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HomeMy WebLinkAboutMINUTES - 12191995 - C49 _:s7f C_ I q q TO: BOARD OF SUPERVISORS t FROM: Mark Finucane, Health Services Director CTtra Costa , DATE: December 7, 1995 County Approve Standard Agreement #29-203-61 with the to Department SUBJECT: of Health Services for the Supplemental Food Program for Women, Infants and Children SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: Approve and authorize the Chair, Board of Supervisors, to execute on behalf of the County, Standard Agreement #29-203-61 (State #95-22872) with the State Department of Health Services, in the amount of $1, 663,829, for the period from October 1, 1995 through September 30, 1996, for continuation of the Supplemental Food Program for Women, Infants and Children (WIC) . II. FINANCIAL IMPACT: Approval of 'this agreement will result in $1, 663 , 829 of federal funding through the State for the WIC program.. _ No County funds are ' required. III. REASONS FOR RECOMMENDATIONS/BACKGROUND: For over seventeen years the County has participated in the WIC Program with the State. This is a mandated program under the Community Health Services Division of the State Department of Health Services. Approval of Standard Agreement #29-203-61 will provide federal funding through the State for continuation of the program during the next federal fiscal year. WIC is a nutrition education, counseling and food supplement program for low-income, pregnant, postpartum and breast-feeding women, infants and children at nutritional risk. Approximately 15,400 clients are served by this program. The Board Chair should sign eight copies of the agreement, including Certification Regarding Lobbying. Seven copies of the agreement and ;four ,certified/sealed copies of this Board Order should be returned to the Contracts and Grants Unit. CONTINUED ON ATTACHMENT: YES SIGNATURE: f / RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON -Al4, APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Wendel Brunner, M.D. (313-6712) CC: ATTESTED ✓ �- -Q�� �c( q 9 Health Services Dept. (Contracts) State Dept of Health Services Phil Batchelor, Clerk of the Board of SupervMrs and Gooty AAmin'Istratosi M382/7-83 BY DEPUTY STATE OF CALIFORNIA STANDARD AGREEMENT' `APPROVED BY THE 9 8'A,� AKNO. ATTORNEY GENERAL STD:2.(REV,5/91) TAXPAYER'S FEDERAL EMPLOYER IOEHTIF)CAT10N NUMBER THIS AGREEMENT;made and entered into this 1 St day of October , 19 95 94-6000509 in the State of.California,by and betwedn State of California,through its duly elected or appointed,qualified and acting TITLE OF OFFICER ACTING FOR STATE AGENCY Chief, Program Support Branch Department of Health Services ,hereafter called the State,and CONTRACTOR'S NAME 29 - 203 - 61 Contra Costa County ,hereafter called the Contractor, Wn NESSEM: That the Contractor for and inconsideration of the covenants,conditions,agreements,and stipulations of the State hereinafter expressed,does hereby agree to furnish to the State services and materials as follows: (Set forth service to be rendered by Contractor,amount to be paid Contractor,time for performance or completion,and attach plans and specifications, if any.) I. GENERAL PROVISIONS. A. Description of Services Contractor shall operate the Women, Infants, and Children (WIC) Supplemental Nutrition Program in accordance with applicable federal and state laws and regulations, including Public Law 101-147, Section 17.[1786]; 7 Code of Federal Regulations (CFR), Part 246; Health and Safety Code, Section 311 et seq; California Code of Regulations (CCR), Title 22, Sections 40601 et seq; Office of Management and Budget (OMB) Circulars; and in accordance with instructions set forth in the WIC Program Manual, published by the State Department of Health Services, WIC Supplemental Nutrition Branch, June 1, 1988 and updated as required,.and in accordance with other directives or instructions which may periodically be issued by the State. The State shall provide the Contractor with a copy of the WIC Program Manual and periodic updates thereto. Exhibit B, Scope of Work, describes the services to be performed under this Agreement, referred to elsewhere in this document as "Contract". CONTINUED ON 26 SHEETS,EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER. The provisions on the reverse side hereof constitute a part of this agreement. IN WITNESS WHEREOF,this agreement has been executed by the parties hereto,upon the date first above written. STATE OF CALIFORNIA CONTRACTOR AGENCY CONTRACTOR (If other than an individual state~or a corporation,partnership,etc.) Department of Health Serv[cW Contra Costa County BY(A IGNATURE) B (ALRHORI:=; D for !!? &4ttto PRINTED E OF P SON SIGNING ARINTED NAIAE AND TITO OF PERSON SIGNING Ed tahlbe Chair, Board of Supervisors TITLE Chief, Program Support Branch ADgKTSPine.Street, Martinez, California 94553 AMOUNT ENCUMBERED BY THIS PROGRAWCATEGORY(CODE AND TITLE) FUND TITLE Department of General Services DOCUMENT 20 Primary Care and Family Health Federal use only $ 1,663,829 (OPTIONAL USE) PRIOR AMOUNT ENCUMBERED FOR THIS CONTRACT -Q- ITEM CHAPTER STATUTE FISCAL YEAR 4260-111-890 303 1995 95-96 EXEMPT FROM DGS APPROVAL TOTAL AMOUNT ENCUMBERED TO PER MEMO DATED DATE OBJECT OF EXPENDITURE(CODE AND TITLE) $ 1,663,829 95-52421-4999-741-03-10557L-95 i hereby certify upon my own personal knowledge that budgeted funds T.BA NO. B.R.NO. are available for the period a purpase of the expenditure stated above. / SIGNATURE OF ACCOUNTING F10ER DATE D /�. LOCT 6 - 1995r E1CO ACTOR [-I STATE AGENCY DEPT.OF GEN.SER. CONTROLLER STATE OF CALIFORNIA STANDARD AGREEMENT STD.2(REV.5-91)(REVERSE) +_ • i i a 1. The Contractor agrees to indemnify,defend and save harmless the State,its officers,agents and employees from any and all claims and losses accruing or resulting to any and all contractors,subcontractors, materialmen,laborers and any other person,firm or corporation furnishing or supplying work services, materials or supplies in connection with the performance of this contract,and from any and all claims and losses accruing or resulting to any person,firm or corporation who may be injured or damaged by the Contractor in the performance of this contract. 2. The Contractor,and the agents and employees of Contractor,in the performance of the agreement,shall act in an independent capacity and not as officers or employees or agents of State of California. 3. The State may terminate this agreement and be relieved of the payment of any consideration to Contractor should Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the state. .The'cost to the State shall be deducted froit"ny sum due the Contractor under this agreement,and the balance,if any,shall be paid the Contractor up' demand. 4. Without the written consent of the state,this agreement is not assignable by Contractor either in whole or in part. 5. Time is of the essence in this agreement. 6. No alteration or variation of the terms of this contract shall be valid unless made in writing and signed by the parties hereto,and no oral understanding or agreement not incorporated herein,shall be binding on any of the parties hereto. 7. The consideration to be paid Contractor,as provided herein,shall be in compensation for all of Contractor's expenses incurred in the performance hereof,including travel and per diem,unless otherwise expressly so provided. M Contra Costa County Health SeMces ' 95-22872 B. Term of Agreement The term of this Agreement shall be from October 1, 1995 through September 30, 1996. C. Maximum Amount Payable The maximum amount payable by the State to the Contractor under this Agreement shall not exceed $1,663,829. D. Definitions As used in this Agreement, the following definitions shall apply: 1. 7 CFR - Title 7, Code of Federal Regulations, Part 246, Women, Infants, and Children Supplemental Nutrition Program. The regulations under which the U.S. Department of Agriculture (USDA) implements the WIC program. 2. Agreement/Contract-An enforceable written document between two or more competent parties with the elements of the agreement being offer, acceptance, consideration, and compliance with all applicable terms and conditions. 3. Breastfeeding Promotion and Support - Strategies, initiatives, and services to increase and advance the initiation and continuation of breastfeeding among WIC participants. 4. Contract- See definition of Agreement. 5. Contractor-An individual, company, corporation, firm, or combination thereof with whom WIC develops an agreement for services to carry out the WIC.program. 6. Final Invoice - A claim for reimbursement for the last month of expenditures during the term of this Agreement. 7. Food Instrument-A negotiable document issued to WIC participants for the purchase of WIC supplemental foods in authorized WIC retail grocery outlets. 8. Food Instrument Foils -The accountable documents attached to each food instrument packet that are used by the State and the local WIC agency to verify the issuance of the packet to a WIC participant. 9. Integrated Statewide Information System (ISIS) - WIC's centralized data processing system being developed to gather information concerning program eligibility, enrollment, and food instrument issuance and redemption for local WIC agencies. 10. Invoice - A claim for reimbursement of expenditures incurred. 11. Local WIC Agency - See definition of Contractor. Page 2 of 27 Y , Contra Costa County Health Servfces 95-22872 12. Nutrition Education - Individual or group education sessions and the provision of information and educational materials designed to improve health status, achieve positive change in dietary habits, and emphasize relationships between nutrition and health, all in keeping with the individual's personal, cultural, and socioeconomic preferences (Section 246.2 of the Code of Federal Regulations). 13. Office of Management and Budget Circulars - The federal policies and procedures governing uniform grant administration. 14. Retail Grocery Outlets -. The owner and employees of any store which has been authorized to participate in the WIC program. 15. Subcontract - An agreement between a local WIC agency and another person or organization under which any portion of the local WIC agency's obligation is performed, undertaken, or assumed by another party. 16. Supplemental Invoice - A claim for reimbursement of expenditures incurred and not previously claimed during the term of this Agreement. 17. WIC Program -The Women, Infants, and Children (WIC) Supplemental Nutrition Program, a federally-funded and regulated program that provides supplemental food, referral services, and nutrition education to eligible pregnant, breastfeeding, and postpartum women, infants, and children under the age of five. 18. WIC Program Manual - A comprehensive guide to State policies and procedures governing the WIC Program in California, designed to assist local agency staff in carrying out day-to-day program operations and activities. 19. WIC Participant - Individuals who have been certified as eligible to receive.food instruments for supplemental foods, nutrition education, and referral services under the WIC program in the State of California. E. Termination 1. Notwithstanding the provisions of Article IV, Fiscal Provisions, Section A, Federal Agreement Funds, the State may terminate this Agreement by giving the Contractor a sixty (60) day advance written notice. Notification shall state the effective date of the termination. 2. Contractor may terminate this Agreement by giving the State a ninety (90) day advance written notice. Notification shall state the effective date of the termination. 3. Contractor agrees upon notification of termination of Agreement to cooperate in any and all efforts to refer WIC participants to other local WIC agencies in order to maintain continuity of participation in the WIC program. Page 3 of 27 Y • Contra Costa County Health Services 95-22872 F. Additional Provisions/Exhibits i 1. The following exhibits and documents are attached hereto, incorporated herein, and made a part hereof by this reference: (a) EXHIBIT A(F), consisting of twenty-seven pagesand entitled "ADDITIONAL PROVISIONS". Provision 2, TRAVEL AND PER DIEM, of Exhibit A(F), page 2, is amended to read as shown in Article V, Special Provisions, Section G, Travel and Per Diem. Provision 3, PROCUREMENT REQUIREMENT, and Provision 5, FURNISHING OF PROPERTY BY THE STATE OR PURCHASE OF PROPERTY WITH STATE OR FEDERAL FUNDS, of Exhibit A(F), pages 2 and 3, are amended to read as shown in Article V, Special Provisions, Section D, Procurement;Requirements. Provision 23, FINANCIAL AND COMPLIANCE AUDIT OF NONPROFIT ENTITIES, of Exhibit A (F), page 14, is amended to read as shown in Article V, Special Provisions, Section F, Single Audit Delivery Address. (b) EXHIBIT A-1, consisting of one page and entitled "CURRENT CONTRACT YEAR EQUIPMENT PURCHASED WITH STATE FUNDS". (c) EXHIBIT A-2, consisting of three page(s) and entitled "INVENTORY OF STATE FURNISHED PROPERTY", dated October 1, 1995. (d) EXHIBIT B, consisting of two pages and entitled "SCOPE OF WORK". The attachment to Exhibit B, Attachment 1, consisting of one page and entitled "GEOGRAPHICAL SERVICE AREA/SERVICE POPULATION". (e) EXHIBIT C, consisting of one page and entitled "CALIFORNIA WIC PROGRAM- PROJECT BUDGET'. (f) EXHIBIT D, consisting of one page and entitled "CONTRACT UNIFORMITY". (g) In the event a request for an advance payment is,received, an EXHIBIT E(A), consisting of four pages and entitled "ADVANCE PAYMENT PROVISIONS". (h) In the event a request for a prospective payment is' received, an EXHIBIT E(P), consisting of three pages and entitled "PROSPECTIVE PAYMENT PROVISIONS". 2. The following documents are not attached hereto, but are incorporated herein.and made a part hereof by this reference, as if set forth in full: (a) WIC Program Manual, dated June 1, 1988, and any subsequent updates. This manual will be updated periodically by the State, as required by program and/or federal directives. (b) "Renewal Funding Application" (Reapplication) and all exhibits/attachments for federal fiscal year (FFY) 1995-96, signed by the Contractor. Page 4 of 27 Y , Contra Costa County Health SeMces 1 95-22872 (c) Reapplication Package for FFY 1995-96, mailed to Contractor June 1, 1995 and the FFY 1995-96 Funding Award Letter. (d) Any directive(s) and/or instruction(s) issued by the WIC Branch to the Contractor. (e) Any approved amended budget detail. G. Priority of Provisions Where inconsistencies may exist between the numbered paragraphs of this Agreement and the attachment hereto, such inconsistencies shall be resolved by giving precedence in the following order: 1. Federal Agreement Funds, Article IV, Fiscal Provisions, Section A, Federal Agreement Funds 2. Termination, Article 1, General Provisions, Section E, Termination 3. Remaining Articles and Sections of Standard Agreement 4. Exhibit A (F) 5. Exhibit B 6. Exhibit C 7. Other Exhibits H. Order of Precedence In the event that there are any inconsistencies or ambiguities in this Agreement, the following documents shall be used to interpret the Agreement in the order of precedence stated. 1. Provisions of this Agreement. 2. Signed FFY 1995-96 "Renewal Funding Application" with all exhibits and attachments. 3. Reapplication Package for FFY 1995-96, mailed to Contractor June 1, 1995 and the FFY 1995-96 Funding Award Letter. 4. Women, Infants, and Children (WIC) Supplemental Nutrition Program Manual, June 1, 1988 and updates. I. Conflict of Interest Contractor warrants that no conflict of interest exists between Contractor's officers, agents, or employees. Contractor shall prevent employees, consultants, or members of governing bodies from using their positions for purposes that are, or give the appearance of being, motivated by a desire for private gain for themselves or others, such as those with whom they have family, business, or other ties. In the event that the State determines that a conflict of interest situation exists, any increase in costs associated with the conflict may be disallowed by the State and such conflict may constitute grounds for termination of the Agreement. This provision shall not be construed to prohibit employment of persons with whom the Contractor's Page 5 of 27 Contra Costa County Health Services ' 95-22872 officers, agents or employees have family, business, or other ties, so long as the employment of such persons does not result in increased costs over those associated with the employment of any other equally qualified applicant, and such persons have successfully competed for employment with other applicants on a merit basis. J. Nondiscrimination Clause 1. During the performance of this contract, contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Contractors and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act(Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Govemment Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the Califomia Code of Regulations are incorporated into this contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. 2. This contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract. K. Civil Rights 1. Contractor hereby agrees to comply with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.); Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); all provisions required by the implementing regulations of the Federal:Department of Agriculture; Federal Department of Justice Enforcement Guidelines, 28 CFR 50.3 and 42; and Federal Department of Agriculture, Food and Consumer Service (FCS) directives and guidelines, to the effect that, no person shall, on the grounds of race, color, national origin, sex, age, or handicap, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity for which the Contractor receives federal financial assistance from FCS. Contractor, by signing this Agreement, hereby gives assurance to all interested parties that Contractor shall immediately take measures necessary to effectuate these regulations. 2. By giving this assurance, Contractor agrees to compile data, maintain records, and submit reports, as required, to permit effective enforcement of the nondiscrimination laws, and to Page 6 of 27 Contra Costa County Health Services ' 95-22872 permit authorized USDA personnel, during normal working hours, to review such records, books and accounts as needed to ascertain compliance with the nondiscrimination laws. 3. If there are any violations of this assurance, FCS shall have the right to seek judicial enforcement of this assurance. This assurance is binding on the Contractor, her/his successors, transferees, and assignees, as long as they receive assistance or retain possession of any financial assistance from the FCS. The person or persons whose signatures appear on the face of this Agreement are authorized to sign this assurance on behalf of the Contractor. L. Provision of Information 1. Contractor shall provide the State with requested information relevant to Contractor's performance under this Agreement no later than twenty-one (21) calendar days after receipt of the.State's written request. 2. Contractor shall submit reports, documents, and correspondence to the address shown in Article I, General Provisions, Section M, Notice. M. Notice 1. Whenever Contractor has knowledge that any actual or potential situation, including although not limited to labor disputes, will delay or threatens to delay timely performance of the work under this Agreement, the Contractor shall immediately give written notice thereof to the State and shall provide any relevant information to the State. 