disclosed by the QRF under
subsection (3) of this section, the State Procurement Office will determine a
Price for the products or services offered under the proposed contract. If the State Procurement Office regards the
determined Price to be reasonable and adequate to permit the QRF to recover
the amounts prescribed in subsection (2) of this section, then it will notify
the QRF and the Agency of the Price. (5) In
determining a reasonable and adequate Price of a product or service, the
State Procurement Office may consider: (a) Prices of
similar products or services purchased in comparable quantities by federal
agencies under the authorized federal program (Javits-Wagner-O'Day Act); (b) Prices of
products or services of similar specifications and quantities previously
purchased by government agencies from responsible contractors engaged in the
business of selling similar products or services; (c) Prices that
private businesses pay for similar products or services in similar quantities
of comparable scope and specifications if purchasing from a reputable vendor
engaged in the business of selling similar products or services; (d) Prices of
products or services of similar specifications and quantities purchased by
Agencies from QRFs under the program created by ORS 279.835 to 279.850. (6) A QRF and an
Agency shall not execute or implement any contract under the program created
by ORS 279.835 to 279.850 until the State Procurement Office has transmitted
notice of the Price determined by the State Procurement Office to the Agency
and the QRF. (7)
Re-determinations of Price. A Price established
by the State Procurement Office shall apply for the initial term or period of
the contract unless otherwise approved by the State Procurement Office. The State Procurement Office may
re-determine a Price at the request of a QRF or Agency, or at the discretion
of the State Procurement Office. Until
the State Procurement Office approves a new Price, the QRF shall continue to
provide, at the established Price, the service or product in accordance with
the scope of work that was the basis for establishing the existing
Price. The Agency shall not pay or
agree to pay the QRF any amount other than the Price approved by the State
Procurement Office. The State
Procurement Office reserves the right, during the process of re-determining a
Price, and subject to existing contract rights of the QRF and Agency, to
suspend the Price and set an interim Price; such action may trigger a review
of the suitability determination for the affected product or service under
OAR 125-055-0025. (a) In
re-determining Price, the State Procurement Office will consider the factors
in subsections (2) and (3) of this rule.
The State Procurement Office also may take into consideration changes
that have taken place since the last Price determination that are pertinent
to re-determining Price. (b) Each
re-determination or adjustment of Price shall be based on changes in the
scope of work, changes in the costs of producing the product or performing
the service, or both. If the proposed
adjustment is based on changes in QRF cost factors, the QRF shall submit to
the State Procurement Office and the Agency a request for a Price change
showing a breakdown of cost changes with appropriate documentation, as
requested by the State Procurement Office or Agency. As part of the request and documentation,
an authorized officer of the QRF must certify that the proposed changes in
costs are, to the best of the officer’s knowledge, genuine, reasonable,
and adequate, and that the proposed Price will permit the QRF to recover the
amounts prescribed in subsection (2) of this section and ORS 279.845(1)(a). The Price
established by the State Procurement Office for a product or service shall
remain in effect until the State Procurement Office approves a new Price. (c) Agencies and
QRFs may not make material changes (changes that affect the cost of providing
the products or services in more than a negligible manner) to the
specifications of a contract entered into under the program created by ORS
279.835 to 279.850 unless the changes are in writing and have been submitted
to the State Procurement Office for a re-determination of Price. The following information reporting is
required of the Agency in order to assist the State Procurement Office in
Price re-determinations based on changes in contract specifications: (A) In the event
that the Agency or State Procurement Office wishes to change specifications
from the most recent solicitation for the product or service, the Agency or
State Procurement Office shall notify the QRF in writing of the specific changes
in the scope of work or other conditions which will be required during the
new contract period. (B) Upon receipt
of notice of change, the QRF shall submit a Price recommendation and Price
change request under subparagraph (7)(b) of this
section to the Agency and State Procurement Office for review and a
re-determination of the Price by the State Procurement Office. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0035 Audits (1) To maintain qualifications
and listing on the Procurement List under OAR 125-055-0015, all QRFs whose
total annual Agency contract value exceeds $20,000 must conduct an annual
audit of direct labor to determine compliance with ORS 279.835(5)(c). Each such
QRF must submit to the State Procurement Office an audit report and letter of
attestation, on forms prescribed by the State Procurement Office, regarding
each annual audit. Under the annual
reapplication requirement of OAR 125-055-0015(2), a QRF must submit, with
each reapplication, an audit report and letter of attestation for the
preceding fiscal year of the QRF. Each
QRF shall ensure that each of its contracts entered into with an Agency under
the program created by ORS 279.835 to 279.850 includes a provision that
requires the QRF, if the QRF’s total annual
value of contracts with Agencies exceeds $20,000, to conduct an annual audit
of direct labor. (2) The audit
shall be conducted by an independent certified public accountant for the same
fiscal year as the QRF's annual financial audit. (3) The audit
shall consist of an auditor’s examination of the QRF, conducted in
accordance with generally accepted auditing principles. (4) For purposes
of subsection (5) of this section: (a) “Direct
labor” means all work required for the manufacture, preparation,
processing and packing of products produced by a QRF and all work performed
in the rendition of services by a QRF, but does not include supervision,
administration or shipping.
