PURPOSE: This rule sets forth requirements for the area agency to follow in awarding subgrants and contracts.

1. (1) The area agency shall follow applicable procurement standards as specified in 45 CFR Part 74. If an area agency utilizes a request for qualifications (RFQ), this shall be considered a competitive negotiation procurement method as described in subsection 11c of Appendix G.

2. (2) The area agency shall publicly announce all solicitations at least thirty (30) calendar days prior to the deadline for acceptance of responses. Media announcements shall be made within the appropriate planning and service area in a manner that will enable current and potential service providers to be notified. The public notice shall—

   1. (A) Identify each program/service to be funded;
   2. (B) Specify the date by which responses must be submitted for consideration; and
   3. (C) Advise how copies of the solicitations may be obtained.

3. (3) The area agency shall submit, for the division’s prior approval, any proposed contracts with profit-making organizations for the provision of services under the area plan as required by section 212 of the Act. The area agency is not required to submit to the division for prior approval any proposed subgrants or contracts with public or private nonprofit agencies or organizations.

   1. (A) In addition to complying with all applicable federal procurement practices, all purchases shall be based on competitive bids, except that the area agency may make purchases of less than two thousand dollars ($2,000) in value on the open market. On any purchase estimated at ten thousand dollars ($10,000) or more the agency shall advertise for bids in at least two (2) newspapers of general circulation in such places as are most likely to reach prospective bidders at least fourteen (14) days before bids are to be opened. The agency shall also solicit bids by mail from at least three (3) prospective suppliers on purchases of ten thousand dollars ($10,000) or more. For purchases of more than two thousand dollars ($2,000) but less than ten thousand dollars ($10,000) bids must be solicited and documented, but advertising or direct mailings are not required. The contracts shall be let to lowest and best bidder.
   2. (B) The agency may waive the requirement of competitive bids for the purchase of food items when special temporary market conditions exist and the food items can be purchased for at least ten percent (10%) less than the most current bid price for the same food items.

4. (4) The area agency shall use subgrants or contracts with service providers to provide all services under all OAA funding sources. For waiver of this requirement, the area agency shall submit a written request that thoroughly documents that direct provision of service, using its own employees, is necessary—

   1. (A) To assure an adequate supply of the service;
   2. (B) Where those services are directly related to the area agency’s administrative functions; or
   3. (C) Where those services of comparable quality can be provided more economically by the area agency.
5. (5) If an area agency receives a waiver to provide a service directly, all applicable requirements for that service as set forth in 13 CSR 15-7 and 13 CSR 15-4 shall be met.

AUTHORITY: section 660.050, RSMo Supp. 1999.* This rule was previously filed as 13 CSR 15-6.125 and 13 CSR 15-4.200. Original rule filed Jan. 6, 1986, effective April 30, 1986. Amended: Filed Aug. 28, 2000, effective March 30, 2001. Moved to 19 CSR 15- 4.200, effective Aug. 28, 2001. *Original authority: 660.050, RSMo 1984, amended 1988, 1992, 1993, 1994, 1995.