2. Any notice, request, demand, consent, waiver, or other item required or permitted under this Agreement or applicable law must be in writing and shall be deemed duly given or made only (a) if personally served upon the party intended to receive it, in which case it is effective when delivered; or (b) is sent by certified mail, return receipt requested, postage prepaid, addressed to the party at its address set forth below, in which case it is effective upon receipt by any person residing at such address; or (c) is sent by Facsimile (but only if a"FAX" number is set forth below), with.a copy sent on the same date by first class mail, postage prepaid, addressed to the party at its address set forth below, in which case it is effective as of the date of mailing. WIC Supplemental Nutrition Branch 1103 North B Street, Suite E Sacramento, CA 95814 Attention: WIC Branch Chief FAX #: (916) 322-4342 Page 7 of 27 Contra Costa County Health Services 95-22872 N. Americans with Disabilities Act The Contractor shall comply with all requirements. established under the Americans with Disabilities Act, in order to make programs accessible to all participants and to provide equally effective communication. O. Changes and Revisions to the Scope of Work 1. Changes and revisions to the Scope of Work contained in this Agreement, utilizing the "allowable cost payment system", may be proposed by the Contractor in writing. All requested changes and revisions are subject to the approval of the State. Failure to notify the State of proposed revisions to the Scope of Work may result in an audit finding. 2. The State will respond in writing as to the approval or disapproval of all such requests for changes or revisions to the Scope of Work within 30 calendar days of the date the request is received in the program. Should the State fail to respond to the Contractor's request within 30 calendar days of receipt, the Contractor's request shall be deemed approved. 3. The State may also request changes and revisions to the Scope of Work. The State will make every good faith effort to provide the Contractor with 30 calendar days advance written notice of said changes or revisions. II. CONTRACTOR'S ROLE AND RESPONSIBILITIES A. Scope of Work As further consideration for the reimbursement provided to the Contractor under this Agreement, Contractor agrees to all responsibilities as stated in: Article I, General Provisions, Section O, Changes and Revisions to the Scope of Work; Exhibit B, Scope of Work; and as detailed in the WIC Program Manual. B. Freeze Exemption 1. Contractor agrees that any blanket hiring freezes, or any other personnel policies the Contractor may adopt during the term of this Agreement which the State determines to alter performance of the Scope of Work, Exhibit B, shall not be applied to the positions funded, in whole or in part, by this Agreement. 2. Contractor agrees that any travel freeze the Contractor may adopt during the term of this Agreement shall not restrict travel funded, in whole or in part, by this Agreement. Page 8 of 27 Contra Costa County Health Services 95-22872 3. Contractor agrees that any purchasing freeze the Contractor may adopt during the term of this Agreement shall not restrict purchases funded, in whole or in part, by this Agreement. C. State Approval of WIC Project Directors Contractor shall notify the State immediately in writing upon designation of any WIC Project Director. The State reserves the right to approve or disapprove any WIC Project Director designated by the Contractor. Continued designation of the disapproved project director may constitute grounds for termination of the Agreement or reduction of the Agreement amount by the amount of the WIC Project Director's salary,, at the option of the State. D., Reporting Requirements 1. Contractor shall submit to the State, by the date prescribed, as instructed by the State, accurate and complete claims for reimbursement (invoices), food instrument foils, and other required information or documents. The State reserves the right to assess a 1.5 percent penalty of the most recent monthly invoice submitted and/or submission of reports and other required materials which are late, inaccurate, and/or incomplete. The penalty may be applied to subsequent monthly invoices for continued noncompliance with reporting requirements. 2. Contractor shall submit to the State, by the date prescribed, as instructed by the State, the "Report of Estimated Expenditures" in accordance with the instructions issued by the State. Payment of Contractor's final invoice may be withheld until an accurate and complete "Report of Estimated Expenditures" is received by the State. Failure to meet the reporting deadline for the "Report of Estimated Expenditures" may result in nonpayment by the State of Contractor's final invoice. (a) Failure to expend, document, and report a minimum of 18 percent of funds allocated under this Agreement on nutrition education activities may result in a reduction of the maximum amount payable for the following fiscal year Agreement in that amount below, 18 percent of expenditures. (b) Failure to expend, document, and report the minimum funds, prescribed by the State, allocated under this Agreement on breastfeeding promotion-related activities may result in a reduction of the maximum amount payable for the following fiscal year Agreement in that amount below that prescribed by the State for such expenditures. 3. Contractor shall submit to the State, by the date prescribed, a plan for providing nutrition education to WIC participants. The State reserves the right to withhold up to 18 percent of the funds allocated under this Agreement for failure to submit a nutrition services plan and/or carry out required nutrition education activities. 4. Contractor shall follow-up on food iristrument abuses by WIC participants with the WIC participants, and shall refer reported abuses by WIC participants and local WIC food Page 9 of 27 Contra Costa County Health Services 95-22872 retailers to the State within 15 days of receipt. Contractor shall maintain a written record of complaints and contacts with local WIC food retailers, including information requested, reported food instrument abuses by WIC participants and local WIC food retailers, etc., on the forms specified by the State. 5. The following requirements are for the automated system for WIC Program evaluation: (a) Contractor shall ensure that all personnel involved in the certification of WIC participants attend state-sponsored training sessions on correct completion and submission of input documents and implementation of the automated evaluation system. (b) Contractor shall submit certification information on the forms provided by the State. (c) Contractor shall provide the State with information necessary to correct errors in participant data within 25 days of receipt of notification by the State. The State may assess, after written notification, a 1.5 percent reduction of the most recent invoice if Contractor does not submit error correction information within 25 days of receipt of request. The penalty may be applied to subsequent monthly invoices for continued noncompliance with reporting requirements. (d) At the discretion of the State, and 60 days after written notification, a 1.5 percent reduction of the most recent invoice submitted may be assessed if Contractor's total error rate rejected by the computer system and in the pre-screening process exceeds 10 percent for three consecutive reporting months. The penalty may be continued/reinstated if the error rate for any single subsequent reporting month exceeds 10 percent. E. Publication Credit and Use of Materials 1. Contractor shall submit, prior to release, copies of any proposed publicity pertaining to the WIC program which is developed by Contractor or other outside parties. The State reserves the right to modify or withdraw said publicity. 2. The State reserves the right to use and reproduce all reports and data produced under this Agreement, and reserves the right to authorize others to use or reproduce such materials. F. Outreach 1. Contractor shall inform the public of the availability of any services provided under this Agreement, including the type of services offered, the eligibility criteria for receiving services, and the time and place the services are available. 2. Contractor shall maintain a record of outreach contacts. Page 10 of 27 Contra Costa County Health Services 95-22872 B. Funding Reduction 1. In the event that the federal funds allocated for the WIC program are not sufficient, the State may, upon thirty (30) days advance notice, void the Agreement or reduce the maximum amount payable in Article I, General Provisions, Section C, Maximum Amount Payable. Upon receipt of such notification, Contractor agrees to not claim reimbursement for costs in excess of the maximum amount payable as adjusted. Contractor's budget and work required will be negotiated with Contractor. 2. The State agrees that the services to be provided based on the allocated caseload shown in Article II, Contractor's Role and Responsibilities, Section G, Services to be Provided, Paragraph 3, will be reduced proportionately to the payment reduction cited in Paragraph 1 of this section. C. Budaet Revisions 1. Subject to State approval, the Contractor may make changes by transfer of funds between individual- numbered line items in the "CALIFORNIA WIC PROGRAM - PROJECT BUDGET", EXHIBIT C, provided the following applicable conditions are met: (a) The maximum amount of all such change(s) shall be limited to up to 10 percent of this Agreement total, up to a maximum of$50,000, so long as this Agreement budget total neither increases nor decreases. (b) Contractor shall seek approval from the WIC Branch to transfer funds between numbered line items. Such request shall be submitted either prior to the agency's need to expend the funds to be transferred, or together with the agency's invoice requesting reimbursement for the expenditure. The request shall include identification of the numbered line item(s) to be reduced in order to provide for the requested increase, and the amount by which such line items are to be reduced. (c) The State reserves the right to deny Contractor's request to transfer funds for any reason, including but not limited to, a transfer of funds that would change the "Scope of Work" provisions in this Agreement, and a determination by the State that such change is unallowable. Therefore, Contractor is encouraged to seek State approval prior to the expenditure of transferred funds in order to avoid denial by the State of incurred costs. The approval of a transfer of funds does not constitute the approval to expend funds. 2. (a) Contractor shall be allowed to make changes to the additional budget detail submitted with FFY 1995-96 Reapplication, or any approved amended budget detail. (b) Contractor shall adhere to all State requirements regarding the timely submission of the additional budget detail for the line items appearing in this Agreement budget. Page 14 of 27 Contra Costa County Health Services 95-22872 (c) Contractor may make changes or adjustments to the additional budget detail or approved amended budget detail, provided said changes or adjustments do not result in an increase or decrease to any of the line item totals appearing in this Agreement budget. (1) Such changes or adjustments to the additional budget detail or approved amended budget detail shall not require an amendment to this Agreement, nor State approval. (2) Contractor shall notify the State of such changes or adjustments to additional budget detail or approved amended budget detail through the regular submission of monthly invoices. If Contractor's regular submission of invoices is less frequently than monthly, Contractor shall notify the State of any changes or adjustments made by the Contractor to the additional budget detail or approved amended budget detail within 30 calendar days of the effective date of said changes or adjustments. (d) Contractor may make changes or adjustments to the budget detail or approved amended budget detail which result in an increase to the total amount of any budgeted line item, provided the Contractor obtains prior State review and approval, in accordance with Paragraph 1 of this section. (e) Contractor may make changes or adjustments to the additional budget detail or approved amended budget detail which alter performance of the Scope of Work, Exhibit B, provided the Contractor obtains prior written approval from the State in accordance with instructions and requirements appearing in Article II, Contractor's Role and Responsibilities, Section A, Scope of Work. Failure to notify the State of proposed revisions to the Scope of Work, Exhibit B, may result in an audit finding. (f) After June 30, 1996, the provisions of subparagraphs 2 (a) - (e) herein shall expire and will no longer be applicable. The State shall provide written notification to the Contractor if the provisions of subparagraphs 2 (a) - (e) herein have been extended beyond June 30, 1996. (g) Notwithstanding the provisions of Paragraph 2 (a) through 2 (g) herein, Contractor is prohibited from making changes to budget detail, as outlined in Article V, Special Provisions, Section A, ISIS-Related Activities and Section B, State Committees, unless prior written approval is received from the State. D. Reimbursement Schedule 1. (a) Contractor shall submit claims for reimbursement (invoices) on a regular monthly basis. Monthly invoices are due no later than the 30th of the month following the reporting month. In consideration of the services rendered in accordance with this Agreement and performed in a manner acceptable to the State, the State will reimburse the Contractor in arrears, upon submission of an original invoice, in Page 15 of 27 - Contra Costa County Health Services 95-22872 accordance with instructions provided by the State. Invoices shall be submitted in accordance with the payment provisions shown in the "CALIFORNIA WIC PROGRAM- PROJECT BUDGET', EXHIBIT C. Invoices shall be prepared to reflect expenditures as itemized in the format shown in Exhibit C. (b) "Monthly Expenditure Detail Worksheets" shall be submitted with each original invoice, in accordance with instructions provided by the State. (c) After June 30, 1996, the provision of subparagraph 1(b) herein shall expire and will no longer be applicable. The State shall provide written notification to the Contractor if the provision of subparagraph 1(b) herein have been extended beyond June 30, 1996. (d) Notwithstanding the provisions of Paragraph 1 (a) through 1 (c) herein, Contractor shall continue to submit "Monthly Expenditure Detail" for line item 4, "Other Costs", Budget Detail category (c), State Committee(s), category (d), Special Project(s), and category (e), Subcontract(s), with each original invoice, in accordance with instructions provided by the State. Individual special projects, including but not limited to all ISIS-Related Activities, provided for in Article V, Special Provisions, shall be itemized. 2. Contractor shall submit invoices to the following address, unless notified otherwise by the State: WIC Supplemental Nutrition Branch 1103 North B Street, Suite E Sacramento, CA 95814 Attention: Financial Management Unit 3. The final invoice, and any supplemental invoices submitted by the Contractor, shall be submitted no later than seventy-five (75) days following the expiration or termination date of this Agreement. The State reserves the right to deny payment of any invoice received more than .seventy-five (75) days following the expiration or termination date of this Agreement. 4. For Agreements with an expiration date of September 30th, the final invoice will be the September invoice. For Agreements with an earlier expiration date, or for Agreements terminated prior to the expiration date, the final invoice will be for the last month of expenditures. 5. Paid invoices submitted by Contractor shall not be evidence of allowable Agreement costs. 6. The State reserves the right to deny Contractor's invoice for expenditures in excess of the budgeted line item amount. Page 16 of 27 Contra Costa County Health Services 95-22872 7. The State reserves the right to deny Contractor's invoice for purchases of$5,000 or more unless Contractor has sought and obtained prior State approval and has complied with procurement guidelines outlined in Article V, Special Provisions, Section D, Procurement Requirements. 8. The State reserves the right to deny Contractor's invoice for equipment, and inventory- controlled nonequipment, unless Contractor submits a completed Exhibit A-1, "Equipment Purchased with State Funds", with the monthly invoice requesting reimbursement for the equipment and/or inventory-controlled nonequipment items. E. Fiscal Documentation 1. Contractor shall maintain and have available for review and audit, all records pertaining to financial operations, food instrument receipt and issuance, equipment purchases and inventory, eligibility/ineligibility certifications, nutrition education, complaints of discrimination, requests for fair hearings, and other program-related matters. 2. Adequate documentation of each transaction shall be maintained to permit the determination of the allowability of expenditures reimbursed by the State under this Agreement. If the allowability of expenditures cannot be determined because records or documentation of Contractor are nonexistent or inadequate according to generally accepted accounting practices, the questionable cost shall be disallowed by the State. In the event of findings of disallowed costs, Contractor has the right to appeal such findings with 30 days of notification of such findings. Such appeals shall be heard by a designee of the Director of the State Department of Health Services. F. Recovery of Overpayments 1. Contractor agrees that claims made against Contractor pursuant to an audit by the State or federal government will be recovered by one of the following options: (a) Contractor's remittance to the State of the full amount of the audit exception within 30 days following the State's request for repayment. (b) A repayment schedule which is agreeable to both the State and Contractor. 2. The State reserves the right to select which option will be employed and the Contractor will be notified by the State in writing of the claim procedure to be utilized. 3. Interest on the unpaid balance will accrue at a rate set forth in applicable rule or statute, . beginning 30 days after Contractor's receipt of the State's demand for repayment. 4. If Contractor has filed a valid appeal regarding the report of audit findings, recovery of overpayments will be deferred until a final administrative decision has been reached. If Contractor loses the final administrative appeal, Contractor shall repay to the State the Page 17 of 27 Contra Costa County Health Services 95-22872 overclaimed expenditures, plus accrued interest. Interest accrues from Contractor's first receipt of notice requesting reimbursement of questioned audit costs. G. Advance/Prospective Payment 1. The State, may at its discretion, make an advance payment and/or prospective payment(s) to Contractors which meet specific criteria. 2. In the event Contractor requests an advance payment, EXHIBIT E(A), entitled "ADVANCE PAYMENT PROVISIONS", is attached, setting forth the conditions governing the advance payment. The attachment of this exhibit does not guarantee that an advance will be authorized and issued to the Contractor. 3. In the event Contractor requests a prospective payment, EXHIBIT E(P), entitled "PROSPECTIVE PAYMENT PROVISIONS" is attached, setting forth the conditions governing the prospective payment.The attachment of this exhibit does not guarantee that prospective payment(s) will be authorized and issued to the Contractor. 