CHAPTER 3: OTHER ADMINISTRATIVE REGULATIONS

Return to CHAPTER 3: OTHER ADMINISTRATIVE REGULATIONS

SUBSECTION 4.3.1.3
FILING, RECORD KEEPING, AND REPORTING

4.3.1.3.1 Personal Service Contract Filing Requirements Effective Date: June 11, 1998

4.3.1.3.1.a Filing Categories. Many, but not all, personal service contracts and amendments are subject to filing with OFM. The categories of contracts subject to filing are shown in the tables attached at the end of this policy. Please note one table is applicable to institutions of higher education only and the other table to all other state agencies. Subsections 4.3.1.3.3 through 4.3.1.3.6 explain the specific filing requirements for each category.

4.3.1.3.1.b
Filing Periods. Three different filing periods apply to contracts and amendments subject to filing. The filing period for contracts varies by filing category, as shown in the table below:

Filing Period Filing Category

Contract is filed with OFM a minimum of ten working days prior to the proposed start date of services.

All sole source contracts of $5,000 or more and their amendments.
Competitive contracts of $20,000 or more and their amendments for the following categories: management consulting, organizational development, marketing, communications, employee training and employee recruiting.
Amendments to sole source or competitive contracts that result in the contract being greater than 50% of the original contract value, when those contracts, as amended, are in the amount of $5,000 or more.
Amendments to sole source or competitive contracts which constitute a substantial change in the scope of work, when those contracts, as amended, are in the amount of $5,000 or more.

Contract is filed with OFM no later than the start date of services.

Competitively solicited contracts of $20,000 or more and their amendments for services other than the six management categories listed above.

Contract is filed with OFM within three working days of start of services or contract execution, whichever is sooner.

Emergency contracts of $5,000 or more and their amendments.
Amendments awarded solely for the purpose of decreasing the total dollar amount of the contract.

4.3.1.3.1.c Working Days. "Working days" for filing purposes excludes Saturdays, Sundays, and legal holidays. For contracts subject to the ten-day filing period, the earliest start date is the tenth working day after, but not including, the date of filing. Start date for services maybe any date after the tenth working day, but not before, subject to OFM review or approval. This filing period provides time for OFM processing but is also a public review period.

4.3.1.3.1.d Start Date. To minimize confusion about the start date of contracts and amendments subject to the ten-working day filing requirement, the contract should include the following or a similar provision:

"Under the provisions of Chapter 39.29 RCW, this personal services contract/amendment is required to be filed with the Office of Financial Management (OFM). No contract required to be so filed is effective and no work thereunder shall be commenced nor payment made therefor until ten (10) working days following the date of filing, and, if required, until approved by OFM. In the event OFM fails to approve the contract, the contract shall be null and void."

If OFM review is completed prior to the end of the ten-working day filing period, the start date remains the tenth working day after the filing date.

OFM may adjust the start date beyond the ten working days from initial contract filing, if the filing is incomplete when first submitted and additional information is requested from the agency by OFM, or if additional time is needed by OFM due to additional levels of review/approval. It is the agency's responsibility to verify that OFM review has been completed or approval granted prior to starting work.

4.3.1.3.1.e Contract Amendments. Generally, if a contract is subject to filing with OFM, amendments to the contract are also subject to filing. Amendments to be filed are those which:

Increase or decrease the maximum contract cost, (Decrease amendments are to be filed with OFM within three working days of start of services or execution, whichever is sooner, and are designated as informational filings.)
Revise the scope of work; and/or
Revise the period of performance.

Contract amendments that are not required to be filed with OFM include the following:

Amendments which result in administrative changes to the contract such as address changes, budget line item adjustments which do not revise the total contract cost, staffing changes, or similar revisions.
Amendments awarded at the end of the contract term, solely for the purpose of extending the contract period for two months or less. This provision applies only once, per contract. It is not intended to authorize multiple short-term time extensions.

Some contract amendments are subject to review by OFM and others are subject to OFM approval. Generally, if the contract is subject to review, its amendment is also subject to review, and if a contract is subject to approval, its amendment is subject to approval. Two examples illustrating exceptions follow:

A competitive contract for technical research services in the amount of $20,000 is subject to OFM review. If the contract is amended by $12,000, the amendment is subject to approval. The amendment exceeds 50% of the original contract amount and is required to be approved by OFM.

A contract is competitively awarded for $10,000 and is not required to be filed. The contract is amended by $6,000. The amendment is subject to filing and approval, since it exceeds 50% of the original contract amount.

NOTE: For institutions of higher education, only "state-funded" contracts and amendments are filed.
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4.3.1.3.1.f Contract Total Amount. For filing purposes, the total dollar amount of the contract or amendment includes the amount for expenses authorized for reimbursement under the contract.

4.3.1.3.1.g Contracts Awarded by Institutions of Higher Education. Institutions of higher education only file contracts or amendments that are "state funded," and which meet applicable filing dollar thresholds.

The term, "state funded", as referenced herein, shall mean dollars which are appropriated by the state Legislature and/or allotted by the agency. Again, this term applies to personal service contract requirements for institutions of higher education only.

If a contract or amendment awarded by an institution of higher education is funded by both state and non-state funds, e.g., donated funds, it shall be subject to the filing requirements only if the state funded portion equals or exceeds $5,000 for a sole source contract or $20,000 for a competitive contract.

4.3.1.3.2 Filing Documentation Effective Date: June 11, 1998

All contracts and amendments subject to filing are to include the following documents in the submittal:

4.3.1.3.2.a A completed Personal Services Contract Filing Face Sheet (Form SF-110), either hard copy or electronic. Use the most recent revision of the form (currently SF-110, Rev. 7/98, for the hard copy form).
Electronic Filings. If the filing is submitted electronically, all three sections of the filing are to be submitted electronically (not just the SF-110 form). Attachments to the contract, however, such as the contractor's proposal, may be submitted in hard copy format.