“Direct labor also does not include client-type services
provided by a QRF to Disabled Individuals served by the QRF, such as job
training and therapeutic services. (b) “Supervision”
means the direction, assignment, instruction and oversight of individuals
performing direct labor, and inspection of work performed or products for
quality assurance. (c) “Administration”
means the management activities of a QRF that include acquisition of
equipments, parts, supplies and inventory, handling of the entity’s
payroll, personnel and accounting activities, executive decision-making and
other business activities, generally of a centralized nature, that do not
entail the “hands-on” production of a product or the performance
of a service. (d)
“Shipping” means the transportation of a product to the site
designated by the acquirer of the product or the transportation of workers to
site at which they will perform services for a customer. (5) The
examination and resultant audit report must be based on the following records
and information: (a)
A listing of all products and services provided by the entity in the
QRF’s fiscal year, including those products and services were procured
by Agencies under ORS 279.015 and 279.835 to 279.850 and those which were
procured outside the program created by those statutes. (b)
A list of all individuals covered by the audit scope employed by the QRF who
are Disabled Individuals who provided direct labor required for the
production of products or the performance of services during the fiscal year
that is the subject of the audit examination, including employee name, unique
employee identification number, job description and disability status. (c)
A list of all individuals covered by the audit scope employed by the QRF,
whether paid or unpaid, who are not Disabled Individuals and who provided
direct labor required for the production of products or the performance of
services during the fiscal year that is the subject of the audit examination,
including employee name, unique employee identification number and job
description. (d)
A compilation of the total hours of direct labor actually performed by the
QRF during the fiscal year. (e)
Payroll reports for all individuals covered by the audit scope employed by
the QRF during the fiscal year, including employee name, social security
number, work hours paid, and vacation hours, sick leave hours, and training
hours. Hours worked must be segregated
from hours paid but not worked. (f)
Time and billing records showing direct hours worked by each employee in the
manufacture or provision of goods and services. (g)
Disability status documentation. The
QRF must have documentation on file for each employee who is or who is
claimed to be a Disabled Individual.
The file must include documentation from an officially accredited
source that each such person has been determined to be a Disabled Individual
as defined in OAR 125-055-0005. The
acceptable forms of disability documentation are: (A)
Department of Human Services/Seniors and People with Disabilities Office of
Licensing and Quality Care referrals; (B)
Commission for the Blind referrals; (C)
Department of Human Services/Community Human Services, Office of Vocational
Rehabilitation Services referrals; (D)
Competitive Employment statements signed by a physician or other Accredited
Vocational Consultant stating that the employee is a Disabled Individual as
defined in OAR 125-055-0005; (E)
Certifications that the employee is legally deaf and is a Disabled Individual
as defined in OAR 125-055-0005; (F)
Certifications that the employee is eligible for Supplemental Security Income
(SSI) or Social Security for the Disabled (SSDI) benefits. (6)
The audit report must address the following elements: (a)
A determination whether the QRF’s time, billing and payroll records are
sufficiently complete and reliable to demonstrate compliance with the 75
percent direct labor requirement of ORS 279.835(5)(c). The records must permit segregation of
direct labor hours from other hours worked and paid, and allow for assessment
of direct hours worked by employees with disabilities, as well as by
employees without disabilities. (b)
If the certified public accountant finds the records to be sufficiently
complete and reliable, the certified public accountant must test the
QRF’s calculation, for the entire applicable fiscal year, of the
portion of total direct labor hours that were worked by employees with
disabilities. Only direct hours worked
shall be included in the calculation.
