Oregon
Rule Rule 943-060-0070
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 of the DPO in accordance with section (2) of this rule. If the aggregated value of the contract, including cost overruns, exceeds $150,000, the cost overrun may also require approval from the Department of Justice under OAR 137-045-0010 (Definitions) to 137-045-0090 (Ratification of Public Contracts).

(2)

The Authority may grant approval of the payment of a cost overrun if:

(a)

The original contract was duly executed and, if required, approved by 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 of the original contract;

(d)

The cost overrun arose from extraordinary circumstances or conditions encountered in the course of contract performance that were not reasonably anticipated at the time of the original contract or the most recent amendment, if any. 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 a need to ensure 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 not greater than the prescribed hourly rate or the reasonable value of the additional work or performance rendered; and

(f)

The aggregated value of the contract, including the cost overrun, and the contract’s objective are within the Authority’s procurement authority and the Authority has funds available for payment under the contract.

(3)

The Authority shall prepare a written report that describes the Authority’s discovery of the cost overrun, the reasons for the cost overrun, and the Authority’s satisfaction of the conditions set forth in section (2) of this rule. The Authority shall maintain the report in its procurement file and make the report available upon request.

(4)

The DPO approves, in writing, the payment of the overrun or such portion of the overrun amount as the DPO determines may be paid consistent with the conditions of this rule. If the DPO has signed the contract, or has immediate supervisory responsibility over performance of the contract, the DPO shall designate an alternate delegate to grant or deny written approval of payment.
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Last accessed
Jul. 13, 2020