4.3.1.3.2.b A copy of the contract or amendment. The filed copy may be either signed by the parties or an unsigned but certified copy. A certified copy is one which has not been signed but represents the true and final agreement reached between the parties. Block 20 of the SF-110 form includes a certification statement which, when signed, allows OFM to accept unsigned copies of the contract or amendment.

4.3.1.3.2.c A complete explanation or justification of the procurement decision specific to the type of contract or amendment. The documented justification which must accompany filings is to be capable of withstanding public, legislative and executive scrutiny. See the specific justification requirements for each filing category in the following sections.

4.3.1.3.3 Sole Source Contract Filings Effective Date: June 11, 1998

Sole source contracts and their amendments are those which have not been competitively procured. Since absence of competition is rare for personal services, agencies should carefully consider both public and private sector resources before making a decision to pursue sole source award. Sole source procurements are improper if only for the administrative convenience of the agency.

4.3.1.3.3.a Sole Source Filings. Sole source contracts in the amount of $5,000 - $19,999, including their amendments, awarded to a contractor during the state fiscal year by an agency must be filed with OFM and are subject to OFM review.

Sole source contracts of $20,000 or more, including their amendments, awarded to a contractor during the state fiscal year by an agency are also subject to filing with OFM. These contracts and amendments are subject to approval by OFM.

In addition, amendments to sole source contracts of $5,000 or more which result in the contract value exceeding 50% of the original contract amount or which substantially change the scope of work of the contract, are subject to approval by OFM.

The dollar range for filing is determined based on either the individual contract or a cumulative total of sole source contracts awarded to the contractor by an agency during the current fiscal year. Only sole source contracts with a single contractor are considered in the cumulative total. Competitive contracts with the same contractor are not included in this count.

All sole source contracts and amendments must be filed a minimum of ten working days prior to the proposed start of work.
The sole source filing shall consist of a completed SF-110 form, a copy of the contract or amendment, and the sole source justification.

4.3.1.3.3.b Sole Source Justification. Documented justification which must accompany each sole source filing is to be capable of withstanding public, legislative and executive scrutiny. The justification is to include the following information.

4.3.1.3.3.b(1) Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the contract is intended to address and which makes the services necessary. Also include an explanation as to how the agency determined the services are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.

4.3.1.3.3.b(2) Other Public Resources. Explain what effort has been taken to conclude: (a) that sufficient staffing or expertise is not available within the agency to perform the service, and (b) that other qualified public resources are not available to perform the service more efficiently or more cost effectively.

4.3.1.3.3.b(3) Competition Not Appropriate. Explain how the agency concluded that competitive procurement was not appropriate in this instance.

4.3.1.3.3.b(4) Sole Source Criteria. Include a detailed explanation of the items below which are relevant to the sole source decision:

Unique nature of the services and/or the unique qualifications, abilities or expertise of the contractor to meet the agency needs. Unique services would be those which are highly specialized or one-of-a-kind. However, other factors which may be considered include past performance, cost-effectiveness (learning curve), and/or follow-up nature of the required services.
Any other special circumstances which may be relevant such as confidential investigations, copyright restrictions, or time constraints. If time constraints are applicable, identify when the agency was on notice of the need for the services, the entity that imposed the constraints, explain the authority (if not obvious) of that entity to impose them, and provide the timelines within which work must be accomplished.
Sole availability in the location required. If the proposed contractor is the only source available in the geographical area, state the basis for this conclusion and the rationale for limiting the size of the geographical area selected
If the contract or amendment is being filed based on a cumulative sole source total of contracts awarded to the contractor in a fiscal year, include the total amount of the other sole source contracts and amendments awarded during the fiscal year to this contractor.

4.3.1.3.3.b(5) Reasonableness of Costs. Since competition was not used as the means for procurement, explain how the agency concluded that the costs, fees, or rates negotiated are fair and reasonable. Either make a comparison with comparable contracts, use the results of a market survey, or employ some other appropriate means calculated to make such a determination.

4.3.1.3.3.b(6) Sole Source Advertisement. Sole source contracts of $20,000 or more, are required to be advertised per Subsection 4.3.1.2.2. Include the name of the newspaper the advertisement was published in, the date(s) of the advertisement, and the name(s) of entities responding. If no responses were received, please so indicate in the sole source justification. If one or more responses are received, explain how the agency concluded the contract is appropriate for sole source award. List any other potential contractors which were contacted through other means and explain why these firms could not perform the services.

If the sole source contract is exempt from advertising per Subsection 4.3.1.2.2, "c", clearly identify the basis for the exemption and include a copy of the documentation which provides the authority for the exemption, as applicable.

4.3.1.3.3.b(7) Sole Source Contract Amendments. For amendments to sole source contracts, explain why the services under the proposed amendment were not included in the terms of the original contract. Include any conditions that have changed since contract award. State the rationale for executing an amendment to the existing contract rather than competitively procuring the services and awarding a new contract, and include any other information which clearly justifies the option of amending the contract. State whether the new services are within the scope of the original contract. Also, identify whether the rates are the same as those negotiated under the original contract and justify any changes.

If an amendment to a sole source contract results in the contract value exceeding 50% of the original contract amount or substantially changing the scope of work, follow the justification requirements in Subsection 4.3.1.3.5.

4.3.1.3.4 Competitively Solicited Contracts Effective Date: June 11, 1998

4.3.1.3.4.a Competitive Filings. Competitively solicited contracts of $20,000 or more, including their amendments, must be filed with OFM. This filing category includes amendments to competitive contracts which increase the contract value to $20,000 or more. The contracts are subject to OFM review or approval, depending upon the type of service being procured or the amount of the amendment.

