DAFS/BGS Division of Procurement Services
Basic Service Contracting Guidelines

Types of Service Agreements

Contract:
A contract is a legal written agreement between a provider and the State of Maine describing the services to be performed, the terms and conditions agreed to by the parties, the cost of the services, and how payment will be made.  The principal purpose of a contract is to purchase, lease, or barter property or services for the direct benefit of the government.  A contract is generally awarded to a provider if the provider is the winner in a competitive bidding process (RFP).  However, a contract may be awarded if there is a valid sole source justification.  The contract document will be a Service Contract (SC), which is a legally binding written agreement between the provider and the Department.

The following are the types of contracts and supporting documents utilized when contracting for a service. Explanations about the forms listed and links to them are at the end of this document.

•	Up to $5,000
o	LVSC (Low Value Service Contract) 
Supporting Documents (Not Required)
•	Attachments that include any information available to define the scope of services. 
•	$5,001 to $10,000	
o	SC (Service Contract)
SC contracts require one of the following supporting documents; 
•	CA if the contract is the result of a competitive bidding process or when three quotes have been solicited.
•	WCB if the competitive bid process has been waived.
•	Over $10,000	
o	Subject to Request for Proposal (RFP) 
o	If the contracted services are for an immediate, unforeseen need or can be acquired from only one source a WCB and a SC can be utilized.
•	For Information Technology (IT) service contracts of any amount
•	BP54IT 
BP54IT contracts require one of the following supporting documents;
•	CA if the contract is the results of a competitive bidding process or when three quotes have been solicited.
•	WCB if the competitive bid process has been waived.
•	PA if the contract piggybacks on a pre-existing competitively awarded contract from another State or public entities (County, Municipal, State owned University).

Grant:
A grant is a written agreement between a provider and the State of Maine describing the terms, conditions, and scope of performance or action that is expected of the provider. The principle purpose of a grant is the transfer of money, property, services or anything of value to the recipient in order to accomplish a public purpose of support with no substantial involvement between the State and the recipients during the performance of the activity.  For example, an agreement under which a provider provides services directly to clients with no substantial involvement of the State would be a grant.  A grant is generally awarded to a provider if the provider is the winner in a competitive bidding process (RFP).  However, a grant may be awarded if there is a valid sole source justification.  The grant document will be a Service Contract (SC), which is a legally binding written agreement between the provider and the Department.

Cooperative Agreement:
A Cooperative Agreement is an agreement between the State of Maine and the University of Maine System to jointly participate in a cooperative project under the terms of the General Policy Agreement for State/University Cooperative Agreements of September 1989.  A cooperative project is defined as “any activity of interest to the State of Maine where joint participation between the State and the University will improve the capacity of the State of Maine to provide services to the people of the State, and will enhance the ability of the University to further its teaching, research and public service missions”.  Departments will continue to work directly with the University on Project Agreements. The University of Maine’s template form is provided on the Division of Procurement Services' website for convenience at: https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/Coop%20Agreement%20revised%2008%202017.doc. Any cooperative agreement must be approved by the Governor’s Office prior to the execution of any agreement.  The GOVCOOP form can be found on our website at: https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/govcoop.doc.  

Examples of projects that would meet these criteria include those that: 

A.	provides training of students who may be candidates for employment to meet needs of the public and private sectors in Maine; 
B.	support research and development projects that generate needed information or enhance the expertise of University faculty and research staff in areas needed by the State; 
C.	provides public service that leads to the dissemination of University expertise to various constituencies in the State and/or that addresses critical State needs.

Temporary Staffing Services Contracts 
Master Agreements are available with four vendors; Atlantic Staffing, Manpower, Project Staffing and Tri State Staffing. (Remember, you do not use PurchasingME for MA’s, DO’s, or PO’s)

Each Department is free to select the vendor with which they would like to work with.    Note: State Agencies will still be permitted to separately compete through a new RFP for any large-scale temporary staffing needs.

