Bulletin No. 3.5, 12.16.19
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STATE OF VERMONT
AGENCY OF ADMINISTRATION
BULLETIN NO. 3.5
PROCUREMENT AND CONTRACTING PROCEDURES
ISSUED BY: Susanne Young, Secretary of Administration
EFFECTIVE DATE: July 1, 2016 (Major Release - 7.1.16_V1)
REVISION DATE: December 16, 2019
Supersedes all previously issued versions
Hard copies of this document are considered uncontrolled. Do not refer to previously printed versions;
refer instead to the AoA website http://aoa.vermont.gov/bulletins/3point5
for the official, in-force version.
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Contents
I. AUTHORITY ......................................................................................................................................... 4
II. PURPOSE AND POLICY .................................................................................................................... 4
III. DEFINITIONS ...................................................................................................................................... 4
IV. CONTRACTS FOR SERVICE: PERSONAL SERVICE; NON-PERSONAL SERVICE;
INDEPENDENT CONTRACTORS AND PRIVATIZATION ............................................................ 9
A. Contract for Services ...................................................................................................................... 9
B. Personal Service Contract ............................................................................................................. 10
C. Non-Personal Service Contract .................................................................................................... 11
D. Privatization Contract ................................................................................................................... 11
E. Contracts for Information Technology ......................................................................................... 12
F. Commodity Contracts ................................................................................................................... 12
V. AGO CERTIFICATION FOR BARGAINING AGREEMENT(S) COMPLIANCE ........................ 13
VI. ALTERNATIVES TO CONTRACTS FOR SERVICE AND SPECIAL AGREEMENT TYPES ... 15
A. Memorandum of Understanding or Memorandum of Agreement ................................................ 15
B. Grants versus Contracts ................................................................................................................ 15
C. Capital Leases ............................................................................................................................... 16
D. Agreements to Receive or Access Confidential Information ....................................................... 17
VII. COMPETITIVE BIDDING AND THRESHOLDS ........................................................................... 18
A. Competitive Bidding..................................................................................................................... 18
B. Bidding Monetary Thresholds ...................................................................................................... 18
VIII. THE BIDDING PROCESS ................................................................................................................. 19
A. Simplified Bidding ....................................................................................................................... 19
B. Standard Bidding (“Requests for Proposals” or “RFP”) .............................................................. 20
C. Pre-Qualifying Vendors for Statewide or Retainer Contracts ...................................................... 25
D. Exceptions and Waivers ............................................................................................................... 26
IX. CONTRACT DRAFTING .................................................................................................................. 29
A. Drafting the contract ..................................................................................................................... 29
B. Obtaining a VISION Contract Number ........................................................................................ 36
X. CONTRACT ROUTING AND APPROVALS .................................................................................. 38
A. Contract Package and Routing ..................................................................................................... 38
B. Approvals - Required Prior Approvals ......................................................................................... 39
XI. CONTRACT EXECUTION AND CONTRACT FILE...................................................................... 43
A. Execution ...................................................................................................................................... 43
B. Contract Administration and Contract File ................................................................................... 43
C. Conflict of Interest ........................................................................................................................ 44
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D. Statewide and Retainer Contracts ................................................................................................. 44
E. Blanket Delegation of Authority (BDA) ...................................................................................... 45
XII. SUBCONTRACTS ............................................................................................................................. 46
XIII. CONTRACT AMENDMENTS, APPROVAL AND EXECUTION ................................................. 46
A. Contract Amendments: ................................................................................................................. 46
B. Amendment Approval and Execution: ......................................................................................... 48
C. Execution of Amendments: .......................................................................................................... 49
D. Amendment Number and VISION Record: ................................................................................. 49
XIV. CONTRACTOR NAME CHANGE OR OTHER CHANGE IN CIRCUMSTANCES ..................... 49
XV. ACCOUNTING FOR PAYMENTS TO CONTRACTORS .............................................................. 50
XVI. COMPLIANCE REVIEWS ................................................................................................................ 50
XVII. FEDERAL FUNDING ACCOUNTABILITY & TRANSPARENCY ACT (FFATA) ................ 50
XVIII. PUBLIC RECORDS REQUESTS ................................................................................................ 50
XIX. PUBLIC ENDORSEMENTS ............................................................................................................. 51
XX. APPENDICES .................................................................................................................................... 52
Appendix I – Standard State Contract Templates, Forms and Other Links ............................................. 52
Appendix II: Attachment A – Statement of Work Guidelines ................................................................. 53
Appendix III: Attachment B Payment Provision Guidelines ................................................................... 55
Appendix IV: Attachment D – Examples of Common Additional Term & Conditions.......................... 57
Appendix V: Acronyms Used in This Bulletin ........................................................................................ 60
Appendix VI: Bulletin 3.5 Quick Reference Guide ................................................................................. 62
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I. AUTHORITY
In accordance with 3 V.S.A. § 2222(a)(2), this Bulletin establishes the general policy and standards for
soliciting, awarding, processing, executing and overseeing Contracts, as well as managing contract compliance.
Executive Order #3-20 and this Bulletin further establish a statewide policy favoring an open and
competitive bidding process for the selection of Vendors, in accordance with the policies described in this
Bulletin. Executive Order #3-20 states:
“The State of Vermont recognizes the important contribution and vital impact that small businesses
have on the state’s economy. In this regard, the state prescribes to a free and open bidding process
that affords all businesses equal access and opportunity to compete for state contracts for goods and
services. The state also recognizes the existence of businesses owned by minorities and women and
directs all state agencies and departments to make a good faith effort to encourage these firms to
compete for state contracts.”
The Office of Purchasing and Contracting (OPC) is responsible for making all purchases of
goods/products, including fuel, supplies, materials and equipment for all Agencies. Further, OPC is responsible for
administering solicitation, procurement and contracting, as set forth in this Bulletin.
The Secretary of Administration (Secretary or SOA) will update and reissue this Bulletin periodically. In
lieu of an official re-issue, Addenda to this Bulletin may be issued and released, and shall have the same force and
effect as an official issuance of the Bulletin. The current official issued version of this Bulletin, as posted on
Agency of Administration’s website, along with any subsequently released Addenda to this Bulletin can be found
at: http://aoa.vermont.gov/bulletins/3point5
II. PURPOSE AND POLICY
This Bulletin applies to the procurement of all goods and services and the required documentation of such
procurements, regardless of dollar amount, for all Agencies/Department, as defined herein, of the State of
Vermont (SOV) government.
This Bulletin provides guidelines for conducting procurements and establishes benchmarks and
protocols to solicit and award contracts for services with an appropriate level of competition. The State is
generally interested in obtaining optimal solutions at reasonable prices, through procurement efforts that: are
efficient and cost effective; promote fair and open competition; guard against favoritism, fraud and corruption;
and protect the interests of the State and its taxpayers. Each Agency may develop individual processes and
policies applicable to its needs, in addition to the minimum stated requirements of this Bulletin.
This Bulletin and any associated Agency-specific process or policy do not create, and will not be
construed to create, a private right of action to enforce their terms and do not affect private rights or procedures
otherwise available to the public.
III. DEFINITIONS
In addition to the definitions set forth in this Section, please note the glossary of acronyms attached to this
Bulletin – Appendix V: Acronyms Used in This Bulletin.
Addendum: means an addition to or amendment of a bid solicitation (e.g., Request for Proposal (RFP) or other
documents that formally solicit bids).
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Agency: an Agency, department, commission, committee, authority, division, board, or other administrative unit
of the Executive Branch, including the elected offices as well as those having express statutory authority to
enter into contracts.
Agency-Wide Contract: a shared Contract used by departments or divisions within an Agency.
Appointing Authority: is an Agency head in accordance with AoA Bulletin 3.3
, including those officers
occupying appointive positions defined in 32 V.S.A. 1003 (b). “Appointing Authority” includes: (1) the
exempt deputies of Agency secretaries and department
commissioners; (2) elective officers and their deputies who head operating departments; and (3) exempt heads
of divisions, boards, committees and commissions not reporting to a department commissioner or Agency
secretary. The Appointing Authority has management and oversight responsibilities for the solicitation,
procurement and contracting process for services and for the ongoing oversight and monitoring of contract
compliance through contract expiration or termination. Appointing Authority shall be responsible for
compliance with the policy and procedural directives of this Bulletin.
Best and Final Offer (BAFO): a BAFO process is an optional step in the evaluation phase of the RFP process in
which offerors are requested to modify their proposals.
Bid Documents: “Requests for Proposals” (RFP) or other documents that formally solicit bids, whether cost-
based or otherwise, for services or products for the State.
Bidding Integrity: refers to the policy and practice intended to prevent a conflict of interest in bidding when an
Agency receives assistance with the preparation or planning of Bid Documents from Contractors or Vendors,
who later intend to participate as a bidder. Refer to the Policy at:
http://bgs.vermont.gov/commissioner/adminpolicies/0034
Blanket Delegation of Authority (BDA): a formal document which delegates authority from the Office of
Purchasing and Contracting to Appointing Authorities to make certain types of purchases directly. Agencies/
must follow the terms and conditions in their approved BDA. BDAs may be found at:
http://bgs.vermont.gov/purchasing-contracting/forms/bda
Capital Lease: See section VI.CC.
Chief Information Officer (CIO): Secretary of the Agency of Digital Services; this refers to the State CIO, not
an Agency CIO.
Commodity: Collective term given to tangible products purchased for the State.
Confidential Information: information deemed “confidential”, or otherwise protected from unauthorized
disclosure, by State or Federal law, such as, but not limited to, Federal tax information, personal health
information protected under the Health Insurance Portability and Accountability Act of 1996, Public Law 104-
191 (HIPAA), “education records” as defined under the Family Education Rights and Privacy Act, 20 U.S.C.
§ 1232g (FERPA), “personally identifiable information” as defined in 9 V.S.A. § 2430(5)(A) and other
information exempt from disclosure under 1 V.S.A. § 317(c).
Conflict of Interest: a pecuniary interest of an employee or a Vendor, or the appearance thereof, in the award or
performance of a contract, or such an interest, known to an employee, by a member of his /her current or
former family or household, or a business associate.
Contract: any legally enforceable agreement by which the State purchases products or services needed to carry
out a project or program. (The term Contract includes all such agreements whether or not characterized as a
“contract,” “agreement,” “purchase order,” “procurement,” “license agreement,” “maintenance agreement,”
“support agreement,” or other similar term, but, does not include a legal agreement where the substance of the
agreement meets the definition of a Grant or sub-award as defined in AoA Bulletin 5
.
Contract for Service: means an agreement or combination or series of agreements by which an entity or
individual agrees with an Agency to provide services under Contract, rather than as an employee. This shall
include all such agreements whether or not characterized as a “contract,” “agreement,” “purchase order,”
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“procurement,” “license agreement,” “maintenance agreement,” “support agreement,” or other similar term.
Contract Monitoring: any planned, ongoing or periodic activity or process that measures and ensures Contractor
compliance with the terms, conditions, and requirements of a contract.
Contracting Waiver Plan: a written waiver request document, signed by the Appointing Authority and approved
by the Secretary of Administration (SOA), granting specific on-going waivers, exceptions and/or limits to
certain sections, terms or elements of this Bulletin.
Contractor: any party with which the State has a signed Contract.
Deliverable: the contracted product or service desired and expected to be received.
Executed Contract: a Contract is considered executed when the Contract, including all attachments, has been
signed and dated by each party to the agreement.
Financial Transaction Contract: a Contract with an outside Vendor providing service to manage financial
transactions for the State – either on-line or in person. Vendors include web-portal organizations, banks and
other financial institutions. The Vendors handling these financial transactions (license, permit, or registration
fees, etc.) for the State may be compensated for this service with a share of the gross fee (revenue) charged in
the transaction, via an additional “convenience fee” added to the cost of the transaction, or a combination of
the two.
Grant: means a legally enforceable agreement between an Agency (grantor) and a recipient (grantee or
subrecipient) to carry out a program as defined in a Grant agreement. It does not include payments to a
Contractor or payments to an individual who is a beneficiary of a program. When the Grant is funded with
Federal funds, the relationship between the State and the grantee must meet the definition of a subrecipient
and the award is called a sub-award.
Independent Contractor: as a general rule, an individual under Contract with the State is an Independent
Contractor if the State has the right to control or direct only the result of the work and not what will be done
and how it will be done. People such as doctors, dentists, veterinarians, lawyers, accountants, construction
Contractors and subcontractors, public stenographers, or auctioneers who are in an independent trade,
business, or profession in which they offer their services to the general public are generally Independent
Contractors. However, whether these people are Independent Contractors or Personal Services Contractors
depends on the facts in each case, to be determined in accordance with IV.B.2.
of this Bulletin.
Information Security: protecting information and information systems from unauthorized access, use, disclosure,
disruption, modification, or destruction in order to provide integrity, confidentiality, and availability of the
information or systems (see 3 V.S.A. § 2222(a)(9)
).
Information Technology (IT) Activities: includes: (A) the creation, collection, processing, storage, management,
transmission, or conversion of electronic data, documents, or records; and (B) the design, construction,
purchase, installation, maintenance, or operation of systems, including hardware, software, and services which
are performed, or are contracted under this Bulletin to perform, these activities (see 3 V.S.A. § 2222(a)(10)
).
Life Safety: means Contracts for abatement services of any kind; air quality testing; Contracts for elevator
service; fire suppression system installation, service, or repair; Contracts for Services that could,
directly or indirectly, pose a hazard to Contractors or employees of the State; or any other Contract for
Service that could pose a significant increase to the SOV’s liability or the SOV’s ability to manage its
risk.
No-Cost Contract: See Zero-Dollar Contract – section IV.A.6.
Non-Personal Service Contract: means a Contract for Service with an Independent Contractor.
Order of Precedence: the sequential legal hierarchy of the contract attachments used to determine the order in
which each attachment controls in the case of dispute. Order of Precedence is particularly relevant when an
Agency is including terms which are intended to supersede standard State terms or Contractor template terms
which may be attached to the agreement.
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Performance-Based Contracting: best practice that focuses on the measurable outputs, quality, and
outcomes/results of the service or goods provided by the Contractor. Performance Based Contracts are
designed to ensure that contract deliverables are well defined and provide that contract payment, as well as
any contract extension, renewal, or price increase, is tied to the successful completion of defined deliverables
and accomplishment of desired performance (results). It may also include contract Retainage (as defined
herein), which is held back until successful performance can be demonstrated.
Performance Management: a set of activities to ensure that outcomes are consistently being met and delivered in
an effective and efficient manner; a methodology that should be employed to ensure the State receives the best
contracted products, services and outcomes at a reasonable price.
Personal Service Contract: means a Contract for Service that is categorized as personal services consistent with
3 V.S.A. § 342 in accordance with procedures set forth in Section IV.B of this Bulletin 3.5. All other
Contracts for Service are Non-Personal Service Contracts.
Prior: for purposes of this Bulletin, “prior” means “preceding in time or order,” or more succinctly, “before.”
Thus, when an approval is required “prior” to the execution or commencement of a Contract, Agencies should
construe this in all cases to mean the approval should be requested and received before the Contract is
executed or work commenced.
Privatization Contract: means a Contract for Service valued at $25,000 or more per year, which is the same or
substantially similar to and in lieu of services previously provided, in whole or in part, by permanent,
classified State employees, and which results in a reduction in force of at least one permanent, classified
employee, the elimination of a vacant position of an employee covered by a collective bargaining agreement,
as further described in Section IV.D
of this Bulletin 3.5.
Products: this term should be broadly interpreted and includes equipment, goods, materials, information
technology hardware or software, supplies, printing and other commodities.
Proprietary Information: information of the State or a Vendor which may include any formulae, plan, pattern,
process, tool, mechanism, compound, procedure, production data, financial information or compilation of
information which is not patented, which is known only to certain individuals within a commercial concern or
the State, and which gives its user or owner an opportunity to obtain business advantage over competitors who
do not know it or use it; also known as a trade secret. Proprietary information is exempt from disclosure
under the State Public Records Act (see 1 V.S.A. §§ 315-320
).
Retainage: A portion of Contractor’s eligible payments withheld until the project is complete. The amount
withheld strengthens the position of the State to enforce contract compliance and helps ensure that the work is
completed without material error.