For contracts and amendments subject to OFM review, work may begin the date of filing with OFM. For contracts and amendments subject to OFM approval, the start of work will be ten working days after the date of filing, subject to OFM approval.

The filing for contracts and amendments shall consist of a completed SF-110 form, a copy of the contract or amendment, and a justification.

4.3.1.3.4.b Filing Review or Approval. OFM review is required for most competitive contracts in this category. However, the Washington State Legislature has taken special interest in the categories below and has required advance approval by OFM for these services when the contract is $20,000 or more. Amendments to these contracts are also subject to filing and OFM approval.

In addition, amendments to competitive contracts of $20,000 or more for any type of service which result in the contract value exceeding 50% of the original contract amount or which substantially change the scope of work of the contract are subject to approval by OFM. Follow the justification requirements in Subsection 4.3.1.3.5, when this occurs.

4.3.1.3.4.b(1) Management Consulting

Includes, but is not limited to, services to assist management of the agency in determining how to operate or manage the agency or unit or division of the agency and services or studies which impact agency policy, regulatory issues, or which have broad agency implications. Also includes services which assist management with program development, implementation, coordination or evaluation; and services which result in operational or managerial recommendations, assessments, reports and studies. Includes studies requested by the legislature and feasibility studies.

Also includes services for strategic planning, goal setting, needs assessment, business process reengineering, facilitators for staff functions or focus groups, harassment and related investigations, mediation, and lobbying.

Includes services for the design, development and/or implementation of major agency information processing or telecommunications systems; re-engineering of major information technology systems; quality assurance on or evaluation of such systems; and development of information technology strategic plans.

4.3.1.3.4.b(2) Organizational Development

Includes, but is not limited to, services to study, analyze, or review the organizational structure, framework, or culture of the agency or divisions within the agency, and services implementing the recommendations of such a study or effort. Also included are services which provide recommendations to management on enhanced efficiencies, productivity and process improvements, and quality control in the organization.

4.3.1.3.4.b(3) Marketing

Includes, but is not limited to, services to develop or implement a marketing or advertising plan or campaign; services related to marketing an agency's service; public relations or media services; market research and development; and services provided to promote the agency or a program of the agency.

Also includes public involvement services; trade development and assistance; development of public or market research or customer satisfaction surveys and/or assessment of survey results; conference or trade show coordination; fund raising; and related types of services.

4.3.1.3.4.b(4) Communications

Includes, but is not limited to, services for the design, development, and/or oversight of audio/video media productions, brochures, manuals, newsletters, maps, signs, posters, annual reports, etc.; technical writing/editing; speech writing; grant writing; graphic design services; development of communication strategies; and other related services procured by an agency to inform the public or other governmental agencies about a subject.

Excludes services related to installation of computer system linkage and telecommunications systems.

4.3.1.3.4.b(5) Employee Training

Includes training services procured to meet employee training needs, managerial training, employee counseling services, guest speakers and curriculum development.

Excludes purchased service training which is training offered to all or most employees on a continual and recurring basis (more than six times per year) or satellite training. It is the intent of the legislature that employee training contracts be submitted to OFM for approval, with the exception of those that clearly fit the definition of purchased service training.

Contracts awarded to provide training to local governments or other public or private entities are not included in this category.

4.3.1.3.4.b(6) Employee Recruiting

Includes services performed by a professional search firm to assist in recruitment of a successful candidate to fill a vacant position in an agency.

4.3.1.3.4.c Competitive Justification. Documented justification which must accompany each filing of a competitive contract is to be capable of withstanding public, legislative and executive scrutiny. The justification is to include the following information.

4.3.1.3.4.c(1) Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the contract or amendment is intended to address and which makes the services necessary. Also include an explanation as to how the agency determined the services are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.

4.3.1.3.4.c(2) Other Public Resources. Explain how the agency concluded: (a) that sufficient staffing or expertise is not available within the agency to perform the service, and, b) that other qualified public resources are not available to perform the service more efficiently or more cost effectively.

4.3.1.3.4.c(3) Competitive Process. Provide a thorough description of the competitive solicitation process including:

How many solicitation documents were issued and the name(s) of publication(s) in which an advertisement was published;
The names of the firms responding with proposals;
A description of the evaluation process (e.g., evaluation committees scoring the responses, selection committee making the award decision, etc.);
The basis on which the contractor was selected, such as price, technical strength, experience/qualifications, or any combination of these or other criteria. Explain how it was determined that costs are fair and reasonable or within the competitive range.

4.3.1.3.4.c(4) Contract Amendments. For amendments to these competitive contracts, state the rationale for executing an amendment rather than competitively procuring the services and awarding a new contract. Explain why the services under the proposed amendment were not included in the terms of the original contract or solicitation document. Include any changed conditions since contract award and other applicable information which clearly justifies the decision to amend the contract. State whether the services are within the scope of the original contract. Also, identify whether the rates are the same as those negotiated under the original contract and explain any increases.

If a contract amendment results in the contract value exceeding 50% of the original contract amount or substantially changing the scope of work, follow the justification requirements of Subsection 4.3.1.3.5.

4.3.1.3.5 Contract Amendments Cumulatively Exceeding Fifty Percent of the Value of the Original Contract and/or Which Substantially Change the Scope of Work Effective Date: June 11, 1998

4.3.1.3.5.a Substantial Amendment Filings. Contract amendments, wherein the value of the amendment, singly or cumulatively, exceeds fifty percent (50%) of the value of the original contract and/or when the amendment substantially changes the scope of work of the contract or of the original solicitation document, must be filed with OFM. This applies to both competitive or sole source contracts which, when amended, total $5,000 or more.

Such amendments require OFM approval and must be filed at least ten working days prior to the proposed start date.

The filing shall consist of a completed SF-110 form, a copy of the amendment, and a justification.

