a) Services purchased by the Department of Human Services (DHS) of the benefit of DHS clients are purchased at rates which are:

1. 1) established by other state agencies when such rates are acceptable to DHS' providers,
2. 2) established by providers when the rates are non-negotiable (i.e., college or vocational school tuition, lab fees, books, and dormitory rates), or
3. 3) established by DHS when other agencies have not established rates, or the rate established by other agencies are unacceptable to DHS' providers.