Vacation, sick leave, holiday, training hours, and any other hours paid
but not worked by the employee are to be excluded from the calculation. (c)
The certified public accountant must apply sufficient statistical sampling
techniques to obtain an eighty percent level of confidence with a precision
of plus or minus ten percent that: (A)
The direct labor by Disabled Individuals during the QRF’s fiscal year
satisfied the 75 percent direct labor requirement under ORS 279.835(5) and
OAR 125-055-0015(2)(d)(A); and (B)
The hours reported as worked by persons with disabilities were worked by
persons whose disabilities were documented under subparagraph (5)(g) of this rule. (d)
A determination whether adequate actions have been taken to resolve any prior
adverse audit report findings or recommendations. (e) The
independent certified public accountant that conducted the annual audit shall
sign an attestation that the QRF complied or did not comply with the 75
percent direct labor requirement of ORS 279.835(5)(c)
during the fiscal year period for which the annual financial audit was conducted. If the Certified Public Accountant attests
that the QRF did not comply with the requirement of ORS 279.835(5)(c), the report must include a concise description of the
character and extent of the noncompliance.
(7) Within 120 calendar
days after the close of the QRF’s fiscal year, each QRF must submit the
direct labor audit attestation report for the preceding fiscal year, signed
and dated by the independent Certified Public Accountant and by an officer of
the QRF’s board of directors, to the State Procurement Office. A QRF that must submit an annual
reapplication under OAR 125-055-0015(2) must submit the reapplication with
its most recent annual direct labor audit report and letter of attestation. (8) Failure to
comply with the requirements of this section by a QRF shall constitute
sufficient grounds to terminate the QRF’s listing on the Procurement
List under OAR 125-055-0015 and shall constitute sufficient grounds for an
Agency to terminate, or to suspend performance of the work under, a contract
with the QRF. (9) Failure to
comply with the 75 percent direct labor requirement of ORS 279.835(5)(c)
shall constitute sufficient grounds to terminate [ (10) The cost of
the annual audit required by this rule shall be considered an overhead
expense that the QRF may recover and which must be taken into account in
determining the Price under OAR 125-055-0030. (11) If the
State Procurement Office determines that a QRF is in material noncompliance
with any requirement imposed on it by OAR 125-055-0015 to 125-055-0040,
including the qualifications requirements of OAR 125-055-0015, subsection (7)
of this rule, or the direct labor requirement of ORS 279.835(5)(c), the State Procurement Office will issue, to the
non-complying QRF, a written notice to cure the noncompliance. The written notice will identify the
requirement or requirements with which the QRF does not comply, state the
reasons that the QRF is not in compliance with the requirements, and
prescribe a time period of not less than ninety (90) calendar days, or such
other time as may be permitted by the State Procurement Office, within which
the QRF must achieve compliance. (a) A QRF
receiving notice of noncompliance under this subsection must respond in
writing, within thirty (30) calendar days of the date of the State
Procurement Office’s notice, to the State Procurement Office. The response may: (A) State the
reasons, with supporting documentation, why the QRF is not out of compliance
with the requirements, if the QRF believes that it is in compliance; (B) Present a
plan of action to be taken by the QRF to achieve compliance and propose a
date within which it will achieve compliance; (C) Request an
extension of the time within which the QRF will achieve compliance; (D) Report that
