PURPOSE: This rule prescribes the procurement system for purchasing certain departmental services (other than in the department’s community placement program) for departmental clients. As set out in sections 34.100 and 630.405, RSMo, the commissioner of administration shall have the power to delegate his/her authority to purchase services for clients from providers to the department. The delegation of authority requires the department to comply with the basic intent of public procurement procedures to purchase the services.

1. (1) As set out in sections 34.100 and 630.405, RSMo, the commissioner of administration has delegated his/her authority to the department to purchase services for department clients from providers directly rather than through the division of purchasing of the Office of Administration. The commissioner delegates the authority by letter to the department director on a year-to-year basis. The department shall make immediately available to any interested person upon application a copy of any letter of delegation of authority at a cost not to exceed the actual cost of reproduction from the central office of the department, P.O. Box 687, Jefferson City, MO 65102.
2. (2) The director may designate entities to be known as affiliated community service providers to provide psychiatric and developmental disabilities services as defined by Chapters 632 and 633, RSMo in a service area or region where no state-operated facility exists in that region to provide these services. In so designating entities, the director may take into account, but shall not be limited to, the following: the ability of the entity to provide, subcontract or develop the necessary array of services, the stability of the entity as indicated by its historical service provision, the community-based nature of the service, the ability of the entity to utilize funding to maximize division-identified services to the greatest number of clients with quality and effective service.
3. (3) The noncompetitive negotiation procedure shall be used when the department director designates an affiliated community service provider or when the service provider is providing early intervention services for children from birth through age four (0—4), including children eligible for First Steps.
4. (4) The department shall contract with designated affiliated community service providers after negotiating terms, for a period of one
5. (1) year, with option for renewal at the department’s discretion. Termination of the contract shall be for any cause defined in the contract or without cause upon sixty (60) days’ notice.
6. (5) The department shall use comparative evaluation, comparative negotiation and noncompetitive negotiation procedures as set out in this chapter to purchase services from private and public providers for its clients with funds appropriated to the department for this purpose as set out in section 630.405, RSMo.
7. (6) The department shall develop and issue a request for a proposal (RFP) as set out in this chapter to solicit and select the providers to provide services to department clients under duly executed contractual agreements.
8. (7) Providers shall meet applicable licensure, accreditation or certification, requirements under state and federal law. Providers shall also comply with other applicable department rules and state and federal laws.

9. (8) The department shall issue contractual agreements after awards are made to offerors for a term corresponding to a current or the new fiscal year subject to service need, appropriations and available funds as determined by the department.

   1. (A) If so specified in the contractual agreement and RFP, the department, at its sole option, may offer to extend any contractual agreement for up to four (4) additional one (1)-year terms. In the fifth year of a contract, the department, at its sole option, may extend the contractual agreement up to five (5) additional one (1)-year terms.
   2. (B) Any contractual agreement, extension or option for renewal is contingent upon annual renewal of a delegation of authority from the commissioner of administration.
   3. (C) If the department exercises the option to extend the terms, conditions and provisions of the initial contractual agreement, with duly executed amendments, shall remain in effect and apply during subsequent contractual agreement terms except that unit prices may be adjusted by the department consistent with department policy subject to appropriations and availability of funds.

AUTHORITY: sections 34.100, 630.050 and 630.405, RSMo 2000.* Original rule filed Oct. 16, 1986, effective July 13, 1987. Emergency amendment filed May 15, 1990, effective May 25, 1990, expired Sept. 21, 1990. Amended: Filed Aug. 1, 1990, effective Dec. 31, 1990. Emergency amendment filed July 7, 1992, effective July 17, 1992, expired Nov. 13, 1992. Amended: Filed July 7, 1992, effective Feb. 26, 1993. Amended: Filed Oct. 31, 2000, effective May 30, 2001. *Original authority: 34.100, RSMo 1945, amended 1983, 1995; 630.050, RSMo 1980, 1993, 1995; and 630.405, RSMo 1980, 1993, 1995.