KRS 45A.695: Personal service contract procedures -- Tax incentive agreements.

(1) Except as provided in subsection (8) of this section, no one shall begin work on a

personal service contract entered into by any contracting body or incur expenditures

under a tax incentive agreement until notification of the personal service contract or

tax incentive agreement is filed with the committee. Each personal service contract

shall have a cancellation clause not to exceed thirty (30) days notice to the

contractee.

(2) Each personal service contract, tax incentive agreement, and memorandum of

agreement shall be filed with the committee prior to the effective date and shall be

accompanied by a completed proof of necessity form as established by the

committee by promulgation of an administrative regulation, or equivalent

information if submitted electronically. The proof of necessity form shall document:

(a) The need for the service or benefit to the Commonwealth of the tax incentive

agreement;

(b) For personal service contracts and memoranda of agreement, the

unavailability of state personnel or the nonfeasibility of utilizing state

personnel to perform the service;

(c) The total projected cost of the contract or agreement and source of funding;

(d) The total projected duration of the contract or tax incentive agreement;

(e) Payment information, in detail;

(f) In the case of memoranda of agreement or similar device, the reason for

exchanging resources or responsibilities; and

(g) Such other information as the committee deems appropriate.

(3) Adequate notice of the need for a personal service contract s hall be given by the

contracting body through a request for proposals. The request for proposals shall

describe the services required, list the type of information and data required of each

offeror, state the relative importance of particular qualification s, and include the

reciprocal preference for resident bidders required by KRS 45A.494.

(4) The head of the contracting body or his or her designee may conduct discussions

with any offeror who has submitted a proposal to determine the offeror's

qualifications for further consideration. Discussions shall not disclose any

information derived from proposals submitted by other offerors.

(5) Award shall be made to the offeror determined by the head of the contracting body,

or his or her designee, to be the best qualified of all offerors based on the evaluation

factors set forth in the request for proposals and the negotiation of fair and

reasonable compensation. If compensation cannot be agreed upon with the best

qualified offeror and if proposals were submitted b y one (1) or more other offerors

determined to be qualified, negotiations may be conducted with the other offeror or

offerors in the order of their respective qualification ranking. In this case, the

contract may be awarded to the next best ranked offeror for a fair and reasonable

compensation. All determinations of the qualification rankings of offerors by the

head of the contracting body or a designee of the officer based on evaluation factors

set forth in the request for proposals shall be made in writin g. Written

documentation shall be maintained concerning the final results of negotiation with

each vendor and reasoning as to why each vendor was chosen.

(6) The committee shall maintain a record or have readily accessible records of the date

on which each personal service contract, tax incentive agreement, and memorandum

of agreement was received and shall maintain or have access to electronic or paper

files on all personal service contracts, tax incentive agreements, and memoranda of

agreement. Except for records exempt from inspection under KRS 61.870 to

61.884, all personal service contracts, tax incentive agreements, and memoranda of

agreement shall be made available for public inspection.

(7) Payment on personal service contracts, tax incentive agreements, and memoranda of

agreement submitted to the committee for approval shall not be made for services

rendered or projects undertaken after committee disapproval, unless the decision of

the committee is overridden by the secretary of the Finance and Admin istration

Cabinet or agency head, if the agency has been granted delegation authority by the

secretary of the Finance and Administration Cabinet. All personal service contracts,

tax incentive agreements, and memoranda of agreement shall contain a provision

that stipulates that payments on personal service contracts and memoranda of

agreement shall not be authorized for services rendered after committee

disapproval, unless the decision of the committee is overridden by the secretary of

the Finance and Admini stration Cabinet or agency head, if the agency has been

granted delegation authority.

(8) In the event of a governmental emergency as defined under KRS 45A.690, work

may begin prior to filing notification of the personal service contract with the

committee, if the secretary of the Finance and Administration Cabinet or his

designee determines th at the time involved in the normal review process would be

detrimental to the Commonwealth's ability to act or procure the services and the

normal process will not accommodate the governmental emergency. Payment shall

not be made until written notification and explanation of the reasons for this action

are forwarded to the committee.

(9) If a governmental emergency exists as defined under KRS 45A.690 and work is

authorized to begin on a personal service contact immediately, a copy of a

statement, approved b y the secretary of the Finance and Administration Cabinet or

his designee, setting forth in detail the nature of the emergency shall be filed with

the committee, along with a copy of the personal service contract.

(10) (a) No payment shall be made on any p ersonal service contract unless the

individual, firm, partnership, or corporation awarded the personal service

contract submits its invoice for payment on a form established by the

committee.

(b) Invoices shall be submitted every ninety (90) days, unless the personal service

contract specifies a different submission time period.

(c) Separate invoices shall be submitted for each distinct matter covered by the

personal service contract, and shall be signed by the individual responsible for

that matter.

(d) Each invoice shall contain the following information:

1. A description of the matter covered by the invoice;

2. The date each service was performed;

3. A full description of each service;

4. The name and title of each individual who worked on the matter, and the

time the individual spent on the matter;

5. The subject matter and recipient of any correspondence;

6. A full description of any work product produced, designating the way in

which the work product is associated with the matter being invoiced;

7. The hourly rate for each individual working on the matter, and the total

charge for that individual for each matter invoiced;

8. An itemized list of all disbursements to be reimbursed by the state for

each matter invoiced;

9. The total charge for each matter;

10. The combined total for services and disbursements for the billing period;

11. The tax identification number of the entity awarded the personal service

contract; and

12. An indication on each invoice of whether or not the invoice is final.

(e) The issuance of an invoice to the Commonwealth constitutes an affirmation

by the individual, firm, partnership, or corporation awarded the personal

service contract that the invoice truly and accurately represents work actually

performed and expenses actually incurred.

(f) The head of the contracting body shall approve the invoice, indicating that the

charges in the invoice reflect the value of the work performed, and all

recorded costs and disbursements were reasonably and necessarily incurred in

connection with the matter invoiced.