Retainer Contract (a.k.a. Blanket): a Contract which specifies the nature of the potential services to be
rendered and the cost of the service. Retainer Contracts
generally establish standard terms and conditions,
set maximum not-to-exceed prices, and satisfy many legal requirements associated with State procurements,
such as public notice of bid, and Vendor responsibility. Specific service requests are made through separate
Statement of Work agreements written against this Contract. These are commonly used by the Agency of
Digital Services (ADS)Department, Buildings and General Services (BGS), and the Chief Marketing Officer
(CMO).
Secretary: means the Secretary of Administration (or SOA).
Services: this term should be broadly interpreted and includes Personal and Professional Services such as, but not
limited to, construction, consulting, design and engineering, investment management, Information Technology
activities, real estate services, and the maintenance of equipment.
Sole Source Contract: means a Contract procured without first undertaking a competitive process.
State of Vermont Employee: an individual employed by the State of Vermont and paid through the State of
Vermont payroll system in an exempt, classified, limited service, temporary, elected, or appointed position,
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excluding “Contractors paid on payroll”. Workers who provide attendant care, personal care, companion care,
respite care, or support services to persons who receive financial assistance from the Agency of Human
Services (AHS), and whose payroll service is provided directly by the State or by an intermediary payroll
service organization acting under the authority of the State, shall not be considered State of Vermont
employees except for the limited purposes of Workers' Compensation coverage and unemployment insurance.
(See 33 V.S.A. § 6321
.)
State of Vermont Retiree: an individual who has separated from State service and is eligible to participate in the
State Defined Contribution Plan or Vermont State Employees’ Retirement System.
Statement of Work (SOW): means a written statement describing the work to be performed, specific
need(s) to be addressed and/or products to be delivered (subject to BGS’s exclusive authority over
commodities purchases), as described in this Bulletin.
Statewide Contract: a Contract negotiated by the Office of Purchasing and Contracting (OPC) and accessible to
all Agencies of the State. To find out if a Contract exists that meets an Agency’s need, contact the OPC or
refer to the web site at: http://bgs.vermont.gov/purchasing-contracting/contract-info
Uniform Guidance: means 2 CFR Chapter I, Chapter II, Part 200-Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards.
Vendor: any party with which the State may sign a Contract.
Zero-Dollar Contract (a.k.a. No-Cost contract): means a Contract for Service in which a Vendor is willing to
accept compensation for services other than direct payment by the State. For examples and further
information refer to section IV.A.6.
[END SECTIONS I-II-III]
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IV. CONTRACTS FOR SERVICE: PERSONAL SERVICE; NON-PERSONAL
SERVICE; INDEPENDENT CONTRACTORS AND PRIVATIZATION
A. Contract for Services
Generally, State of Vermont employees should be used to perform essential governmental functions.
However, there are circumstances which justify the use of Contractors to complete certain tasks, rather than
employees, which may be determined at the discretion of the Appointing Authority. Once the determination has
been made to enter into a Contract for Service, applicable State law and the policies and procedures set forth in
this Bulletin will apply, regardless of amount.
Contracts for Service are further categorized into Personal Service and Non-Personal Service
(Independent Contractor). Both Contracts for Service and Non-Personal Service Contracts may be determined to
be Privatization Contracts in accordance with 3 V.S.A. § 341(3)
. The determination process as to whether a
Contract for Service is to be categorized as Personal Service or Non-Personal Service and as Privatization is must
be done in a specific order and must be incompliance with Federal and State laws.
There are various types of services which may be contracted, including the following examples:
1. Professional Services Contracts: Contracts with professionals such as physicians, nurses,
lawyers, engineers, architects, certified public accountants, surveyors, mental health
counselors, educators, consultants, investment managers and IT project managers. In
addition to the State’s standard insurance requirements, professionals must agree to carry
professional liability insurance coverage in an amount not less than $1 million per claim/$1
million aggregate. Coverage limits will be subject to the approval of the Director of Risk
Management (see Insurance Coverage Limit section IX.A.6
)
2. Construction Contracts: Contracts for infrastructure construction, renovation or
rehabilitation projects, including such State facilities as State-owned or leased buildings,
roads and bridges.
3. Marketing Contracts: Contracts for advertising (print, radio, television (TV), and
web/internet, but not to include employee recruiting); collaterals (brochures, fact sheets,
folders, etc.); website design (not to include technical components); trade shows and events;
direct mail campaigns; and sponsorships.
4. Financial Transaction Contracts: Contract with a bank or other entity to handle in-bank or
on-line financial transactions. The majority of Contracts previously and incorrectly referred
to as “No-Cost” are in reality “Financial Transaction” Contracts, which may result in “no net-
cost” to the State. These Contracts involve an outside Vendor providing a service to manage
financial transactions for the State – either online or in person. Vendors include web-portal
organizations, banks and other financial institutions. The Vendors handling these financial
transactions (license, permit, registration fees, credit card transactions, etc.) on behalf of the
State, may be compensated from: the gross fee (revenue) charged in the transaction; via an
additional “convenience fee” added to the cost of the transaction; or a combination of the
two. Depending on the terms of the Contract, the funds may be remitted to the State:
• via a lock-box, under agreement with the State Treasurer’s Office;
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• by the Vendor, at the gross amount, followed by payment of the fee from the
State to the Vendor; or;
• by the Vendor, at the net amount, where the Vendor retains their compensation
prior to remittance.
In the second bullet above, Agencies/ must execute the Contract for a maximum amount
based on the estimated value the Vendor will be paid during the term of the Contract.
Agencies shall process payments using a purchase order(s) (P.O.) against the contract. In the
third bullet above, where the Vendor retains an amount equal to the additional convenience
fee ONLY, a P.O. is not necessary as the State is not issuing payment to the Vendor.
5. Zero-Dollar (or No-Cost) Contracts: are occasionally used when a Vendor performs services for
compensation other than direct payment made by the State. Zero Dollar Contracts must use the
standard State contract forms, including the standard attachment C. Agencies must understand that
simply because compensation is not made by invoice and direct payment, Vendors will still have
performance obligations and pose risks to the State. Agencies are also cautioned to be aware of
potential conflict of interest issues. Examples of Zero -Dollar (or "No- Cost") Contracts include the
following:
• the Vendor contracts with the State to perform services which benefit employees
or consumers, and payment is derived from third party payers;
• the Vendor performs services for the State in exchange for the opportunity to
utilize State facilities or other assets (excluding data; see
IV.A.4 above) such as
Statehouse cafeteria food service; and
• Financial Transaction Contracts.
6. Information Technology Services Contracts: see special IT Contract IV.E below.
7. Other Contracts for Services: Contracts with persons or legal entities not included in
subsections (1) through (7) above.
B. Personal Service Contract
1. Description.
A Contract for Service can be either Personal Service Contract or Non-Personal Service
Contract (Independent Contractor). Personal Service Contracts have characteristics of an employment relationship
not commonly found in Independent Contractor relationships, but they may trigger certain requirements under
Federal and State taxation and labor laws, such as the requirement to withhold Federal Insurance Contributions
Act (FICA), and provide unemployment and Workers’ Compensation coverage. Agencies must appropriately
classify whether each individual performing services for the State is either as an Independent Contractor or an
employee-like Personal Services Contractor.
2. Determination Process.
The general rule is that an individual is an Independent Contractor if the
Agency/Department for which the services are performed, has the right to control or direct only the result of the
work and not the means and methods of accomplishing the result. Appointing Authorities must determine whether
proposed Contracts for Service meet ANY of the criteria below:
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a. The Agency will supervise the daily activities or methods and means by which the
Contractor provides services;
b. The services provided are the same or substantially similar as those provided by
classified State employees within the Agency;
c. The Contractor does not customarily engage in an independently established trade,
occupation, profession or business.
If a Contract for Service meets ANY one of these criteria Appointing Authorities should
review Internal Revenue Service (IRS) Publication 15-A, attached to this Bulletin as Appendix I(f) which provides
additional information on the differences between an Independent Contractor and an employee and gives examples
from various types of occupations. If there is no reasonable basis to classify a Contractor as an Independent
Contractor, Agencies must consider whether the services could be provided under an actual employment
arrangement, such as permanent, temporary or limited service appointment. If employment is not feasible, then
Agencies should consider restructuring the contractual relationship in a way that does not trigger Federal and State
requirements applicable to employers. Personal Services Contracts (i.e., Contracts that do not pass the
Independent Contractor test applied by the IRS) must be carefully structured to ensure compliance will all Federal
and State requirements. Consult Appendix I
(f) of this Bulletin and the Department of Human Resources (DHR)
for guidance.
C. Non-Personal Service Contract
Non-Personal Service Contracts generally have the characteristics of Independent Contractor
relationships, where the State has only the right to control or direct the result of the work and not the details of
what and how the work will be done. For example, individuals such as (but not limited to) doctors, dentists,
veterinarians, lawyers, accountants, construction contractors and subcontractors, public stenographers, or
auctioneers who exercise a high degree of independence in performing services and are in an independent trade,
business, or profession in which they offer their services to the public.
D. Privatization Contract
A Privatization Contract is a Contract for Service valued at $25,000 or more per year that satisfies
the criteria below:
(i) provides services which are the same, or substantially similar to, and in lieu of services
provided, in whole or in part, by permanent, classified State employees;
AND
(ii) results in a reduction in force of at least one permanent, classified employee, or the
elimination of a vacant position of an employee covered by a collective bargaining agreement.
NOTE: Unless otherwise permitted by applicable Agency statute, no Agency may enter into a
Privatization Contract, unless the procedure set forth at 3 V.S.A. § 343
is followed.
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E. Contracts for Information Technology
Information Technology (IT) Contracts can be Contracts for Service or Commodity Contracts.
Contracts related to Information Security and Information Technology Activities can include the procurement of
hardware and/or software (with or without a services component), system implementation, IT consulting services,
license and other end user agreements, maintenance and support services, hosting services and Service Level
Agreements (SLA). Further information specific to Information Technology contracting is located in the IT
Guideline, located both on the AoA and OPC websites.
The IT Guideline covers, among other things, best practices for IT procurements and terms and
conditions which may be needed to address issues particular to IT Contracts, such as, licensing, intellectual
property, data ownership, and security concerns.
IT Contract for Service: Generally speaking, an IT Contract will be considered a Contract for
Service subject to this Bulletin - including the Contract for Service determination process and the AGO
certification - when a Vendor is providing professional services such as implementation, configuration, data
migration, consulting and/or training, either on-site or off-site. An IT Contract for Service may include
maintenance and support services that are provided on-site or by virtual access to State IT systems.
IT Commodity Contract: Generally speaking, an IT Contract will be considered a Commodity
when the product or service is provided “as-is” to all consumers equally either as a physical software, license and
other end user agreements, or hardware or as a subscription software as a service, platform as a service or
infrastructure as a service. The Vendor will not have virtual access to State systems for purposes of maintenance
and support.
Please refer to the IT Guideline
and consult with OPC, ADS or the AGO with questions about
whether an IT contract is more appropriately a Contract for Service or a Commodity.
F. Commodity Contracts
For purposes of this Bulletin, Commodity is the collective term given to tangible products
purchased for the State. These include, but are not limited to, materials, equipment, parts, supplies, fuel, and
printing. Hardware and software (license and other end user agreements) are considered commodities and some
web-based services may be considered commodities, as discussed above. Procurement authority for commodities
rests with the OPC.
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V. AGO CERTIFICATION FOR BARGAINING AGREEMENT(S)
COMPLIANCE
Each Contract for Services valued at $25,000 or more per year shall require certification by the
AGO to the Secretary of Administration that such Contract is not contrary to the spirit and intent of the
classification plan and merit system and standards under 3 V.S.A. § 342
. A Contract for Services may be certified
by the AGO if (a) all three of the provisions of Part 1 of this section are met; or (b) one or more of the exceptions
described in Part 2 of this section apply.
[Continued next page.]
Part 1 - AGO Certification
First, a Contract for Services valued at $25,000 or more per year will be reviewed to determine if ALL
of the following three requirements are met:
1. The Agency will not supervise the daily activities or methods and means by which the Contractor
provides services, other than supervision necessary to ensure the Contractor meets contractual
performance expectations and standards;
AND
2. The services provided are not the same as those provided by classified State employees within the
Agency (note: this factor is applied to the Agency only and not to the State as a whole);
AND
3. The Contractor customarily engages in an independently established trade, occupation, profession
or business.
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Part 2 - AGO Certification
If the proposed Contract for Services does not meet ALL THREE of the above Part 1 criteria, then
YOUR Agency must consider whether the Contract meets ANY ONE of the following exceptions:
1. The services are not available within the Agency or are of such a highly specialized or technical
nature that the necessary knowledge, skills or expertise is not available within the Agency.
2. The services are incidental to a Contract for purchase or lease of real or personal property.
3. There is a demonstrated need for an independent audit, review or investigation; or independent
management of a facility is needed as a result of, or in response to, an emergency such as
licensure loss or criminal activity.
4. The State is not able to provide equipment, materials, facilities or support services in the location
where the services are to be performed in a cost-effective manner.
5. The Contract is for professional services, such as legal, engineering, or architectural services,
that are typically rendered on a case-by-case or project-by-project basis, and the services are for
a period limited to the duration of the project, normally not to exceed two years or provided on
an intermittent basis for the duration of the Contract.
6. The need for services is urgent, temporary or occasional, such that the time necessary to hire and
train employees would render obtaining the services from State employees imprudent. Such
Contract shall be limited to 90 days' duration, with any extension subject to review and approval
by the Secretary of Administration.
7. Contracts for the type of services covered by the Contract are specifically authorized by law.
8. Efforts to recruit State employees to perform work, authorized by law, have failed in that no
applicant meeting the minimum qualifications has applied for the job.
9. The cost of obtaining the services by Contract is lower than the cost of obtaining the same
services by utilizing State employees. When comparing costs, the provisions of section 3 V.S.A
§343 shall apply.
[END SECTIONS IV-V]
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VI. ALTERNATIVES TO CONTRACTS FOR SERVICE AND SPECIAL
AGREEMENT TYPES
If contracting for services is not appropriate, an Agency should consider using temporary
employees, limited service employees or permanent employees to do the work. The State Department of Human
Resources Personnel Policy and Procedure, Section 5.0
establishes the following guidelines:
• Permanent classified or exempt positions shall only be authorized by the Legislature.
• Limited service positions may be authorized by the Joint Fiscal Committee in connection
with a Grant or by the Legislature itself.
• Temporary employees may only be hired with approval of the Commissioner of Human
Resources in accordance with
3 V.S.A. § 331. Please consult with the Human Resources
Representative for your Agency, to ensure hiring a temporary employee is in accordance with
the statutory limitations.
A. Memorandum of Understanding or Memorandum of Agreement
A Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA), is not a
Contract and is generally not enforceable. An MOU or an MOA may only be used between State Agencies and
units of the Executive, Legislative and Judicial branches of Vermont State government, as required by Federal
Agencies, or with municipalities (for example: towns, cities, school districts, fire districts, county units, etc.), or
political sub-divisions (such as regional planning commissions) of the State. An MOU or MOA permitted
hereunder, does require approval by the Appointing Authority and review by the AGO or internal counsel. If an
MOU is proposed and is intended to have the effect of a binding and enforceable contract, an Agency should be
using a Contract. Use of an MOU or MOA to circumvent this Bulletin is prohibited.
B. Grants versus Contracts
Contracts are normally used to acquire specific, clearly defined services and/or products from
entities or individuals other than State Agencies or employees of the State. This includes situations where the
State is seeking a service or a product or is offered a service or product for which it will not pay and may even
acquire revenues, for example, wireless internet access at State facilities.
Grants are commonly issued for the direct support of persons and are also issued to organizations
that perform public benefit activities with a high degree of independence. Grantees often adhere to programmatic
requirements of a State or Federal program under which the Grant is issued and may be required to submit
financial and programmatic reports to the granting Agency.
A Grant should only be used in the following circumstances:
a. The principal purpose is to support or stimulate an activity that benefits an
individual (or group) rather than the Agency itself (or wards of the State) and there will be no substantial direct
State oversight of the funded activity, other than providing guidance upon request, accumulating information on
progress/results achieved, and periodic financial, programmatic and performance monitoring of the program or
activity.
AND
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b. When the Grant contains Federal funds, it meets the definition of a subrecipient
relationship as found in the Federal Uniform Guidance (2 CFR Chapter I, Chapter II, Part 200
- Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).
