Page 60 - CONTRACT POLICY MANUAL

(2) Board approval shall be required for the Sole Source human services contracts that exceed an
annual amount of $75,000 or two (2) year consecutive term, regardless of dollar amount. Contract
may not be intentionally split to avoid this policy.

a) Renewal of Sole Source human service contracts may not be renewed without approval by
the Board of Supervisors. For additional information, refer to Section 4.5 – Sole Source
and Proprietary Requests.

§3.4-109 Contractor Name/Ownership Changes

(1) Board approval is not required for contractor name changes when control of the contracted entity
remains unchanged, or when an assignment of the County contract occurs pursuant to a sale,
merger, or other change in ownership of the contracted entity, and County Counsel determines that
the assignment does not require Board approval.
(2) In all cases where the result of the assignment is that the contracted entity has been released from
further performance under the County contract, Board approval shall be required.

§3.4-110 Term of Contract

(1) The initial contract term and provision for allowable extensions must be specified in the Request
For Proposal (RFP), if used. Generally, the term of a contract should not exceed three years, unless
otherwise approved by the applicable funding source rules and regulations. Exceptions to this
general rule may include, but not be limited to:
a) Circumstances where substantial start-up costs are necessary for facility, equipment or
technological requirements in order to deliver services.
(2) In no case shall a human services contract exceed five (5) years in duration unless the contract is
specifically approved by the Board of Supervisors or is extended from the original contract term
by twelve (12) months in accordance with Section 3.3-106 in this manual.
(3) Prior to recommending renewal or extension of an existing contract, the department will document
that performance of the contractor has been satisfactory.

§3.4-111 Contract Renewals

(1) Applicable to all contracts with a value that exceeds $100,000 per year.
a) All renewals are subject to Board of Supervisors approval. For renewals already approved
by the Board prior to the fourth year of a contract, the Deputy Purchasing Agent or Board
authorized designee may execute the renewals of service contract, under the same scope,
pricing, terms and conditions without further Board of Supervisors action. Contracts
renewals for years four and five must return to the Board for approval, regardless of prior
Board actions

b) In the event the total service contract amount for all contract years exceeds $750,000, the
Agenda Staff Report (ASR) shall be filed on the Board’s “Discussion Calendar”.

56