4.3.1.3.5.b Definition. "Substantial" changes to contracts are those which represent a significant change in quantity, duration, nature or cost of the work. An example of a substantial change which could be appropriately executed as a contract amendment is a contract in which the work is broken into phases and approval of additional phases (through contract amendment) is subject to satisfactory completion of a previous phase, and such work phasing is clearly set forth in the solicitation document or original contract. Another example is an amendment to a contract which exercises the option to extend the work at the discretion of the agency (e.g., extending a two-year contract for one additional year).

4.3.1.3.5.c Amendment Justification. Documented justification which must accompany each filing is to be capable of withstanding public, legislative and executive scrutiny. The justification will also provide the primary basis for OFM's decision as to whether or not to approve the amendment. The justification for these amendments is to include the following information.

4.3.1.3.5.c(1) Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the amendment is intended to address and which makes the amendment necessary. Include an explanation as to how the agency determined the services under the proposed amendment are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.

4.3.1.3.5.c(2) Other Public Resources. Explain how the agency concluded: (a) that sufficient staffing or expertise is not available within the agency to perform the services, and (b) that other qualified public resources are not available to perform the services more efficiently or more cost effectively.

4.3.1.3.5.c(3) Procurement Method. State whether the original contract was competitively procured or awarded as a sole source, when the original contract was awarded, and the cumulative dollar amount of the original contract and any subsequent amendments prior to this amendment.

4.3.1.3.5.c(4) Changes Since Award. Explain why the services under the proposed amendment were not included in the terms of the original contract or in the solicitation document. Include any conditions that have changed since contract award and other information which supports the decision to amend the contract.

4.3.1.3.5.c(5) Why Amendment Preferred. State the rationale for executing an amendment to the existing contract rather than competitively procuring the services and awarding a new contract. Include whether the new services are within the scope of the original contract or solicitation document and how executing the amendment can most effectively achieve the agency's purpose.

4.3.1.3.5.c(6) Contractor's Qualifications. Provide an explanation of the contractor's qualifications, abilities or expertise to meet the agency's specific needs for the services under the amendment.

4.3.1.3.5.c(7) Reasonableness of Costs. Include how the agency determined that the costs, fees or rates negotiated for the amendment are fair and reasonable, since competitive bids were not received for the services under the amendment. Generally, the rates should be the same as those in the original contract. If they are not, include justification for any increased pricing.

4.3.1.3.6 Emergency Contracts Effective Date: June 11, 1998

Emergency contracts are awarded to resolve an emergency situation. An "emergency" means a set of unforeseen circumstances beyond the control of the agency that either presents a real, immediate threat to the proper performance of essential state functions or which may result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

4.3.1.3.6.a Emergency Filings. Emergency contracts, and their amendments, in the amount of $5,000 or more, with a contractor during the state fiscal year are also subject to filing with OFM.

Such contracts and amendments must be filed with OFM for review within three working days following the date of contract execution or commencement of work, whichever occurs first.

The filing shall consist of a completed SF-110 form, a copy of the contract or amendment, and a justification.

4.3.1.3.6.b Emergency Justification. Documented justification which must accompany each emergency filing is to be capable of withstanding public, legislative and executive scrutiny. Include, at a minimum, the following elements in the justification:

4.3.1.3.6.b(1) Nature of Emergency. Explain the nature of the emergency and the relevant circumstances associated with the emergency.

4.3.1.3.6.b(2) Health or Safety Threat. Describe the threat to the health or safety of individuals, property, or essential state functions if immediate action is not taken. Provide an estimate of the potential material loss or damage.

4.3.1.3.6.b(3) Alleviate or Eliminate Emergency. Explain how the services of the contractor alleviated or eliminated the emergency. Describe what the consequences would have been if the emergency action had not been taken and the risks associated with inaction.

4.3.1.3.6.b(4) Contractor's Qualifications. Describe the contractor's qualifications, experience and background to provide the emergency service and the basis on which this contractor was selected over other qualified firms.

4.3.1.3.6.b(5) Reasonableness of Costs. Explain how the agency concluded that the costs negotiated are fair and reasonable since competition was not conducted.

4.3.1.3.7 OFM Approval/Disapproval Effective Date: June 11, 1998

The agency should expect to receive either a written or oral response from OFM within ten working days from the date of filing.

4.3.1.3.7.a The agency will receive either written or electronic verification of OFM's decision. (Electronic verification is sent when an electronic filing has been received, and a green copy of the SF-110 is returned when the hard copy form is submitted.)

4.3.1.3.7.b If OFM anticipates a delay or a disapproval, the agency will be notified promptly.

4.3.1.3.7.c The decision to disapprove a contract will be in writing from OFM and will clearly state the reason for disapproval.

4.3.1.3.8 Requests for Late Filing Effective Date: June 11, 1998

Contracts or amendments are designated "late" by OFM when:

Contracts or amendments subject to the ten-working day filing period are filed with a requested start date that is less than ten working days from the date of filing.
Competitively solicited contracts or their amendments subject to OFM review are filed after the start date of services.
Emergency contracts are filed more than three business days after the start of work or execution of the contract.

An explanation in writing is to be submitted as part of the filing justification stating the reason for the late filing. OFM will evaluate the request to determine whether or not it is allowable under the circumstances. Delays caused by administrative oversight or internal processing problems are not generally valid reasons, but will be accepted when they occur on an exception basis.

If the late filing explanation is determined not to be allowable, OFM may adjust the start date on the SF-110 form.

4.3.1.3.9 Architectural and Engineering Contracts Effective Date: June 11, 1998

Contracts and their amendments entered into for architectural and engineering services shall be reported to OFM on a quarterly basis. For purposes herein, quarters shall be for the three-month periods ending September, December, March and June of each fiscal year.

