(a)  The Division may enter into written contracts for the operation or administration of job training activities, or any part of them, with contractors.  Bidders, in the case of requests for proposals, or prospective contractors, when there is no formal request for proposals, must submit an application in a form required by the Division, which must be accurately completed, signed by an authorized signatory and received by the Division in accordance with the schedule established by the Division.

(b)  Only entities that fulfill the following criteria will be eligible to receive a contract:

(1)           As to units of government, including state agencies, the entity must be in compliance with all applicable federal and state statutes dealing with accounting and budgeting, must be cooperating in the resolution and collection of previously disallowed costs, if any, in a previously funded employment and training program (provided that the pursuit of appeals shall not constitute failure to cooperate), and must be willing to accept responsibility for contract funds, including any potential future liability that may arise out of the use of the contract funds.

(2)           As to non‑governmental bidders and prospective contractors, including profit and non‑profit organizations, the entity must have an accounting system including a designated finance officer and internal fiscal controls, that are compatible with the reporting systems required by USDOL and the Division and that satisfy the Division of the fiscal integrity of contract funds.  The entity must be capable of providing the Division with assurances, through past performance or otherwise, that it will comply fully with federal and state regulations, and the entity must be willing to accept responsibility for the contract funds, including any potential future liability that may arise out of the use of the contract funds.

(c)  Contracts may be entered into for a period that does not extend beyond one fiscal year.  Contracts for a period of one year or less that are part of a proposal to conduct an activity over more than one year may be extended by the Division if the performance under the original contract is satisfactory.  In such an event, the extension shall be accomplished by the execution of a new contract document, but, in the event that a request for proposals would otherwise be required, it may not be required for the extension.

(d)  The selection of service providers by the Division shall be guided by the following criteria: the effectiveness of the agency or organization in developing comparable or related services based on demonstrated performance goals, cost, quality of training, and characteristics of participants; the ability of the service provider to provide linkages required by the Governor's Coordination and Special Services Plan; the record of the service provider as a contractor under previous employment and training grants or other federal grants, including the monitoring and audit history of the contractor and the compatibility of the service provider and the program or projects offered with job training services and service providers throughout the area and the state.  The Division shall not be required to contract with any service provider about whom the Division has a verifiable reason to doubt its fiscal or programmatic integrity.

(e)  In the event that the Division determines to accept applications for the operation of a program or project where the program or project could not reasonably be operated by more than three specific contractors, such as residential programs for institutionalized individuals, the Division will not advertise generally for proposals or applications.  Entities that have specifically requested, by writing to the Director, that they wish to receive and have the opportunity to submit proposals for applications for the specific type of job training activities sought under this Paragraph must be considered viable prospective contractors unless they fail to meet the qualification set out in Paragraph (b) of this Rule.  This procedure is limited to instances in which a total of three potential contractors or less are identified, and this procedure does not affect the availability of sole source contracting, when such is appropriate.


History Note:        Authority G.S. 143B‑430(b); 143B‑277; 20 C.F.R. 627.21; 20 C.F.R. 629.34;

Ex. O. No. 93, June 8, 1983;

Eff. February 1, 1976;

Transferred from T01: 18 Eff. September 15, 1981;

Amended Eff. October 1, 1984; August 1, 1982.