the QRF has achieved compliance and state the actions the QRF has taken to
achieve compliance. (b) If the QRF
does not submit a written response within the 30-day period from the date of
the written notice issued under subsection (11) of this rule or such
additional time as may be permitted by the State Procurement Office, the
State Procurement Office may terminate the QRF’s listing on the
Procurement List under OAR 125-055-0015 by issuing to the QRF written notice
of the proposed termination and removal of the QRF’s products and
services from the Procurement List. (c) The State
Procurement Office reserves the right to require a QRF, as part of the
required cure or as part of a plan of action to attain compliance, to submit
to the State Procurement Office quarterly audit reports concerning the
QRF’s compliance with the direct labor requirement of ORS
279.835(5)(c). If a QRF that is
subject to this requirement satisfies the direct labor requirement in the
first two consecutive quarterly audits, the State Procurement Office may
waive the quarterly audit requirement for that QRF. However, if the QRF next succeeding annual
audit discloses that the QRF failed to satisfy the direct labor requirement,
the State Procurement Office will institute disqualification proceedings by
issuing to the QRF a notice of termination under subparagraph (d) of this
subsection. (d) If the QRF
fails to achieve compliance with the violated requirements within the time
prescribed in the State Procurement Office’s written notice issued
under subsection (11) of this rule, within the time proposed in a QRF’s
plan of action approved by the State Procurement Office, or within the time
permitted under any extension of time granted by the State Procurement
Office, the State Procurement Office will terminate the QRF’s listing
on the Procurement List under OAR 125-055-0015 by issuing to the QRF written
notice of that termination and of the removal of the QRF’s products and
services from the Procurement List. (e) After any
termination of a QRF’s listing on the Procurement List under OAR
125-055-0015, the QRF shall not enter into or renew any contracts under the
program created by ORS 279.835 to 279.850.
Any termination of a QRF’s listing on the Procurement List also
shall constitute sufficient grounds for any Agency to terminate any contract
with the QRF. (f) If the QRF
requests, within ten (10) calendar days of its receipt of notice of
termination, an informal hearing concerning the validity of the grounds for
termination stated in the notice, the termination will not become effective
until the conclusion of the informal, non-contested case hearing
process. If the QRF fails to request a
hearing within this ten-day period, the termination shall become effective on
the eleventh day. (A) As the
result of the hearing process, the State Procurement Office may either reach
written agreement with the QRF or, if no agreement is reached, issue an order
that resolves the issues raised by the QRF and, if no resolution satisfactory
to the State Procurement Office results from the hearing process, the order
may provide for termination of the QRF’s listing on the Procurement
List under OAR 125-055-0015 and removal of the QRF’s products and
services from the Procurement List. (B) After any
hearing, the State Procurement Office may issue an order that resolves the
issues raised by the QRF and, if the determination
is adverse to the QRF, the order may provide for termination of the
QRF’s listing on the Procurement List under OAR 125-055-0015 and
removal of the QRF’s products and services from the Procurement List. The State Procurement Office’s
written decision under this subsection shall constitute a final order under
ORS 183.484. (g) After any
termination of a QRF’s listing on the Procurement List under OAR
125-055-0015, the QRF shall not enter into or renew any contracts under the
program created by ORS 279.835 to 279.850.