4.3.1.3.9.a Quarterly reports shall be submitted to OFM not later than the fifteenth day of each month following the end of the quarter; e.g., October 15, January 15, April 15, and July 15. If the fifteenth day falls on a Saturday, Sunday or state holiday, the report will be due the next working day. The information shall be submitted in the format prescribed by OFM.

4.3.1.3.9.b The reports shall include the following information:

Name of the awarding agency;
Name and address of the contractor;
Whether the activity is a new contract or an amendment;
Contract/amendment start and completion date;
Dollar value of the contract or amendment; if it is an amendment, also include the amended contract total;
Brief project description; and
Whether the contract was competitively procured per Chapter 39.80 RCW.

4.3.1.3.10 Record Keeping and Reporting Requirements Effective Date: June 11, 1998

OFM is required to maintain a publicly available list of personal service contracts awarded by state agencies. Contracts and amendments filed with OFM throughout the fiscal year will automatically be included on the list. Personal service contracts and amendments which are not subject to filing during the fiscal year are to be reported to OFM at the end of each fiscal year for an annual report of contract activity. This report does not include contracts which are exempt under RCW 39.29.040.

4.3.1.3.10.a All agencies are to maintain current and accurate records for the following categories of contracts and amendments awarded during the fiscal year, which do not require filing with OFM, but which are to be reported to OFM annually.

4.3.1.3.10.a(1) State agencies and institutions of higher education will report competitive personal service contracts and amendments in the amount of $5,000 or more but less than $20,000.

4.3.1.3.10.a(2) Institutions of higher education will also report the following categories of contracts:

Competitive contracts and amendments in the amount of $20,000 or more which are funded by dollars other than state funds.
Sole source contracts and amendments in the amount of $5,000 or more which are funded by dollars other than state funds.

4.3.1.3.10.b Information relating to these personal service contracts and amendments is to be reported to OFM in the format prescribed by OFM. At a minimum, the following information should be maintained:

Name and address of the contractor;
Whether the entry is a new contract or an amendment;
Contract/amendment start and completion dates;
Dollar value of original contract and each amendment;
Scope of work;
Whether the contract was competitively procured;
Whether the contractor or agent was an employee of the state of Washington in the 24 months preceding the start date of the contract (if so, for what agency and in what function);
Sub-object code; and
Funding source.

4.3.1.3.10.c Upon request, OFM will provide summary reports on personal service contract filings to the Joint Legislative Audit and Review Committee. Additional information will be provided by OFM as requested.

Return to CHAPTER 3: OTHER ADMINISTRATIVE REGULATIONS


Filing Period	Filing Category
Contract is filed with OFM a minimum of ten working days prior to the proposed start date of services.	All sole source contracts of $5,000 or more and their amendments. Competitive contracts of $20,000 or more and their amendments for the following categories: management consulting, organizational development, marketing, communications, employee training and employee recruiting. Amendments to sole source or competitive contracts that result in the contract being greater than 50% of the original contract value, when those contracts, as amended, are in the amount of $5,000 or more. Amendments to sole source or competitive contracts which constitute a substantial change in the scope of work, when those contracts, as amended, are in the amount of $5,000 or more.
Contract is filed with OFM no later than the start date of services.	Competitively solicited contracts of $20,000 or more and their amendments for services other than the six management categories listed above.
Contract is filed with OFM within three working days of start of services or contract execution, whichever is sooner.	Emergency contracts of $5,000 or more and their amendments. Amendments awarded solely for the purpose of decreasing the total dollar amount of the contract.

4.3.1.3.1.e	Contract Amendments. Generally, if a contract is subject to filing with OFM, amendments to the contract are also subject to filing. Amendments to be filed are those which: Increase or decrease the maximum contract cost, (Decrease amendments are to be filed with OFM within three working days of start of services or execution, whichever is sooner, and are designated as informational filings.) Revise the scope of work; and/or Revise the period of performance. Contract amendments that are not required to be filed with OFM include the following: Amendments which result in administrative changes to the contract such as address changes, budget line item adjustments which do not revise the total contract cost, staffing changes, or similar revisions. Amendments awarded at the end of the contract term, solely for the purpose of extending the contract period for two months or less. This provision applies only once, per contract. It is not intended to authorize multiple short-term time extensions. Some contract amendments are subject to review by OFM and others are subject to OFM approval. Generally, if the contract is subject to review, its amendment is also subject to review, and if a contract is subject to approval, its amendment is subject to approval. Two examples illustrating exceptions follow: A competitive contract for technical research services in the amount of $20,000 is subject to OFM review. If the contract is amended by $12,000, the amendment is subject to approval. The amendment exceeds 50% of the original contract amount and is required to be approved by OFM. A contract is competitively awarded for $10,000 and is not required to be filed. The contract is amended by $6,000. The amendment is subject to filing and approval, since it exceeds 50% of the original contract amount. NOTE: For institutions of higher education, only "state-funded" contracts and amendments are filed. .
4.3.1.3.1.f	Contract Total Amount. For filing purposes, the total dollar amount of the contract or amendment includes the amount for expenses authorized for reimbursement under the contract.

4.3.1.3.1.g	Contracts Awarded by Institutions of Higher Education. Institutions of higher education only file contracts or amendments that are "state funded," and which meet applicable filing dollar thresholds. The term, "state funded", as referenced herein, shall mean dollars which are appropriated by the state Legislature and/or allotted by the agency. Again, this term applies to personal service contract requirements for institutions of higher education only. If a contract or amendment awarded by an institution of higher education is funded by both state and non-state funds, e.g., donated funds, it shall be subject to the filing requirements only if the state funded portion equals or exceeds $5,000 for a sole source contract or $20,000 for a competitive contract.