4. Additionally, any documents required in accordance with either EXHIBIT E(A) or(P) must be reviewed and approved by the State, and any prior year advance payment or prospective payments, if any, must be fully liquidated prior to issuance of an advance or prospective payment under this Agreement. H. Food Instrument Liability Contractor shall assume liability for food instruments during the interval between Contractor's receipt from the State of such food instruments and issuance to eligible WIC participants. The State reserves the right to assess the Contractor the redemption cost to the State of food instruments which are lost, stolen, or otherwise unaccounted for. V. SPECIAL PROVISIONS A. ISIS-Related Activities 1. Additional administrative funds may be allocated to this Agreement, budgeted in line item number 4, "Other Costs", of the "CALIFORNIA WIC PROGRAM - PROJECT BUDGET", EXHIBIT C. Notwithstanding the provisions of Article IV, Fiscal Provisions, Section C, Budget Revisions, changes or revisions processed hereunder shall not require a contract amendment, provided the change or revision to the ISIS-Related activities results in neither an increase nor decrease to the "Maximum Amount Payable", as set forth in Article 1, General Provisions, Section C, Maximum Amount Payable, of this Agreement. Such funds are expressly for the purpose of the Contractor carrying out one or more of the following WIC Integrated Statewide Information System (ISIS)-related activities: a. Site Preparation: Preparation of WIC clinic sites for the installation of State-owned and/or State-leased data processing equipment, to be provided by the State, in Page 18 of 27 Contra Costa County Health Services 95-22872 anticipation of Contractor's participation in the ISIS project. If such additional funds have been so allocated to this Agreement, the amount of these funds was determined by the State based upon the total number of Contractor's staff providing direct WIC program services to participants at each of the WIC clinic sites and the number of automated data processing devices necessary to automate each clinic site, and is specified in Paragraph 2 of this Section. (1) Contractor agrees to prepare and/or arrange for the preparation of all existing WIC clinic sites for the WIC automation project identified in Paragraph A of this section. Site preparation is described as all electrical, data cabling, and telecommunications work necessary for the scheduled automation of each of the Contractor's existing WIC clinic sites, as determined by the State, based on individual clinic site assessments and detailed floor plans for each WIC clinic. (2) Contractor agrees to not commence the site preparation work until receipt of official, written notification by the State. (3) Contractor agrees to refrain from incurring any expenses for the renovation or alteration of WIC clinic sites beyond those expenses specifically required to prepare the sites for participation in ISIS, as determined by the State based on individual clinic site assessments and detailed floor plans for each WIC clinic site. b. Training: Provide ISIS training/technical assistance to local WIC agencies' clinic staff. If such additional funds have been allocated to this Agreement, the amount is specified in Paragraph 2 of this Section. (1) Contractor's written proposal to provide ISIS training/technical assistance to local WIC agencies' clinic staff submitted to the State, is not attached hereto, but is incorporated herein and made a part hereof by this reference, as if set forth in full. (2) The State shall provide to the Contractor, in writing, the following information necessary for the completion of ISIS training/technical assistance: (a) The local WIC agency name, location of WIC clinic site and completion date(s); (b) A description of training/technical assistance to be completed; and (c) The guidelines, procedures, and forms for each assignment, as applicable. (3) Contractor agrees to provide: (a) . On-going written progress reports for each assigned local WIC agency, as specified by the State, and Page 19 of 27 Contra Costa County Health Services 95-22872 (b) A written final report, in the format specified by the State, at the conclusion of each training session, and technical assistance. The final report shall be submitted, as directed by the State, within ten working days from the completion of the assigned training. (4) Contractor agrees to complete all training assigned by the State and to follow the guidelines and procedures provided by the State. (5) The State, at its sole discretion, reserves the right to modify the special project proposal. Such modification shall not require an amendment to this Agreement, provided that the "Maximum Amount Payable" under this Agreement neither increases nor decreases. c. Travel for ISIS-Related Training: Reimbursement for travel and per diem to attend ISIS-related training. If such additional funds have been allocated to this Agreement, the amount is specified in Paragraph 2 of this Section.. Reimbursement shall be limited to State rates, in accordance with Exhibit A(F), ADDITIONAL PROVISIONS, Provision 2, Travel and Per Diem, which is revised in Article V, Special Provisions, Paragraph G, Travel and Per Diem, of this Agreement. 2. The following additional administrative funds have been allocated for the indicated ISIS-Related Activities: a. SITE PREPARATION $ 7,000 b. TRAINING $ 82,669 c. TRAVEL FOR ISIS-RELATED TRAINING $ 0 3. The additional administrative funds allocated for each ISIS-related activity may not be used for any purpose(s) other than those for which the funds were specifically allocated, as identified in this Section, unless prior written approval is received from the State. B. State Committees 1. Additional administrative funds may be allocated to this Agreement, in recognition of Contractor's participation in one or more State Committees(s). If such additional funds have been so allocated to this Agreement, the funds are budgeted in line item number 4, "Other Costs", in the "CALIFORNIA WIC PROGRAM-PROJECT BUDGET", EXHIBIT C, and the amount is specified in Paragraph 3 of this Section. The amount of these funds was determined by the State based on the location(s) and estimated number of meetings to be held for each committee. 2. (a) Contractor agrees to use the allocated funds for travel and per diem, and related incidental expenses, necessary for participation in one or more State Committee(s). Page 20 of 27 • Contra Costa County Health Services 95-22872 (b) Reimbursement shall be limited to State rates, in accordance with Exhibit A(F), ADDITIONAL PROVISIONS, Provision 2, Travel and Per Diem, which is revised in Article V, Special Provisions, Paragraph G, Travel and Per Diem, of this Agreement. 3. The following additional administrative funds have been allocated for State Committee(s): STATE COMMITTEE $ 0 4. The additional administrative funds for State Committee(s) may not be used for any purpose other than those identified in Paragraph 2 of this Section, unless prior written approval is received from the State. C. Target Population Proposals 1. In the event Contractor submitted to the State a written proposal for expanded access to specified target population(s) (i.e., American Indians and/or African Americans), such proposal is not attached hereto, but is incorporated herein and made a part hereof by this reference, as if set forth in full. 2. Additional caseload and adminstrative funds may be allocated to this Agreement, in recognition of Contractor's need to improve access for eligible American Indians and/or African Americans, as specified in Contractor's written proposal submitted to the State, if applicable. If such additional caseload and administrative funds have been so allocated, the State will notify the Contractor, in writing, and the funds are to be allocated throughout the Exhibit C. 3. Contractor agrees to: (a) Establish the foundation necessary to increase access for the target population(s). (b) Submit a written status report by February 16, 1996 to the State. The report must include: (1) A description of the specific activities undertaken towards the establishment of the foundation necessary to increase access for the target population(s); and (2) The number of participants served in each target population(s) during December 1995. 4. If the status report does not indicate that: (a) Positive steps have been undertaken to establish the foundation necessary to increase access for the target populations; and (b) The number of participants served in each target population(s) is 100 percent or more of the increased caseload allocated to the Contractor for service to the target population(s); Page 21 of 27 Contra Costa County Health Services 95-22872 The State reserves the right to reduce the Contractor's federal fiscal year 1996-97 caseload allocation and administrative funding for the target population(s). D. Procurement Requirements The following provisions are revisions to EXHIBIT A(l, ADDITIONAL PROVISIONS, Provisions 3 and 5. "3. PURCHASING/PROCUREMENT RULES A. Units of local government and public entities (including the Universities of California), whether a Contractor or Subcontractor, may utilize their existing procurement systems to secure articles, supplies, equipment (including EDP/ADP and telecommunications equipment and motor vehicles), and services required in the performance of this Agreement without regard to dollar limit, subject to the provisions stipulated in the subparagraphs C through G of this section. The provisions appearing in subparagraph B may be applicable if purchases are subdelegated to Subcontractors which are either private vendors or nonprofit organizations. B. 1. All other Contractors and Subcontractors (nonprofit organizations and private vendors) may utilize their existing procurement systems to secure articles, supplies, equipment (including EDP/ADP and telecommunications equipment, and motor vehicles), and services required in the performance of this Agreement. Contractors and Subcontractors procurement of equipment shall be limited to an annual maximum of $50,000, subject to the provisions stipulated in all of the following subparagraphs of this section. 2. All other Contractors or Subcontractors (nonprofit organizations and/or private vendors) shall utilize a procurement system that meets the following standards: (a) Maintain a code or standard of conduct that shall govern the performance of its officers, employees, or agents engaged in awarding procurement agreements. No employee, officer, or agent shall participate in the selection, award, or administration of a procurement agreement in which, to his or her knowledge, he or she has a financial interest. (b) Procurement shall be conducted in a manner that provides, to the maximum extent practical, open and free competition. (c) Procurement shall be conducted in a manner that provides for all of the following: (1) Avoidance of the purchasing of unnecessary or duplicate items. (2) Solicitation for capital expenditures shall be based upon a clear and accurate description of the technical requirements of the goods to be procured. Page 22 of 27 Contra Costa County Health Services 95-22872 (3) The taking of positive steps to utilize small, minority, women, or veteran owned businesses. 3. If at any time during .any fiscal year of the Agreement the Contractor's or Subcontractor's capital expenditure (equipment) line item exceeds $50,000, the Contractor and/or Subcontractor may procure all equipment up to the $50,000 annual limit. To secure all items above this limit, the Contractor shall make arrangements through the State to have all of the remaining equipment purchased through the Department of General Services's Office of Procurement. The cost of said equipment purchased by or through the Office of Procurement shall be deducted from the funds available in the Agreement. The Contractor shall submit to the State a list of equipment specifications for those items for which the State must arrange the procurement. The State may pay the vendor directly for such arranged equipment purchases and title to the equipment will remain with the State. The equipment will be delivered to the Contractor's . address as stated in the Agreement unless the contractor notifies the State, in writing, of an alternate delivery address. C. 1. Prior written authorization from the State will be required before the Contractor will be reimbursed for any purchase order of$5,000 or more for articles, supplies, equipment, services or consultant fees. The Contractor must provide in its request for authorization all particulars necessary for evaluating the necessity or desirability of incurring such cost. The term "purchase order" exclude(s) purchase orders for public utility services at rates established for uniform applicability to the general public. 2. The State may, at its sole discretion, require prior written authorization and/or the submission of paid vendor receipts for any purchase, regardless of dollar amount. The State reserves the right to either deny claims for reimbursement or to request repayment for any Contractor or Subcontractor purchase which the State determines to be unnecessary in carrying out performance under this Agreement. D. The Contractor and/or Subcontractor must maintain a copy or narrative description of the procurement guidelines, rules, or regulations that will be employed in making purchases under this Agreement. The State reserves the right to request copies of these documents and to inspect the purchasing practices of the Contractor and/or Subcontractor at any time. E. For all purchases of $5,000 or more, the Contractor and/or Subcontractor must maintain all copies of documents, bids and other information used in vendor selection for inspection or audit by the State. Sole source procurement justifications shall also be maintained on file by the Contractor and/or Subcontractor for inspection or audit by the State. F. The State shall reimburse any State, local sales or use tax legally assessed on purchases and parts supplied in support of this Agreement. All other taxes related to purchases, including federal excise taxes, directly or indirectly arising out of the Page 23 of 27 Contra Costa County Health Services 95-22872 performance of this Agreement, shall be the Contractor's and/or Subcontractors responsibility. G. The State may, with cause, e.g., with reasonable suspicion of unnecessary purchases or use of inappropriate purchase practices, etc., withhold, cancel, modify or retract the delegated purchase authority granted under paragraphs A and/or B.1 of this section by giving the Contractor no less than 30-calendar days written notice. 5. OWNERSHIP/DISPOSITION OF EQUIPMENT/PROPERTY PURCHASED UNDER AGREEMENT OR FURNISHED BY THE STATE A. All equipment, material, supplies, or property of any kind purchased from Agreement funds or furnished by the State under the terms of this Agreement and not fully consumed in the performance of the Agreement shall be the property of the State. B. Title to State property shall not be affected by its incorporation or attachment to any property not owned by the State. C. Unless otherwise stipulated, the State shall not be under obligation to pay the cost of the restoration or rehabilitation of the Contractor's or Subcontractor's facility which may be affected by the removal of any State property. D. The Contractor shall maintain and administer, according to State directives and sound business practices, a program for the utilization, maintenance, repair, protection, and preservation of State property. E. State property, equipment, and motor vehicles purchased by the Contractor with funds from this Agreement or provided by the State under this Agreement shall be used only for the performance of this Agreement. F. Contractor shall submit an annual inventory of equipment furnished and/or purchased under the terms of this Agreement. The State may prescribe the inventory formats and/or may supply applicable forms for this purpose. G. Within 90 calendar days of the termination or end of this Agreement, the Contractor shall provide a final inventory to the State and shall at the time query the State as to the State's requirements, including the manner and method of returning said equipment'or property to the State. Final disposition of such equipment shall be at State expense in accordance with instructions from the State to be issued immediately after receipt of the final inventory. H. Motor Vehicles 1. If motor vehicles are purchased with funds from this Agreement or provided by the State, within 30 calendar days of the end or termination of this Agreement, the Contractor shall return such vehicles to the State and shall deliver all Page 24 of 27 • Contra Costa County Health Services 95-22872 necessary documents of title to enable the proper transfer of marketable title to the State. 2. If motor vehicles are purchased with funds from this Agreement, or a prior Agreement, if this is a renewal, or are provided by the State, the State shall be the legal owner of said motor vehicles and the Contractor shall be the registered owner. 3. Contractor and/or Subcontractor, if applicable, agrees that all operators of said purchased or provided motor vehicles shall hold a valid State of California driver's license. In the event 15 or more passengers, including the driver, are to be carried in any one vehicle, and Contractor and/or Subcontractor, if applicable, is a unit of local government, a Class B driver's license will also.be required. The requirement for a Class B driver's license also applies to private nonprofit organizations if ten or more passengers, including the driver, are to be carried in any one vehicle. 4. The Contractor and/or Subcontractor, if applicable, shall provide, maintain, and certify, that the following type and amount of automobile liability insurance is in effect during the term of this Agreement if any motor vehicle is purchased with funds from this Agreement or is provided by the State. (a) Automobile Liability Insurance. The Contractor, by signing this Agreement, hereby certifies that the Contractor possesses or will obtain automobile liability insurance in the amount of $500,000 per occurrence for bodily injury and property damage. Said insurance must be obtained and made effective upon the delivery date of any motor vehicle purchased with funds from this Agreement or provided by the State. (b) If required by the State, the Contractor agrees to furnish the State copies of certificates of insurance. (c) Contractor agrees that automobile liability insurance, as required herein, shall remain in effect at all times during the term of this Agreement or until such time as the motor vehicle is returned to the State. (d) Contractor agrees to provide, if required by the State, at least 30 days prior to said expiration of insurance coverage, a copy of a new certificate of insurance evidencing coverage, as indicated herein, for not less than the remainder of the term of this Agreement. (e) Contractor must provide evidence, as stipulated by the State, that any required certificates of insurance contain the following provisions: (1) The insurer will not cancel the insured's coverage without 30 days prior written notice to the State. Page 25 of 27 Contra Costa County Health Services 95-22872 (2) The State of California, its officers, agents, employees, and servants are included as additional insureds, but only insofar as the operations under this contract are concerned (3) The insurance carrier shall notify the State in writing of the Contractor's failure to pay premiums; its cancellation of such policies; or any other substantial change, including but not limited to the status, coverage, or scope of the required insurance. (f) The Contractor is hereby advised that all required copies of certificates of insurance may be subject to the review and approval of the Department of General Services, Office of Insurance and Risk Management. The Contractor shall be notified by the State if this provision is applicable to this Agreement." E. Subcontracts 1. Prior written authorization will be required before the Contractor will be reimbursed for any subcontract of $5,000 or more. Contractor shall obtain at least 3 bids or justify cost reasonableness of sole source awards for any subcontract of $5,000 or more. The Contractor must provide in its request for authorization all particulars necessary for evaluating the necessity or desirability of incurring such cost. The State may prescribe the information that will fulfill this requirement. 