OR
c. Appropriated funds are characterized in the law or are designated in the Grant
agreement as “grants,” or designated by a grantor/funding organization as “grants.”
Federal Uniform Guidance identifies the characteristics below to distinguish between a grantee (other than
individuals who are eligible for this assistance) and Contractor relationships. These characteristics should be
considered when determining whether to enter into a grant agreement or a Contract for goods and services:
Examples - Grantee (Subrecipient) Examples - Contractor
Determines who is eligible to receive what
Federal assistance
Provides the goods and services within
normal business operations
Has its performance measured in relation to
whether objectives of a Federal program are
met
Provides similar goods or services to many
different purchasers
Has responsibility for programmatic decision
making
Normally operates in a competitive
environment
Is responsible for adherence to applicable
Federal program requirements specified in
the Federal award
Provides goods or services that are ancillary
to the operation of the Federal program
Uses the Federal funds to carry out a program
for a public purpose specified in authorizing
statute, as opposed to providing goods or
services for the benefit of the pass-through
entity
Is not subject to compliance requirements of
the Federal program as a result of the
agreement, though similar requirements may
apply for other reasons
All of the characteristics listed above may not be present in all cases. Agencies must evaluate the features
of each agreement individually to determine whether it appears more like a Contract or a sub-award. Refer to the
subrecipient/Contractor determination tools and guidance provided on AoA Bulletin 5
for further information.
C. Capital Leases
No Agency, department or unit of State government is authorized to enter into a Capital Lease
without the approval of the Secretary of Administration and the Treasurer. A Contract shall be considered a
Capital Lease if it meets one or more of the following four criteria: (1) the lease term is greater than 75% of the
property’s estimated economic life; (2) the lease contains an option to purchase the property for less than fair
market value; (3) ownership of the property is transferred to the lessee at the end of the lease term; (4) the present
value of the lease payments equals or exceeds 90% of the fair market value of the property. Special accounting
NOTE: Use of a federally approved indirect cost rate, or the de minimus allowed indirect rate as per
the Uniform Guidance, is NOT required for State Contracts.
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rules apply to Capital Leases which require their value to be included in the State’s total debt. Refer to AoA
Bulletin 7.14, Equipment Revolving Fund as an alternative to a capital lease for equipment.
D. Agreements to Receive or Access Confidential Information
On occasion a party other than the State of Vermont will request a copy of or access to
Confidential Information held or collected by the State in circumstances where it is appropriate for an Agency of
the State to allow or facilitate such request. A written agreement between the State and such a party is required in
such a case to address many of the issues and risks inherent in sharing or disclosing Confidential Information (see
Section IX.A.8). The agreement will not be subject to the competitive procurement requirements of this Bulletin,
unless either: (a) the Agency is obtaining services from the other party in connection with the disclosure of
Confidential Information; or (b) the Agency is conveying to the other party an exclusive right to receive or access
certain Confidential Information. However, before entering into such agreements, Agencies must obtain approvals
from the ADS, the AGO, and the Secretary of Administration (see Section X.B.).
[END SECTION VI]
NOTE: Accounting rules require the value of Capital Leases be included in the State’s
debt total. As such, they are subject to the annual debt limit set by the General Assembly. Use
of a Capital Lease in order to avoid the requirements of either Bulletin 3.5 or Bulletin 5, is
EXPRESSLY PROHIBITED.
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VII. COMPETITIVE BIDDING AND THRESHOLDS
A. Competitive Bidding
Competition in the procurement process serves both State Agencies/Departments and potential
bidders by ensuring the procurement process produces an optimal solution at a reasonable price, and allowing
qualified Vendors an opportunity to obtain State business. In addition to complying with existing statutory and
regulatory requirements, State procurements shall comply with the following general principles:
• Notice: Provide appropriate notice of opportunities to compete for State business;
• Predictability: Provide a consistent process while conducting the procurement;
• Transparency: Document the procurement process clearly and consistently; and
• Cost-effectiveness: Ensure procurement processes are designed to secure optimal solutions at
reasonable prices.
Although Vermont does not have a statute, rule or administrative requirement which mandates
preference be given to State residents or products, all other considerations being equal, preference will be given
to resident bidders of the State and/or products raised or manufactured in the State.
B. Bidding Monetary Thresholds
In some cases, State or Federal statutes or regulations require bidding at lower amounts. Such
statutes shall take precedence over this Bulletin and shall be adhered to. Agencies/Department should
consult with Agency counsel or the Office of the Attorney General if there is a question about the
applicability of State or Federal law to Agency procurements.
1. Services Up To $100,000 - Standard or Simplified Bid Process
For a Contract estimated to not exceed $100,000, an Agency may choose to follow
either a Simplified Bid (described herein at section VIII.A
) or Standard Bid process (described herein at section
VIII.B). If the Agency is unsure whether a Contract will exceed the $100,000 threshold, to avoid rebidding the
work, the use of a Standard Bid process is recommended.
2. Services Greater Than $100,000 – Standard Bid Process
An Agency may enter into a Contract greater than $100,000 only after adherence to a
Standard Bid process (issuance of a formal Request for Proposals), as set forth herein (section VIII.B).
[END SECTION VII]
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VIII. THE BIDDING PROCESS
A. Simplified Bidding
1. General.
A standard bidding process is always preferred. However, a “simplified bidding process”
may be used when the anticipated Contract amount will not exceed $100,000. A simplified bidding process
requires an Agency to develop a Statement of Work that identifies work to be performed, specific need(s) to be
addressed and/or product(s) to be delivered (subject to BGS’s exclusive authority over commodities purchases),
and that solicits price quotations from at least three potential Vendors known to provide the specified services or
products. However, the Simplified Bid process does not require a public bid posting nor a public bid opening.
included are:
2. Procedures for the Simplified Bid Process
a. Prepare written specifications before soliciting bids. Elements that should be
i. Statement of Work
ii. Performance requirements;
iii. Expectations regarding service location, schedule, including deadlines for
deliverables and/or milestones, if applicable;
iv. Other specific State requirements or conditions.
b. Solicit price quotations from 3 or more qualified Vendors. Price quotations may
be obtained through: telephone or verbal quotes, facsimile quotations, e-mail quotes or written bids. All
communications with the Vendors to obtain price quotes must be documented (emails, fax, notes from phone calls,
etc.);
c. The Vendors solicited must understand they will be required to enter into a
standard State Contract for Service, including Attachment C, should they be selected;
d. All records relating to the Simplified Bid process, including proposals and a
record of the selection process, shall be retained in the Contract file in accordance with the Agency’s records
retention schedule;
e. The quotation most responsive to the selection criteria should be selected;
f. The Vendors solicited must understand that Vendor-required documentation, if
any, must be made available at the time of bid and shall be subject to negotiation, should they be selected.
NOTE: Contracts that result from the Simplified Bid process may not exceed $100,000,
without a written waiver from the Secretary.
NOTE: If all price quotations received as a result of a Simplified Bid process exceed the
$100,000 threshold Agencies must then engage in a Standard Bid process.
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B. Standard Bidding (“Requests for Proposals” or “RFP”)
1. General
A standard RFP is required for all services which are anticipated to exceed a maximum
Contract amount of $100,000. An RFP is also recommended for complex procurements, such as when the
response requires the bidder to provide a solution or long term commitment. The RFP must contain all
requirements and conditions of the particular procurement process. An RFP must contain a Statement of Work
and describe the criteria the State is going to utilize to select the Vendor. Agencies must evaluate bids in
accordance with the criteria set forth in the RFP . This Bulletin provides basic guidance relating to RFP
documentation and process. Additional guidelines , including sample templates and the most current versions of
all State procurement and Contract forms are available on the Office of Purchasing and Contracting website at:
http://bgs.vermont.gov/purchasing-contracting/forms.
After an RFP or bid solicitation has been issued, and prior to the deadline for submission
of bids, an Agency may issue an Addendum modifying any aspect of the RFP. Except as clarified or changed by
an Addendum, the terms, conditions, specifications, and instructions of the solicitation and any previous
solicitation Addenda, remain as originally written. Such Addenda shall be publicly posted where the RFP is
displayed and/or in accordance with instructions indicated in the RFP. Best practice is to have all Addenda
acknowledged and/or signed and returned by all bidders with their proposals. Any deadline extension granted to
any bidder must be granted to all of the bidders. The State does not accept late proposals.
An Addendum should be reasonably specific, noting the document, the project, the change
and where the changes can be found. Addenda should be published with reasonably sufficient time prior to the
submission of bids for prospective bidders to consider prior to preparing proposals.
Disclosures for the purposes of bidding integrity are critical to bidding transparency. Refer to
policy on-line at: http://bgs.vermont.gov/commissioner/adminpolicies/0034.
2. RFP Components
All State Agency RFPs must include the following components:
a. Cover Page: Includes: (1) Name and address of State contact person; (2) Due
date, time, and location of responses; (3) Notification of the time and location for any scheduled bidders’
conference, including a statement as to whether attendance is a condition of selection; and any other special
requirements of the RFP process
b. Introduction: Explains the purpose and the nature of the services being sought,
for example: “The purpose of this RFP is to obtain proposals from independent management consulting firms to
perform a management study of the Division of Bulletin Creation.”
NOTE: An RFP may only be amended by issuing a written Addendum prior to the submission of bids,
and within a reasonable time period, except as may be necessary to exercise rights specifically reserved in
the RFP.
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c. Brief description of the Agency: Provide necessary general information about
the Agency, if appropriate, such as: the type of government unit; the Agency’s statutory authority; number of
employees; population served; and mission or purpose.
d. Statement of Work to be performed: A Statement of Work (SOW) is intended to
provide potential bidders with a description of the service, solution and/or product being sought by the State
(subject to BGS’s exclusive authority over commodities purchases) and can take various forms. At a minimum, the
SOW should include the following: (1) a description of the work to be performed, product(s) to be provided and/or
the specific need(s) to be addressed; (2) a schedule (including when the work is to be completed, any interim
completion dates and/or deliverables); (3) the expected outcomes and/or products, and related performance and/or
quality standards. The State’s requirements in a SOW may also, for example, include:
• Details of what is sought by the State from which the bidders may not vary;
• An opportunity for the bidders to provide alternatives and/or options, if appropriate to the bid
process; and/or
• A description of a capability the State is looking for generally, which permits the bidders to
provide their own solutions within certain parameters and/or to address a certain need.
Depending on the complexity of the work to be performed, an Agency may want to consider hiring an expert to
assist with the development of an appropriate Statement of Work for inclusion in the RFP (subject to the State’s
Bidding Integrity policy). The appropriate investment of work at this stage of the contracting process will result in
time savings and greater efficiency not only for the contracting process, but also the project ahead.
e. Purpose and management structure: Provide a brief overview of recent history
leading to the decision to seek a Contractor. This overview will provide a better understanding of the purpose and
context of the work. The bid document should include a statement about the contract management structure, with a
description of how the Contract will be monitored by the contracting Agency. Bidders should understand the State
is going to monitor their activities and performance in order to detect and prevent problems, and to ensure the
contract terms are met and State expenditures are appropriate, effective, and efficient.
f. RFP Response Requirements: Clearly explain to bidders the procedural and
substantive requirements of the bidding process. For example, the date, time, and address to which bids must be
delivered must be explicitly stated. In addition, this section should include information regarding any on-location
views of the work area, any pre-bid informational conferences, and any special requirements for submissions with
the bid, such as bid bonds, qualification profiles, and resumes of key personnel performing the work, etc.
g. Bidder Confidentiality and Access to Public Records: All responses and other
information disclosed in connection with an RFP become the property of the State and, once the resulting Contract
is finalized, may be subject to disclosure under the State’s Access to Public Records Law, 1 V.S.A. § 315
et seq.
Accordingly, the RFP must instruct the bidder to identify any material included in the response that is considered
by the bidder to be proprietary or otherwise exempt from public disclosure in the event of a Public Records request,
pursuant to
1 V.S.A. § 317(c). The bidder’s response must include a written explanation for each marked section
that would support a reasonable claim of exemption, such as, for example, a description of the proprietary nature of
the information and the harm that would occur should the material be disclosed. Additionally, the RFP must
instruct the bidder to include a redacted copy of its response. Redactions must be limited so that the reviewer may
understand the nature of the information being withheld. It is typically inappropriate to redact entire pages, or to
redact the titles/captions of tables and figures. Under no circumstances can the entire response or price information
be marked confidential. Should the Agency have concerns about the submitted redactions/explanations or lack
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thereof, the Agency may invite the bidder to provide sufficient explanation and/or appropriate redaction rights:
h. Reservation of State’s Rights: Each RFP must reserve the following State
• to accept or reject any and all bids, in whole or in part, with or without cause in
the best interest of the State;
• to waive technicalities in submissions; (A technicality is a minor deviation
from the requirements of an RFP that does not impact the substantive terms of
the bid/RFP and can be considered without a material impact on the RFP
process, etc.). If uncertain of whether a condition qualifies as a technicality,
consult with the OPC or AGO for clarification. For example, a late bid is
NOT considered a technicality;
• to conform the selection process, award and/or proposed contract language, at
any time during the procurement, to comply with state or federal statute,
regulation or grant requirements;
• to make purchases outside of the awarded Contracts where it is deemed in the
best interest of the State; and
• to obtain clarification or additional information.
i. Contract Elements: The RFP should describe the key elements to be included in
the Contract, and a copy of the Contract documents. At a minimum, the RFP shall include standard State
Attachment C, Attachment D (if necessary) and any other applicable Attachments.
Any other Contract terms or conditions which may be applicable to the particular service to
be procured must be set out in the RFP. For example, with respect to contracts for IT services, the State requires
language relating to: Information Security; Intellectual Property Ownership; Confidential Information; access to
data; and cyber liability insurance. Agency counsel or the AGO should be consulted for advice on these additional
contract terms.
For IT procurements, Risk Management shall be consulted prior to RFP issuance to
determine cyber liability and breach notification amounts. Risk Management’s determination regarding cyber
liability and breach notification amounts, and Terms and Conditions must be identified in the RFP.
j. Price quotation or bid proposal form: The RFP, except for those using a Pre-
Qualification selection process (section VIII.C
), should include a price quotation form. The form should explicitly
include the price components for the core services and/or products requested (subject to BGS’s exclusive authority
over commodities purchases), and for each incremental phase of a project, if relevant. If contract extensions are
contemplated, the quotation form should explicitly provide a detailed price quotation for each such extension. The
form should allow for separate price quotations for optional services and/or products that an Agency may request
(subject to BGS’s exclusive authority over commodities purchases).
k. Worker’s Classification; State Contract Compliance Requirement: For all
Contracts for Services, as well as all State construction and transportation projects, with a total project cost
exceeding $250,000, the RFP must include language mandating the bidders comply with provisions and
requirements of 2009 Act 54, Section 32
: (1) for the Self-Reporting of information relating to past violations,
convictions, suspensions, and any other information related to past performance and likely compliance with proper
coding and classification of employees requested by the applicable Agency; and (2) subcontractor reporting
requirements. Requirements and forms are identified online and/or directly in RFP templates located on the Office
of Purchasing and Contracting website at:
http://bgs.vermont.gov/purchasing-contracting/forms.
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l. Construction and Transportation Projects: For all State construction and
transportation projects with a total project cost exceeding $250,000, the RFP must include language mandating
the Contractor record a pay period census of workers onsite each day and upon request submit this record to
authorized State Agencies and shall become public information. “Total project cost” is defined as the cumulative
direct and indirect cost incurred to complete the stated project goal, including planning, design and engineering
services, materials procurements, construction services, and construction management and oversight.
m. Basis for selection: The RFP shall explain the selection criteria to be used. If
certain factors are more important than others, the degree of such relative importance should be clearly stated
and, if possible, quantitatively profiled.
Unless otherwise provided by law or authorized in this Bulletin, price
must always be a factor considered in the selection process. Price, however, need not be the only or even
primary consideration. An Agency should establish selection criteria that provide for the overall best interests
of the State, including that the State secures an optimal solution at a reasonable price. Consequently, in
addition to price, selection criteria may also include factors such as qualifications, experience, quality of past
work, references and timeliness, and the ability of a specific proposal, approach or technical solution to achieve
State objectives, among other factor(s) relevant to the Agency’s program goals. An Agency may set the
relative importance of price, and all other factors, as it deems appropriate within its selection criteria. When
assessing whether an offered price is reasonable, an Agency may consider not only the costs of goods and/or
services to be provided but also other price-related factors such as potential cost savings or avoidance,
anticipated revenues and/or added value to the Agency. The RFP shall reasonably identify all price and non-
price factors, and their relative weights, for an Agency to best consider them in the selection process.