The process you will need to take is as follows:
•	Create a Job Description with the required duties
•	Contact the vendor via email or phone and provide them with the job description and/or list of duties
•	Vendor and Agency will determine which category the duties fall under and the hourly rate
•	Once in agreement the job description will need to be revised to include the staffing category agreed upon, the hourly rate, multiplier and total bill rate
•	Create a Delivery Order (DO) and attach the job description and a TEMP form (must be most current form, revised 2019) – If these two documents are not attached, the DO will be rejected

Things to remember on temporary staffing:

•	Procurement Services limits temporary staff contracts to 1,000 hours or less over a 12 month period  -- and, just to be clear, this does not mean that a Department can have multiple contracts back-to-back, to give 1,000 in one year, and then another 1,000 hours in the next year for the same project.  That would not be allowed.
•	The best way to define the 1000-hour rule is that personal services contracting for a temporary service contract is limited to 1000 hours at one state administrative unit annually.  This 1000-hour engagement does not preclude another engagement by the same resource in a different state administrative unit.
•	There are exceptions to the 1,000-hour rule…… some example exceptions may be:
o	If the contract’s length is strictly based on a specific project, departments could possibly push past the 1,000-hour limit for the duration of the project. 
o	If a department is in the process of hiring for that position and if they need an additional amount of time and hours to get through the hiring process; we will review those requests on a case by case basis.

Temporary Staffing Services Contracts with a former State employee
If you are requesting to bring back a former State employee who was hired after September 1, 2011, weather they retired/resigned or was released, we need the information below.   Also, if retired within a one-year period the vendor must request a consent to hire approval from the Director of Procurement Services, they will need to provide information from 4 - 9.  

1.	Employment status from State Service:  Retired    Resigned     Released
2.	Why must this former State employee return:  _______________________              
3.	What skills does this former State employee have that cannot be found through the standard human resources hiring process?  _________________________________________________________________
4.	Name of the former State employee:    ______________________________________________   
5.	Last position held with the State:   _________________________________________________    
6.	Dates of employment with the State:  ______________________________________________     
7.	Last pay – hourly, range and step:  ____________________________
8.	Last Manager:     _______________________________    
9.	Proposed hourly rate:    $_________________                  
(Note: hourly rate to individual cannot be higher than when they left employment with the State of Maine, if higher provide justification):_______________________
10.	Proposed term of service:     ________________________            
11.	Proposed total hours:    ___________________________                          
12.	Has it been 30 days of the last day of work?   Yes    No If no, provide justification: ____________________________    
13.	Term of service within 5 years?   Yes    No    If no, provide justification:    ___________________________________     
14.	Is the compensation within the 75% of the compensation established for a classification with equivalent duties and responsibilities      Yes    No   If no, provide a

State Procurement Review Committee
•	Contracts/grants/cooperative agreements that are greater than $1 million must be reviewed by the State Procurement Review Committee which is made up of the following:
o	Director, Division of Procurement Services
o	State Budget Officer
o	State Controller
o	Governor’s Office
o	Chief Information Officer if it is IT related
o	Attorney General’s Office

Please submit all contracts/grants/cooperative agreements that are subject to SPRC review before obtaining signatures. Please allow extra review time for the SPRC review.

Insurance Requirements   

These are minimally what the State wants and should not be interpreted to necessarily be all that the provider wants or needs for insurances; the provider should consult with his or her insurance agent or broker.
        
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons, damages to property or loss or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors:

A. Types, Minimum Scope and Limits of Insurance Coverage required:
1.	Commercial general liability; occurrence basis; including products and completed operations; $400,000 per occurrence; and
2.	Vehicle liability insurance; occurrence basis; any auto; $400,000 per occurrence; and
3.	Workers’ compensation and employer’s liability if required by law.
B. Other Insurance Provisions: 
1.	Insurance is to be placed with insurers or reinsurers fully licensed or designated as an eligible surplus line insurer to do business in this State by the Maine Department of Professional & Financial Regulations, Bureau of Insurance.
2.	The Contractor’s insurance coverage shall be primary insurance.  Any insurance or self- insurance maintained by the State of Maine for its officers, agents, and employees shall be excess of the Contractor's insurance and shall not contribute with it. 