2. The State reserves the right to approve or disapprove the selection of Subcontractors, require the substitution of Subcontractors and order the termination of subcontracts assigned under this Agreement. 3. Actual subcontracts (i.e., actual written agreement and/or document between the prime Contractor and a Subcontractor) of$5,000 or more shall be subject to the prior review and written approval of the State. The State, at its discretion, may elect to waive its right to review and approve actual subcontracts of $5,000 or more. All such waivers shall be confirmed in writing by the State. 4. Contractor shall ensure that all subcontracts include provision(s) requiring compliance with applicable terms and conditions of this Agreement. Contractor shall remain responsible for all performance requirements under this Agreement, even though performance may be carried out pursuant to a subcontract. 5. Contractor shall maintain a copy of any subcontract entered into for the purpose of fulfilling the terms of this Agreement, and shall make said copies available for examination by the State upon request. 6. Sole responsibility rests with the Contractor to ensure that payments are made to all Subcontractors in a timely manner. Page 26 of 27 Contra Costa County Health Services 95-22872 7. Contractor shall be held responsible for a Subcontractor's actions and/or the Subcontractor's failure to take required action in regard to fulfilling the requirements of this Agreement. 8. Unless otherwise stipulated in writing by the State, the Contractor shall be the Subcontractor's sole point of contact for all matters related to this Agreement. F. Single Audit Delivery Address The following provision is a revision to EXHIBIT A(F), ADDITIONAL PROVISIONS, Provision 23, subprovision d. "d. The audit shall be completed by the 15th day of the fifth month following the end of the Contractor's fiscal year. Two copies of the audit report shall be delivered to the following address: Administrative Reform Coordinator Primary Care and Family Health Department of Health Services 714 P Street, Room 708 P.O. Box 942732 Sacramento, CA 94234-7320 The report shall be due within 30 days after the completion of the audit. The single audit delivery address may be changed, as directed by the State, without an amendment to this Agreement." G. Travel and Per Diem The following provision is a revision to EXHIBIT A(F), ADDITIONAL PROVISIONS, Provision 2. "2. TRAVEL AND PER DIEM Any reimbursement for necessary travel and per diem shall be at rates not to exceed those amounts paid to the State's nonrepresented employees under Department of Personnel Administration's current guidelines. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the State." Page 27 of 27 r • Feibit A(F) STATE OF CALIFORNIA DEPARTMENT OF HEALTH SERVICES ADDITIONAL PROVISIONS (FOR FEDERALLY FUNDED SUBVENTION AID/LOCAL ASSISTANCE COST REIMBURSEMENT CONTRACTS/GRANTS) 1. Eaual Opwrlunity Clause a. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, physical or mental handicap, or age. The Contractor will take affirmative action to ensure that qualified applicants are employed, and that employees are treated during employment without regard to their race, color religion, sex, national origin, physical or mental handicap, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and career development opportunities and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Federal Government or the State, setting forth the provisions of the Equal Opportunity clause and the Rehabilitation Act of 1973. Such notices shall state the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified applicants without discrimination based on their race, color, religion, sex, national origin, physical or mental handicap, or age, and the rights of applicants and employees. b. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, physical or mental handicap,or age. c. The Contractor will send to each labor union or representative of workers with which he or she has a collective bargaining agreement-or other contract or understanding a notice, to be provided by the Federal Government or the State, advising the labor union or worker's representative of the Contractor's commitments under this Equal Opportunity clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment. d. The Contractor will comply with all provisions of the Rehabilitation Act of 1973 and of the Federal Executive Order No. 11246 as amended, and of the rules, regulations, and relevant orders of the Secretary of Labor. e: The Contractor will furnish all information and reports required by Federal Executive Order No. 11246 as amended and the Rehabilitation Act of 1973, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. CMS hslrucfioncl&dlehn No.02(11/91) f. In the event of the Contractor's noncompliance with the requirements of this Equal - Opportunity clause or with any federal rules, regulations, or orders which are referenced in this clause, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further federal or state contracts in accordance with procedures authorized in Federal Executive Order No. 11246 as amended and such other sanctions may be imposed and remedies invoked as provided in Federal Executive Order No. 11246 as amended, or by rule, regulation, or order of the Secretary of Labor, or cis otherwise provided by law. g. The Contractor will include the provisions of paragraphs [a] through (g] in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Federal Executive Order No. 11246 as amended, or Section 503 of the rehabilitation Act of 1973, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs or the State may direct as a means of enforcing such provisions including sanctions for noncompliance-provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the State, the Contractor may request in writing to the State, who, in turn, may request the United States to enter into such litigation to protect the interests of the State and of the United States. 2. Travel and Per Diem Any reimbursement for necessary traveling and per diem shall be at rates not to exceed those amounts paid to the State's represented employees under collective bargaining agreements currently in effect. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the State. 3. Procurement Requirement a. Prior authorization in writing by the State will be required before the Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or services or for any fee, or other payment, for consultation of three hundred fifty dollars ($350) or more per day. The Contractor must provide in its request for authorization all particulars necessary for evaluation of the necessity or desirability of incurring such cost, and as to the reasonableness of the price or cost. For purchases of any said articles, supplies, equipment, services, or for consultant fees exceeding such minimum amount, three competitive quotations must be submitted with the request, or the absence of bidding must be adequately justified. b. If other than the lowest bidder or a sole-source provider is selected, all documents used in contractor selection must be presented in writing to the State for prior approval before awarding any contract, and maintained for possible future audit as specified In paragraph 7 below. c. The terms "purchase order" and "subcontract" as used in the above paragraph 3a only, excludes: (a) purchase orders not exceeding $2;500, and (b) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public. -2- echbR A(F) 4. ' Standards of Work The Contractor agrees that the performance of work and services pursuant to the requirements of this contract shall confirm to high professional standards. 5. Furnishing of Propedy by the State or Purchase of Prpygdy with State or Federal Funds a. (1) All equipment, material, supplies, or property of any kind purchased from funds advanced or reimbursed or furnished by the State under the terms of this contract and not fully consumed in the performance of the contract shall be the property of the State and shall be subject to the provisions of this paragraph (a), as well as paragraphs(b),(c),and (d) below. If the Equipment Line item in the budget or in any other paragraph of this contract,exceeds$10,000 or more,the provisions of subparagraph b shall apply. (2) Inventory and Disposition (a) Contractor shall, at the request of the State, submit an inventory of equipment furnished or purchased under the terms of this contract. Such inventory will be required not more frequently than annually. (b) At the termination of this contract, the Contractor shall provide a final inventory to the State and shall at that time query the State as to the State's requirements, including the manner and method, in returning said equipment to the State. Final disposition of such equipment shall be at state expense in accordance with instructions from the State to be issued immediately after receipt of the final inventory. (3) Motor Vehicles (a) If, under the provisions of paragraph (2) above, any part of such property is motor vehicles, the State Office of Procurement shall purchase said motor vehicles for and on behalf of the Contractor. The provisions of clause (5b) below are applicable to this paragraph concerning motor vehicles. (b) If, under the provisions of paragraphs (2) or (3) above, any part of such property is motor vehicles, the State author¢es the Contractor to use said motor vehicles under the terms and conditions of this contract for purposes of this contract only, and in accordance with the provisions of subparagraphs (c) through (f) below. (c) It is mutually understood that the State of California shall be the legal owner of said vehicles and the Contractor shall be the registered owner. (d) Upon return of such motor vehicles to the State, Contractor shall deliver to State all necessary documents of title to enable proper transfer of marketable title to the State. (e) Contractor agrees that all operators of motor vehicles listed in said agreement shall hold a valid State of California driver's license. In the event 12 or more passengers are to be carried in any one vehicle listed in said agreement,a Class 2 driver's license will also be required. (f) Contractor shall furnish to the State a certificate of insurance stating that there is liability insurance presently in effect for the Contractor of not less than $500,000 per occurrence for bodily injury and property damage liability combined. -3- The certificate of insurance must include provisions(i) and (ii),stating that: - () The insurer will not cancel the insured's coverage without 30 days prior - written notice to the State. (ii) The State of California, its officers, agents, employees,and servants are included as additional insureds, but only insofar as the operations under this contract are concerned. Contractor agrees that the bodily injury liability insurance herein provided for shall be in effect at all times during the term of this contract. In the event said insurance coverage expires at any time or times during the term of this contract, Contractor agrees to provide at least thirty (30) days prior to said expiration date a new certificate of insurance evidencing insurance coverage as provided for herein for not less than the remainder of the term of the contract, or for a period of not less than one (1) year. New certificates of insurance are subject to the approval of said Department of General Services, and Contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event Contractor fails to keep in effect at all times insurance coverage as herein provided, State may, in addition to any other remedies it may have,terminate this contract upon the occurrence of such event. b. If the Equipment line item budget in this contract is $10,000 or more, the State shall purchase said equipment through its Office of Procurement. The cost of the procurement of equipment will be deducted from the contract amount. Contractor shall submit to the State a separate list of the equipment specifications. State will pay vendor directly for equipment purchases and title to the equipment will remain with the State. The equipment will be delivered either to the Contractor's address as stated in the contract unless notified by the Contractor in writing. c. (1) Title to state property shall not be affected by the incorporation or attachment thereof to any property not owned by the State, nor shall such state property, or any part thereof, be or become a fixture or lose its identity as personality by reason of affixation to any realty. (2) Unless otherwise provided herein, the State shall not be under any duty or obligation to restore or rehabilitate, or to pay the cost of the restoration or rehabilitation of the Contractor's facility or any portion thereof which is affected by removal of any state property. (3) The Contractor shall maintain and administer, in accordance with sound business practice, a program for the utilization, maintenance, repair, protection, and preservation of state property so to assure its full availability and usefulness for the performance of this contract. The Contractor shall take all reasonable steps to comply with all appropriate directions and instructions which the State may prescribe as reasonably necessary for the protection of state property. d. For equipment only. Before equipment purchases made by the Contractor are reimbursed by the State,the Contractor must submit paid vendor receipts identifying the purchase price, description of the item, serial number, model number, and location where equipment will be used during the term of this agreement. Said paid receipts will be attached to Contractor's invoices submitted to the State. -4- Exhibit A fl) 6. Income Restrictions The Contractor agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Contractor under this contract shall be paid by the Contractor to the State, to the extent that they are properly allocable to costs for which the Contractor has been reimbursed by the State under this contract. 7. JExamination of Accounts. Audit. Records. and Subcontract Lana tag a. The Contractor shall maintain books, records, documents, and other evidence, accounting procedures, and practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred in the performance of this contract, including any matching costs and expenses. The foregoing constitutes"records" for the purpose of this clause. b. The Contractor's facility or office or such part thereof as may be engaged in the performance of this contract and his records shall be subject at all reasonable times to inspection, audit, and reproduction by the State or any of its duly authorized representatives, including the Comptroller General of the United States. c. The Contractor shall preserve and make available his records (i) for a period of three years from the date of final payment under this contract, and (ii) for such longer period, if any, as is required by applicable statute, by any other clause of this contract, or by subparagraphs (1) or (2) below. (1) If this contract is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three years from the date of any resulting final settlement. (2) If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the three-year period, the records shall be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular three-year period, whichever is later. d. The Contractor further agrees to include in all his subcontracts hereunder a written agreement with said subcontractor or vendor, the following clause: "(Name of Vendor or Subcontractor) agrees to maintain and preserve, until three years after termination of (Contractor's name) agreement or contract with the State of California, and to permit the State or any of its duly authorized representatives, including the Comptroller General of the United States, to have access to and examine and audit any pertinent books, documents, papers, and records of(name of subcontractor or vendor) related to this(purchase order or subcontract)." 8. Covenant Against Contingent Fees The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage; or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the State shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee. -5- 9. Inspection - The State, through any authorized representatives, has the right at all reasonable times to inspect or otherwise evaluate the work performed or being performed hereunder including subcontract supported activities and the premises in which it is being performed. If any inspection or evaluation is made by.the State of the premises of the Contractor or a subcontractor, the Contractor shall provide and shall require his subcontractors to provide all reasonable facilities and assistance for the safety and convenience of the state representatives in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work. 10. Nondiscrimination in Services. Benefits. and Facilities a. The Contractor will not discriminate in the provision of services because of race, color, creed, national origin, sex, age, or physical or mental handicap as provided by state and federal law. b. For the purpose of this contract, distinctions on the grounds of race, color, creed, national origin, sex, age, or physical or mental handicap include, but are not limited to, the following; denying a participant any service or providing a benefit to a participant which is different, or is provided in a different manner or at a different time from that provided to other participants under this contract; subjecting a participant to segregation or separate treatment in any matter related to his receipt of any service; restricting a participant in any way in the enjoyment of any advantage or privilege enjoyed by others receiving any service or benefit; treating a participant differently from others in determining whether he satisfied any admission, enrollment quota, eligibility, membership, or other requirement or condition which individuals must meet in order to be provided any service or benefit; the assignment of times or places for the provision of services on the basis of the race, color, creed, or national origin of the participants to be served. c. The Contractor will take affirmative action to ensure that intended beneficiaries are provided services without regard to race, color, creed, national origin, sex, age, or physical or mental handicap. d. The Contractor agrees that complaints alleging discrimination in the delivery of services by the Contractor or his or her subcontractor because of race, color, national origin, creed, sex, age, or physical or mental handicap will be resolved by the State through the Department of Health Services' Affirmative Action/Discrimination Compliant Process. e. The Contractor shall, subject to the approval of the Department of Health Services, establish procedures under which service participants are informed of their rights to file a complaint alleging discrimination or a violation of their civil rights with the Department of Health Services. f. The Contractor shall operate the program or activity in such a manner that it is readily accessible to and usable by mentally or physically handicapped persons pursuant to 45 Code of Federal Regulations, Parts 84,Sections 84.21 and 84.22. g. The Contractor shall keep records, submit required compliance reports, and permit state access to records in order that the State can determine compliance with the nondiscrimination requirements pursuant to 45 Code of Federal regulations, Parts 80, 84, and 90, Sections 80.6, 84.61, and 90.42. -6- Exhlbll A(F)• 11. Final Invoice—Final Report- Retention of Funds If a final report is required by this contract, 10 percent of the face amount of the contract or 50 percent of the final invoice, whichever is the larger amount, but not to exceed $3,000, shall be withheld until after receipt by the State of a report satisfactory to the State. 