Personal Service Contracts | KCTCS

Administrative Procedures

Personal Service Contracts

Policy Number: 5.4.12-P

Current Effective Date: 09/01/2017

Original Effective Date: 07/01/2011

Revision Dates: 07/01/2011, 01/01/2015, 05/30/2017

Revision Number: 3

Revision Summary:

Responsible Official: Director of Procurement to Payment

References:

1. Purpose

To address the criteria and use of Personal Service Contracts.

2. Scope

This procedure applies to all KCTCS employees.

3. General

3.1

Personal Service Contract – an agreement where an individual, firm, partnership, or corporation performs services requiring professional skill or professional judgment for a specific period of time at an agreed upon price.

3.2

Includes all contracts requiring professional skill and judgment such as consultants, legal, medical, scientific research, architectural and engineering services.

3.3

The requesting business unit must be able to provide proof that KCTCS lacks the ability to perform the requested contracted functions internally.

3.4

Personal Service Contracts for legal services require an Executive Order from the Kentucky Office of the Governor, which will be filed with the Office of the Kentucky Secretary of State.

  1. The KCTCS Office of General Counsel administers Personal Service Contracts for legal services.

3.5

Personal Service Contracts for Architectural and Engineering services must be procured through the Kentucky Cabinet for Finance and Administration.

  1. The KCTCS Office of Facilities Support Services administers Personal Service Contracts for Architectural and Engineering services.

4. Procedure

4.1.

KCTCS Office of Procurement to Payment Services must be notified immediately in writing by the business unit upon awareness of the need for a Personal Service Contract.

  1. The notification must include a description of:
    1. Requested services.
    2. Anticipated total expenditure amount.
    3. Anticipated beginning and end date. 
    4. Other pertinent information necessary for the project or services.
  2. The requesting business unit must consult its business office/budgetary authority when the need for services requiring a Personal Service Contract arise, to ensure appropriate budget is available.
  3. KCTCS Office of Procurement to Payment Services will advise on how to contract the requested services.

4.2.

General contracting occurs as follows:

  1. Minimum Quotations:
    1. Contracts with a total dollar scope of $10,000 or less are required to informally solicit 3 quotes from qualified suppliers.
      1. A determination must be made, in writing, on which quote has been deemed the most qualified supplier with which to establish a Personal Service Contract.
      2. KCTCS Office of Procurement to Payment Services will draft the Personal Service Contract document and Proof of Necessity document.

4.3.

Request for Proposal:

  1. Contracts with anticipated total dollar scope exceeding $10,000 per fiscal year must be solicited through the Request for Proposal process, per Kentucky Revised Statute (KRS) 45A.695.
  2. The Request for Proposal must describe at minimum: 
    1. Services required.
    2. Type of information and data required of each offeror.
    3. Relative importance of particular qualifications. 
  3. KCTCS Office of Procurement to Payment Services will distribute the Request for Proposals and give adequate public notice of the need for services.
    1. Adequate public notice will include publishing a notice on the KCTCS Procurement to Payment Services website, and may include other facets of advertising, as approved by the KCTCS Procurement Supervisor.
    2. The notice will contain:
      1. Brief description of services requested.
      2. Estimated amount of work involved.
      3. Name of the person to contact in order to obtain additional information.
      4. Copy of the Request for Proposal.
  4. Upon receipt of responses,KCTCS Office of Procurement to Payment Services may conduct discussions with any offeror submitting a proposal to determine the offeror's qualifications for further consideration.
    1. Discussions must not disclose information derived from another offeror's proposal.
    2. If discussions are conducted with offerors for purposes other than to secure qualification information, the same discussions must be conducted with all offerors.
  5. The procurement officer will appoint a proposal evaluation committee from KCTCS representatives recommended by the business unit requesting the services and others, at the officer’s discretion.
    1. The evaluation committee members will be required to sign a confidentiality statement to participate in the review.
    2. The procurement officer and the assigned evaluation committee will review the proposals received and record written determinations of the qualification rankings of the offerors based on the evaluation factors included in the Request for Proposal. 
    3. KCTCS Office of Procurement to Payment Services will maintain written determination of the Request for Proposal.
    4. After determining the best qualified of all offerors, the KCTCS Office of Procurement to Payment Services may negotiate a fair and reasonable compensation with the selected offeror. 
      1. If compensation cannot be agreed upon with the best qualified offeror, negotiations may be conducted with other offerors in the order of their respective qualification ranking.
  6. After selecting the contractor,KCTCS Office of Procurement to Payment Services will generate a contract including all agreed upon terms and conditions.
    1. The contract will include the sworn statement regarding campaign finance laws required and Proof of Necessity Form.
    2. The resulting contract must be signed by both parties, and forwarded to the Legislative Research Commission for review and approval.
      1. Forwarding for filing and contract approvals with the Legislative Research Commission may be done electronically.
      2. The Government Contract Review Committee of the Legislature generally meets the second Tuesday of the month. The sponsor of the contract will be the recognized speaker and must make themselves available should the Committee pull the Personal Service Contract for review.
    3. A Personal Service Contract amendment to a contract must be processed in the same manner as a new contract.
      1. An amendment includes an extension of a Personal Service Contract, an address change, an increase to the encumbrance, and any other correction or change.
      2. Written notification of a need to amend a Personal Service Contract must be sent to KCTCS Office of Procurement to Payment Services as soon as possible, upon recognition, by the contract owner.
  7. No work may begin until the Legislative Research Commission has officially received the proposed contract.
  8. The Kentucky Model Procurement Code establishes conditions for invoicing for Personal Service Contracts.
    1. Payments cannot be made to suppliers on Personal Service Contracts, unless the supplier submits the standard Personal Service Contract Invoice Form established by the Legislative Research Commission.