Glossary of Contract Terms

ACCREDITATION

Recognition issued by a national accrediting organization to behavioral healthcare and human

services providers for their compliance with the established evaluation criteria for service quality.
Commonly know accrediting organizations include the Rehabilitation Accreditation Commission
(CARF), the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), and the
Council on Accreditation (COA).

ADDENDUM

A document used to expand or more fully explain the terms of a solicitation which is incorporated
as part of the original solicitation. This modification becomes a legal part of the solicitation. This
term should not be confused with a contract amendment as it is not used to change the terms of a
contract.

ADMINISTRATIVE STANDARDS

Criteria for evaluating a providers compliance with contract provisions.

ADVANCE PAYMENTS

ADVANCE PAYMENTS. A payment situation whereby under certain circumstances it is possible

to make a portion of the contract funds available to a provider prior to the delivery of services and
or expenditure of funds by the provider.

AMENDMENT

A document by which significant changes are made to the terms of an executed contract. Changes
requiring an amendment include, but are not limited to adjustments in costs, services, time period,
and method of payment. The amendment is incorporated as part of the original contract.

ATTACHMENT I

The unique, program-specific part of a contract that contains the statement of work for each
provider including services to be provided, manner of service provision, method of payment, and
special provisions.

AUDIT TRAIL

A recorded flow of transactions from initiation to finalization with supporting documentation to

justify each transaction.

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BEST VALUE

The highest overall value to the procuring agency based on objective factors determined by the
procuring agency.

BID OPENING CLERK

The individual charged with the responsibility of receiving, logging, and opening bids.

BIDDER

See Offeror.

BIDDERS CONFERENCE

See Offerors Conference

BREACH OF CONTRACT

A condition that results from the failure of a party to a contract to abide by all material terms or
conditions of the contract such that one party loses the value of its bargain with the other party.
Breach is a sufficient condition for contract termination but not an automatic reason.

BUDGET

A plan that outlines expected revenues and expenditures.

CERTIFICATION OF ASSURANCES

A written and signed list of performance requirements and business conditions to which the
potential vendor agrees to be bound.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION

See the definition of Debarment and Suspension, Certification Regarding.

CERTIFIED MINORITY BUSINESS ENTERPRISE

A minority-owned business which has been certified by the certifying organization or jurisdiction in
accordance with subsection 287.0943, F.S.

COMMODITY

A tangible, specific item or product, such as: desk, toothbrush, bed, etc.

COMPETITIVE SEALED BID PROPOSAL REPLY

The receipt of two or more sealed bids or proposals or replies submitted by responsive and qualified
bidders or proposers, or persons responding to a formal competitive procurement instrument.

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COMPLIANCE

The fulfillment of the terms and conditions of the contract in accordance with applicable policies,
rules and regulations.

CONFIDENCE INTERVAL

The range of values that has a given probability of including the actual population statistic based on
the sample of the population studied.

CONFIDENCE LEVEL

The likelihood that a population statistic falls within a range specified based on a studied sample.
For example, the 95% confidence level indicates that 95 of 100 times the range reported in the
sample findings includes the value that would have been determined if the whole population had
been included in the study or that the assertion made based on the sample is also true for the
population as a whole..

CONFLICT OF INTEREST QUESTIONNAIRE

A questionnaire to be completed by those individuals taking part in any procurement which attests
that none of the participants in the evaluation have a conflict of interest in the project.

CONTACT PERSON

The staff person responsible for a responding to inquiries concerning a solicitation or contract.

CONTRACT

For the purposes of this document, a contract is a formal written agreement between two or more
individuals or organizations for the procurement of services.

CONTRACT CLAUSE

A provision or condition which is part of the contact.

CONTRACT CLOSEOUT

The final process or steps to be taken upon completion or termination of a contract. This may
include, but is not limited to (1) processing the final payment; (2) recovering any overpayment; or (3)
recovering equipment purchased and to be returned in accordance with the terms of the contract.

CONTRACT DEFAULT

The failure to perform or meet contract terms and conditions.

CONTRACT DURATION

The length of time for which a contract is legally binding on both parties. It is normally specified in
the contract under "effective" and "ending" dates.
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CONTRACT FILE

The official record for the procuring agency which must be maintained for a period of five (5) years
following contract closeout or resolution of pending action (e.g., legal, audit, etc.) whichever is later.