4.3.1.3.2	Filing Documentation	Effective Date:	June 11, 1998

	All contracts and amendments subject to filing are to include the following documents in the submittal:
4.3.1.3.2.a	A completed Personal Services Contract Filing Face Sheet (Form SF-110), either hard copy or electronic. Use the most recent revision of the form (currently SF-110, Rev. 7/98, for the hard copy form). Electronic Filings. If the filing is submitted electronically, all three sections of the filing are to be submitted electronically (not just the SF-110 form). Attachments to the contract, however, such as the contractor's proposal, may be submitted in hard copy format.
4.3.1.3.2.b	A copy of the contract or amendment. The filed copy may be either signed by the parties or an unsigned but certified copy. A certified copy is one which has not been signed but represents the true and final agreement reached between the parties. Block 20 of the SF-110 form includes a certification statement which, when signed, allows OFM to accept unsigned copies of the contract or amendment.
4.3.1.3.2.c	A complete explanation or justification of the procurement decision specific to the type of contract or amendment. The documented justification which must accompany filings is to be capable of withstanding public, legislative and executive scrutiny. See the specific justification requirements for each filing category in the following sections.

	Sole source contracts and their amendments are those which have not been competitively procured. Since absence of competition is rare for personal services, agencies should carefully consider both public and private sector resources before making a decision to pursue sole source award. Sole source procurements are improper if only for the administrative convenience of the agency.
4.3.1.3.3.a	Sole Source Filings. Sole source contracts in the amount of $5,000 - $19,999, including their amendments, awarded to a contractor during the state fiscal year by an agency must be filed with OFM and are subject to OFM review. Sole source contracts of $20,000 or more, including their amendments, awarded to a contractor during the state fiscal year by an agency are also subject to filing with OFM. These contracts and amendments are subject to approval by OFM. In addition, amendments to sole source contracts of $5,000 or more which result in the contract value exceeding 50% of the original contract amount or which substantially change the scope of work of the contract, are subject to approval by OFM. The dollar range for filing is determined based on either the individual contract or a cumulative total of sole source contracts awarded to the contractor by an agency during the current fiscal year. Only sole source contracts with a single contractor are considered in the cumulative total. Competitive contracts with the same contractor are not included in this count. All sole source contracts and amendments must be filed a minimum of ten working days prior to the proposed start of work. The sole source filing shall consist of a completed SF-110 form, a copy of the contract or amendment, and the sole source justification.
4.3.1.3.3.b	Sole Source Justification. Documented justification which must accompany each sole source filing is to be capable of withstanding public, legislative and executive scrutiny. The justification is to include the following information.
4.3.1.3.3.b(1)	Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the contract is intended to address and which makes the services necessary. Also include an explanation as to how the agency determined the services are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.
4.3.1.3.3.b(2)	Other Public Resources. Explain what effort has been taken to conclude: (a) that sufficient staffing or expertise is not available within the agency to perform the service, and (b) that other qualified public resources are not available to perform the service more efficiently or more cost effectively.
4.3.1.3.3.b(3)	Competition Not Appropriate. Explain how the agency concluded that competitive procurement was not appropriate in this instance.
4.3.1.3.3.b(4)	Sole Source Criteria. Include a detailed explanation of the items below which are relevant to the sole source decision: Unique nature of the services and/or the unique qualifications, abilities or expertise of the contractor to meet the agency needs. Unique services would be those which are highly specialized or one-of-a-kind. However, other factors which may be considered include past performance, cost-effectiveness (learning curve), and/or follow-up nature of the required services. Any other special circumstances which may be relevant such as confidential investigations, copyright restrictions, or time constraints. If time constraints are applicable, identify when the agency was on notice of the need for the services, the entity that imposed the constraints, explain the authority (if not obvious) of that entity to impose them, and provide the timelines within which work must be accomplished. Sole availability in the location required. If the proposed contractor is the only source available in the geographical area, state the basis for this conclusion and the rationale for limiting the size of the geographical area selected If the contract or amendment is being filed based on a cumulative sole source total of contracts awarded to the contractor in a fiscal year, include the total amount of the other sole source contracts and amendments awarded during the fiscal year to this contractor.
4.3.1.3.3.b(5)	Reasonableness of Costs. Since competition was not used as the means for procurement, explain how the agency concluded that the costs, fees, or rates negotiated are fair and reasonable. Either make a comparison with comparable contracts, use the results of a market survey, or employ some other appropriate means calculated to make such a determination.
4.3.1.3.3.b(6)	Sole Source Advertisement. Sole source contracts of $20,000 or more, are required to be advertised per Subsection 4.3.1.2.2. Include the name of the newspaper the advertisement was published in, the date(s) of the advertisement, and the name(s) of entities responding. If no responses were received, please so indicate in the sole source justification. If one or more responses are received, explain how the agency concluded the contract is appropriate for sole source award. List any other potential contractors which were contacted through other means and explain why these firms could not perform the services. If the sole source contract is exempt from advertising per Subsection 4.3.1.2.2, "c", clearly identify the basis for the exemption and include a copy of the documentation which provides the authority for the exemption, as applicable.
4.3.1.3.3.b(7)	Sole Source Contract Amendments. For amendments to sole source contracts, explain why the services under the proposed amendment were not included in the terms of the original contract. Include any conditions that have changed since contract award. State the rationale for executing an amendment to the existing contract rather than competitively procuring the services and awarding a new contract, and include any other information which clearly justifies the option of amending the contract. State whether the new services are within the scope of the original contract. Also, identify whether the rates are the same as those negotiated under the original contract and justify any changes. If an amendment to a sole source contract results in the contract value exceeding 50% of the original contract amount or substantially changing the scope of work, follow the justification requirements in Subsection 4.3.1.3.5.