If the Agency establishes selection criteria that assign numerical scores to proposals, the
total points available must be expressly stated in the RFP. An Agency shall not establish selection criteria that
provide for an unlimited number of total points available.
3. Request for Information (RFI)
If an Agency does not have sufficient information from which to develop an effective RFP
describing the work to be performed, specific need(s) to be addressed and/or product(s) to be delivered (subject to
BGS’s exclusive authority over commodities purchases), the Agency may issue an RFI to obtain information on
the subject matter of the eventual contract, such as capabilities, practices, systems, licenses, standards, etc. An
RFI may be solicited, following the requirements in the section below “Public Notice Regarding the Standard
Bid” or individual RFI requests may be sent directly to a representative number of organizations for information.
With the information gained, the Agency should then be able to develop an effective RFP resulting in a number of
valid competitive RFP responses.
4. Request for Comment
A Request for Comment (RFC) is the process whereby the State issues a future/proposed
RFP to the Vendor community in order to solicit input about all or a portion of the RFP structure, language,
methodology (or any other aspect of the future/proposed RFP). The use of an RFC allows the Agency to gather
information (comments or responses) and to revise the planned RFP if necessary and appropriate, in an effort to
NOTE: An Agency shall not negotiate a Contract directly with RFI respondents. Subsequent
to issuance of an RFI, a Contract may only be developed in response to a separate RFP or a Simplified
Bid, to ensure the integrity of the competitive process.
Bulletin No. 3.5, 12.16.19
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create an RFP that will yield the highest number of bidders and a successful outcome for the State.
5. Public Notice Regarding the Standard Bid
At minimum, all RFPs, RFIs and RFCs shall include posting on the Electronic Bulletin
Board (EBB), operated by the Agency of Commerce and Community Development (ACCD) as part of the
Business to Business registry. Instructions for posting to the EBB are available at:
http://www.vermontbidsystem.com. However, all IT related RFPs, RFIs and RFCs will be posted by OPC (see IT
Guideline).
The opportunity to bid for the proposed work must be broadly publicized. Other methods
of solicitation include: advertising in newspapers; direct mailings to potential Vendors; direct mailings to Vendors
on a prequalified list (section VIII.C
); and/or publication in trade journals. It is important for an Agency to
maintain a list of those entities or individuals requesting bid documents.
The time between the initial public notice on the EBB (and other methods of solicitation)
and the opening of bids must be at least five business days. For RFPs with a relatively complex Statement of
Work, allowing potential Vendors a longer response time is highly recommended, to ensure well-constructed bid
responses.
6. Pre-Bid (Bidders’) Conferences and Adjustments to Bid Documents
RFPs for large or complex projects shall require a pre-bid meeting (conference). The
purpose of the pre-bid meeting (conference) is for the State to have an opportunity to review the Statement of
Work and other RFP documents with bidders to ensure the State and the Vendors fully understand the
requirements of the RFP. If a pre-bid meeting (conference) is required it must be identified in the RFP and
describe the form and format the meeting shall take (i.e. in person, conference call, etc.). During the meeting,
Agencies may provide an overview of the requirements, opportunity for Agencies/Departments and Vendors to
pose questions, and hear responses to questions related to the RFP. All information exchanged at the meeting,
answers to questions and clarifications given must be documented, and posted to the EBB and/or as indicated in
the RFP. The documentation must include a statement that bidders may not rely on any verbal responses.
Similarly, a written question and answer period is recommended for each standard bidding process, with answers
posted to the EBB and/or as indicated in the RFP.
7. The Bid Opening
A public bid opening and reading of bids should be the norm and is required for Contracts
over $100,000. Two staff members from the Agency administering the bid process should attend the bid opening.
Bids received after the established submission deadline shall be returned unopened to the bidder. The Agency
administering the bid process may waive technical non-compliance when doing so is in the best interest of the
State, and with the approval of the AGO. Such waivers must be fully documented and included in the Contract file.
8. Contractor Selection, Documentation and Apparent Conflict of Interest
a. Selection:
i. The bid most responsive to the selection criteria established in the RFP should
be accepted. Agency staff with the relevant subject matter expertise should
NOTE: A late bid may NOT be waived as technical non-compliance.
Bulletin No. 3.5, 12.16.19
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review each proposal for responsiveness in accordance with the requirements
outlined in the RFP. When appropriate, an Appointing Authority (Agency)
may establish a contract selection committee to review bids.
ii. If it is determined by the Agency that an on-site interview is required prior to a
final selection, the sole point of contact as stated in the RFP should contact
finalist(s) to schedule interviews and to provide an agenda for the interviews.
iii. An Agency is not required to request or accept a Best and Final Offer (BAFO)
from any bidder. However, an Agency may request a BAFO from any bidder
or several bidders in an effort to award a Contract in the best interest of the
State, particularly to ensure the State secures the optimal solution at a
reasonable price. The Agency may consider requesting a BAFO when:
• no single proposal addresses all the specifications;
• all or a significant number of the proposals received are unclear and the
evaluation committee requires further clarification;
• additional information is needed in order for the evaluation committee to
make a decision;
• differences between proposals are too slight to distinguish; all cost
proposals are too high or over the budget;
• multiple Contract awards are necessary to achieve regional or Statewide
coverage for an RFP and there are insufficient cost proposals within the
budget to award the number of contracts needed.
iv. Agencies shall post public notification on the EBB, of the Contract award after
the Contract has been fully executed.
b. Documentation: A complete copy of the RFP, Vendors solicited, price
quotations, bids received, and written selection justifications must be placed in the contract file. When other than
the lowest cost responsible bid is selected, for instance where the RFP includes a specific selection criterion that
assigns price a lower degree of importance relative to other selection criteria, the file must include written
documentation consistent with the RFP selection criteria demonstrating how the selection is in the best interests of
the State, particularly how the selected bid provides for the optimal solution at a reasonable price. Please
reference the Contract File Checklist
for a complete list of documents required to be retained.
c. Apparent conflict of interest: If a reasonable person might conclude a Contractor
was selected for improper reasons, the Appointing Authority should disclose this fact in writing to the AGO and
the Secretary and document the reasons why selecting the desired Contractor is still in the best interests of the
State.
C. Pre-Qualifying Vendors for Statewide or Retainer Contracts
To streamline procurement for work routinely bid out, an Agency may employ prequalification
procedures as a means of predetermining eligible Vendors from which an Agency may accept bids and proposals.
Depending on the type of procurement and contract, prequalification may vary in formality and complexity.
Prequalification may be determined through a structured process supported by approved specifications.
Pre-qualified Vendors must be identified through a standard solicitation process through which the
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Agency publicly solicits Vendors seeking the opportunity to be prequalified. This may take the form of placement
on a pre-qualified list or award of a retainer-type contract, customarily with a maximum dollar amount, set
duration, and providing no guaranteed assignment of work for the contract term. The Agency should establish clear
criteria necessary for potential Vendors to be included on the pre-qualification list. Additionally, during the period
between formal list revisions, the Agency must maintain an ongoing process that allows additional Vendors to
request review and inclusion on the pre-qualification list at least every two years. All Vendors determined qualified
by the Agency, and who so request it, should be included on the pre-qualified list.
An Agency’s internal procedures and this Bulletin should be consulted prior to utilizing pre-
qualification to determine if established or recommended procedures exist. An Agency shall document their pre-
qualification procedure in writing and in accordance with this Bulletin.
D. Exceptions and Waivers
1. Sole Source Contracts
Use of “Sole Source” or “no-bid” Contracts is contrary to the competitive process
supported by the State. Sole Source Contracts will be avoided except when no available alternative exists. A
clear and convincing link must exist between the service requirements sought and the reasons why the Agency
deems the Sole Source Vendor or Contractor “the only one capable” of meeting the requirements. Possible Sole
Source uses might include:
• an unusual and compelling urgency, such as when health, public safety, or the
conservation of public resources is at stake;
• situations posing extreme financial consequences to the State;
• legislatively mandated situations; and,
• when required by a warranty or proprietary license agreement.
a. Sole Source Contract $10,000 or Less
The Appointing Authority may enter into a Sole Source Contract for $10,000 or
less providing sole source justification exists and is documented in the contract file, and the Contract process
complies with all other aspects of this Bulletin.
b. Sole Source Contract Greater than $10,000 (non-emergency)
In other than an emergency situation, an Appointing Authority desiring to enter
into a Sole Source Contract having a value greater than $10,000 must obtain approval to Sole Source from the
Secretary of Administration. Secretary approval may be requested by submitting a proposed Sole Source
justification memo to the Department of Finance and Management (F & M) at least two weeks before circulation of
the Form AA-14 and contract package for required approvals. If the Sole Source request involves Information
Security or Information Technology, the justification memo must be approved by the CIO before it is approved by
the Secretary of Administration. A copy of the approved Sole Source justification must be retained in the contract
file.
Approval to Sole Source, when required by this section, must be obtained from the
Secretary before a proposed Sole Source Contract is circulated for additional approvals as may be required under
this Bulletin. A copy of the approved Sole Source justification must accompany the proposed Contract when
circulating for approvals.
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c. Sole Source Contracts in Verifiable Emergency Situations
In an emergency situation, a Sole Source Contract may be executed in accordance
with Agency protocols and applicable law, but the Contract and the justification must be forwarded to the
Secretary and the AGO within 10 business days of the contract execution. It is recommended the Agency notify
the assigned Finance and Management Budget Analyst as soon as the emergency is known.
It is insufficient to justify a Sole Source agreement by stating that “this is the only
Vendor/Contractor/party” qualified, or able to do the work. Such assertions must be verifiably documented.
Acceptable examples may include: the single authorized agent for warranty work; the only entity or individual
properly licensed within the 4-hour response time area; a legislatively-determined party; or a federally-mandated
party.
d. Mandatory Language for All Sole Source Contracts
As directed by 3 V.S.A. § 374, all Sole Source Contracts executed on or after
December 16, 2018, shall include a certification by the Contractor as to its compliance with the campaign
contribution restrictions set forth in 17 V.S.A. § 2950. To implement this requirement, a Contract procured as a
Sole Source, and every amendment to the Contract, must include language that identifies the contract as a sole
source, along with the requisite Contractor certification. Therefore, all Sole Source Contracts, regardless of
dollar amount, and any amendment to the Contract, shall include the following language:
“This Contract results from a “sole source” procurement under State of Vermont Administrative
Bulletin 3.5 process and Contractor hereby certifies that it is and will remain in compliance with
the campaign contribution restrictions under 17 V.S.A. § 2950.”
To facilitate compliance with this requirement, it is incumbent upon the
contracting Agency to ensure that the above language is included whenever executing or amending a Contract that
has been procured as a Sole Source.
2. One-Time Waivers (Other than Sole Source)
The Secretary may waive provisions of this Bulletin on a case-by-case basis pursuant to a
written request from an Appointing Authority. Any request must specify the basis for the request and reference the
Bulletin section(s) and language or variations from the standard State contract provisions for which the waiver is
sought. Waiver approval must be granted by the Secretary prior to other required approvals and the signing of the
NOTE: A Sole Source Contract greater than $10,000 may not be circulated for
other required approvals (e.g., AGO, CIO), unless and until a Sole Source justification has
been approved by the Secretary (and CIO if Sole Source for IT), and a copy of the approved
justification must accompany the proposed Contract.
NOTE: Failure to allow sufficient time to follow the bidding and procurement
process is not considered an emergency, and is not a justification for the use of a Sole
Source Contract.
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contract by either the State or the Contractor. Copies of all waiver requests granted by the Secretary must be
retained in the Contract file.
3. Agency/Department Contracting Waiver Plan
Agencies/Department may develop a written Contracting Waiver Plan (Plan) which shall
propose acceptable alternatives to non-statutory requirements of this Bulletin. The Plan must be submitted to the
Secretary for approval. Development of a Plan provides a process to request modifications for certain classes of
Contracts or requirements that cannot reasonably be accommodated within the policies of this Bulletin, or which
will allow for more efficient operations without an undue increase in risk to the State.
Plans must: a) be submitted on the Bulletin 3.5 Contracting Waiver Plan
template; b) detail
the referenced section(s) and Bulletin language for which a waiver(s) or modification(s) is requested, (c) provide
detail of an acceptable alternative (if appropriate), and (d) be signed by the Appointing Authority. A Plan must
clearly delineate any proposed deviations from this Bulletin and include written justification for each change
requested. The Secretary may approve or reject the Plan, in part or in whole.
Approved Contracting Waiver Plans expire 90 days after re-issuance of this Bulletin, or
upon a request from the Secretary, and must be resubmitted for the Secretary’s approval within those 90 days.
A Plan must be one unified form detailing all waiver elements, and must be updated to
include additional waiver items as they are requested. The Secretary will indicate approval or disallowance by
individual change and return an executed copy of the Plan to the requesting Agency/Department.
[END SECTION VIII]
NOTE: Approved Contracting Waiver Plans expire 90 days after re-issuance of this Bulletin,
or upon a request from the Secretary, and must be resubmitted for the Secretary’s approval within
those 90 days.
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IX. CONTRACT DRAFTING
A. Drafting the contract
All Contracts, regardless of dollar amount, must comply with the drafting standards below:
1. General Contract Restrictions
A Contract shall not:
a. require the State to indemnify a Contractor;
b. require the State to submit to binding arbitration or otherwise waive the State’s right
to a jury trial;
c. establish jurisdiction in any venue other than the Superior Court of the State of
Vermont, Civil Division, Washington Unit;
d. waive the certifications regarding tax status, child support, use of State funds, or
equal opportunity clauses, as are required by State law;
e. restrict the ability of the Contractor to hire State employees without the prior written
permission of the Department of Human Resources (DHR);
f. designate a governing law other than the laws of the State of Vermont;
g. constitute an implied or deemed waiver of the immunities, defenses, rights or actions
arising out of the State’s sovereign status or under the Eleventh Amendment to the
United States Constitution;
h. limit the time within which a legal action may be brought;
i. include a provision for automatic renewal (“evergreen” clause); or
j. include a copy of the RFP or RFP response.
2. Standard State Forms (Contract Templates and Attachments)
a. Short Form Contract may be used for certain services below $25,000
While use of the standard Contract form and full Attachment C is preferred, the
Appointing Authority may authorize the use of the standard Short Form Contract and Short Form Attachment C
(“Short Form”) for limited purchases of service not exceeding 12 months and $24,999.99. Amendment(s) to
contracts that either increase the maximum price to $25,000 or more, or extend the term of the Contract beyond 12
months, must be executed using the Standard Contract for Service template and shall be subject to the applicable
review and approval process.
The Short Form shall not be used for services related to life safety, transport of persons,
hazardous materials, construction, data usage or sharing, access to confidential information, services of licensed
professionals, a Zero-Dollar Contract, and/or a Financial Transaction Contract. As with all Contracts, a current
Certificate of Insurance (COI) for the Contractor is required on file, including professional liability insurance, if
NOTE: Standard State Forms and Templates are routinely updated. Agencies/Departments are
responsible to ensure the use of the most current form/template at all times. The current in-force versions are
maintained by OPC at: http://bgs.vermont.gov/purchasing-contracting/forms.
Use of outdated forms/templates
may result in delays in obtaining required approvals or rejection.
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applicable. Multiple “one-time” purchases entered into within the same 12-month period, and done intentionally,
in order to avoid the requirements of this Bulletin are expressly prohibited.
The Short-Form is designed to expedite Contract drafting for low risk, small dollar
procurements, and should be completed according to the instructions included within the form. The Short Form
may not be used when additional Attachment(s) or terms and conditions are required. Any questions about
whether or not a contract is eligible for the use of the Short Form should be directed to Risk Management at:
SOV.riskhelp@vermont.gov.
b. Standard State Contract Forms (Templates and Attachments)
All Contracts not eligible to use the Short Form Contract, must use one of the current standard
Contract templates (“shell”) and adhere to the Attachment “letter” assignments for the standard Contract
Attachments as follows:
• Attachment A – Statement of Work (Appendix II);
• Attachment B – Payment Provisions (Appendix III);
• Attachment C – Standard State Provisions for Contracts and Grants (“terms and
conditions”);
• Attachment D – Approved Modifications to Attachment C, modifications to a
Contractor document or other required terms and conditions (if necessary) (
Appendix
IV);
• Additional Attachments may be lettered as necessary.