CONTRACT MANAGER

The employee designated by the contract signer to serve as the primary point of contact, who is
responsible for the success of the contract.

CONTRACT NUMBER

A unique number assigned to each contract.

CONTRACT RENEWALS

Contracts for commodities or contractual services may be renewed. Renewal of a contract shall be
by mutual consent in writing and shall be subject to the same terms and conditions set forth in the
initial contract.

CONTRACT SIGNER

An individual authorized by a party to a contract to bind that entity through signing a contract.

CONTRACT TERMS

Conditions, obligations, rights, price, etc., as specified in a contract.

CONTRACT YEAR

An accounting period of twelve consecutive months based on the terms and agreements on the
contract.

CONTRACTOR

A person or entity that contracts to sell contractual services or commodities to another entity, also
referred to as a provider.

CONTRACTUAL SERVICES

The rendering by a contractor of its time and effort rather than the furnishing of specific
commodities. The term applies only to those services rendered by individuals and firms who are
independent contractors, and such services may include, but are not limited to: evaluations,
consultations, maintenance, accounting, security, management systems, management consulting,
educational training programs, research and development studies or reports on the findings of
consultants engaged thereunder, and professional, technical, and social services.

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CORRECTIVE ACTION PLAN

A written plan developed by the provider that responds to findings of substantial deficiencies in
contract compliance. Each deficiency is to be identified along with steps and time frames for
correction.

CORRECTIVE ACTIONS

Remedial revisions that the provider is required to make resulting from findings of a reviewing
entity.

COST PRINCIPLES

The explanation of contract pricing which includes provisions for allowable and unallowable costs.

COST REIMBURSEMENT

Method of payment used when the contract payor reimburses the provider for actual expenditures
incurred in accordance with a line item budget.

DATA SECURITY

The protection of information from unauthorized use, modification, destruction or disclosure.

DEBARMENT AND SUSPENSION, CERTIFICATION REGARDING

Prohibition from contracting with a provider for $25,000 or more in federal moneys if a provider
has been debarred, suspended, declared ineligible or voluntarily excluded from receiving federal
funds. This prohibition is also true of providers who audit federal programs, regardless of the
amount of federal moneys involved in their contracts. The Certification Regarding Debarment and
Suspension form states that the provider is not ineligible to receive federal moneys.

DEFAULT

Failure to perform to contract terms and conditions.

DEPARTMENT

Florida Department of Children and Families, unless otherwise stated.

DISCOVERY SAMPLING

A type of sampling used commonly by auditors. A sample is drawn to discover whether the records
contain critical errors due to shortcomings in an entity's internal control process.

DISPUTE

A disagreement brought to the attention of the other party or parties to an agreement.

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EVALUATION CRITERIA

A list of questions used in a competitive solicitation to determine which potential vendors have
submitted the winning proposal(s).

EXECUTED CONTRACT

A contract that has been signed and dated by authorized representatives of all parties.

EXHIBIT

An attachment to an Attachment I or any other contract attachment. The use of the word exhibit
avoids confusion and allows for clearer referencing. All exhibits to an attachment must be
referenced in that attachment.

EXTENSION

An increase in the time allowed for the contract period, with or without an increase in the total
dollar amount, with any increase to be based on the method and rate previously established in the
contract.

FEDERAL FISCAL YEAR

An accounting period of twelve consecutive months starting on October 1, and ending on the last
day of September.

FINDINGS

Material results and observations derived from the contract monitoring that identify the provider's
failure to comply with specific terms and conditions of the contract which relate to the provider's
service delivery, operations and/or financial stability.

FISCAL YEAR

An accounting period of twelve consecutive months ending on the last day of any month selected as
a basis for auditing and reporting.

FIXED PRICE

Method of payment used when the service provided can be broken down into unit cost (e.g., hours,
client days, etc.), or a fixed fee (e.g., payment based on delivery of a complete service).

FORMAL SOLICITATION

A written, competitive solicitation instrument requiring a public opening of responses to the

solicitation at a specific time or date.

FUNDING PARTNERS

Entities (either public or private) which have contractual arrangements with the same provider.
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INFORMAL SOLICITATION

Either a written or oral quotation not requiring a public opening of responses to the solicitation at a
specific time or date.

INITIAL SCREENING CRITERIA

A list of "fatal" or mandatory criteria used to screen replies to a formal solicitation to determine
which potential vendors are responsive.