4.3.1.3.4.a	Competitive Filings. Competitively solicited contracts of $20,000 or more, including their amendments, must be filed with OFM. This filing category includes amendments to competitive contracts which increase the contract value to $20,000 or more. The contracts are subject to OFM review or approval, depending upon the type of service being procured or the amount of the amendment. For contracts and amendments subject to OFM review, work may begin the date of filing with OFM. For contracts and amendments subject to OFM approval, the start of work will be ten working days after the date of filing, subject to OFM approval. The filing for contracts and amendments shall consist of a completed SF-110 form, a copy of the contract or amendment, and a justification.
4.3.1.3.4.b	Filing Review or Approval. OFM review is required for most competitive contracts in this category. However, the Washington State Legislature has taken special interest in the categories below and has required advance approval by OFM for these services when the contract is $20,000 or more. Amendments to these contracts are also subject to filing and OFM approval. In addition, amendments to competitive contracts of $20,000 or more for any type of service which result in the contract value exceeding 50% of the original contract amount or which substantially change the scope of work of the contract are subject to approval by OFM. Follow the justification requirements in Subsection 4.3.1.3.5, when this occurs.
4.3.1.3.4.b(1)	Management Consulting
	Includes, but is not limited to, services to assist management of the agency in determining how to operate or manage the agency or unit or division of the agency and services or studies which impact agency policy, regulatory issues, or which have broad agency implications. Also includes services which assist management with program development, implementation, coordination or evaluation; and services which result in operational or managerial recommendations, assessments, reports and studies. Includes studies requested by the legislature and feasibility studies. Also includes services for strategic planning, goal setting, needs assessment, business process reengineering, facilitators for staff functions or focus groups, harassment and related investigations, mediation, and lobbying. Includes services for the design, development and/or implementation of major agency information processing or telecommunications systems; re-engineering of major information technology systems; quality assurance on or evaluation of such systems; and development of information technology strategic plans.

4.3.1.3.4.b(2)	Organizational Development
	Includes, but is not limited to, services to study, analyze, or review the organizational structure, framework, or culture of the agency or divisions within the agency, and services implementing the recommendations of such a study or effort. Also included are services which provide recommendations to management on enhanced efficiencies, productivity and process improvements, and quality control in the organization.
4.3.1.3.4.b(3)	Marketing
	Includes, but is not limited to, services to develop or implement a marketing or advertising plan or campaign; services related to marketing an agency's service; public relations or media services; market research and development; and services provided to promote the agency or a program of the agency. Also includes public involvement services; trade development and assistance; development of public or market research or customer satisfaction surveys and/or assessment of survey results; conference or trade show coordination; fund raising; and related types of services.
4.3.1.3.4.b(4)	Communications
	Includes, but is not limited to, services for the design, development, and/or oversight of audio/video media productions, brochures, manuals, newsletters, maps, signs, posters, annual reports, etc.; technical writing/editing; speech writing; grant writing; graphic design services; development of communication strategies; and other related services procured by an agency to inform the public or other governmental agencies about a subject. Excludes services related to installation of computer system linkage and telecommunications systems.
4.3.1.3.4.b(5)	Employee Training
	Includes training services procured to meet employee training needs, managerial training, employee counseling services, guest speakers and curriculum development. Excludes purchased service training which is training offered to all or most employees on a continual and recurring basis (more than six times per year) or satellite training. It is the intent of the legislature that employee training contracts be submitted to OFM for approval, with the exception of those that clearly fit the definition of purchased service training. Contracts awarded to provide training to local governments or other public or private entities are not included in this category.
4.3.1.3.4.b(6)	Employee Recruiting
	Includes services performed by a professional search firm to assist in recruitment of a successful candidate to fill a vacant position in an agency.
4.3.1.3.4.c	Competitive Justification. Documented justification which must accompany each filing of a competitive contract is to be capable of withstanding public, legislative and executive scrutiny. The justification is to include the following information.
4.3.1.3.4.c(1)	Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the contract or amendment is intended to address and which makes the services necessary. Also include an explanation as to how the agency determined the services are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.
4.3.1.3.4.c(2)	Other Public Resources. Explain how the agency concluded: (a) that sufficient staffing or expertise is not available within the agency to perform the service, and, b) that other qualified public resources are not available to perform the service more efficiently or more cost effectively.
4.3.1.3.4.c(3)	Competitive Process. Provide a thorough description of the competitive solicitation process including: How many solicitation documents were issued and the name(s) of publication(s) in which an advertisement was published; The names of the firms responding with proposals; A description of the evaluation process (e.g., evaluation committees scoring the responses, selection committee making the award decision, etc.); The basis on which the contractor was selected, such as price, technical strength, experience/qualifications, or any combination of these or other criteria. Explain how it was determined that costs are fair and reasonable or within the competitive range.
4.3.1.3.4.c(4)	Contract Amendments. For amendments to these competitive contracts, state the rationale for executing an amendment rather than competitively procuring the services and awarding a new contract. Explain why the services under the proposed amendment were not included in the terms of the original contract or solicitation document. Include any changed conditions since contract award and other applicable information which clearly justifies the decision to amend the contract. State whether the services are within the scope of the original contract. Also, identify whether the rates are the same as those negotiated under the original contract and explain any increases. If a contract amendment results in the contract value exceeding 50% of the original contract amount or substantially changing the scope of work, follow the justification requirements of Subsection 4.3.1.3.5.