The Contractor shall furnish the Department with certificates of insurance. The certificates for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf.  All certificates are to be received and approved by the Department before the contract commences.  The Department reserves the right to require complete, certified copies of all required insurance policies at any time.

Forms

LVSC (Low Value Service Contract)
https://www.maine.gov/dafs/bbm/procurementservices/sites/maine.gov.dafs.bbm.procurementservices/files/inline-files/LVSC.Rev%20April%202019.docx  

This form is used to contract casual, intermittent, or other special services for which the Department may pay the Contractor a maximum of $5,000 over the contract period. This form is limited to $5,000 worth of services per twelve-month period by the requesting Department for the same service with the same contractor. 

Items to think about:
•	“Start Date” and “End Date” must match the “Service From” and “Service To” dates in the Commodity section of the contract in Advantage.
•	Scope of Service – Describe exactly what you are paying for. If the description is too lengthy include an attachment.
•	Standard Terms and Conditions – This section cannot be altered. Please consult with Procurement Services if you need guidance
•	Signatures - Must be signed by the contractor and a representative from the agency authorized to execute the contract. Contractor shall sign first.

SC (Service Contract)		
https://www.maine.gov/dafs/bbm/procurementservices/sites/maine.gov.dafs.bbm.procurementservices/files/inline-files/Service%20Contract%20Rev%20April%202019.docx 

This document must be used for contracts over $5,000 in value (and can be used for lower value contracts at the discretion of the Department).  Contracts presented on this form need to be accompanied by a completed CA, WCB, or PA, to explain the purchasing process used.

Items to think about:
•	Signatures - Must be signed by the contractor and a representative from the agency authorized to execute the contract. Contractor shall sign first. 
•	Rider Selection Page – Check each Rider associated with your contract
•	Payment Rider – Complete as needed, the budget section is optional. (Do not state down payment/pre-payment unless grant funding that is allowed) 
•	Rider A – Scope of Work. Complete each section as it pertains to your service contract 
•	Rider B Terms and Conditions
•	Rider B cannot be altered. If there are exceptions, please state in Rider C and ask Procurement Services to have reviewed by the AAG
•	Rider C – Exceptions to Rider B only! 
o	List any Division of Procurement Services approved exceptions to Rider B. If no exceptions, state “None” 
•	Riders D,E, F, & Business Associate Agreement – Use for Department specific forms 
o	Federal Debarment forms, grant information, etc. 
•	Rider G – Identification of Country in Which Contracted Work Will Be Performed
o	This information must be provided. Contracts without this information will be rejected.

BP54IT		
https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/BP54_IT%20Revised%20112018_0.docx 

This document is used for all Information Technology contracts of any dollar amount.  Contracts presented on this form need to be accompanied by one, completed CA, WCB, or PA, to explain the purchasing process used.  

Items to think about:
•	Signatures - Must be signed by the contractor and a representative from the agency authorized to execute the contract. Contractor shall sign first.
•	Rider A – Scope of Services. Describe exactly what you are paying for and expect the contractor to provide.
•	Rider B – Method of Payment and Other Provisions
•	The only lines that can be altered in Rider B are; Agreement Amount, Invoices and Payments, Agreement Administrator and Irrevocable Letter of Credit. If any other lines are altered the contract will be rejected.
•	Agreement Amount – The total contracted dollar amount.
•	Invoices and Payments – List when the payments are to be made and if there is a special manner in which the contractor should bill the agency.
•	Agreement Administrator – Include the name and contact information (telephone, email) for the Agreement Administrator. 
•	A Program Administrator can be added but is not required. 
o	Irrevocable Letter of Credit – This paragraph can be used unaltered or marked, “This Item Is Intentionally Left Blank.”
•	Rider C – Exceptions to Rider B-IT
o	List any Division of Procurement Services approved exceptions to Rider B-IT.
•	Rider G – Identification of Country in Which Contracted Work Will Be Performed
o	This information must be provided. Contracts without this information will be rejected.