All modifications to Attachment C’s standard provisions shall be included in Attachment D
which is to be referenced under the standard Contract shell “Order of Precedence”. All such modifications require
pre-approval by the AGO before the Contract is executed by the Appointing Authority. Modifications to the
insurance or audit provisions in Attachment C must be approved by the Director of Risk Management or the
Auditor of Accounts, respectively, in advance of contract execution.
Additional terms and conditions deemed necessary to the Contract shall be included in
Attachment D. All requests and approvals for such modifications must be documented and retained in the contract
file. For examples of common additional terms and conditions refer to Appendix IV
.
NOTE: The Short Form Contract may only be used for one time services below $25,000 that
do not exceed 12 months’ duration. If the maximum amount exceeds $25,000 the State requires the
use of the standard Contract for Service and the full Attachment C, etc. (see Appendix I for Short
Form Contract and Short Form Attachment C).
NOTE: Regardless of the contract amount, the Short Form Contract may not be used when
contracting for life safety, transport of persons, hazardous materials, construction, data usage or
sharing, and/or access to Confidential Information.
NOTE: Under no circumstances may the actual Attachment C document itself, be
modified. When changes or modifications are necessary, Agencies shall use Attachment D.
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3. Standard Contract Elements
a. Parties to the Contract
The Parties to a Contract are: 1) the person(s) or legal entity responsible for performing the
work, and 2) the State Agency or department responsible for Contract compliance, monitoring and
payment. The legal information (name or business name from IRS Form W-9
) must be the same as the
party in the Contract. A valid W-9 must be dated within six months prior to the Contract effective
date. Agency staff should work with their business office to review the W-9 and determine if the
Vendor is active in Vermont Integrated Solution for Information and Organizational Needs (VISION),
the Statewide financial system, with the correct legal name and remittance address. The guides for
the New Supplier Request Forms and the link to the IRS website (where forms W-8 & W-9 are
located) are located on the VISION Forms page at
VISION. The Supplier FAQ’s can be found on
Department of Finance and Management website, Supplier FAQ page at VISION Supplier FAQ.
b. Contract Duration (Term)
Contracts must have a specific start and end date (term), defining the legal period in
which the Contractor is authorized to perform the work, and for which the State will be obligated. The use of
“Upon Execution” is not allowed. Including language that automatically renews or extends the Contract beyond
the stated end Date (“evergreen clause”) is strictly prohibited.
An Agency should carefully consider what period of time is appropriate for contract
performance. Considerations should include the nature of the services and the status of any particular industry or
market involved.
The base Contract term is a period of up to two years. In certain situations, such as
when purchasing services for which there is an ongoing need, the State may want to extend the Contract beyond a
base two-year period. Language may be added to preserve the option(s) to extend for two additional one-year
periods, for a total maximum of four years.
For IT Implementation contracts (as defined in the IT Guideline) the base contract term
may include the period of implementation services, plus up to five years for annual operating costs (maintenance
and service). Any request for a waiver of this provision for a longer period of time must be approved by the CIO
before it is approved by the Secretary of Administration.
Agencies must plan accordingly to allow sufficient time for all required approvals and
final contract execution BEFORE a Contactor begins work. Agencies must monitor contract end dates well in
advance to allow sufficient time to prepare and process the required re-bidding. This re-bidding and resulting
award constitutes a new Contract (even if the re-bid award goes to the same Vendor) and must have a new
VISION contract number. Failure to allow sufficient time to re-bid a Contract is not an acceptable justification to
request a Sole Source waiver.
NOTE: If the Contract includes work being assigned to a sub-contractor, see section XII
sub-contracts of this Bulletin.
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c. Maximum Amount
All Contracts must clearly disclose the maximum dollar amount for services, supplies,
commodities and expenses on a “fixed price” basis or a “not to exceed” maximum dollar amount.
d. Total Number of Pages
The Contract and Attachments shall be sequentially numbered within the total pagination,
for example, “Page 1 of 10”, with the total number of pages (in this example, 10), stated in the Contract.
For long, complex contracts requiring numerous Attachments, such as construction and
transportation contracts, Agencies may choose to number the contract and each Attachment, within the pagination
for each. For example, Contract pages 1-2, Attachment A, pages 1-1500; Attachment B, pages 1-2; Attachment C,
pages 1-4; Attachment D, pages 1-2; Attachment E, pages 1-51; resulting in a total of 1,561 pages. However, the
total number of pages shall be stated in the Contract.
4. Description of the Work and Compliance (Attachment A)
a. Statement of Work
All State Contracts must describe the work to be performed in clear, concise and
complete statements. Attachment A of the standard State Contract should be used to detail the work to be
performed or products to be delivered by the Contractor. A well written description will include the schedule for
performance, identification of project deliverables, deliverable milestones, and standards by which the
Contractor’s performance will be measured. This description of the work may also be referred to as the Statement
of Work, Specifications of Work, Scope of Work or Subject Matter. Please refer to Appendix II
for further
guidance. The deliverables and milestones should be used to inform the payment terms in Attachment B.
Attaching RFPs and RFP responses to contracts is not permitted. RFP responses can be long and complicated and
may include both unnecessary information and introduce internally inconsistent terms within the Contract.
b) Contract Compliance Monitoring
The level of required contract compliance monitoring, if applicable, should be based on
the assessment of the risk for delay or failure to deliver the services. In assessing the risk, Agencies should
consider factors such as: amount of funds involved; contract duration; contract complexity; history of the
Contractor with State government; amount of subcontracting involved; and other relevant issues. Whether or not
NOTE: In certain instances, Amendment(s) to exercise pre-defined option language
(extension of duration and related price increase) may not require review and approval by the AGO
and Secretary (see section XIII.B
).
NOTE: Under no circumstances may any Contract be amended to extend beyond four
years, in total, without a specific waiver approved by the Secretary.
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liquidated damages, service credits and/or Retainage are part of the Contract, the document should include a
section that describes specifically how the Agency will monitor the contract for compliance.
Types of compliance monitoring processes and steps may include: (i) periodic Contractor
reports; (ii) invoice reviews; (iii) on-site visits; (iv) scheduled meetings; (v) audits; (vi) independent performance
reviews; (vii) surveys of users/clients; and (viii) post-contract audit or review. This section may also describe a
process for identification, discussion, and resolution of disputes between the Contractor and the State, both during
the Contract duration and after expiration.
5. Payment Provisions (Attachment B)
a. Payment Amounts and Frequency:
All State Contracts must describe how, when and under what circumstances
Contractors submit invoices to the State. Attachment B of the standard State Contract
should detail:
• Requirements and schedule for the submission of Contractor invoices;
• Whether payment will be made based upon: rates; hours worked; delivery
of a service, or State acceptance of a deliverable;
• Whether payment or any portion thereof will be tied to the achievement of
performance outcomes and/or measures;
• What documentation (bills, invoices or other proof of work) the
Contractor must provide when invoicing the State;
• When and how much the Contractor will be paid, and what deductions, if
any, will be made from payments; and
• The payment terms of Net 30 days, from the receipt of a complete and
error free invoice, are the generally accepted payment term standard, in
accordance with Finance and Management Policy #5 ~ Payment Terms
.
NOTE: Additional guidance on Statement of Work is available in this Bulletin as Appendix II:
Attachment A – Statement of Work Guidelines.
NOTE: Additional guidance on payments is available in this Bulletin as Appendix III:
Attachment B Payment Provision Guidelines.
NOTE: Contractor shall be paid based on documentation and itemization of work
performed and included in invoicing, as required by 32 V.S.A. §463
. If based on hourly prices,
invoicing must contain a summary of the work performed and details, including dates and hours of
work performed, and rates of pay for individuals.
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b. Performance Measures and Accountability
In accordance with 3 V.S.A. § 2313,
State Contracts and Grants should include
performance measures which enable the contracting Agency/Department to hold the Contractor/grantee
accountable and assess the performance of their services and deliverables under the terms of the Statement of
Work.
Contracts should include provisions, which link specific performance measures to
the outputs, quality, and outcomes of the services provided. Contract payment should be expressly contingent
upon State review, approval and acceptance of contract deliverables. In very specific language, the Contract
should detail how the Contractor is accountable for the work or product. These specific performance measures
provide objective standards for determining if the Contractor has successfully completed the contractual
obligations and if the delivered services or products meet such standards.
The contract’s Statement of Work to be performed (Attachment A), as noted in
Appendix II, must specify the time line for the deliverables, including interim steps, and measurable standards to
be maintained during the contract performance period.
c. Retainage
The purpose of Retainage is to ensure the State retains sufficient funds in the
event a Contractor does not perform in accordance with the specific requirements in the Contract. Retainage
should be considered for all Contracts. When Retainage is utilized, the Contract sets an amount of funds to be
withheld from each payment to the Contractor. The terms under which Retainage is paid must be detailed in the
Contract. Retainage should generally be withheld at a minimum of 10% of the Contractor’s invoice amount. The
Retainage language in the Contract must specify any additional conditions and requirements that must be met prior
to the release (payment) of the Retainage, in whole or in part. Such conditions might include contract close-out,
final State acceptance and the submission of a separate Retainage invoice.
d. Liquidated Damages
The term “Liquidated Damages” refers to an amount of money the parties agree, at the
time of contract formation, shall be payable by the Contractor to the State as compensation for delay or failure to
meet particular performance standards. Liquidated damages operate as an agreed-upon substitute for any actual
damages suffered as a result of a breach, thereby enabling the parties to avoid litigation, and to continue
performance under the Contract.
An amount fixed as liquidated damages must reflect a reasonable approximation of
probable damages resulting from a particular breach and shall not operate as a penalty to punish the Contractor for
late or substandard performance.
Liquidated damages are not appropriate for every Contract. Agencies considering
whether to include liquidated damages provisions in a Contract shall consult with Agency counsel or the AGO.
NOTE: Advance payments are strongly discouraged. First, advanced payment for work
that is not performed or not satisfactory may not be recoverable without filing a lawsuit. Second,
in the case of Contractor default and insolvency, the advanced payment may be subject to
bankruptcy proceedings and may not be recoverable.
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e. Reimbursable Travel Expenses
The State strongly prefers Contractors include reimbursable travel expenses (mileage,
airfare, lodging, meals, etc.) as part of their fixed or hourly rate(s), or include a fixed travel allowance amount.
Reimbursing detailed invoices for travel expenses is administratively burdensome, requiring additional
documentation, review, and accounting transactions in VISION. However, the amount the Contractor includes in
the rate or as an allowance, must be determined to be reasonable. Reasonableness should be based on: 1) the
agreed Statement of Work specifications for number of on-site days, weekly/monthly trips, over-night stays,
mileage, etc.; and 2) standard travel costs, with consideration for Federal funding requirements, any limits that
may apply, or per diems, such as Federal General Services Administration (GSA) rates for meals and lodging.
In cases where the reimbursement of detailed travel expenses cannot be avoided, such as
when required by certain industries or professions, Agencies must obtain a waiver from the Secretary, or have
such waiver in their approved Contracting Waiver Plan, prior to including reimbursable travel expenses in any
Contract.
6. Insurance Coverage Limits
Appropriate insurance coverage limits are required in a Contract to protect the State’s
interests. Standard Insurance Coverage provisions are included in Attachment C and are deemed appropriate to
cover most contractual situations. However, Professional Service Contracts may require additional types of
insurance such as professional liability or IT professional liability. Higher insurance limits may be required, such
as when relatively dangerous or hazardous activities are contemplated. Conversely, reduced limits or decreases in
coverage may be appropriate. Agencies/Department shall consult with the Director of Risk Management for
guidance and approval, when considering the appropriateness of insurance requirements. All changes to the
Standard Insurance Coverage limits in Attachment C require the prior approval of the Director of Risk
Management. Such approval must be documented and retained in the contract file along with a current Certificate
of Insurance (COI).
Special care should be paid to Workers’ Compensation coverage for Contracts with out-of-
state Vendors. Vermont statute requires insurance carriers be specifically licensed to write Workers’
Compensation coverage in Vermont. Out-of-state Vendors may have Workers’ Compensation coverage valid in
their home State, but their carrier may not be licensed to cover Workers’ Compensation for work actually
performed by their employees in Vermont. Agencies may verify whether an out-of-state Vendor’s Workers’
Compensation carrier listed on the Certificate of Insurance is licensed in Vermont on the Department of Financial
Regulations website by clicking [here
].
NOTE: Changes to insurance limits approved by the Director of Risk Management shall
be documented in Attachment D, referencing the Attachment C Insurance section, to which the
changes apply.
NOTE: Under no circumstances may the actual Attachment C document itself, be
modified. When changes or modifications are necessary, Agencies shall use Attachment D.
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7. Intellectual Property Ownership
3 V.S.A. §346
allows the State to grant permission to Contractors the right to use or own
intellectual property developed for the State, for the Contractor’s commercial purposes. Refer to the IT Guideline
for additional information.
8. Confidential Information
When drafting an RFP or Contract that contemplates Contractor goods or services that
will involve using, accessing, storing, processing and/or generating Confidential Information, Agencies will have
the following additional considerations, such as: how the data will be used by the Contractor; security of the data;
protection for Confidential Information; access to the data; ownership of the data; and return or destruction of
data. Agencies must seek the advice of ADS Security and/or the AGO when preparing such RFPs or Contracts.
9. Change Order Process
Most changes to a Contract will require a Contract Amendment and must adhere to the
Contract Amendments, Approval and Execution process required in this Bulletin (section XIII
). However,
construction and IT implementation service providers typically utilize a formal Change Order process in order to
implement minor scope changes without undue delay in a project. An Agency may choose to include a Change
Order process in its construction and IT implementation Contracts using the standard Change Order process
language from an approved template maintained by OPC. Any changes to the standard Change Order process will
require Secretary and AGO approval, regardless of the Contract amount. Change Orders may also be referred to
as “task orders,” “change requests,” and the like. In all instances, the Change Order process must include:
• Inclusion of the original Contract number and a sequential Change Order number,
and describe which parts of the Contract are changed and which parts are added;
• Inclusion of the Contractor certifications required under Section XIII.A.1. d of this
Bulletin;
• State approval of all Change Orders, as per the applicable template;
• Execution by both the State and the Contractor; and
All Change Orders executed during the Contract term shall be consolidated into
executable Contract Amendments any such time as an amendment would otherwise be required, pursuant to the
Contract Amendments, Approval and Execution process required in this Bulletin (section XIII
). The executable
Amendment will then be routed for the applicable Contract Amendment approvals as required by this Bulletin.
B. Obtaining a VISION Contract Number
Regardless of dollar amount, Agencies must enter all Contracts, including Commodity Contracts
into the VISION system to obtain a Contract number, record and track the Contract (see VISION Procedure #3 –
Purchase Order Procedure). In addition, 3 V.S.A. § 344 (a) requires: The Secretary of Administration shall
maintain a database with information about Contracts for Services, including approved Privatization Contracts and
approved Personal Services Contracts; this database is maintained in the VISION system.
NOTE: In the case of out-of-state Vendors, the Vendor’s Workers’ Compensation
insurance carrier must be licensed to write Workers’ Compensation for all work that will be
conducted within Vermont.
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Each VISION Contract record shall include a representative “long description” accurately
describing the Contract subject matter; descriptions such as “Personal Services” or the name of the issuing Agency
are not acceptable. For all Contracts of $10,000 or greater (or for lesser amounts if required by your Agency
procedures) Form AA-14
(Contract Summary and Certification Form) must be completed. It is the responsibility
of the Agency to obtain any required signatures on Form AA-14 before approving the contract in the VISION
finance system.
Prior to entering the Contract into the VISION system, Agencies must verify all existing Vendor
information is the VISION system is correct and a current (within 6 months) Form W-9 is on file. If the form W-9
is out of date and/or a new Vendor record must be established, refer to the VISION Vendor Request Form, Form
W-9 and Vendor FAQs.
[END SECTION IX]
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X. CONTRACT ROUTING AND APPROVALS
A. Contract Package and Routing
1. Contract Package
A Contract or Contract Amendment requiring one or more prior approvals beyond that of
the Appointing Authority shall be circulated with the relevant supporting documentation required herein
(“Contract Package”) to enable timely and accurate consideration of the requested approval(s). Only one Contract
package shall be circulated for approval.
