OAR 584-001-0020: Personal Service Contracts

(1) The Teacher Standards and Practices Commission occasionally requires the services of a consultant to accomplish all or part of a project. This rule establishes procedures to be followed for screening and selection of Personal Service Contractors. (2) The Executive Director is authorized to enter into personal service contracts for assignments approved by the Commission, such as investigators for discipline cases, within the expenditure limitations established by the legislature. Personal service contracts for other tasks not previously a part of TSPC’s legislatively-approved budget shall be approved by the Commission prior to initiating work on the contract. (3) The Commission will contract for consultant services when: the specialized skills, knowledge, and resources are not available within the Commission or its staff; when the work cannot be done in a reasonable time with the Commission’s own work force; when an independent and impartial evaluation of a situation is required by a consultant with recognized professional expertise and stature in a field; or when it will be less expensive to contract for the work. (4) A personal service contract with a consultant who is a member of the Public Employees Retirement System (PERS) and who is employed in another state agency will normally be in the form of an interagency agreement. If such an agreement is impractical and the work will be done strictly on the consultant’s own time, a regular Personal Service Contract will be established. (5) A personal service contract shall establish the specific duties to be performed, the standards of performance to be met with the product, and a delivery schedule for completion. The letter of agreement shall indicate the consideration for services to be performed and the nature and amount of reimbursement for expenses, if any. (6) Contracts of $1,000 or less may be initiated by the Executive Director and submitted to Department of Administrative Services (DAS) contract administrator following execution of the contract. Contracts in excess of $1,000, but less than $25,000, shall be approved by DAS prior to execution of the contract. Contracts of $25,000 or more shall be submitted to the Attorney General’s office for review of legal sufficiency and shall be approved by DAS prior to execution. Contracts for computer services and programming shall be submitted to DAS for review. Copies of all contracts shall be filed with DAS contract officer and with TSPC’s accountant in DAS. (7) A contract file will be maintained by the Commission. The file will contain a complete record of the actions involved in developing and administering the contract including the following: (a) Statement of agency justification for the contract; (b) Written justification in lieu of competitive procurements when negotiation is used for personal service contracts in excess of $2,500 per agreement per fiscal year; (c) Methodology/rationale by which rates are established for contracts in excess of $2,500 per agreement per fiscal year may include the following: (A) A copy of the request for approval; (B) List of prospective contractors who were requested to submit proposals; (C) Method used to advertise/notify other possible prospective contractors; (D) A copy of each proposal; (E) Method of evaluating proposals; (F) Record of negotiations and results; (G) How the contractor was selected including the basis for awarding contract; (H) Resulting contract, if awarded. (d) All contracts of $2,500 per agreement or less should include: (A) The names of firms or individuals and cost estimates/quotes considered; (B) The basis for selection of the contractor; (C) How reasonableness of price was determined. (8) In accordance with ORS 670.600, the Commission shall certify that the contracted work meets the following standards: (a) The individual or business entity providing the labor or services is free from direction and control over the means and manner of providing the labor or services, subject only to the right of the person for whom the labor or services are provided to specify the desired results; (b) The individual business entity providing labor or services is responsible for obtaining all assumed business registrations or professional occupation licenses required by state law or local government ordinances for the individual or business entity to conduct the business; (c) The individual or business entity providing labor or services furnishes the tools or equipment necessary for performance of the contracted labor or services; (d) The individual or business entity providing labor or services has the authority to hire and fire employees to perform the labor or services; (e) Payment for the labor or services is made upon completion of the performance of specific portions of the project or is made on the basis of an annual or periodic retainer. (9) In accordance with ORS 670.600, the independent contractor shall certify he or she meets the following standards: (a) The individual of business entity providing labor or services is registered under ORS Chapter 701, if the individual or business entity provides labor or services for which such registration is required; (b) Federal and state income tax returns in the name of the business or a business Schedule C or farm Schedule F as part of the personal income tax return were filed for the previous year if the individual business or business entity performed labor or services as an independent contractor in the previous year; and (c) The individual or business entity represents to the public that the labor or services are to be provided by an independently established business. Except when an individual or business entity files a Schedule F as part of the personal income tax returns and the individual or business entity performs farm labor or services that are reportable on Schedule C, an individual or business entity is considered to be engaged in an independently established business when four or more of the following circumstances exist: (A) The labor or services are primarily carried out at a location that is separate from the residence of an individual who performs the labor or services, or are primarily carried out in a specific portion of the residence, which portion is set aside as the location of the business; (B) Commercial advertising or business cards as is customary in operating similar businesses are purchased for the business, or the individual or business entity has a trade association membership; (C) Telephone listing and service are used for the business that is separate from the personal residence listing and service used by an individual who performs the labor or services; (D) Labor or services are performed only pursuant to written contracts; (E) Labor or services are performed for two or more different persons within a period of one year; or (F) The individual or business entity assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission insurance or liability insurance relating to the labor or services to be provided.