OAR 125-246-0576
Payment Authorization for Cost Overruns for Services Contracts


(1)

Payments on Contracts for Trade or Personal Services that exceed the maximum contract consideration (Cost Overruns) require approval (Approval). If the aggregated value of the Contract, including Cost Overruns, does not exceed $150,000, the Designated Procurement Officer of the requesting Authorized Agency may approve the Cost Overruns in accordance with Section (2) of this Rule. If the aggregated value of the Contract, including Cost Overruns, exceeds $150,000, the Chief Procurement Officer may approve the Cost Overruns in accordance with Section (2) of this Rule. The Cost Overruns may also require approval from the Department of Justice pursuant to ORS 291.047 (Public contract approval by Attorney General) and 291.049 (Ratification of public contract when performance begun prior to contract approval).

(2)

Approval may be provided if:

(a)

The Original Contract was duly executed and, if required, approved by the Department and the Attorney General;

(b)

Payments relate to Services that were provided during the term of the Contract;

(c)

The cost overrun is not associated with any change in the Statement of Work set out in the Original Contract;

(d)

The cost overrun arose out of extraordinary circumstances or conditions encountered in the course of contract performance that were reasonably not anticipated at the time the Original Contract, or the most recent Amendment, if any, was signed. Such circumstances include, but are not limited to: emergencies arising in the course of the Contract that require prompt action to protect the Work already completed, compliance with official or judicial commands or directives issued during contract performance or insurance that the purpose of the Contract will be realized;

(e)

The cost overrun was incurred in good faith, results from the good faith performance by the Contractor, and is no greater than the prescribed hourly rate or the reasonable value of the additional Work or performance rendered;

(f)

The aggregated value of the Contract, including the Cost Overrun, and the Contract’s objective are within the procurement authority of the Authorized Agency pursuant to OAR 125-246-0170 (Delegation of Authority), and the Authorized Agency currently has funds available for payment under the Contract; and

(g)

The Agency must prepare a Written report that describes the Authorized Agency’s discovery of the Cost Overrun, the reasons for the Cost Overrun, and the Agency’s satisfaction of the conditions set forth in this Section (2) (Report). The Authorized Agency must maintain this Report in its Procurement File and make this Report available to the Department upon request.

(h)

The Designated Procurement Officer of the Authorized Agency approves in Writing the payment of the overrun, or such portion of the overrun amount as the Designated Procurement Officer of the Authorized Agency determines may be paid consistent with the conditions of this Rule. If the Designated Procurement Officer of the Authorized Agency has signed the Contract, or has immediate supervisory responsibility over performance of the Contract, that Person must designate an alternate delegate to grant or deny Written approval of payment.

(3)

The Authorized Agency must obtain any Attorney General’s approval of the Contract Amendment, if such approval is required by ORS 291.047 (Public contract approval by Attorney General), before making any Cost Overrun payment.

Source: Rule 125-246-0576 — Payment Authorization for Cost Overruns for Services Contracts, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=125-246-0576.

125‑246‑0100
Application
125‑246‑0110
Definitions
125‑246‑0120
Policies
125‑246‑0130
Application of the Code and Rules
125‑246‑0135
Solicitation Templates
125‑246‑0140
Procurement Authority
125‑246‑0150
Applicability of These Rules to Agencies
125‑246‑0165
Delegation Policy and Procedures
125‑246‑0170
Delegation of Authority
125‑246‑0200
Affirmative Action
125‑246‑0210
Subcontracting to and Contracting with Emerging Small Businesses
125‑246‑0220
Governor’s Policy Advisor for Economic and Business Equity
125‑246‑0300
Preference for Oregon Supplies and Services
125‑246‑0310
Reciprocal Preferences
125‑246‑0314
Disabled Veterans Preference
125‑246‑0316
Lighting Preference Relating to Mercury
125‑246‑0318
Oregon Employment Preference
125‑246‑0319
Federally Funded Transit Projects — Preference for Exceeding Federal Buy America Requirements
125‑246‑0320
Recycling
125‑246‑0321
Recycling Policy
125‑246‑0322
Preference for Recycled Materials
125‑246‑0323
Recycled Paper and Paper Products
125‑246‑0324
Recycling: Food Service and Food Packaging
125‑246‑0330
Supplier Requirements
125‑246‑0333
Independent Contractors
125‑246‑0335
Authority and Standards for Personal Services Contracts
125‑246‑0345
Procedures for Personal Services Contracts
125‑246‑0350
Approval of Personal Services Contracts
125‑246‑0351
Acquiring Services before Obtaining Requisite Approvals of a Personal Services Contract
125‑246‑0353
Reporting Requirements for Personal Services Contracts
125‑246‑0360
Purchases Through Federal Programs
125‑246‑0365
ORS 190 Agreements (Intergovernmental)
125‑246‑0400
Cooperative Procurement
125‑246‑0500
Oregon Procurement Information Network (ORPIN)
125‑246‑0555
Contract Administration
125‑246‑0556
Procurement Files
125‑246‑0570
Reinstatement of Expired Contract
125‑246‑0576
Payment Authorization for Cost Overruns for Services Contracts
125‑246‑0580
Dispute Resolution
125‑246‑0600
Ethics in Public Contracting
125‑246‑0605
Ethics
125‑246‑0610
Appointments to Advisory Committees
125‑246‑0615
Nonretaliation
125‑246‑0620
Specifications
125‑246‑0621
Anti-Trust Laws
125‑246‑0625
Sole-Source
125‑246‑0630
Fragmentation
125‑246‑0635
Authorized Agency and Provider Communications
125‑246‑0800
Selling or Leasing Supplies and Services
125‑246‑0900
Penalties
Last Updated

Jun. 8, 2021

Rule 125-246-0576’s source at or​.us