Contract Packages may be circulated electronically, but only in accordance with a ADS-
approved electronic signature system. However, Agencies wishing to begin electronic submission to F&M after
July 1, 2016, must first receive the permission of the Commission of Finance and Management, or designee.
Sending separate copies to the prior-approval parties or circulating electronically to all prior approval parties at the
same time is not acceptable. All approvals required must be obtained sequentially, in the order shown on Form
AA-14
.
The Department of Finance and Management acts as the clearinghouse for Contract
packages requiring approval by the Secretary that include a pre-approved Sole Source request and/or one-time
waiver request. In such cases, F&M must receive the Contract Package, with all prior approval signatures
necessary, at least two weeks before the planned execution date. If less time is available, a letter of explanation
should be attached. However, for Contracts taking effect on July 1, Contracts should be submitted no later than
June 1. F&M will forward the Contract package and its own recommendation to the Secretary for final approval.
If approved, the Secretary will return the package to F&M where a copy of the signed Form AA-14 will be
retained; the remaining documents will be returned to the Agency.
2. Content and Order of Package Documents
To expedite the review and approval process, any request for approval of a Contract or
Contract Amendment must consist of the following documentation, and the Contract Package, whether circulated
in hard copy or via a ADS-approved electronic signature system, must be assembled in the following order:
a. Form AA-14;
b. Internal review or routing document, if used by the requesting Agency (for example,
BGS issues a Request for Review (RFR) document provides a quick summary of the
contract, term, amount, and signatures);
c. ADS Review Verification Sheet (if applicable) (see IT Guideline
for additional
information);
d. Cover memo or other document summarizing and/or justifying the requested Contract
or Contract Amendment (for example, as applicable and appropriate, this document
may be a Recommendation for Award, Sole Source Request, One-Time Waiver, or a
Note to File);
e. Proposed Contract or Contract Amendment, including all Attachments (in alpha-
numeric order);
f. For any Contract Amendment, include the original Contract, all prior Amendments,
and the corresponding AA-14s in appropriate order.
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3. Document Naming Convention for ADS-approved electronic signature system:
Agencies circulating Contract Packages electronically for review and approvals should
consider utilizing a standard naming convention, for example:
• Standard Contract Package (requiring signature on AA-14 only):
“CONTRACT # AND AMEND# (IF APPLICABLE) VENDOR NAME AA-14 SIGN”
• If Contract Package includes Sole Source Request (requiring signature on AA-14 and
Sole Source Memo) add “and Sole Source” to end of Standard Contract Package title:
“CONTRACT # VENDOR NAME AA-14 AND SOLE SOURCE SIGN”
•
If Contract Package includes One-Time Waiver Request (requiring signature on AA-
14 and Waiver Memo), add “and Waiver for XXX” to end of Standard Contract
Package title: “CONTRACT
# AND AMEND# (IF APPLICABLE) VENDOR NAME AA14
and Waiver for XXXX SIGN”
• For a One-Time Waiver made prior to RFP or Contract: “WAIVER for XXXX Sign”
• For Expedited Requests, begin title with the word “Expedite”. ONLY Contracts,
Amendments, Sole Source requests and waivers that have urgency may be named
using “Expedite” as the first word in the title. For example, a Standard Contract
Package would be titled as follows:
“EXPEDITE CONTRACT # AND AMEND (IF APPLICABLE) VENDOR NAME AA14
SIGN”
B. Approvals - Required Prior Approvals
An Agency may be required to obtain prior approval of a Contract from the Secretary, the Office
of the Attorney General (AGO) (which includes in-house assistant attorney general), Chief Information Officer
(CIO), Chief Marketing Officer (CMO), or Commissioner of Human Resources.
If documentation other than the Standard State documentation is used, Appointing Authorities
should consult with Agency general counselor the AGO to confirm contract terms, particularly those in “small
print” Vendor documents, are consistent with State law and policy. In the case of Contracts in an amount less than
$25,000 ($0 - $24,999) which may pose substantial risk to the State, Agency general counsel or the AGO should
be consulted to determine if modifications to Contractor forms are required.
1. Attorney General
The Attorney General, or his/her designee, must give prior approval as follows:
a. A Contract for Service valued at $25,000 or more must be certified by the AGO, as
detailed in section V of this Bulletin and 3 V.S.A. §342
.
b. A Contract for Service valued at $25,000 or more must be reviewed and approved
“As to Form” to ensure that the agreement: (a) complies with all applicable
statutory requirements and State policy; (b) generally could be interpreted to be
legal, valid, binding and enforceable; and (c) appropriately protects the interests of
the State.
NOTE: The State shall not execute a Contract requiring prior approvals until all such required
approvals have been obtained.
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c. Regardless of dollar amount, a Contract for Service must be reviewed and approved
“As to Form” in any of the following circumstances:
• Vendor-required forms (for example, “small print” terms and conditions);
• Privatization Contracts;
• Contracts including a Change Order process (a.k.a. task orders, change
requests, see section IX.A.8
);
• Financial Transaction Contracts;
• Zero-Dollar contracts.
d. Agreements to Receive or Access Confidential Information described in Section
VI.D
e. Contracts for the retention of legal services must be approved by the AGO pursuant
to the process set forth in AoA Bulletin 17.10.
Upon request, the AGO will review contracts “As to Form” where such approval is not
otherwise required, as above. Reviewing “As to Form” can help ensure project scope, project roles and
responsibilities of the parties and payment provisions are clear and enforceable. This review “As to Form” is
highly recommended for complex Contracts.
The AGO may decline to approve Contracts “As to Form” when a Contract is not
consistent with State law and policy or discretionary choices made by the Agency pose risk concerns unacceptable
to the AGO or the Director of Risk Management. Should the AGO decline to approve a contract “As to Form,”
the Agency may still request approval to enter into the Contract from the Secretary, in accordance with section
VIII.D.2.
2. Secretary of Administration
The Secretary, or his/her designee, must give prior approval to:
a. Contracts with maximum amounts over $500,000;
b. Sole Source Contracts greater than $10,000;
c. Privatization Contracts;
d. Contracts which include a Change Order process (a.k.a. task orders, change
requests, see section IX.A.8
);
e. Financial Transaction contracts;
f. Agreements to Receive or Access Confidential Information described in Section
VI.D;
g. Zero-Dollar contracts;
h. Waiver requests other than Sole Source;
i. All Contracts which the AGO has declined to approve "As to Form".
j. All Contracts with Internet service providers.
3. Commissioner of Human Resources
a. Privatization Contracts
Special and stringent requirements apply to Privatization Contracts. Any Contract
that would result in the reduction in force of at least one permanent, classified State employee, or the elimination
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of a vacant position of an employee covered by a collective bargaining agreement is likely to fall within the
definition of “Privatization Contract” (see 3 V.S.A. § 341
for complete definition). No Agency may enter into a
Privatization Contract unless it has first notified the Commissioner of Human Resources and subsequently worked
with the DHR to follow the procedure specified in
3 V.S.A. § 343. The Agency shall be required to notify the
Vermont State Employees Association (VSEA) of its intent to enter into a Privatization Contract 35 days prior to
the beginning of any open bidding process, including an informal bidding process. Additionally, the Agency must
demonstrate, by use of an accounting process specified in
3 V.S.A. § 343, that the proposed Contract will result in
cost savings to the State of at least 10% compared to the cost of having the service provided by classified State
employees. DHR approval is required in addition to the normal approval(s) required based on the contract amount
and/or waiver requested.
b. Contracts with State of Vermont Employees and/or Retirees
State Personnel Policy 5.1
(Simultaneous Employment) prohibits employees from
entering into a Contract agreement or other employment which will result in concurrent payments from the State
of Vermont under more than one employment category, unless approved by the Commissioner of Human
Resources.
The Commissioner of Human Resources (DHR) must also review and approve any
contract with a former State of Vermont employee or retiree executed within one (1) year of the employee’s date
of separation or official retirement date. DHR approval is required in addition to the normal approval(s) required
based on the Contract amount and/or waiver requested. The Commissioner of DHR shall maintain a list of all
Contracts, approved or rejected, with former State of Vermont employees.
to:
4. State Chief Information Officer
The State Chief Information Officer (CIO), or his/her designee, must give prior approval
a. All RFPs for Information Technology and Information Security contracts, regardless
of dollar value, prior to posting;
b. Agreements to Receive or Access Confidential Information described in Section
VI.D:
c. Contracts for cloud services (SaaS, PaaS and IaaS) regardless of dollar value (see
IT
Guideline for more information);
d. Contracts which will involve the electronic processing, storing, or transmission of
Confidential Information;
e. Sole Source Contracts for Information Technology Activities and Information
Security; and
f. Information Technology and Information Security Contracts over $500,000.
Agencies must follow CIO/ADS standards for the management, organization and tracking
of Information Technology activities. These standards may be obtained from the Agency of Digital Services
(ADS) or found at http://digitalservices.vermont.gov/
.
Certain IT Activities may require an Independent Review (IR) in accordance with 3
V.S.A. § 2222(a)(9) and (10). Refer to the IT Guideline for additional information about Information Technology
requirements and duties of ADS/the State CIO.
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5. Marketing Service Contracts
Any Contract for Service relating to marketing with a value greater than $25,000 requires
the prior approval of the Chief Marketing Officer (CMO). Vendors of marketing services must be on the CMO's
list of pre-qualified Vendors. For marketing Contracts valued at $25,000 or less, Agencies must refer to and
comply with applicable Statewide marketing guidelines, policies, and standards issued by the CMO and available
at: http://cmo.vermont.gov/.
[END SECTION X]
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XI. CONTRACT EXECUTION AND CONTRACT FILE
A. Execution
A Contract must be signed
(1)
by the appropriate Appointing Authority or his/her designee,
consistent with AoA Bulletin 3.3
, Delegation of Authority for Signing Documents, and a fully executed copy
maintained in the Contract File. The Agency/Department Agency must provide a copy of the entire Contract, as
executed, to the Contractor.
B. Contract Administration and Contract File
Once a Contract has been executed, Agencies must properly administer Contractor performance to
ensure compliance with the contract terms. A successful Contract is equally dependent on post-award
administration as it is on a well-written Statement of Work (SOW) and thoughtful payment terms. The process of
contract administration begins with the solicitation documentation and continues through from the time of contract
award until the work has been completed and accepted, any disputes or adjustments have been resolved, final
payment has been made and the Contract is formally closed out
.
The individual administering the Contract for the Agency (Contract Administrator) must read and
become familiar with the Contract and contract requirements in order to establish a schedule of activities for
ensuring compliance by both the Contractor and the Agency. Contract compliance monitoring will include:
• Ensuring that all required certificates and reports are delivered;
• Monitoring and coordinating subcontractor approval, if any;
• Monitoring Contractor performance and coordinating any State review and approvals of
deliverables;
• Monitoring invoicing and payments;
• Amendment processing and administration; and
• Conducting contract closeout, including ensuring all final Contractor reporting and
deliverables have been received an accepted prior to final payment.
The Contractor’s performance must be measured by all performance elements and criteria
established in the Contract. While the reporting, collection, monitoring and evaluation of Contractor performance
data may be a collective effort by other contract stakeholders, the contract administration function should act as a
repository for all performance data and act as overseer to ensure that contractual performance requirements are
monitored and reported.
The Contract Administrator will need to be aware of all Agency-Contractor activities,
communications and status surrounding any and all deliverables in the event of a situation affecting any area of the
contractual relationship and/or status. For example, if a deliverable is late, unacceptable or there is some other
dispute, the Contract Administrator may be responsible for coordinating the required communication and
resolution. Therefore, the Contract Administrator should obtain copies of the relevant paper trail, as the contract
file must include complete supporting data regarding such a situation.
(1)
Signatures may be affixed on the signature page in writing, or through a ADS authorized e-signature system.
Faxed or scanned copies of hand written signatures are also valid. Counterparts: In situations where signature
pages are executed separately by the parties, each signature page shall be deemed an original.
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The Contract Administrator will process any termination documentation - for breach, default, non-
appropriation of funds or if the Agency terminates for convenience. When termination occurs for any reason
except the end of the contract term, notices must be given to the Contractor in accordance with the contractual
requirements.
An Agency must maintain an up-to-date contract file. Agencies must keep all Contracts and the
required documents on file as Public Records for at least three years after the Contract’s term expires. A Contract
File Check List, detailing all required documentation for the official contract File, is provided in Appendix I.
An
official Contract file is required for all Requests for Information (RFI), Requests for Proposal (RFP) and all
Contracts awarded regardless of type of bid or waiver involved. Agencies must download the Contract File Check
List and use it as a tool to ensure compliance with the documentation standard for public records and audits.
C. Conflict of Interest
Employees with a conflict of interest or appearance thereof, shall not participate in, control or
influence the bidding process, the awarding of Contracts, or the approval of payments against said Contracts.
Department of Human Resources (DHR) Employee Policy 5.6
and the Executive Code of Ethics (Executive Order
#09-11, codified as 3 V.S.A. § E03-53) set standards that shall be used as the primary guide. Additionally, every
effort shall be made to avoid even the appearance of a conflict of interest in the contracting process (see Section
III for definitions). Further, every Contractor shall be required to disclose in writing any actual or potential
conflict of interest.
D. Statewide and Retainer Contracts
1. Statewide Contracts
To simplify the acquisition process, the OPC maintains numerous Statewide Contracts for
supplies, which include materials, equipment, parts, and commodities. Unless otherwise approved in advance,
these Statewide Contracts must be used by all Executive Branch entities. To find out if a Statewide Contract
exists that meets an Agency’s need, contact the Office of Purchasing and Contracting or refer to the web site at
http://bgs.vermont.gov/purchasing-contracting/contract-info.
Other Agencies may create Statewide Contracts, such as Statewide Marketing Contracts,
only when authority is expressly granted by the Secretary or applicable law.
2. Marketing Master Contracts
The Chief Marketing Officer (CMO) shall be the only named State party on, and point of
initiation for, all Marketing Master Contracts. The CMO requires a process similar to the approach to IT Retainer
Contracts described below when establishing Master Marketing Contracts as well as the subsequent agreements
executed pursuant to them (SOWs). Agencies should access policies and services through Master Marketing
Contracts including: a) Media Buying, b) Creative Services, and c) Photography here:
http://cmo.vermont.gov/document/pre-qualified-marketing-vendors-list
.
3. IT Retainer Contracts
OPC maintains a number of Vendors pre-qualified to allow Agencies to quickly and
efficiently obtain certain IT consulting and technical services. These pre-qualified Vendors provide services in
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many functional areas or categories ranging from strategy and analysis services to Information System Security
and Systems Engineering. The Vendors have agreed to the Standard State Terms and Conditions.
This results in a two-step approach to procurement. The first step is qualifying a group of
Vendors under a set of requirements or functional areas. The second step allows State Agencies/Departments to
solicit responses from those pre-qualified Vendors for a business need defined in a Statement of Work-Request for
Proposals (SOW-RFP), and come to agreement by signing a Statement of Work (SOW) Agreement. The
appropriate process and all forms to be used are set forth in each “retainer” agreement for the information of both
the Vendors and the Agencies. Once an Agency has elected a Vendor using this process, it should obtain a copy
of the applicable Retainer Contract for purposes of the complete contract file and contract compliance monitoring.
This SOW-RFP process is not intended for projects that would result in Contracts of more
than $500,000. These larger projects require the formal Request for Proposals process. The limit per Agency
SOW Agreement to be entered into using the SOW-RFP process is $500,000. Limits may be waived by the Chief
Information Officer. Retainer Contracts are subject to dollar limits as well, requiring that Agencies verify the
Retainer Contract balance remaining before obligating additional SOW-RFP Agreements against the Retainer
Contract.
Additional information and the procedures required to access these Retainer Contracts is
located at: http://bgs.vermont.gov/purchasing%20and%20contracting/current%20contrats/information-technology.
E. Blanket Delegation of Authority (BDA)
OPC may delegate authority to Appointing Authorities to make certain types of purchases
directly. A BDA enables Agencies to maintain the continuity of everyday operations. The purchases made under a
BDA, however, are still subject to the underlying requirements of competitive bidding as stated in this Bulletin.