12. Officials Not to Benefit . No member of or delegate to Congress or the State Legislature shall be admitted to any share"or part of this contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit. 13. Rights in Data a. Subject Data. As used in this clause, the term "Subject Data" means writings, sound recordings, pictorial reproductions, drawings, designs or graphic representations, procedural manuals, forms, diagrams, work flow charts, equipment descriptions, data files and data processing or computer programs, and works of any similar nature (whether or not copyrighted or copyrightable) which are first produced or developed under this contract. The term does not include financial reports, cost analyses, and similar information incidental to contract administration. b. Federal Government and State Rights. Subject only to the provisions of "c" below, the Federal Government and State may use, duplicate, or disclose in any manner and for any purpose whatsoever, and have or permit others to do so, all Subject Data delivered under this contract. c. License to Copyrighted Data. In addition to the Federal Government and State rights as provided in [b] above, with respect to any subject data which may be copyrighted, the Contractor agrees to and does hereby grant to the Federal Government and State a royalty-free, nonexclusive and irrevocable license throughout the world to use, duplicate, or dispose of such data in any manner for State or Federal Government purposes and to have. or permit others to do so. Provided, however, that such license shall be only to the extent that Contractor now has, or prior to completion or final settlement of this contract may acquire, the right to grant such license without becoming liable to pay compensation to others solely because of such grant. d. Relation to Patents. The State reserves a license on patent rights in any contract involving research or developmental, experimental, or demonstration work with respect to any discovery or invention which arises under this contract. e. Marking and Identification. The Contractor shall mark all Subject Data with the number of this contract and the name and address of the contractor or subcontractor who generated the data. The Contractor shall not affix any restrictive markings upon any Subject Data, and if such markings are affixed, the Federal Government or State shall have the right at any time to modify, remove, obliterate, or Ignore any such markings. f. Subcontractor Data. Whenever any Subject Data is to be obtained from a subcontractor under this contract, the Contractor shall use this same clause in subcontract without alteration, and no other clause shall be used to enlarge or diminish the Federal Government's or State's rights in the subcontractor Subject Data. -7- g. Deferred Ordering and Delivery of Data. The Federal Government or State shall have the right to order, at any time during the performance of this contract, or within two years from either acceptance of all items (other than data) to be delivered under this contract or termination of this contract, whichever is later, any Subject Data and any data not called for In the schedule of this contract but generated in performance of the contract, and the Contractor shall promptly prepare and deliver such data as is ordered. If the principal investigator is no longer associated with the Contractor, the Contractor shall exercise its best efforts to prepare and deliver such data as is ordered. The Federal Government's or State's right 'to use data delivered pursuant to this paragraph (g) shall be the same as the rights in Subject Data as provided in "b" above. The Contractor shall be relieved of obligation to furnish data pertaining to an item obtained from a subcontractor upon the expiration of two years from the date he accepts such items. When data, other than Subject Data, is delivered pursuant to this paragraph (g), payment shall be made, by equitable adjustment or otherwise, for converting the data into the prescribed form, reproducing it or preparing it for delivery. The terms of,such payment shall be agreed upon in writing by the Contractor and the State and/or Federal Government, whichever ordered the production of the data. 14. Disabled Veterans and Veterans of the Vietnam Era a, The Contractor will not discriminate against any employee or applicant for employment because he or she is.a disabled veteran or veteran of the Vietnam era in regard to any position for which the employee or applicant for employment is qualified. The Contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled veterans and veterans of the Vietnam era without discrimination based upon their disability or veterans status in all employment practices such as the following; employment upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. b. The Contractor agrees that all suitable employment openings of the Contractor which exist at the time of the execution of this contract and those which occur during the performance of this contract, including those not generated by this contract and Including those occurring at an establishment of the Contractor other than the one wherein the contract Is being performed but excluding those of independently operated corporate affiliates, shall be listed at an appropriate local office of the state employment service system wherein the opening occurs. The Contractor further agrees to provide such reports to such local office regarding employment openings and hires as may be required. State and local government agencies holding federal contracts of $10,000 or more shall also list all their suitable openings with the appropriate office of the state employment service, but are not required to provide those reports set forth in paragraphs"d" and "e". c. Listing of employment openings with the employment service system pursuant to this clause shall be made at least concurrently with the use of any other recruitment source or effort and shall Involve the normal obligations which attach to the placing of bona fide job order, Including the acceptance of referrals of veterans and nonveterans. The listing of employment openings does not require the hiring of any .particular job applicant or from any particular group of job applicants, and nothing herein is intended to relieve the Contractor from any requirements in Executive Orders or regulations regarding nondiscrimination in employment. -8- Exhibit A(F)' d. The reports required by paragraph "b" of this clause shall include, but not be limited to, periodic reports which shall be filed at least quarterly with the appropriate local office or, where the Contractor has more than one hiring location'in a State, with the central office of that state employment service. Such reports shall indicate for each hiring location (1) the number of individuals hired during the reporting period, (2) the number of nondisabled veterans of the Vietnam era hired, (3) the number of disabled veterans of the Vietnam era hired, and (4) the total number of disabled veterans hired. The reports should include covered veterans hired for the on-the-job training under 39 U.S.C. 1787. The Contractor shall submit a report within 30 days after the end of each reporting period wherein any performance is made on this contract identifying data for each hiring location. The Contractor shall maintain at each hiring location copies of the reports submitted until the expiration of one year after final payment under the contract, during which time these reports and related documentation shall be made available, upon request, for examination by any authorized representatives of the Federal Contracting Officer, the State, or the Secretary of Labor. Documentation would include personnel records respecting job openings, recruitment, and placement. e. Whenever the Contractor becomes contractually bound to the listing provisions of this clause, it shall advise the employment service system in each state where it has establishments of the name and location of each hiring location in the state. As long as the Contractor is contractually bound to these provisions and has so advised the state system, there is no need to advise the state system of subsequent contracts. The Contractor may advise the state system when it is no longer bound by this contract clause. f. This clause does not apply to the listing of employment openings which occur and are filled outside the 50 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. g. The provisions of paragraphs "b", "c", "d", and "e" of this clause do not apply to openings which the Contractor proposes to fill from within his own organization or to fill pursuant to a customary and traditional employer-union hiring arrangement. This exclusion does not apply to a particular opening once an employer decides to consider applicants outside of his own organization or employer-union arrangement for that opening. h. As used in this clause: (1) 'All suitable employment openings" Includes, but is not limited to, openings which occur in the following job categories: production and nonproduction: plant and office; laborers and mechanics; supervisory and nonsupervisory; technical and executive, administrative, and professional openings that are compensated on a salary basis of less than $25,000 per year. This term includes full-time employment, temporary employment of more than three days' duration, and part-time employment. It does not include openings which the Contractor proposes to fill from within his own organization or to fill pursuant to a customary and traditional employer-union hiring arrangement nor openings in an educational institution which are restricted to students of that institution. Under the most compelling circumstances, an employment opening may not be suitable for listing, Including such situations where the needs of the Federal Government cannot reasonably be otherwise supplied, where listing would be contrary to national security, or where the requirement of listing would otherwise not be for the best interest of the Federal Government. -9- (2) "Appropriate office of the state employment service system" means the local office of the federal/state national system of public employment offices with assigned responsibility for serving the area where the employment opening Is to be filled, including the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. (3) "Openings which the Contractor proposes to fill from within his own organization" means employment openings for which no consideration will be given to persons outside the Contractor's organization (including any affiliates, subsidiaries, and the parent companies) and includes any openings which the Contractor proposes to fill from regularly established "recall" lists. (4) "Openings which the Contractor proposes to fill pursuant to a customary and traditional employer-union hiring arrangement" means employment openings which the contractor proposes to fill from union halls which is part of the customary and traditional hiring relationship which exists between the Contractor and representatives of his employees. I. The Contractor agrees to comply with the rules, regulations, and relevant orders of the Federal Secretary of Labor issued pursuant to the Act. j. In the event of the Contractor's noncompliance with the requirements of this clause, actions for noncompliance may be taken in accordance with the rules, regulations, and relevant orders of the Federal Secretary of Labor issued pursuant to the Act. k. The Contractor agrees to post in conspicuous places available to employees and applicants for employment notices in a form to be prescribed by the Director of the Office of Federal Contract Compliance Programs, provided by or through the contracting Officers or State. Such notices shall state the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era for employment, and the rights of applicants and employees. I. The Contractor will notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding that the Contractor is bound by terms of the Vietnam Era Veteran's Readjustment Assistance Act and Is committed to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era. m. The Contractor will Include the provisions of this clause in every subcontract or purchase order of $10,000 or more unless exempted by rules, regulations, or orders of the Federal Secretary of Labor issued pursuant to the Act, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce such provisions, including action for noncompliance. 15. Clean Air and Water a. (Applicable only if the contract Is not with a sole source vendor of products or services, or if it exceeds $5,000.) The Contractor agrees under penalty of perjury (it,he,she) is not in violation of any order or resolution which is not subject to review promulgated by the State Air Resources Board or an air pollution district. -10- •Exnlblt A(F) . The Contractor agrees under penalty or perjury (it, he, she) is not subject to cease and desist order which is not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions, or Is not finally determined to be in violation of provisions of federal law relating to air or water pollution. b. (Applicable only if the contract or subcontract exceeds $100,000 or the contract is not otherwise exempt under 40 CFR 15.5.) The Contractor agrees as follows: (1) To comply with all the requirements of Section 114 of the Clean Air act as amended (42 U.S.C. 7401 et seq., as amended by Public Law 95-95), and section 308 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq., as amended by Public Law 92-500),respectively, relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued to implement those Acts before the award of this contract. (2) That no portion of the work required by this contract will be performed in a facility listed on the Environmental Protection Agency List of Violating Facilities on the date when this contract was awarded unless and until the Environmental Protection Agency eliminates the name of such facility or facilities from such listing. (3) To use his best efforts to comply with clean air standards and clean water standards at the facility in which the contract is being performed. The terms used In this paragraph have the following meanings: (a) The term "clean air standards" means any enforceable rules, regulations, guidelines standards, limitations, orders, controls, or prohibitions or other requirements which are contained in, issued under, or adopted pursuant to the Clean Air Act. (b) The term "clean water standards" means any enforceable limitation, control, condition, prohibition, standard, or another requirement which is promulgated pursuant to the Clean Water Act or contained in a permit Issued to a discharger by EPA or by the State under an approved program as authorized by Section 402 of the Clean Water Act (33 U.S.C. 1342), or by a local government to ensure compliance with pretreatment,regulations as required by Section 307 of the Clean Water Act (33 U.S.C. 1317), and regulations issued pursuant thereto. (c) In addition to compliance with clean air and water standards, the term compliance shall also mean compliance with a schedule or plan ordered or approved by a court of competent jurisdiction, the Environmental Protection Agency, or an air or water pollution control agency in accordance with the requirements of the Clean Air Act and the Federal Water Pollution Control Act. (4) As a condition for the award of a contract the applicant or contractor shall notify the State of the receipt of any communication from the Assistant Administrator for Enforcement, U.S. EPA indicating that a facility to be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities. Prompt notification shall be required prior to contract award. -11- (5) To report violations to the State and to the Assistant Administrator for Enforcement. (6) To insert the substance of the provisions of paragraph [b] into any nonexempt subcontract, including this paragraph [b6], and to take such action as the Federal Government may direct as a means of enforcing such provisions. 16. Utilization of Small Business and Minority and Women Owned Business Enterprise a. It is a federal policy to award a fair share of contracts to small, minority, and women owned business firms. The State legislature has declared that a fair proportion of the total purchases and contracts or subcontracts for property and services for the State be placed with small minority and women owned business enterprises. b. A firm shall qualify as a small business if it meets the requirements specified in Government Code Section 14837. c. The Contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient contract performance. As used in this contract, the term "minority business enterprise" means a business concern (1) which is at least 51. percent owned by one or more minority group members or women, or in the case of publicly owned business, at least 51 percent of the stock of which is owned by one or more minority group members or women; and (2) whose management and daily business operations are controlled by one or more such individuals. A minority group member is a person who is Black, Asian,. Hispanic, Filipino, Polynesian, American Indian, or Alaskan Native. "Control," as used in this clause, means exercising the power to make policy decisions. d. Contractors acting in good faith may rely on written representations by their subcontractors regarding their status as minority business enterprises in lieu of an independent Investigation. 17. Printing If Printing or other reproduction work of more than an incidental and minor dollar amount is a reimbursable item in this contract, It shall be printed or produced by the State Printer. The State Printer may, at his sole option, elect to forego said work and delegate the work to the private sector. If the State Printer prints or produces said work, or the State obtains the printing or other work through the Office of State Procurement, the cost will be deducted from said contract amount. This requirement does not apply to normal In-house copying necessary for routine business matters of the Contractor. 