4.3.1.3.5.c(1)	Specific Problem or Need. Identify and fully describe the specific problem, requirement or need which the amendment is intended to address and which makes the amendment necessary. Include an explanation as to how the agency determined the services under the proposed amendment are critical or essential to agency responsibilities or operations and/or whether the services are mandated or authorized by the legislature.
4.3.1.3.5.c(2)	Other Public Resources. Explain how the agency concluded: (a) that sufficient staffing or expertise is not available within the agency to perform the services, and (b) that other qualified public resources are not available to perform the services more efficiently or more cost effectively.
4.3.1.3.5.c(3)	Procurement Method. State whether the original contract was competitively procured or awarded as a sole source, when the original contract was awarded, and the cumulative dollar amount of the original contract and any subsequent amendments prior to this amendment.
4.3.1.3.5.c(4)	Changes Since Award. Explain why the services under the proposed amendment were not included in the terms of the original contract or in the solicitation document. Include any conditions that have changed since contract award and other information which supports the decision to amend the contract.
4.3.1.3.5.c(5)	Why Amendment Preferred. State the rationale for executing an amendment to the existing contract rather than competitively procuring the services and awarding a new contract. Include whether the new services are within the scope of the original contract or solicitation document and how executing the amendment can most effectively achieve the agency's purpose.
4.3.1.3.5.c(6)	Contractor's Qualifications. Provide an explanation of the contractor's qualifications, abilities or expertise to meet the agency's specific needs for the services under the amendment.
4.3.1.3.5.c(7)	Reasonableness of Costs. Include how the agency determined that the costs, fees or rates negotiated for the amendment are fair and reasonable, since competitive bids were not received for the services under the amendment. Generally, the rates should be the same as those in the original contract. If they are not, include justification for any increased pricing.

	Emergency contracts are awarded to resolve an emergency situation. An "emergency" means a set of unforeseen circumstances beyond the control of the agency that either presents a real, immediate threat to the proper performance of essential state functions or which may result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.
4.3.1.3.6.a	Emergency Filings. Emergency contracts, and their amendments, in the amount of $5,000 or more, with a contractor during the state fiscal year are also subject to filing with OFM. Such contracts and amendments must be filed with OFM for review within three working days following the date of contract execution or commencement of work, whichever occurs first. The filing shall consist of a completed SF-110 form, a copy of the contract or amendment, and a justification.
4.3.1.3.6.b	Emergency Justification. Documented justification which must accompany each emergency filing is to be capable of withstanding public, legislative and executive scrutiny. Include, at a minimum, the following elements in the justification:
4.3.1.3.6.b(1)	Nature of Emergency. Explain the nature of the emergency and the relevant circumstances associated with the emergency.
4.3.1.3.6.b(2)	Health or Safety Threat. Describe the threat to the health or safety of individuals, property, or essential state functions if immediate action is not taken. Provide an estimate of the potential material loss or damage.
4.3.1.3.6.b(3)	Alleviate or Eliminate Emergency. Explain how the services of the contractor alleviated or eliminated the emergency. Describe what the consequences would have been if the emergency action had not been taken and the risks associated with inaction.
4.3.1.3.6.b(4)	Contractor's Qualifications. Describe the contractor's qualifications, experience and background to provide the emergency service and the basis on which this contractor was selected over other qualified firms.
4.3.1.3.6.b(5)	Reasonableness of Costs. Explain how the agency concluded that the costs negotiated are fair and reasonable since competition was not conducted.

	The agency should expect to receive either a written or oral response from OFM within ten working days from the date of filing.
4.3.1.3.7.a	The agency will receive either written or electronic verification of OFM's decision. (Electronic verification is sent when an electronic filing has been received, and a green copy of the SF-110 is returned when the hard copy form is submitted.)
4.3.1.3.7.b	If OFM anticipates a delay or a disapproval, the agency will be notified promptly.
4.3.1.3.7.c	The decision to disapprove a contract will be in writing from OFM and will clearly state the reason for disapproval.

	Contracts and their amendments entered into for architectural and engineering services shall be reported to OFM on a quarterly basis. For purposes herein, quarters shall be for the three-month periods ending September, December, March and June of each fiscal year.
4.3.1.3.9.a	Quarterly reports shall be submitted to OFM not later than the fifteenth day of each month following the end of the quarter; e.g., October 15, January 15, April 15, and July 15. If the fifteenth day falls on a Saturday, Sunday or state holiday, the report will be due the next working day. The information shall be submitted in the format prescribed by OFM.
4.3.1.3.9.b	The reports shall include the following information:
	Name of the awarding agency; Name and address of the contractor; Whether the activity is a new contract or an amendment; Contract/amendment start and completion date; Dollar value of the contract or amendment; if it is an amendment, also include the amended contract total; Brief project description; and Whether the contract was competitively procured per Chapter 39.80 RCW.

	OFM is required to maintain a publicly available list of personal service contracts awarded by state agencies. Contracts and amendments filed with OFM throughout the fiscal year will automatically be included on the list. Personal service contracts and amendments which are not subject to filing during the fiscal year are to be reported to OFM at the end of each fiscal year for an annual report of contract activity. This report does not include contracts which are exempt under RCW 39.29.040.
4.3.1.3.10.a	All agencies are to maintain current and accurate records for the following categories of contracts and amendments awarded during the fiscal year, which do not require filing with OFM, but which are to be reported to OFM annually.
4.3.1.3.10.a(1)	State agencies and institutions of higher education will report competitive personal service contracts and amendments in the amount of $5,000 or more but less than $20,000.
4.3.1.3.10.a(2)	Institutions of higher education will also report the following categories of contracts: Competitive contracts and amendments in the amount of $20,000 or more which are funded by dollars other than state funds. Sole source contracts and amendments in the amount of $5,000 or more which are funded by dollars other than state funds.
4.3.1.3.10.b	Information relating to these personal service contracts and amendments is to be reported to OFM in the format prescribed by OFM. At a minimum, the following information should be maintained: Name and address of the contractor; Whether the entry is a new contract or an amendment; Contract/amendment start and completion dates; Dollar value of original contract and each amendment; Scope of work; Whether the contract was competitively procured; Whether the contractor or agent was an employee of the state of Washington in the 24 months preceding the start date of the contract (if so, for what agency and in what function); Sub-object code; and Funding source.
4.3.1.3.10.c	Upon request, OFM will provide summary reports on personal service contract filings to the Joint Legislative Audit and Review Committee. Additional information will be provided by OFM as requested.