BDA#1 authorizes Appointing Authorities to make any single purchase up to $3,500 provided the
item being purchased is not available through an existing State Contract, is not otherwise restricted by statute or
Administrative Bulletin, and is not an ongoing need of the department. BDA #1 may not be used to purchase
services, IT purchases, and print procurement (in accordance with the Print Procurement directive issued by
the Secretary of Administration dated February 13, 2012). All IT purchases shall be made under an existing
Statewide Contract, IT Retainer Contract or in accordance with the IT Guidelines.
For items needed on an ongoing basis, Agencies are expected to work with the OPC to establish a
Contract. Specific authority covering certain classes of items for example, fresh produce purchased from local
farmers at market prices can be requested through the OPC. All BDAs, including BDA#1, are subject to the
ongoing approval of the OPC and can be revoked or modified at any time. All purchases made under a BDA may
be subject to audit to determine compliance with this Bulletin and with the applicable BDA.
If the needed item(s) are not available under an existing Contract and is are not covered by an
existing BDA, the Agency must prepare a requisition through the VISION system in accordance with the VISION
Requisitions Manual and have the requisition budget checked for sufficient funding by the VISION system.
[END SECTION XI]
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XII. SUBCONTRACTS
The Contractor may not assign, subcontract or sub-grant the performance of a Contract or any portion
thereof to any other subcontractor without the prior written approval of the State. If subcontracting is approved by
the State, the Contractor remains responsible and liable to the State for all acts or omissions of subcontractors and
any other person performing work under the Contract. When a contract involves subcontracting (sub-agreement),
the State should encourage the Contractor to follow a fair and open award process and create clear and thorough
subcontracts to enable the Contractor to properly monitor the performance and compliance of the subcontractor(s).
Contractors shall include the following provisions of Attachment C in Contractor’s subcontracts for work that is to
be performed solely for the State of Vermont or performed in the State of Vermont: (i) Fair Employment Practices
and Americans with Disabilities Act, (ii) False Claims Act, (iii) Whistleblower Protections, (iv) Taxes Due the
State, (v) Child Support, (vi) No Gifts or Gratuities, (vii) Certification Regarding Debarment, (viii) Certification
Regarding Use of State Funds, (ix) State Facilities and (x) Location of State Data.
Standard State terms and conditions (Attachment C, “Sub-Agreements”) clearly require prior notice to and
the written approval of the State before a Contractor may assign or subcontract the performance of any Contract,
in whole or in part.
XIII. CONTRACT AMENDMENTS, APPROVAL AND EXECUTION
One purpose of this Bulletin is to minimize Contract Amendments, especially as they relate to significant
unanticipated changes in the Statement of Work, contract duration and/or the contract maximum amount. It is
generally desirable to avoid Contract Amendments because they may diminish the advantages of the competitive
bidding process. Extensive Contract Amendments may indicate an Agency did not define and develop a thorough
Statement of Work to be performed.
Agreements such as Letters or Memoranda of Understanding (MOU), designed to amend a Contract are
unacceptable.
A. Contract Amendments:
1. Amendment Requirements:
a. Contract Amendments shall be required for any change that alters the essential terms of
the original Contract, including but not limited to the following examples:
• a change to the Contract that expands or decreases the Statement of Work and/or
Deliverables;
• a change to the Contract that expands or decreases the payment amount beyond
what is defined in the original Contract;
• a change to the payment provisions beyond those defined in the original
Contract;
• a change to extend the contract duration beyond the original duration defined in
the original Contract; and,
• any other change to an Attachment, for which the Contractor is to be held
accountable or which would increase risks to the State.
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b. All Contract Amendments must include the original contract number and a sequential
Amendment number. An Amendment should describe, with specific reference to the
applicable sections of the Contract, what is being added, deleted or otherwise modified.
A new Form AA-14 must show the original contract number and the Amendment number.
c. When issuing a Contract Amendment, Agencies/Departments shall ensure that the
Contract is updated to include the current version of Attachment C in effect at the time of
the Amendment.
d. All Contract Amendments and Change Orders must include the following certifications:
i. Taxes Due to the State. Contractor certifies under the pains and penalties of
perjury that, as of the date this Contract Amendment is signed, the Contractor is in
good standing with respect to, or in full compliance with a plan to pay, any and all
taxes due the State of Vermont.
ii. Certification Regarding Suspension or Debarment:
Contractor certifies under the pains and penalties of perjury, as of the date this
Contract Amendment is signed, neither Contractor nor Contractor’s principals
(officers, directors, owners, or partners) are presently debarred, suspended,
proposed for debarment, declared ineligible or excluded from participation in
federal programs, or programs supported in whole or in part by Federal funds.
Contractor further certifies under pains and penalties of perjury that, as of the
date that this Contract Amendment is signed, Contractor is not presently
debarred, suspended, nor named on the State’s debarment list at:
http://bgs.vermont.gov/purchasing-contracting/debarment
.
iii. Child Support (Applicable to natural persons only; not applicable to
corporations, partnerships or LLCs):
Contractor is under no obligation to pay child support or is in good standing
with respect to or in full compliance with a plan to pay any and all child support
payable under a support order as of the date of this Amendment.
e. All Contract Amendments and Change Orders to a Contract originally procured as a
Sole Source must include the mandatory certification language set forth under Section
VIII(D)(1)(d) of this Bulletin.
NOTE: The issuance of a revised Attachment C does not necessitate a Contract Amendment,
in and of itself. However, Agencies shall include the most current Attachment C when issuing an
Amendment to an existing executed Contract, replacing the Attachment C in effect at the time of the
original contract execution.
NOTE: Agencies must not use multiple Contracts to procure goods and/or services which can
reasonably be procured through one Contract, nor use the Contract Amendment process to avoid the
requirements in this Bulletin, relating to competitive solicitation and approvals.
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B. Amendment Approval and Execution:
1. Contract Amendment Package:
For Amendments requiring approval by the AGO, the Secretary and, in certain cases, the
Chief Information Officer, a complete “Contract Amendment Package” (Package) will be sent to the Department
of Finance and Management for handling. The “package” must include:
• a copy of the original executed Contract, including all Attachments and the initial Form
AA-14;
• a copy of all previously executed Amendments, including all related Attachments and
Forms AA-14; and
• the current proposed Amendment, including all Attachments and the new Form AA-14.
2. Appointing Authority Approval Required:
The Appointing Authority must approve all Contract Amendments.
3. Attorney General’s Office and Secretary of Administration Approvals Required:
In addition to the approval of the Appointing Authority, approval by the AGO and the
Secretary prior to execution of an Amendment is required in any of the following circumstances:
a) for any Amendment to a Contract originally procured as a Sole Source, except that prior
approvals of the AGO and the Secretary shall not be required where the amendment is only to extend duration and
increase the maximum amount as expressly contemplated under the terms of the original Contract, and the
maximum amount of the Contract remains under $100,000 (with no change to Statement of Work or other
Contract terms); or
b) any Amendment to a competitively sourced Contract originally procured using a
simplified bid or RFP, if the cumulative effect of the Amendment and all prior Amendments increases the
Contract price by 25% or more, except that prior approvals of the AGO and the Secretary shall not be required
where the Amendment is only to extend duration and increase the maximum amount as expressly contemplated
under the terms of the original Contract (with no change to scope of work or other Contract terms).
4. Chief Information Officer (CIO) Approval Required:
The CIO’s approval is required for any and all Contract Amendments concerning a Contract
for an Information Technology Activity and Information Security, as follows:
a. All Contracts originally for cloud services (SaaS, PaaS and IaaS) regardless of dollar
value (refer to the IT Guideline
for more information);
NOTE: Contract extension, renewal, or increases should be contingent upon prior satisfactory
contractor performance, as determined by the Agency’s evaluation process.
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b. All Information Technology and Information Security Contracts which originally
involved the processing, storing, or transmission of information protected by State or
Federal law, including protected health information, personally identifiable information,
Federal tax information and education information;
c. The original Contract was less than $500,000, plus the cumulative effect of all
Amendments increases the Contract price above $500,000; or
d. The original contract was $500,000 or more, and the cumulative effect of all Amendments
has increased the contract price by 25% or more.
C. Execution of Amendments:
Only an Appointing Authority may execute a Contract Amendment. Prior to executing an
Amendment, it is the responsibility of the Appointing Authority to ensure the Amendment:
• is warranted;
• has obtained all required prior approvals; and
• is not being employed to significantly expand and/or change the Statement of Work,
thereby jeopardizing the integrity of the competitive process.
D. Amendment Number and VISION Record:
As with the original Contract, each Contract Amendment must have a sequential Amendment
number appended to the original VISION Contract number. All Amendments which change the duration, end date
or maximum amount must be entered into the VISION system to update the existing Contract record (see VISION
Procedure #3 – Purchase Order Procedure). Maintaining the correct Contract information for payment and
reporting purposes is also required by 3 V.S.A. § 344 (a).
XIV. CONTRACTOR NAME CHANGE OR OTHER CHANGE IN
CIRCUMSTANCES
If a Contractor’s name should change during the term of a contract, Agencies should consult with
counsel or the Office of the Attorney General about whether and how to properly document the change in the
contract. In certain circumstances, Finance and Management will require a new Contract number in VISION with
a revised Contract amount that appropriately accounts for any amounts already paid under the Contract.
There may further be circumstances in which there is such a change in the Contractor’s identity,
organization or capital structure, such as may occur with a merger or acquisition involving the Contractor, or other
reason why it may be appropriate to agree to a novation of a Contract. Agencies should obtain specific advice and
appropriate forms from counsel or the Attorney General’s Office when considering this approach.
Note that Standard State Contracting forms do not allow assignment of a Contract by a Contractor
without the State’s written agreement. Agencies should obtain specific advice from counsel or the Attorney
General’s Office when a Contractor attempts to make an assignment or requests the State’s agreement to do so.
[END SECTION XII - XIV]
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XV. ACCOUNTING FOR PAYMENTS TO CONTRACTORS
All contractual payments shall be made through and tracked in the VISION System, in accordance with
VISION Procedure #3 – Purchase Order Procedure.
Contracts for Service will be coded to the appropriate
expenditure account, per the Chart of Accounts, and will no longer default to #507XXX series of accounts. Only
those Contract for Service which are definitively categorized as Personal Service or Privatization Contracts, as
detailed in Section
IV.B and IV.D, respectively, of this Bulletin will be coded to the #507XXX series of Third
Party Personal Service accounts.
In the case of Financial Transaction contracts, including certain “Zero-Dollar” Contracts (see section III
Definition) and regardless of whether the State receives the Gross or Net amount, accounting for the transaction
must be done in accordance with Generally Accepted Accounting Principles (GAAP).
XVI. COMPLIANCE REVIEWS
In order to promote compliance with the provisions of this Bulletin, the Department of Finance and
Management, the Office of Purchasing and Contracting and the Chief Performance Officer may conduct
management reviews relative to this Bulletin, as deemed necessary.
XVII. FEDERAL FUNDING ACCOUNTABILITY & TRANSPARENCY ACT
(FFATA)
For some contracts funded through Federal awards, the requirements of the Federal Funding
Accountability and Transparency Act (FFATA) may apply. Contracting Agencies are responsible for determining
if a Contract meets the requirements of FFATA, including: Contractors have a valid DUNS number; are active
Federal System for Awards (SAM) registrants; and reporting of all sub-awards (Contracts) in the FFATA Sub-
award Reporting System (FSRS). For additional information about these requirements, refer to Finance and
Management Policy No. 8 ~ Federal Funds Accountability and Transparency Act Compliance
and the federal
Uniform Guidance (2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards).
XVIII. PUBLIC RECORDS REQUESTS
Agencies/Departments should work closely with the AGO, embedded AAG or Agency counsel on Public
Records requests involving contracts and bid documents. Contracts and all documents sent to the State in
response to an RFP/RFI are public records which are exempt from disclosure to the public until a Contract is
awarded and fully executed. Once the Contract has been fully executed, or the State has decided not to execute a
Contract and will not pursue a new or related RFP/RFI process, all documents associated with the bid, including
all Vendor proposals and evaluation notes, are then considered available for review by the public and subject to
disclosure in accordance with the State’s Public Records Act, 1 V.S.A. § 315
, et seq..
If an Agency receives a Public Records request and the response to the request includes materials marked
or identified by the bidder as proprietary and confidential according to 1 V.S.A. Chapter 5
, the Agency shall
immediately contact the AGO, embedded AAG or Agency counsel.
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XIX. PUBLIC ENDORSEMENTS
Writing a recommendation or giving a recommendation to any Vendor or to any person for their general
use, is prohibited. The State cannot give the appearance of “endorsing” a person, product, or company. If one of
the bidders produces a written recommendation from the State, it would appear as if the entire process of
providing for an “open and fair” bidding process is suspect. It could be interpreted that the State had already
“recommended” or endorsed a particular Vendor. Even the appearance of a pre-determined “recommendation” is
strictly prohibited. An Agency may respond to a specific inquiry about a specific Vendor or project, but all
responses shall be limited to factual statements.
When issuing an RFP, basing an award of a Contract on prior work history and experience is only
acceptable if the selection criteria specified prior history and experience.
A. Selection. Basing an award on prior work history means that the State will take into consideration the
Vendor’s prior work for / with the State - good or bad. It also means that the State will weigh work
history for all Vendors. For example, if 2 of 3 bidders worked for the State previously and performed
well, it is reasonable to assume both would see a positive impact of their work history on their overall
scoring under the selection criteria. Every Vendor must have an equal opportunity to win the award
based on the selection criteria.
B. Vendor References. A Vendor should list prior State work experience and non-State work
experience in their RFP response. As part of the RFP review process, both the State and non-State
entities listed must be contacted to verify whether the prior work experience was or was not
satisfactory. When contact with another unit of State occurs in this fashion, it is considered reference
verification and not a “recommendation” or endorsement.
[END SECTIONS XV - XIX]
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XX. APPENDICES
Appendix I – Standard State Contract Templates, Forms and Other Links
a. Standard State Contract Templates
i. Contract Amendment Template
ii. Information Technology (IT) Contract Template
iii. Short-Form Contract for Service Template s/Term & Conditions
[restricted use to some Contracts under $25,000 – see section V.B.1.]
b. Contract Amendment Template
c. Form AA-14 – Contract Summary and Certification Form
d. Contract File Check List
e. Bulletin 3.5 Contracting Waiver Plan form
f. IRS Publication 15 -A
[Note: Refer to §2 for IRS rules determining Contractor vs. Employee.]
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Appendix II: Attachment A – Statement of Work Guidelines
The Statement of Work (SOW) is the area in a Contract where the work to be performed is described. The SOW
will contain reference to any milestones, reports, deliverables, and services expected to be provided by the
Contractor, as well as outline any obligations of the State. The SOW should also contain a timeline for all
deliverables.
The problem most often seen with SOWs is a lack of specificity. A well-written SOW is a clearly descriptive
scope which identifies the responsibilities of both parties and avoids any ambiguity.
A well-written SOW consists of a highly tailored series of carefully worded statements that answer the following
questions:
• What work is to be done?
• What are the deliverables?
• Who is going to do the work?
• When is the work going to be done?
• How will the work be performed?
• How can you tell when the work is completed?
• How will you measure the performance of the work: How Much Did We Do? How Well Did We Do It? Is
Anyone Better Off?
A Statement of Work should include the following components:
1. Need Statement - Succinctly describe the State need that the work of this Contractor will address.
2. Goals of the Agreement - At the beginning of this section, complete the following sentence (please be
succinct): The goal of this project is to... Complete the sentence with a brief description of the goal(s) and
how the goal(s) shall be met. Goals can be technical, economic or social. Please be brief, two to three
sentences maximum.
3. Objective of the Agreement/Deliverables - Complete this section with the affirmative obligations of the
contractor, the objectives of the contract/project or goals to be achieved and the deliverables. Objectives
and goals should be measurable.
The problem with the above example is that nothing is specified. The task should be measurable, and the
deliverable must be quantifiable.
X
Poor Example: Task: Assess class needs for public health awareness.
Deliverable: Write curriculum to address needs.
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By reading the tasks and deliverables, the associated costs should be easily constructed, aiding in the
construction of a detailed Attachment B, Payment Provisions. More importantly, in reviewing the
deliverables, there should be no question about what is expected of the performing party. A SOW may
contain many deliverables, but each should be broken down into tasks and products to specify what is
expected.