Any termination of a QRF’s listing on the Procurement List also
shall constitute sufficient grounds for any Agency to terminate any contract
with the QRF. (h)
After the passage of one year after the effective date of a termination of a
QRF’s listing on the Procurement List under this section, a terminated
QRF may again make an application to be listed as a QRF under OAR
125-055-0015. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 125-055-0040 General Provisions (1)
Contracting Authority. The Department
of Administrative Services and other Agencies must contract directly with a
QRF for a contract to qualify for the exception from the competitive
procurement requirement in ORS 279.015(1)(b) for
contracts under the program created by ORS 279.835 to 279.850. Contracts between multiple Agencies and a
QRF satisfy this requirement that the Agencies must contract directly with a
QRF. (2)
Contract Disputes. Contract
performance issues and disputes arising out of contracts entered into under
the program created by ORS 279.835 to 279.850, such as disputes concerning
timely delivery of products or performance of services or compliance with
specifications, must be resolved exclusively between the QRF and the Agency
that is a party to the contract, and will not be resolved by the State
Procurement Office (except where the Department of Administrative Services is
a party to the contract with the QRF). (3)
Temporary Services. In each contract
for the provision of temporary services entered into by a state agency under
the program created by ORS 279.835 to 279.850, the QRF must monitor the prior
and current work assignments of its employees who work under the contract to
ensure that no employee performs services for a state agency in excess of a
total of 1,040 hours during any consecutive twelve-month period. Contracts for the provision of temporary
services by QRFs may be used only to meet temporary, emergency,
non-recurring, unexpected, or short-term workload demands of state agencies. (4)
Competitive Public Contract Bidding by a QRF.
If a QRF submits, to any Agency, a competitive bid, proposal, quote or
other offer (“offer”) in a competitive procurement for a public
contract, then regardless of whether the offer was accepted, that QRF may
not, at any time during the initial term of the contract for which the QRF
submitted a bid, proposal or offer, make any claim to the Agency that
instituted the procurement for the public contract that the product or
service that was the subject of the offer should have been subject to the
set-aside program created by ORS 279.835 to 279.850. (5)
A QRF shall not enter into a public contract with an Agency under the program
created by ORS 279.835 to 279.850 unless the contract complies with OAR
125-055-0005 to 125-055-0040 and the products or services that are the
subject of the contract are listed on the Procurement List. Any liabilities or expenses that may arise
from the establishment of a contract that violates this subsection shall be
those exclusively of the QRF and Agency, respectively, that purports to enter
into such a contract. (6)
QRF Records. (a)
Each QRF shall maintain accurate and correct records of the direct labor
hours performed in the nonprofit agency by each worker in a manner sufficient
to determine compliance with the 75 percent direct labor requirement of ORS
279.835(5)(c). (b)
Each QRF shall make its records available, at any reasonable time, for
inspection by the State Procurement Office, the Office of the (7) Application of These Rules. (a)
OAR 125-055-0015 shall apply to applications and annual reapplications for
participation in the program created by ORS 279.835 to 279.850 that are
presented to the State Procurement Office, or which are due, after August 31,
2003. OAR 125-055-0020 shall apply to
requests for determinations that a product or service is suitable for
addition to the Procurement List that are presented to the State Procurement
Office after (b)
For determinations of suitability of a product or service that were made
prior to the effective date of these rules, the maximum five-year term of
determinations of suitability under OAR 125-055-0020(10)(a) shall expire five
years from the effective date of these rules. (c)
The adoption of these rules shall not affect the validity of: (A)
Any determination that a QRF was qualified for participation in the program; (B)
Any determination that a product or service was suitable for addition to the Procurement
List; or (C)
Any determination of Price; made prior to the effective date of these rules. (8) The
State Procurement Office reserves the right to extend any deadline or time
within which a QRF or a party to any proceedings under OAR 125-055-0015 to 125-055-0040 must take any action
under those rules if the affected party applies in writing for relief to the
State Procurement Office and demonstrates in writing that special
circumstances warrant the grant of such relief. For the purpose of this subsection, special
circumstances that warrant the grant of relief include practical exigencies
that reasonably can be regarded as imposing a substantial, practical
impediment to the QRF’s or party’s ability to meet the deadline
or achieve the correction of a violation of rules. Special circumstances are circumstances
beyond the reasonable control of the organization including, but not limited
to, the illness or other incapacity of key officers of the organization
seeking relief, emergency reorganizations or replacements of the corporate
structure, board of directors or executive officers of the organization, acts
of God and comparable practical impediments to a person or organization’s
ability to meet a deadline or achieve the correction of a violation of
rules. The grant or denial of relief
under this subsection must be determined by the Chief Procurement Officer or,
in the absence of the Chief Procurement Officer, by an officer of the State
Procurement Office who specifically has been delegated that task. The State Procurement Office also reserves
the right to waive or to permit the correction of minor or technical
violations of OAR 125-055-0015 to 125-055-0040.
Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.015 (1)(b), ORS 279.835 to ORS 279.855 OAR 125-055-0045 Purchases
under ORS 279.855 (1) Policy. QRFs, residential programs and public
benefit corporations recognized by ORS 279.855 may acquire equipment,
materials, supplies and services under the same conditions as state agencies
that, under ORS 279.712(2), are not subject to the requirement that the
Oregon Department of Administrative Services provide for their acquisition of
such items. Accordingly, QRFs,
residential programs and public benefit corporations must enter into an
agreement with the department in order to participate in the Oregon
Cooperative Purchasing Program. The
agreement must have substantially the same form, content and obligations as
the standard agreement prescribed by the State Procurement Office that state
agencies must execute in order to participate. In addition, QRFs, residential programs and
public benefit corporations must comply with the applicable subsections of
this rule to acquire equipment, materials, supplies or services under ORS
279.855. (2) QRFs that
currently are approved under OAR 125-055-0015 may purchase equipment,
materials, supplies and services through the State Procurement Office in the
same manner as state agencies, as provided in ORS 279.545 to 279.746 and
279.820 to 279.824. (3) A
residential program seeking to purchase equipment, materials, supplies or
services through the State Procurement Office under ORS 279.855 must make a
written request to the State Procurement Office to which is attached a true
and correct copy of its currently effective contract with the Department of
Human Services to provide services to youth in the custody of the state. In addition, the residential program must
submit a letter from the Oregon Department of Human Services, on the
letterhead of that department or of a division of that department that
contains the following information: (a) The services
the residential program must provide, including the scope of those services,
under the currently effective contract with the Department of Human Services; (b) The
Department of Human Services contract number; (c) The starting
date and expiration date of the contract; and (d) The name,
original signature, mailing address and telephone number of the Department of
Human Services’ Contract Administrator for the contract. (4) A public
benefit corporation seeking to purchase equipment, materials, supplies or
services through the State Procurement Office under ORS 279.855 must make a written
request to the State Procurement Office to which is attached: (a) A
certification by an authorized officer of the public benefit corporation that
the applicant qualifies as a public benefit corporation under ORS 65.001; (b) A true and
correct copy of documentation, which may include the corporation’s
currently effective articles of incorporation, that demonstrates that the
corporation is tax exempt under §501(c)(3) of the Internal Revenue Code and
that the corporation is not a religious corporation as defined in ORS 65.001[ (c) A true and
correct copy of at least one currently effective contract between the public
benefit corporation and a state agency or unit of local government by which
the corporation’s contract performance is funded at least in part with
state funds; and (d) A letter
from the state agency or unit of local government that confirms the existence
and effectiveness of the contract submitted under subparagraph (c) of this
subsection, on the letterhead of the state agency or unit of local
government, that contains the following information: (A) The services
the public benefit corporation must provide, including the scope of those
services, under the contract submitted under subparagraph (c) of this
subsection; (B) The contract
number; (C) The starting
date and expiration date of the contract; and (D) The name,
original signature, mailing address and telephone number of the state agency
or unit of local government’s Contract Administrator for the contract. (5) Neither the
State Procurement Office nor the State of Oregon shall be liable for any
obligation or debt entered into on behalf of a QRF, a residential program or
a public benefit corporation, and likewise shall not be liable for any
obligation or debt incurred by a QRF, a residential program or a public
benefit corporation, in making purchases under subsections (1) to (3) of this
rule. (6) Each
residential program and public benefit corporation that makes any purchase of
equipment, materials, supplies or services through the State Procurement
Office under ORS 279.855 must notify the State Procurement Office in writing
whenever a contract that is necessary for the organization to qualify under
ORS 279.855 expires, is terminated, or is not renewed, and whenever the
organization otherwise ceases to qualify under ORS 279.855 or this rule. Stat. Auth.: ORS
279.845(1), ORS 184.340 Stats.
Implemented: ORS 279.855 |