18. Prior Approval of Training Seminars. Workshops. or Conferences Contractor shall obtain prior state approval over the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable pubncity or educational materials to be made available for distribution. The Contractor shall acknowledge the support of the State whenever publicizing the work under the contract in any media. This paragraph does not apply to necessary staff meetings to conduct routine business matters. -12- 'Exhibit A(F) 19. Confidentiality of Information a. The Contractor and his or her employees agents, or subcontractors shall protect from unauthorized disclosure names and other identifying information concerning persons either receiving services pursuant to this contract or persons whose names or identifying information become available or are disclosed to the Contractor, his/her employees, agents, or subcontractors as a result of services performed under this contract, except for statistical information not identifying any such person. b. The Contractor, his/her employees, agents, or subcontractors shall not use such identifying information for any purpose other than carrying out the Contractor's obligations under this contract. c. The Contractor, his/her employees, agents, or subcontractors shall promptly transmit to the State all requests for disclosure of such identifying information not emanating from the client or person. d. The Contractor shall not disclose, except as otherwise specifically permitted by this contract or authorized by the client, any such identifying.information to anyone other than the State without prior written authorization from the State. e. For purposes of this paragraph, identity shall include, but not be limited to, name, identifying number, symbol, or other identifying particular assigned to the individual, such as finger or voice print or a photograph. 20. National Labor Relations Board Certification (not applicable if Contractor is a public entity.) Contractor, by signing this agreement, does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board. 21. Documents and Written Regorts Any document or written report prepared as a requirement of this agreement shall contain, in a separate section preceding the main body of the document, the number and dollar amounts of all contracts and subcontracts relating to the preparation of such document or report, if the total cost for work by nonemployees of the State exceeds $5.,000. 22. Resolution of Direct Service Contract Disputes a. If the Contractor believes there is a dispute or grievance between the Contractor and the State, the procedures set forth in Chapter 2.1; Sections 20201 through 20205, of Title 22, of the California Code of Regulations, shall be followed. b. If the Contractor wishes to appeal the decision of the Deputy Director for Public Health or his/her designee, the Contractor shall follow the procedures set forth in Division 25.1 (commencing with Section 38050) of the Health and Safety Code and the regulations adopted thereunder. (Title 1, Subchapter 2.5 commencing with Section 251, California Code of Regulations.) -13- c. Disputes arising out of an audit or examination of a contract not covered by subdivision (a) of Section 20204, of Chapter 2.1,Title 22, of the California Code of Regulations, and for which no procedures for appeal are provided in statute, regulation or the contract shall be handled in accordance with the procedures identified in Sections 51016 through 51047,Title 22,California Code of Regulations. 23.' Financial and Compliance Audit of Nonprofit Entitle: (Applicable only if Contractor is a private,nonprofit entity) a. Definitions within this paragraph are defined in Section 38040 of the Health and Safety Code,which, by this reference,is made a part hereof. b. Contractor agrees to obtain an annual single, organization wide, financial and compliance audit. The audit shall be conducted in accordance with the requirements specified in the Federal Office of Management and the Budget (OMB) Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations." c. References to "Federal" in OMB Circular A-133 shall be considered to man "Federal and/or State" in contracts where State funds are present either alone or in conjunction with Federal funds. d. The audit shall be completed by the 15th day of the fifth month following the end of the Contractor's fiscal year. Two copies of the audit report shall be delivered to the State program funding this contract. The report shall be due within 30 days after the completion of the audit. e. If the contractor receives less than $25,000 pier year from the State, the audit shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with this contract. This requirement takes precedence over the OMB A-133 section which exempts from Federal audit requirements any nonprofit institution receiving less than $25,000 per year. f. The cost of such audit may be included in the funding for this contract up to the proportionate amount this contract represents of the Contractor's total revenue. g. The State, or its authorized designee including the Auditor-General, is responsible for conducting contract performance audits which are not financial and compliance audits. h. Nothing in this contract limits the State's responsibility or authority to enforce State law or regulations,procedures,or reporting requirements arising pursuant thereto. I. Nothing in this paragraph limits the authority of the State to make audits of this contract, provided however, that if independent audits arranged for by Contractor meet generally accepted governmental auditing standards, the State shall rely on those audits and any additional audit work shall build upon the work already done. j. The State may, at its option, direct its own auditors to perform the single audit described in OMB Circular A-133. The State's auditors shall meet the independence standards specified in Government Auditing Standards. The audit shall be conducted in accordance with OMB Circular A-133 so as to satisfy all State and Federal requirements for a single organization wide audit. 24. Contract Amendments a. This contract may be amended by mutual agreement between the parties and, if required by Government Code, Section 11010.5, or Public Contract Code, Section 10355,the amendment shall be subject to the approval of the Department of General Services,unless otherwise exempted. -14- •Exhibit A(F) b. If any amendment to this contract has the effect of increasing the monetary amount of the contract or an agreement by the State to indemnify or save harmless the Contractor, his agents or employees, the amendment shall be approved by the Department of General Services, unless otherwise exempted. 25. Evaluation of Contractors The Contractor's performance under this contract shall be evaluated at the conclusion of the term of this contract. The evaluation shall include, but not be limited to: a. Whether the contracted work or services were completed as specified in the contract and reasons for and amount of any cost overruns. b. Whether the contracted work or services met the quality standards specified in the contract. c. Whether the Contractor fulfilled all requirements of the contract. d. Factors outside the control of the Contractor which caused difficulties in Contractor performance. The evaluation of the Contractor shall not be a public record. 26. Conflict of Interest—Current and Former State Employees a. Current State Officers and Employees (1) Contractor shall not utilize in the performance of this contract any state officer or employee in the state civil service or other appointed state official unless the employment, activity, or enterprise is required as a condition of the officer or employee's regular state employment. Employee in the state civil service is defined to be any person legally holding a permanent or intermittent position in the state civil service. (2) If any state officer or employee is utilized or employed in the performance of this contract, Contractor shall first obtain written verification from the State that the employment, activity, or enterprise is required as a condition of the officer's, employee's, or official's regular state employment and shall keep said verification on file for three years after the termination of this contract. (3) Contractor may not accept occasional work from any currently employed state officer, employee, or official. (4) If Contractor accepts volunteer work from any currently employed State officer, employee, or official, Contractor may not reimburse, or otherwise pay or compensate, such person for expenses incurred, including, without limitation, travel expenses, per diem, or the like, in connection with volunteer work on behalf of contractor. (5) Contractor shall not employ any state officers, employees, or officials who are on paid or unpaid leave of absence from their regular state employment. (6) Contractor or anyone having a financial interest in this contract may not become a state officer, employee, or official during the term of this contract. Contractor shall notify each of its employees, and any other person having a financial Interest in this contract that it is unlawful under Public Contract Code, Section 10410 for such person to become a state officer, employee, or official during the term of this contract unless any relationship with the Contractor giving rise to a financial interest, as an employee or otherwise, is first terminated. -15- (7) Occasional or one-time reimbursement of a state employee's travel expenses is not acceptable. (Citation: Public Contract.Code, Section 10410) b. Former State Officers and Employees (1) Contractor shall not utilize in the performance of this contract any formerly employed person of any state agency or department that was employed under the state civil service, or otherwise appointed to serve in the State Government, if that person was engaged in any negotiations, transactions, planning, arrangement, or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency or department. This prohibition shall apply for a two-year period beginning on the date the person left state employment. (2) Contractor shall not utilize within 12 months from the date of separation of services, a former employee of the contracting state agency or department if that former employee was employed in a policy making position in the some general subject area as the proposed contract within the 12-month period prior to the employee leaving state service. (Citation: Public Contract Code, Section 10411) c. Failure to Comply with Subparts"a" or "b" (1) If Contractor violates any provision of Subparts "a" or "b" above, such action by Contractor shall render this contract void, unless the violation is technical or nonsubstantive. (Citation: Public Contract Code, Section 10420) 27. Single Audit Act of 1984 (applicable only if Contractor is a governmental entity) In accordance with Public Law 98-502 and OMB Circular A-128, it is stipulated between the parties hereto that: a. The cost of the single audit will be charged to the federal assistance program providing funds for this agreement on a "Fair Share" basis. The amount chargeable to federal assistance programs for the cost of the single audit is calculated based on the ratio of federal expenditures to total expenditures of the Contractor. The State's share of the single audit cost under this contract is based upon the ratio of federal funds received under this agreement to total federal funds received by the Contractor each fiscal year. b. The Contractor shall include a clause in any contract the Contractor enters into with the audit firm doing the single audit to provide access by the State or Federal Government to the working papers of the independent auditor who prepares the single audit for the Contractor. C. Federal or State auditors shall have "expanded scope auditing" authority to conduct specific program audits during the some period in which a single audit is being performed, but the audit report has not been issued. The federal or state auditors shall review and have access to the current audit work being conducted and will not apply any testing or review procedures which have not been satisfied by previous audit work that has been completed. -16- ♦ Wiibit A M • a The term "expanded scope auditing". is applied and defined in the U.S. General Accounting Office (GAO) issued Standards for Audit of Governmental Organizations, Programs,Activities and Functions,better known as the 'yellow book.' 28. Contractor Name Change Contractor shall provide written notice to the State at least 30 days.prior to any changes to the Contractor's current legal name. 29. Novation if the Contractor proposes any novation agreement,the State shall act upon the proposal within 60 days after receipt of the written proposal. The State may review and consider the proposal,consuft and negotiate with the Contractor, and accept or reject all or part of the proposal. Acceptance or rejection may be made orally within the 60 day period, and confirmed in writing within five days. 30. Drug-Free Workplace Contractor certifies to the State that it will provide a drug-free workplace by doing all of the following: a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited ,in the person's or organization's workplace and specifying the actions that will be taken against employees for violations of the prohibition. b. Establishing a drug-free awareness program to inform employees about all of the following: (1) The dangers of drug abuse in the workplace. (2) The person's or organization's policy of maintaining a drug-free workplace. (3) Any available drug counseling, rehabilitation, and employee assistance programs. (4) The penalties that may be imposed upon employees for drug abuse violations. c. Requiring that each employee engaged in the performance of the contract or grant be given a copy of the statement required by subdivision (a) and that,as a condition of employment on the contract or grant,the employee agrees to abide by the terms of the statement. d. Contractor agrees this contract may be subject to suspension of payments or termination of this contract, or both,and the contractor may be subject to debarment, in accordance with the requirements of the Government Code Section 8350, et seq., if the Department determines that any of the following has occurred: (1) The contractor or grantee has made a false certification. (2) The contractor violates the certification by failing to carry out the requirements of subdivisions(a)through(c)above. -17- 31. Debarment and Susagnsion Requirements Contractor agrees to comply with the debarment and suspension requirements as found in 7 Code of Federal Regulations,Part 3017,or as amended. 32. LIMRATIONS ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL ACTIONS AND REQ ATFD DISCLOSURES (a) Definitions. As used in this Exhibit, "Agency," as defined in 5 U.S.C. 552(f), includes Federal executive departments and agencies as well as independent regulatory commissions and Government corporations,as defined in 31 U.S.C. 9101(1). "Covered Federal action" means any of the following Federal actions: (1) The awarding of any Federal contract; (2) The making of any Federal grant; (3) The making of any Federal loan; (4) The entering into of any cooperative agreement; and (5) The extension, continuation, renewal, amendment, or modification of any Federal contract,grant,loan,or cooperative agreement. Covered Federal action does not include receiving from an agency a commitment providing for the United States to insure of guarantee a loan. "Indian tribe" and "tribal organization" have the meaning provided in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions of Indian tribes in the Act. "Influencing or attempting to influence" means making, with the intent to influence, any communication to or appearance before an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with any covered Federal action. "Local government" means a unit of government in a State and, if chartered, established, or otherwise recognized by a State for the performance of a government duty, including a local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization, and any other instrumentality of a local government. "Officer or employee of an agency' includes the following individuals who are employed by an agency: (1) An individual who is appointed to a position in the Government under title 5, U. S. Code,including a position under a temporary appointment; (2) A member of the uniformed services as defined in section 101(3), title 37, U. S: Code; (3) A special government employee as defined in section 202, title 18, U. S. Code; and (4) An individual who is a member of a Federal advisory committee, as defined by the Federal Advisory Committee Act,title 5,U. S. Code,Appendix 2. -18- "Person" means an individual, corporation, company, association, authority, firm, partnership, society, State, and local government, regardless of whether such entity is operated for profit or not for profit. This term excludes an Indian tribe, tribal organization, or any other Indian organization with respect to expenditures specifically permitted by other Federal law. "Reasonable compensation" means, with respect to a regularly employeed officer or employee• of any person, compensation that is consistent with the normal compensation for such officer or employee for work that is not furnished to, not funded by,or not furnished in cooperation with the Federal Government. "Reasonable payment" means, with respect to professional and other technical services, a payment in an amount that is consistent with the amount normally paid for such services in the private sector. "Recipient" includes the Contractor or Grantee, and all subcontractors or subgrantees at any tier in connection with a Federal contract, grant, or other Federally funded activity. The term excludes an Indian tribe, tribal or ganization, or any other Indian organization with respect to expenditures specifically permitted by other Federal law. "Regularly employed" means, with respect to an officer or employee of a person requesting or receiving a Federal contract, an officer or employee who is employed by such person for at least 130 working days within 1 year immediately preceding the date of the submission that initiates agency consideration of such person for receipt of such contract. An officer or employee who is employed by such person for less than 130 working days within 1 year immediately preceding the date of the submission that initiates agency consideration of such person shall be considered to be regularly employed as soon as he or she is employed by such person for 130 working days. "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States, an agency or instrumentality of a State, and a multi-State, regional, or interstate entity having governmental duties and powers. b Prohibition. (1) Section 1352 of title 31, U. S. Code provides in part that no appropriated funds may be expended by the recipient of a Federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: The awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) The prohibition does not apply as follows: (i) Agency and legislative liaison by Own Employees. (A) The prohibition on the use of appropriated funds, in paragraph (b)(1), does not apply in the case of a payment of reasonable compensation made to an officer or employee of a person requesting or receiving a Federal contract if the payment is for agency and legislative liaison activities not directly related to a covered Federal action. -19- (B) For purposes of paragraph (b)(2)(i)(A), providing any information specifically requested by an agency or Congress is allowable at any time. (C) For purposes of paragraph (b)(2)(i)(A) of this section, the following agency and legislative liaison activities are allowable at any time only where they are not related to a specific solicitation for any covered Federal action: (� Discussing with any agency (including individual demonstrations) the qualities and characteristics of the person's products or services,conditions or terms of sale,and service capabilities; and, (ii) Technical discussions and other activities regarding the application or adaptation of the person's products or services for an agency's use. (D) For purposes of paragraph (b)(2)(i)(A) of this section, the following agency and legislative liaison activities are allowable only where they are prior to formal solicitation of any covered Federal action: (i) Providing any information not specifically requested