4. Administration - If there are meetings, calls, conferences, or other “soft” deliverables, they should be
outlined in the administration portion of the SOW. Any requirement that is not an end product of a
specific task, but is required of the performing party, needs to be described in the administration section of
the SOW.
The problem with the above example is it does not specify what needs to be in the reports, what “periodic”
or “more frequent” means, and when the “height of the season” is.
5. Timeline - This section lays out all dates for the project tasks and deliverables. Also included are the dates
for the administration portion of the SOW.
6. Key Elements - Between the Needs Statement, Goals of the Agreement, Objectives/Deliverables,
Administration, and Timeline components of the SOW, there should be no ambiguity as to what is
expected of the performing party. Together, these elements should paint a thorough picture of what is
expected, when, and in what form, while noting any special requirements.
Good Example: Task: Survey 4 classes of 20 students in asthma awareness. Each class will
answer a 25-question survey that assesses their general knowledge of asthma issues as they relate
to public health. One reviewer should take up to 1 hour with each class to take the survey and
another 2 hours per class to assess the data.
Deliverable: A 10 - hour curriculum for graduate student classes of up to 20 students that
addresses issues of deficiencies in public health awareness in asthma prevention and care.
X
Poor Example: The Contractor will be required to give periodic reports of progress during the
soybean season with more frequent reports during the height of the season.
Good Example: The Contractor shall be required to give weekly reports consisting of: wind
pattern analysis, fungi spore distribution, and potential risk areas. During the height of the season,
May 15 - July 15, the Contractor may be required to give twice - weekly reports.
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Appendix III: Attachment B Payment Provision Guidelines
The main body of the Standard State Contract only states the maximum amount to be paid. Attachment B
describes how and when payments will be made. Although the Payment Provisions (Attachment B) need not be
long in the case of simple contracts, a well-written Attachment B is vital to eliminating payment problems during
the contract term.
The language below may be used as the standard opening paragraph for Attachment B:
“The maximum dollar amount payable under this agreement is not intended as any form of a guaranteed
amount. The Contractor will be paid for products or services actually performed, as specified in
Attachment A, up to the maximum allowable amount specified on page 1 of this Agreement, item 3. State
of Vermont payment terms are Net 30 days from date of invoice; payments against this contract shall
comply with the State’s payment terms. The payment schedule for delivered products, or rates for services
performed, and any additional reimbursements, are included in this Attachment. The following provisions
specifying payments are as follows:”
The following requirements and/or areas to consider may assist Agencies/Departments in developing well-written
payment terms:
1. PRICING: What is the price based on and does it relate to Attachment A?
• Units of work measures, such as hourly rates, hourly rates by specified position(s) or equipment;
• Specific and measurable deliverables, tasks or benchmarks;
• Progress payments based on days/weeks/months;
• Achievement of outcomes and/or performance measures toward the final result, as outlined in
Statement of Work-Attachment A;
• Quality standards;
• Formal acceptance process for deliverables;
• Additional items included in the price, such as fuel surcharges, environmental fees, etc.;
• Retainage provisions.
2. INVOICE SUBMISSION, APPROVAL AND ACCEPTANCE: What is the invoice and payment
process?
• Detailed invoices are required, per 32 V.S.A. §463
. A detailed invoice must include the following
details;
o The name and address of the Contractor (letterhead or signed by Contractor);
o Specific language itemizing the deliverables, units of measure, steps achieved, or progress
made;
o Dates of service or specific dates worked;
o The Contract number and the name of the project;
o Delivery tickets (proof of purchases), receipts or other documents to be attachments to
substantiate the invoice;
• Other invoice review and approval considerations may include:
o To whom and where the Contractor remits the invoice for pre-payment review and approval;
o The invoicing schedule, preferably on a monthly basis.
o How will you know when the work being billed is acceptable – who decides?
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o Who is(are) authorized approvers for the invoice?
o Address the process for invoices not approved due to: unacceptable work; missing a deadline;
incomplete work; etc.
o Address the process for handling and resolving payment disputes.
o Address any funding contingencies upon which this contract is based that could affect
payment to the Vendor (i.e., Federal Grant Awards, Legislative Appropriation, etc.).
3. CONTRACTOR PAYMENTS: What can the Contractor expect?
• Standard State payment policy is Net 30 days, from date of error free invoice receipt;
• The preferred method of payment is by ACH (Automated Clearing House is a secure payment
transfer system that connects all U.S. financial institutions. The ACH network acts as the central
clearing facility for all Electronic Fund Transfer (EFT) transactions that occur nationwide.);
• To provide a current IRS Form W-9, signed within the last 6 months.
• Retainage provisions.
• PAYMENT QUESTIONS: Whom should the contractor communicate with if they have a
question about their payment or method of payment (check, ACH Transfer, etc.)? In addition, the
State Treasurer’s Office maintains a Vendor Portal on which Vendors may access any payment
made electronically, by ACH or wire:
http://www.vermonttreasurer.gov/content/accounting/vendor-login.
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Appendix IV: Attachment D – Examples of Common Additional Term & Conditions
Many contracts can be fully described using the Contract and standard Attachments A, B and C. In some
cases, however, agencies will want to add additional provisions tailored to a specific need or their Contracting
Waiver Plan, not available in the Standard Contract and Attachments.
In addition, when contracting for professional services, agencies will be required (absent an appropriate
waiver) to include a professional liability insurance provision. Attachment D of the Contract “Approved
Modifications to Attachment C” should be used for these modifications, as necessary. Consult with the AGO or
the Director of Risk Management to ensure you are selecting the correct language.
Below are examples of the more common modifications, including explanatory guidance where
necessary.
Owner’s protective liability insurance: The Contractor shall carry liability insurance protecting the State
and the Contractor from all claims because of bodily injury or death and property damage, arising out of
the work performed under the Contract. The liability insurance shall be in an amount not less than
$1,000,000 and a Certificate of Insurance shall be furnished to the State before commencement of work.
Professional liability insurance: Before commencing work on this Contract and throughout the term of
this Contract, Contractor shall procure and maintain professional liability insurance for any and all
services performed under this Contract, with minimum coverage of $ per claim.
Availability of federal funds: This contract is funded in whole or in part by Federal funds. In the event the
Federal funds supporting this contract become unavailable or are reduced, the State may cancel this
contract immediately, and the State shall have no obligation to pay Contractor from State revenues.
Guidance: Owners Protective Liability Insurance should be utilized when a Contractor’s business involves
work at multiple job sites (not necessarily all for the State) and it is unclear whether the Contractor would have
adequate insurance coverage in the event of multiple occurrences at different sites. For example, Contracts with
large construction companies should include such a clause.
Guidance: Licensed Professionals with whom the State contracts, such as lawyers, architects, engineers, health
care providers, etc. must be required to maintain professional liability insurance in sufficient amounts to protect
the State’s interest from the consequences of negligence. It is important to note that “professional liability” is a
generic category of coverage including types such as: Physician’s medical malpractice; architect’s errors &
omissions; etc. The Director of Risk Management will determine the minimum amount appropriate for different
classes of professionals.
Guidance: Use this clause when the State Agency is not willing or able to compensate for the loss of Federal
funds on short notice. Agency fiscal officers should closely monitor funding availability and performance under
these Contracts, as the State may remain liable for expenditures made in good faith by the Contractor prior to
notice of cancellation.
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Compliance with other laws: The Contractor agrees to comply with the requirements of [list specific
applicable Federal or state statutory or regulatory provisions], and agrees further to include a similar
provision in any and all subcontracts.
Confidentiality: Sometimes agencies have legitimate needs to protect Confidential Information. The RFP
can require Contractors to maintain confidentiality, although the contract ultimately should duplicate this
requirement. Conversely, bidders sometimes want to know how the State will treat the bidder’s
proprietary information. The RFP should state whether such information will be returned, retained or
destroyed by the Agency.
Contractors’ liens: Contractor will discharge any and all Contractors’ or mechanics’ liens imposed on
property of the State through the actions of subcontractors.
Cost of materials: Contractor will not buy materials and resell to the State at a profit.
Identity of workers: The Contractor will assign the following individuals [list individuals] to the services
to be performed under the provisions of this contract, and these individuals shall be considered essential to
performance. Should any of the individuals become unavailable during the period of performance, the
State shall have the right to approve any proposed successors, or, at its option, to cancel the remainder of
the Contract.
Individually identifying information: Contractor must not use or disclose any individually identifying
information that pursuant to this contract is disclosed by the State to the Contractor, created by the
contractor on behalf of the State, or used by the Contractor for any purpose other than to complete the
work specifications of this contract unless such use or disclosure is required by law, or when Contractor
obtains permission in writing from the State to use or disclose the information and this written permission
is in accordance with Federal and State law.
Information Technology Terms & Conditions: See IT Guideline for specific Attachment D terms &
requirements related IT Activities.
Legal services: Contractor will be providing legal services under this Contract. Contractor agrees that
during the term of the Contract he or she will not represent anyone in a matter, proceeding, or lawsuit
against the State of Vermont or any of its Agencies or instrumentalities. After termination of this contract,
Guidance: Use this clause to refer to any statutory or regulatory provisions that must by law, grant condition or
otherwise, be included in the wording of the Contract. This may include in particular cases the provisions of the
Federal Rehabilitation Act of 1973 (Sec. 504), as amended; the Age Discrimination Act of 1975; and the Civil
Rights Act of 1964.
Guidance: On occasion a subcontractor may do some work to State property that could be construed by the
subcontractor to give rise to a lien against the property. While artisans’ (mechanics’) liens cannot be enforced
against State property (See
12 V.S.A. § 5601(a)), it is nevertheless best practice to require the Contractor to
correct the matter and thereby avoid litigation.
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Contractor also agrees that he or she will not represent anyone in a matter, proceeding, or lawsuit
substantially related to this Contract.
Ownership of equipment: Any equipment purchased by or furnished to the Contractor by the State under
this contract is provided on a loan basis only and remains the property of the State.
Performance bond: The Contractor shall, prior to commencing work under this Contract, furnish to the
State a payment and performance bond from a reputable insurance company licensed to do business in the
State of Vermont, guaranteeing the satisfactory completion of the Contract by the Contractor and payment
of all subcontractors, suppliers and employees.
Prior approval/review of releases: Any notices, information pamphlets, press releases, research reports, or
similar other publications prepared and released in written or oral form by the Contractor under this
contract shall be approved/reviewed by the State prior to release.
Progress reports: The Contractor shall submit progress reports to the State according to the following
schedule. [insert schedule] Each report shall describe the status of the Contractor’s performance since the
preceding report and the progress expected to be made in the next successive period. Each report shall
describe Contractor activities by reference to the work specifications contained in Attachment A of this
contract and shall include a Statement of Work hours expended, expenses incurred, bills submitted, and
payments made.
Work product ownership: Upon full payment by the State, all products of the Contractor’s work,
including outlines, reports, charts, sketches, drawings, art work, plans, photographs, specifications,
estimates, computer programs, or similar documents, become the sole property of the State of Vermont
and may not be copyrighted or resold by Contractor.
Guidance: Performance Bonds have limited application in Contracts for Services. This clause provides
protection against failure of the Contractor to perform adequately under the Contract or distribute funds to
subcontractors or suppliers. Since the cost of the bond will increase the State’s cost, the clause should only be
used on larger contracts or where there are significant concerns about a Contractor’s financial or other
abilities. If a Contractor is expected to handle large sums of money as agent for the State, the term “surety
bond” should be substituted for “payment and performance bond.”
Guidance: All material published in connection with activities performed under State Contract should be
reviewed and approved by the appropriate official before release. When academic freedom becomes an issue,
Agency review but not Agency approval may be appropriate.
Guidance: This clause may be used either in Attachment A (Specifications of Work to be Performed)
or Attachment B. It provides information for interim evaluation of the Contractor’s work and assists
in detecting difficulties that may lead to necessary modification or cancellation of the Contract. If
payments are to be conditioned on receipt of progress reports, this should be clearly set forth in
Attachment B: Payment Provisions.
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Appendix V: Acronyms Used in This Bulletin
AA-14: State of Vermont Contract Summary and Certification form
ACH: Automated Clearing House
AAG: Assistant Attorney General
ADS: Agency of Digital Services (formerly Department of Innovation and Information)
AG: Attorney General
AGO: Attorney General’s Office
AoA: Agency of Administration
BAFO: Best and Final Offer
BDA: Blanket Delegation of Authority
BGS: Building and General Services
CFR: Code of Federal Regulations
CIO: Chief Information Officer, Agency of Administration
CMO: Chief Marketing Officer
CPO: Chief Performance Officer
DHR: Department of Human Resources
DUNS: Data Universal Numbering System
EBB: Electronic Bulletin Board
EFT: Electronic Fund Transfer
FAQ: Frequently Asked Questions
F&M: Department of Finance and Management
FERPA: Family Education Rights and Privacy Act
FFATA: Federal Funds Accountability and Transparency Act
FICA: Federal Insurance Contributions Act
FSRS: Federal Subaward Reporting System
GAAP: Generally Accepted Accounting Principles
GSA: Federal General Services Administration
HIPAA: Health Insurance Portability and Accountability Act
IaaS: Infrastructure as a Service
IRS: Federal Internal Revenue Service
IT: Information Technology
LLC: Limited Liability Company
MOA/MOU: Memorandum of Agreement; Memorandum of Understanding
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OMB: Federal (White House) Office of Management and Budget
OPC: Office of Purchasing and Contracting
PaaS: Platform as a Service
P.O.: Purchase Order
RFP/RFI/RFC/RFQ: Request for Proposal; Request for Information; Request for Comment or Request for Quote
SaaS: Software as a Service
SAM: Federal System for Awards Management
SLA: Service Level Agreement
SOA: Secretary of Administration
SOV: State of Vermont
SOW: Statement of Work
V.S.A .: Vermont Statutes Annotated
VISION: Vermont Integrated Solution for Information and Organizational Needs
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Appendix VI: Bulletin 3.5 Quick Reference Guide
[Continued on next page.]
This guide is intended as a quick reference to monetary thresholds, primary waiver conditions, basic contract types and prior approval requirements. It is not all inclusive
and is not a substitute for reading, understanding and complying with this Bulletin;
Additional Agency or Departmental conditions, not included in this Bulletin, may apply.
1
Supervisor – a.k.a. the Appointing Authority: any secretary, commissioner, executive director, elected officer, or other exempt head of a department or agency.
2
Monetary Thresholds are cumulative - if the original contract amount plus all amendments reaches a new threshold; the requirements for the higher threshold apply.
Bulletin No. 3.5, 12.9.19 Page | 63
BULLETIN 3.5 QUICK REFERENCE GUIDE
Competitive Process Prior Approvals Required
Standard
Bid
Simplified
Bid
Pre-
Qualified
Vendors
Supervisor
1
(Appointing
Authority)
Attorney
General
Finance &
Management
Secretary of
Admin.
(SOA) CIO CMO
Comm
DHR
Competitive Process, Waivers & Approvals
1. Original Contracts Awarded - by Competitive Process
$1 to $24,999.99 – Short-Form Contract and Short-Form Attachment C may be used, for one-time, annual services,
except for life safety, hazardous materials, transport of persons and data usage/sharing. However, a current insurance
certificate must be on file.
$25,000 up to $100,000
Greater than $100,000 up to $500,000
Greater than $500,000
Zero-Dollar Contracts
2. Original Contract Awarded – No Competitive Process (“Sole Source”)
Sole Source Award $10,000 or less
Direct Award, non-competitive
process
Sole Source Award greater than $10,000
Direct Award, non-competitive
process
If applicable, IT Sole Source needs CIO approval prior to SOA
Direct Award, non-competitive
process
3. Original Contract Waiver Requests – Contracting Plans
Waiver Requests Other than Sole Source (refer to dollar thresholds)
Special Contract Type Added Approvals
4. Contract Types Requiring Additional Approvals (in addition to Prior Approvals listed above #1, 2 and 3)
Information Technology & Security RFP
Information Technology & Security Contracts over $500,000
IT & Security Contracts (electronic processing, storing, or
transmission of confidential information)
IT & Security Contracts for Cloud Services
Marketing Contracts
Privatization Contracts
State of VT Employees & Retiree Contracts
Contracts including a Change Order Processes
Financial Transaction Contracts & Zero-Dollar
Agreements to Receive or Access Confidential Information