CA
https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/BP37CA_Competitive_Award_Authorization_Formrevised102617.doc 

This form must accompany contracts (or renewal amendments) being proposed for approval that are the direct result of a competitive RFP, a subsequent renewal that was anticipated in a RFP, or when Competitive Quotes were obtained.  If the renewals allowable under the original RFP have been exhausted, another competitive RFP must be conducted.

WCB
https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/BP37WCBrevised01-10-2018.doc 

This form should be used for non-competitive contracts, i.e. contracts for goods and/or services that are not the direct result of a competitive RFQ or RFP, or result from a subsequent renewal that was not anticipated in the RFQ or RFP.  This form is also to be used for any amendment with the dollar amount exceeding $10,000.01. This document will be posted for seven days on the Division of Procurement Services Website prior to executing the final contract/purchase. Those WCB forms citing the emergency justification will be posted for seven days, but the contract/purchase can move forward after posting. https://www.maine.gov/dafs/procurementservices/vendors/noi  

Items to think about:
•	This document will be posted on the Division of Procurement Services Website so it can be viewed by the public.
•	Vendor / Provider Name, City, State 
o	Do not include the physical street address, phone numbers, email addresses or any other personal information for the proposed vendor.
•	Statutory Justification
o	One of the options must be selected.
o	If you select option B., the box must be signed by the Department’s Commissioner or Chief Executive.
o	If you select the final option, “If a different authorization specifically allows for this non-competitive procurement, please provide that reference here:” the box to the right must include a description of why you selected this option, such as a reference to a particular Statute.
•	Description of Specific Need 
o	Write exactly why you are opting to waive the competitive bid process.
o	Explain how the requesting Department determined these goods or services are critical and cannot or should not go through the competitive bid process.
•	Availability of other Public Resources
o	Describe how the requesting Department determined they could not provide the service and that no other state or public entity (county, municipal, State owned University) could either.
•	Cost
o	Explain the process used to determine that the costs, fees or rates are fair and reasonable.
•	Future Competition
o	Explain how the requesting Department might handle future opportunities to purchase these goods or services through a competitive bid process.
•	Uniqueness OR Timeframe (You only have to fill in one.)
o	Uniqueness – Explain how the goods or services are unique to the selected vendor.
o	Timeframe – Only when Statutory Justification B is selected! Explain why the purchase of the goods or services must be expedited and cannot wait to go through a competitive bid process. (Requires Commissioner’s signature on both page 1 & 3)
•	Signature of requesting Department’s Commissioner, Chief Executive or their designee
o	This document must be signed by one of these officials. 

BP37AM-Archived, no longer necessary

PA
https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/BP37PA_Participating_Addendum_Authorization_Formrevised102017.doc 

This form must accompany contracts being proposed for approval that are the result of participation (a.k.a. “piggybacking”) under pre-existing, competitively awarded contracts.  Pre-existing contracts can be in the form of multi-State cooperative agreements, or contracts that were competitively awarded by individual States or public entities.  The information requested below should explain the general Departmental need for the contracted service or commodity, describe the process undertaken to identify existing contracts, and explain the method of achieving the best contract in terms of price and quality of service/commodity. 

TEMP
https://www.maine.gov/dafs/procurementservices/sites/maine.gov.dafs.procurementservices/files/inline-files/BP37TEMP1-12-18.doc 

This form must accompany contracts for temporary staffing services being proposed for approval. 

Contracts Naming Crosswalk

Assistance:
The Division of Procurement Services personnel are always ready and willing to assist with any procurement questions or issues that may arise. You can contact Procurement Services at 207-624-7340.