but necessary. for an agency to make an informed decision about initiation of a covered Federal action; (ii) Technical discussions regarding the preparation of an unsolicited proposal prior to its official submission; and, (iii) Capability presentations by persons seeking awards from an agency pursuant to the provisions of the Small Business Act, as amended by Public Law 95-507 and other subsequent amendments. (E) Only those activities expressly authorized by paragraph (b)(2)(i) are allowable under paragraph(b)(2)(l. 07 Professional and technical services by Own Employees. (A) The prohibition on the use of appropriated funds, in paragraph (b)(1), does not apply in the case of any reasonable payment of reasonable compensation made to an officer or employee of a person requesting or receiving a Federal contract or an extension, continuation, renewal, amendment, or modification of a Federal contract if payment is for professional or technical services rendered directly in the preparation, submission or negotiation of any bid, proposal, or application for that Federal contract or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal contract. -20- _ (B) For purposes of paragraph (b)(2)(ii)(A), 'professional and technical services' shall be limited to advice an analysis directly applying any professional or technical discipline. For example, drafting of a legal document accompanying a bid or proposal by a lawyer is allowable. Similarly, technical advice provided by an engineer on the performance or operational capability of a piece of equipment rendered directly in the negotiation of a contract is.allowable. However, communications with the intent to influence made by a professional (such as a licensed lawyer) or a technical person (such as a licensed accountant)are not allowable under this section unless they provide advice and analysis directly applying their professional or technical expertise and unless the advice or analysis is rendered directly and solely in the preparation, submission or negotiation of a covered Federal action. thus, for example, communications with the intent to influence made by a lawyer that do not provide legal advice and analysis directly and solely related to the legal aspects of his or her client's proposal, but generally advocate one proposal over another are not allowable under this section because the lawyer is not providing professional legal services. Similarly,communications with the intent to influence made by an engineer providing an engineering analysis prior to the preparation or submission of a bid or proposal are not allowable under this section since the engineer is providing technical services but not directly in the preparation, submission or negotiation of a covered Federal action. (C) Requirements imposed by or pursuant to.law as a condition for receiving a covered Federal award include those required by law or regulation,or reasonably expected to be required by law or regulation, and any other requirements in the actual award documents. (D) Only those services expressly authorized by paragraph (b)(2)(ii) are allowable under paragraph(b)(2)(ii). (iii) Reporting for Own Employees. No reporting is required with respect to payments of reasonable compensation made to regularly employed officers or employees of a person. (iv) Professional and technical services by Other than Own Employees. (A) The prohibition on the use of appropriated funds, in paragraph (b)(1), does not apply in the case of any reasonable payment to a person, other than an officer or employee of a person requesting or receiving a covered Federal action, if the payment is for professional or technical services rendered directly in the preparation,submission,or negotiation of any bid, proposal, or application for that Federal contract or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal contract. -21- (B) For purposes of paragraph (b)(2)(iv)(A), 'professional and technical services' shall be limited to advice and analysis directly applying any , professional or technical discipline. For example, drafting of a legal document accompanying a bid or proposal by a lawyer Is allowable.. Similarly, technical advice provided by an engineer on the performance or operational capability of a piece of equipment rendered directly in the negotiation of a contract is allowable. However, communications with the intent to influence made by a professional (such as a licensed lawyer) or a technical person (such as a licensed accountant)are not allowable under this section unless they provide advice and analysis directly applying their professional or technical expertise and unless the advice or analysis is rendered directly and solely in the preparation, submission or negotiation of a covered Federal action. Thus,, for example, communications with the intent to influence made by a lawyer that do not provide legal advice or analysis directly and solely related to the legal aspects of his or her client's proposal, but generally advocate one proposal over another are not allowable under this section because the lawyer is not providing professional legal services. Similarly,communications with the intent to influence made by an engineer providing an engineering analysis prior to the preparation or submission of a bid or proposal are not allowable under this section since the engineer is providing technical services but not directly in the preparation, submission or negotiation of a covered Federal action. (C) Requirements imposed by or pursuant to law as a condition for receiving a covered Federal award include those required by law or regulation,or reasonably expected to be required by law or regulation, and any other requirements in the actual award documents. (D) Persons other than officers or employees of a person requesting or receiving a covered Federal action include consultants and trade associations. (E) Only those services expressly authorized by paragraph (b)(2)(iv) of this section are allowable under paragraph(b)(2)(iv). (v) The prohibition on use of Federal appropriated funds does not apply to influencing activities not in connection with a specific covered Federal action. These activities include those related to legislation and regulations for a program versus a specific covered Federal action. (55 Fed. Reg. 24542 (June 15, 1990).) (c) Certification and Disclosure. (1) Each person (or recipient) who requests or receives a contract, subcontract, grant,or subgrant,which is subject to section 1352 of title 31,United States Code, and which exceeds $100,000 at any tier, shall file a certification (in the form set forth in Attachment 1, consisting of one page, entitled "Certification Regarding Lobbing") that the recipient has not made, and will not make, any payment prohibited by paragraph(b)of this Exhibit. -22- (2) Each recipient shall file a disclosure (in the form set forth in Attachment 2 consisting of three pages, entitled "Standard Form-LLL-'Disclosure of Lobbying Activities') if such recipient has made or has agreed to make any payment using nonappropriated funds (to include profits from any covered Federal action) in connection with a contract or grant or any extension or amendment of that contract or grant, which would be prohibited under paragraph (b) of this Exhibit if paid for with appropriated funds. (3) , Each recipient shall file a disclosure form at the end of each calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed by such person under paragraph (c)(2). An event that materially affects the accuracy of the information reported includes: (i) A cumulative increase of S25A00 or more in the amount paid or expected to be paid for influencing or attempting to influence a covered Federal action; or (ii) A change in the person(s) or individual(s) influencing or attempting to influence a covered Federal action; or, (iii) A change in the officer(s), employee(s), or Member(s) contacted for the purpose of influencing or attempting to influence a covered Federal action. (4) Each person (or recipient) who requests or receives from a person referred to in paragraph (c)(1) of this section a contract, subcontract, grant, or subgrant exceeding $100,000 at any tier under a contract or grant shall file a certification, and a disclosure form,if required,to the next tier above. (5) All disclosure forms (but not certifications) shall be forwarded from tier to tier until received by the person referred to in paragraph (1) of this section. That person shall forward all disclosure forms to the State agency. (d) Agreement. In accepting any contract,grant,subcontract or subgrant subject to this Exhibit,the recipient (and any person submitting an offer for such a contract or grant) agrees not to make any payment prohibited by law or this Exhibit. (e) Penalties. (1) Any person who makes an expenditure prohibited under paragraph (b) of this Exhibit shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure. (2) Any person who fails to file or amend the disclosure form to be filed or amended if required by this Exhibit,shall be subject to a civil penalty of not less than $10A00 and not more than $100,000 for each such failure. (3) Recipients may rely without liability on the representations made by their subcontractors or subgrantees in the certification and disclosure form. (f) Cost allowability. Nothing in this Exhibit is to be interpreted to make allowable or reasonable any costs which would be unallowable or unreasonable in accordance with Part 31 of the Federal Acquisition Regulation. Conversely,costs made specifically unallowable by the requirements in this Exhibit will not be made allowable under any of the provisions of Part 31 of the Federal Acquisition Regulation. -23- Attachment 1 ' STATE OF CALIFORNIA DEPARTMENT OF HEALTH SERVICES CERTIFICATION REGARDING LOBBYING The undersigned certifies,to the best of his or her knowledge and belief,that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,to any person for influencing or attempting to influence an officer or employee of an agency of the United States Government, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making, awarding or entering Into of this Federal contract, Federal grant, or cooperative agreement, and the extension, continuation, renewal, amendment,or modification of this Federal contract,grant,or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to Influence an officer or employee of any agency of the United States Government,a Member of Congress,an officer or employee of Congress,or an employee of a Member of Congress in connection with this Federal contract,grant,or cooperative agreement,the undersigned shall complete and submit Standard Form LLL, 'Disclosure of Lobbying Activities' in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (Including subcontractors,subgrants,and contracts under grants and cooperative agreements) of $100,000 or more, and that all subreciplents shall certify and disclose accordingly. This certification Is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering Into this transaction Imposed by Section 1352, Title 31, U. S. Code. any person who falls to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than$100,000 for each such failure. Nene of Contractor Rimed Nave of Person SO*V for Cont=tor Contract/Grant Narnber ef Person Shing for controct Date Title After execution by or on Behalf of Contractor,please return to: Department of Health Services (Name of the DHS program providing the funds) P. O.Box 942732 714 P Street Sacramento,CA 94234-7320 CMS hstrucHond Bulletin No.13(10/91) -24- Attachment 2 DISCLOSURE OF LOBBYING ACTIVITIES Ap;xoved by OMS Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352 • (See reverse for public burden disclosure) 1. Type of Federal Action: 2. Status of Federal Action: 3. Report Type: ❑❑ a. contract ❑ a. bid/offer/application a. initial filing b. material change b. grant b. initial award For Material Change Onl c. cooperative agreement c. post-awardy: d. loan e. loan guarantee Year quarter f loan Insurance date of last report 4. Name and Address of Reporting Entity: 5. If Reporting Entity in No.4 is Subawardee,Enter Name and Address of Prime; ❑ Rime ❑ Subawardee Tier ,if known: Congressional District,if known: Congressional District,if known: 6. Federal Department/Agency: 7. Federal Program Name/Description: CFDA Number,if applicable: 8. Federal Action Number,if known: 9. Award Amount,if known: 10. a. Name and Address of Lobbying Entity b. Name and Address of Lobbying Entity (if individual,last name,first name,MI): (if individual,last name,first name,MI): (attach Continuation Sheet(s)SF-LLL-A,if necessary) 11. Amount of Payment(check all that apply): 13. Type of Payment(check all that apply): $ ❑ actual ❑ planned ❑ a. retainer 12. Form of Payment(check all that apply): ❑ b. one-time fee Cl c. commission ❑ a. cash ❑ d contingent fee ❑ b. in-kind,specify: Nature ❑ e. deferred Value Cl f. other,specify: 14. Brief Description of Services Performed or to be Performed and Date(s)of Service,Including Officer(s),Employee(s), or Member(s)Contacted,for Payment Indicated in Item 11: (Attach Continuation Sheet(s)SF-LLL-A,if necessary) 15. Continuation Sheet(s)SF-LLL-A Attached: ❑ Yes ❑ No 16. Information requested through this form Is authorized by Title 31, U.S.C.,Section 1352. This disclosure of lobbying activities is a Signature material representation of fact upon which reliance was placed by the tier above when this transaction was made or entered Into. This disclosure is required pursuant to Title 31, NntName: U.S.C.,Section 1352. This information will be reported to the Congress semiannually and will be available for public Tine: inspection. Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than$100,000 for each such failure. Telephone No.: Dare: production tion o a Stan Form—LLL CMS hstrucftood Bulletin No..14(10/91) -25- INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING ACTIVITIES This disciosure form shall be completed by the reporting entity,whether subawardee or prime Federal recipient,at the initiation or receipt of a covered Federal action, or a material change to a previous filing, pursuant to Title 31. U.S.C., Section 1352. The filing of a form Is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to Influence an officer or employee of any agency, a Member of congress, an officer% employee of congress,or an employee of a Member of Congress in connection with a covered Federal action. Use the SF-LLL-A Continuation Sheet for additional Information If the space on the form is Inadequate. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional Information. 1. Identify the type of covered Fedefal action for which lobbying activity is and/or has been secured to Influence the outcome of a covered Federal action. 2. Identify the status of the covered Federal action. 3. Identify the appropriate classification of this report. if this is a follow up report caused by a material change to the Information previously reported,enter the year and quarter in which the change occurred. Enter the date of the last previously submitted report by this reporting entity for this covered Federal Action. 4. Enter the full name,address,city,state and zip code of the reporting entity. Include Congressional District,if known. Check the appropriate classification of the reporting entity that designates if it is, or expects to be, a prime or subaward recipient. Identify the tier of the subawardee, e.g., the first subawardee of the prime is the 1st tier. Subawards include but are not limited to subcontracts,subgrants and contract awards under grants. 5. If the organization filing the report in Item 4 checks'subawardee,'then enter the full name,address,city,state and zip code of the prime Federal recipient. Include Congressional District,if known. 6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organizational level below agency name,if known. For example,Department of Transportation,United States Coast Guard. 7. Enter the Federal program name or description for the covered Federal action (Item 1). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, loans, and loan commitments. 8. Enter the most appropriate Federal identifying number available for the Federal action identified in Item 1 (e.g., Request for Proposal (RFP) number; Invitation for Bid(IFB)number; grant announcement number;the contract, grant, or loan award number; the application/proposal control number assigned by the Federal agency). Include prefixes,e.g.'RFP-DE-90-001.' 9. For a covered Federal action where there has been an award or loan commitment by the Federal agency,enter the Federal amount of the award/loan commitment for the prime entity identified in Item 4 or 5. 10. (a) Enter the full name, address, city,state and zip code of the lobbying entity engaged by the reproting entity Identified in Item 4 to influence the covered Federal action. (b) Enter the full names of the Individual(s)performing services,and include full address if different from 10.(a). Enter last name,first name,and middle initial(MI). 11. Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (item 4)to the lobbying entity(item 10). INdicate whether the payment has been made(actual)or will be made(planned). Check all boxes that apply. if this is a material change report,enter the cumulative amount of payment made or planned to be made. 12. Check the appropriate box(es). Check all boxes that apply. If payment is made through an in-kind contribution, specify the nature and value of the in-kind payment. 13. Check the appropriate box(es). Check all box(es)that apply. If other,specify nature. 14. Provide a specific and detailed description of the services that the lobbyist has performed, or will be expected to perform,and the date(s)of any services rendered. Include all preparatory and related activity,not Just time spent in actual contact with Federal officials. Identify the Federal official(s) or employee(s) contacted or the officer(s), employee(s),or Member(s)of Congress that were contacted. 15. Check wether or not a SF-LLL--A continuation Sheet(s)is attached. 16. The certifying official shall sign and date the form,print his/her name,title,and telephone number. Public reporting burden for this collection of information is estimated to average 30 minutes per response, including time for reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information. Send comments regarding the burden es timate or any other aspect of this collection of information. Including suggestions for reducing this burden, to the Office of Management and Budget. Paperwork Reduction Project (0348-0046),Washington,D.C.,20503. -26- DISCLOSURE OF LOBBYING ACTIVITIES CONTINUATION SHEET Approved by OMB -348-0046 Reporting Entity: Page of Authorized for Local Reproduction CMS instructional Bulletin No.14(10/91) -27- Standard Form-LCL-A Y y t V m u ^ u C O x 7 Z y� .d A a u u a i u O � a ..a-l+rw• �i ' a w.iFkv+ X C 2 E C p ( . ...w= s r v x c ` 4*1 CGI 4ZI m m m m m ro o C u r a R Qz 0u =� QJ U v o o O 60,. v C`_ a o `c F 0. C z z r W � c � • > V 0 (Ej a oEa. � • a z C O Ey Z � a r• u V W Cts E > S ° e v E u ~. u � C u ^ � r• p �u r4,Cw x h rx .� O x•: .4 S ,w 3�. cd �`°. Z U •p V � p C�eFi� "x^�'.„S a� � ��,�,. �" mow. .a�g �.� j� � � �k NU Cr U U F' U .4�z..(,..._._�> ..i........y.,C. ....... y:..... .�W, l.'YItL ...X: ._... ... ...�. ......... 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Z�gE Qa z00 co � m oo ..� mCC � a O O C N N ✓ � m pd cn Z o wo m N m"m O cry . ,: N N co a Z p• � p > N 4G o of 113 0 ca N 6 u m N G0 o �, �r.. 7► rf11 U7 m G N T. Q 6l Jo m Ni N Is- Z v G o' p O ✓ y (o all is O C6 to C O O m U 0-0 q s 1L A o Q) ✓y m A '' J o cn % U mE3 �' o ,,- N .•• a> � 6= Ego o EA m d N o o Tr cn, o'G 2 Qom `m �e�m G� G �pY d✓ m" O'iyCD 0 oA"� fl � uv Ot51 � � O � r dao c+� G Q EGG ZO fin "4'of a o o`c .. mo 'O cocs42 mo a Om m A % O G7 ,�y •E A 9 °i DNS duE Q ain � m Z' o y N r CA G m +^ A N tS1 Y m G G AA ,•- Q� `oG G Z Q '•3 _ O O o OA AU N cr •c r � e�i $d A c m o U'n �o EXHIBIT B SCOPE OF WORK Contractor shall provide the following services to eligible persons who reside in the Contractor's geographic service area or who fully meet the criteria for the Contractor's service population, as specified in Attachment 1 of this Exhibit. Detailed instructions for carrying out these services are included in the WIC Program Manual. 1. Operate the Special Supplemental Nutrition Program for Women, Infants, and Children, hereinafter referred to as "WIC". 2. (a) Establish sites for food instrument distribution, and nutrition and breastfeeding education. (b) Obtain WIC approval prior to the establishment of a new site, change of an existing site, or a deletion of a site. 3. (a) Determine eligibility[ineligibility of a participant in a properly conducted and documented manner,- using form(s) provided by WIC, as set forth in the WIC Program Manual. (b) Certify only those persons deemed to be eligible for the WIC program benefits. (c) Neither deny or threaten to deny services to WIC participants on any.basis other than those defined in the WIC Program Manual. 4. Establish office procedures which ensure that WIC participants and the general public are able to contact the Contractor by telephone or personal visit during normal business hours without unreasonable delay. 5. Provide a complete orientation for WIC participants, including instruction in the proper use of WIC food instruments and information on rights and obligations under the WIC program. 6. Encourage WIC participants to receive ongoing health care. 7. Issue appropriate food instruments to eligible participants. (a) Issue one food instrument packet to each eligible participant on a monthly basis. Contractor shall obtain written approval from WIC prior to issuing food instruments on a bi-monthly basis. (b) Mail food instruments to individual participants, as directed by WIC. (c) Issue food instruments for the purchase of the product(s), e.g., infant formula, infant cereal, under rebate agreements with WIC. WIC will notify the Contractor of the appropriate product(s) upon execution of the rebate agreement(s). The allowable products will be identified on the appropriate food instruments provided by WIC. Page 1 of 2 Exhibit B (continued) (d) Issue food instruments for the purchase of infant formula other than that referred to in subparagraph (3) above pD-I-y upon the authority of a licensed physician or other health professional with prescriptive authority, and in accordance with the program policy established by WIC for this purpose. A copy of the prescription must be maintained in the WIC participant's record. 8. Conduct on-site visits of up to five percent of the retail grocery outlets in Contractor's food instrument redemption area, when specifically directed by the State, to ascertain the availability and price of WIC-authorized foods and/or to provide retailer education. 9. Provide the nutrition component of the WIC program by, or under the direction of, a dietitian/nutritionist, who shall meet one of the following qualifications: (a) Be a registered dietitian, R.D., credentialed by the Commission of Dietetic Registration of the American Dietetic Association; (b) Be eligible for registration by the Commission on Dietetic Registration of the American Dietetic Association, and attain registered dietitian status prior to expiration of the eligibility period; and (c) Have been granted, prior to October 1, 1985, the right to use the term dietitian by a public or private agency or institution recognized by the State Department of Health Services as qualified to grant that title. All staff persons hired after October 1, 1985, and designated in the additional budget detail submitted with the FFY 1995-96 Reapplication, itemizing the positions in the "Personnel" line item of Exhibit C of this Agreement, as either a "dietitian" or "nutritionist" shall be a registered dietitian, R.D., credentialed by the Commission on Dietetic Registration of the American Dietetic Association, or shall be eligible for such registration. Persons eligible for registration shall attain registered dietitian status prior to the expiration of the eligibility period. Contractor shall submit a written request to WIC for any exception to the requirement in Paragraph 9. Failure to obtain written approval may result in denial of any invoice claiming reimbursement for a dietitian/nutritionist position if the individual does not meet the requirements of Paragraph 9. 10. Ensure Contractors representative attends workshop(s) and other train ings, as maybe required by WIC. Funds may not be expended to support time, salaries, wages, per diem, or any other expense connected with a meeting not authorized by WIC. Page 2 of 2 Attachment 1 GEOGRAPHIC SERVICE AREA/SERVICE POPULATION Contractor agrees to provide WIC program vouchers and nutrition education to the following WIC-eligible persons: Eligible Residents of Contra Costa County. State of California-Health and Welfare Agency Department of Health Services WIC Supplemental Nutrition Branch EXHIBJT C CALIFORNIA WIC PROGRAM - PROJECT BUDGET Contractor: Contra Costa County Health Services Contract No.: 95-22872 Contract Term: 10/01/95 - 09/30/96 Total Per Proiect Budget Line Item Numbered Line Item 1. Personnel $ 1,352,295 2. Operating Expenses $ 106,494 3. Capital Expenditures (Equipment) $ -0- 4. Other Costs $ 101,128 5. Indirect Costs $ 103,912 (Maximum 10% of"Total Salaries & Wages", excluding "Total Fringe Benefits") TOTAL BUDGET: $ 1,663j 829 S e of Calromic—Health and werore Agency Depaornerd of Heorth Sr t," - Conhoct Mcnopemwd Sectbn, Exhibit D CONTRACT UNIFORM17Y The Department of Health Services. an agency of the State of California,sets forth the following policies,procedures,and guidelines regarding fringe benefits. 1. As used in this agreement, fringe benefits shall mean an employment benefit given by one's employer to an employee in addition to one's regular or normal wages or salary. As used herein,pension plan costs shall be construed as a fringe benefit. 2. As used herein,fringe benefit does not include: a. Compensation for personal services paid currently or accrued by the Contractor for services of employees rendered during the term of this agreement which is identified as regular or normal salaries and wages b. Director's and executive committee member's fees c. Incentive awards d. Allowances for off-site pay e. Incentive pay f. Location allowances g. Hardship pay h. Cost-of-living differentials 3. To be an allowable fringe benefit,it is agreed the cost must meet the following criteria: a. Be necessary and reasonable for the performance of the contract b. Be determined In accordance with generally accepted accounting principles c. Be consistent with policies that apply uniformly to all activities of the Contractor 4. Specific allowable fringe benefits are Identified as: a. Fringe benefits representing regular compensation paid to employee for vacation, sick leave,jury duty, military training, and the like provided they are absorbed by all organizational activities in proportion to the relative amount of time or effort actually devoted to each b. Fringe benefits in the form of employer contributions for payroll taxes, employee health and unemployment insurance, worker's compensation, and employer's share of pension plans provided they are granted In accordance with established written organization policies 5. It is agreed by both parties that any and all fringe benefits shall be at cost. CMS ttsfn)ctfond Bustin No.11(3/94) • EXHIBIT E(A) ADVANCE PAYMENT PROVISIONS The State, having found that an advance payment to the Contractor is necessary so that service under this Agreement may be performed, and finding that such advance payment is in the public interest, may authorize and issue one advance payment to a private, nonprofit organization, in an amount not to exceed a pro-rata share equivalent to one month of the total annual Agreement amount, upon final execution of the Agreement. No advance payment under this Agreement shall be issued until the prior year advance payment or prospective payments, if any, have been fully liquidated or. repayment has been made in full. At no time may the sum total of an advance payment and any prospective payments exceed 25 percent of the total annual Agreement.amount. A. Use of Funds The funds provided from the advance shall be used solely for the purpose of making payments for items of allowable cost as defined in the "CALIFORNIA WIC PROGRAM-PROJECT BUDGET", Exhibit C of this Agreement. B. Interest Earned on Advance Payments If the advance payment is deposited in an interest-bearing account, any and all interest earned shall be identified and returned to the WIC Branch at the following address within 15 working days following the Contractor's receipt of reimbursement for the final WIC program invoice. Department of Health Services WIC Supplemental Nutrition Branch 1103 North B Street, Suite E Sacramento, California 95814 Each check or warrant returning interest earned shall be made payable to the Department of Health Services, and must have the following information clearly written on the face of the check or warrant: "INTEREST EARNED ON ADVANCE PAYMENT ACCOUNT" The Agreement number of this Agreement must also be clearly indicated on the check or warrant returning interest earned to the State. Page 1 of 4 EXHIBIT EW ' (continued) C. Liquidation Any funds advanced under this Agreement shall be liquidated in the two months immediately preceding the last month of the Agreement term, by reducing the invoice amount by 50 percent of the advance payment for each of the two months. Any combination of an advance payment and one or more prospective payments shall be liquidated in the four or six months immediately preceding the last month of the Agreement term, as applicable, depending on the total number of payments issued. The Contractor may request an alternate liquidation schedule, subject to WIC Branch approval. If, upon completion or termination of the Agreement, the advance has not been fully liquidated, the unliquidated balance shall be deducted from any sums otherwise due or which may become due, to the Contractor from the State, and any deficiency shall be paid promptly to the State by the Contractor. D. Return of Funds The Contractor may, at any time, repay all or any part of the funds advanced hereunder. The State may demand full repayment of the unliquidated balance of the advance at any time. Upon receipt of such demand,.the Contractor shall repay to the State the unliquidated balance of the advance amount. E. Separate Bank Account Until the advance payment made hereunder is liquidated according to Paragraphs B and C hereof, and the State approves in writing the release of any funds due and payable to the Contractor, the advance payment, and all other payments under this Agreement, shall be made by check, payable to the Contractor, and shall be marked "For Deposit Only" in a separate bank account,with the bank mutually agreed upon by the State and the Contractor. The Contractor shall forward two sets of bank signature cards for the separate account to the State WIC Branch. These cards shall be signed by the persons from the contracting agency who will be authorized to withdraw funds from the separate account, and shall be countersigned by the WIC Branch Chief, or his/her designee, as a person also authorized to withdraw funds. The bank cards must indicate that the signatures of at least two individuals from the contracting agency shall be required prior to withdrawal of funds, and that the WIC Branch Chief, or his/her designee, may withdraw funds with no other signatures necessary. No part of the funds in the separate bank account shall be mingled with other funds of the Contractor prior to withdrawal from Page 2 of 4 EXHIBIT EW (coritinued) . the separate bank account. Each withdrawal shall be made only by the Contractor's check as provided in Paragraph A hereof. Unless otherwise determined by the State, counter-signature on behalf of the State will not be required. Before an advance payment is made hereunder, the Contractor shall transmit to the State, in.a format prescribed by the State, an agreement from the bank in which the separate bank account is established, clearly setting forth the special character of the account, the responsibilities of the bank thereunder, and whether or not the separate account is interest-bearing. F. Insurance The Contractor shall, upon notice, present documentation that he/she is now maintaining with a responsible insurance carrier: 1. General liability insurance, payable to the State, in the amount of the advance. 2. Advance payment fidelity bonding, payable to the State, in the amount of the advance. 3. Malpractice insurance, payable to the State, in the amount of the advance (if direct medical services are provided). 4. Adequate insurance upon any materials, parts, supplies, equipment, and other property acquired for (or allocable to) this Agreement with State provided funds. Contractor agrees that, until the advance payment made hereunder has been liquidated, Contractor shall(a)maintain such insurance as described in 1 through 4 of Paragraph F and (b) furnish documentation with respect to Contractor's insurance as the State may from time-to-time require. G. Default Provisions The State, without limiting any rights which it may otherwise have, may, at its discretion, and upon written notice to the Contractor, withhold further payments under this Agreement, and/or demand immediate repayment of the unliquidated balance of any advance payment hereunder, and/or withdraw all or any part of the balance in the separate bank account by checks payable to the State Department of Health Services, by a directive to the bank, signed Page 3 of 4 EXHIBIT E(A) (continued) solely by the State WIC Branch Chief, or his/her designee, that such a check be issued, and/or terminate this Agreement, upon occurrence of any one of the following events of default: 1. Termination of this Agreement by the State. 2. A finding by the State that the Contractor: a. Has failed to observe any of the covenants, conditions, or warrants of these provisions, or has failed to comply with any material provisions of this Agreement, or b. Has failed to make progress, or is in such unsatisfactory financial condition, as to endanger performance of this Agreement, or c. Has allocated inventory to this Agreement substantially exceeding reasonable requirements, or d. Is delinquent in payment of taxes or of the cost of performance of this Agreement in the ordinary course of business. 3. Appointment of a trustee, receiver or liquidator for all or a substantial part of the Contractor's property, or institution of bankruptcy, reorganization, or arrangement of liquidation proceedings by or against the Contractor. 4. Service of any writ of attachment, levy or execution, or commencement of garnishment proceedings, or 5. The commission of an act of bankruptcy. Page 4 of 4 EXHIBI.T E(P-) PROSPECTIVE PAYMENT PROVISIONS The State, having found that a prospective payment to the Contractor is necessary so that service under this Agreement may be performed, and finding that such prospective payment is in the public interest, may authorize up to three prospective payments, each in an amount not to exceed a pro-rata share equivalent to one month of the total annual Agreement amount, for issuance prior to final execution of the Agreement. No prospective payment under this Agreement shall be issued until the prior year advance payment or prospective payments, if any,, have been fully liquidated or repayment has been made in full. At no time may the sum total of an advance payment and any prospective payments exceed 25 percent of the total annual Agreement total. A. Use of Funds The funds provided from the prospective payment shall be used solely for the purpose of making payments for items of allowable cost as defined in the "CALIFORNIA WIC PROGRAM-PROJECT BUDGET", Exhibit C of this Agreement. B. Interest Earned on Prospective Payments If the prospective payment is deposited in an interest-bearing account,any and all interest earned shall be identified and returned to the WIC Branch at the following address within 15 working days following the Contractor's receipt of reimbursement for the final WIC program invoice. Department of Health Services WIC Supplemental Nutrition Branch .1103 North B Street, Suite E Sacramento, California 95814 Each check or warrant returning interest earned shall be made payable to the Department of Health Services, and must have the following information clearly written on the face of the check or warrant: "INTEREST EARNED ON PROSPECTIVE PAYMENT ACCOUNT" The Agreement number of this Agreement must also be clearly indicated on the check or warrant returning interest earned to the State. Page 1 of 3 EXHIBIT,E(P) (continued) C. Liquidation Any single prospective payment issued under this Agreement shall be liquidated in the two months immediately preceding the last month of the Agreement term, by reducing the invoice amount by 50 percent of the prospective payment for each of the two months. Multiple prospective payments, or any combination of an advance payment and one or more prospective payments, shall be liquidated in the four or six months immediately preceding the last month of the Agreement term, as applicable, depending on the total number of payments issued. The Contractor may request an alternate liquidation schedule, subject to WIC Branch approval. If, upon completion or termination of the Agreement, the prospective payment has not been fully liquidated, the unliquidated balance shall be deducted from any sums otherwise due or which may become due, to the Contractor from the State, and any deficiency shall be paid promptly to the State by the Contractor. , D. Return of Funds The Contractor may, at any time, repay all or any part of the prospective payment funds issued hereunder. The State may demand full repayment of the unliquidated balance of the prospective payment at any time. Upon receipt of such demand, the Contractor shall repay to the State the unliquidated balance of the prospective payment amount. E. Default Provisions The State, without limiting any rights which it may otherwise have, may, at its discretion, and upon written notice to the Contractor, withhold further payments under this Agreement, and/or demand immediate repayment of the unliquidated balance of any prospective payment hereunder, upon occurrence of any one of the following events of default: 1. Termination of this Agreement by the State. 2. A finding by the State that the Contractor: a. Has failed to observe any of the covenants, conditions, or warrants of these provisions, or has failed to comply with any material provisions of this Agreement, or Page 2 of 3 1 EXHIBIT E(P) (contindeil)' b. Has failed to make progress, or is in such unsatisfactory financial condition, as to endanger performance of this Agreement, or c. Has allocated inventory to this Agreement substantially exceeding reasonable requirements, or d. Is delinquent in payment of taxes or of the cost of performance of this Agreement in the ordinary course of business.. 3. Appointment of a trustee, receiver or liquidator for all or a substantial part of the Contractor's property, or institution of banl=ptcy, reorganization, or arrangement of liquidation proceedings by or against the Contractor. 4. Service of any writ of attachment, levy or execution, or commencement of garnishment proceedings, or 5. The commission of an act of bankruptcy. Page 3 of 3