INSTRUCTIONS TO BIDDERS RESPONDING TO A SOLICITATION

Specific instructions to parties responding to the solicitation describing the content, format, and
manner of submission for their responses.

JOINT MONITORING

Administrative and programmatic oversight and review shared among funding partners.

LICENSING

As defined by subsection 120.52(10), F.S., the issuance, denial, renewal, revocation, suspension,
annulment, withdrawal, or amendment of license or imposition of terms for the exercise of a license.

LICENSING AGENCY

As defined by subsection 435.02 (3), F.S., any state or county agency which grants licenses or
registration permitting the operation of an employer or is itself an employer. When there is no state
licensing agency or the county licensing agency chooses not to conduct employment screening,
licensing agency means the Department of Children and Family Services.

MANAGERIAL DATA

The providers internal budget, personnel, inventory, policies and procedural records.

MANNER OF SERVICE PROVISION

A section of an Attachment I including outcome measures and performance standards for the
contract. This section details the service tasks, staffing requirements, service location and equipment,
deliverables, performance specifications, provider responsibilities, and contract funder
responsibilities.

MATCH

Refers to a specified percentage of program or project costs, cash or in-kind, that must be
contributed by a grantee in order to be eligible for funding. This requirement may either be stated as
a specified minimum percentage of total allowable costs or a maximum percentage of participation
in such costs.

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METHOD OF PAYMENT

A section of an Attachment I specifying the total or maximum dollar amount of the contract, the
manner in which contract costs will be displayed on invoices, the frequency with which invoices will
be submitted, and any special conditions pertaining to payment of contract invoices.

MINOR ERRORS

Unintentional and non-systematic mistakes that do not result in reduced or substandard program
service nor are fraudulent transactions. Minor errors can be readily adjusted without the need of a
corrective action plan or penalties.

MINORITY BUSINESS ENTERPRISE

Any small business enterprise which is organized to engage in commercial transactions and which is
at least 51 percent owned and controlled by minority persons who are members of an insular group
that is of a particular racial, ethnic, or gender makeup or national origin, which has been subjected
historically to disparate treatment due to identification in and with that group resulting in an
underrepresentation of commercial enterprises under the groups control, and whose management
and daily operations are controlled by such persons. A minority business enterprise may primarily
involve the practice of a profession. [subsection 288.703(2), F.S.]

MONITORING

The acquisition, review, and reporting of information about the provider's compliance with the
terms and conditions of a contract.

MULTIPLE YEAR CONTRACTS

One contract which covers more than twelve months.

NATIONAL STANDARDS

Criteria established by national accrediting organizations, (i.e., the Council on Accreditation, the
Rehabilitation Accreditation Commission, the Joint Commission on Accreditation of Healthcare
Organizations, the National Committee for Quality Assurance and the Utilization Review
Accreditation Commission) to evaluate organizational and service delivery quality.

NOTICE OF INTENT TO SUBMIT PROPOSAL

A response from a prospective bidder indicating interest in a formal solicitation.

OFFEROR

An individual, organization, or entity submitting a competitive proposal to a formal solicitation.

OFFERORS CONFERENCE

A meeting held by a procuring agency with interested bidders to answer questions concerning a
formal solicitation.
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PERFORMANCE BASED CONTRACT

A contract which contains quantitative or qualitative indicators (performance measures) used to

assess a providers performance against a specified level of performance of an output or outcome
(performance standard). Examples of performance measures include: improved scores on
achievement tests, increased level of function or ability, increased quality of water, and reduced
requirements for subsequent services. Examples of performance standards include: a target number
of clients to be served (output), a target number of activities completed on time (output), a 25%
reduction in the child abuse/neglect reports for the population served (outcome), and a 10%
increase in level of function or ability of the clients served (outcome).

PERFORMANCE SPECIFICATION

The section of an Attachment I that specifies the performance standards, definiitions of

performance measurement terms, and information about evaluating each performance measure.

PERFORMANCE STANDARDS

Quantitative statements that specify the level of accomplishment of an outcome or output measure
contained in the Attachment I.

POPULATION

The aggregate of all individuals, entities, or instances that conform to a designated set of
specifications.

PRIMARY POINT OF CONTACT

For the funder, the individual who is responsible for enforcing the performance of the contract
terms and conditions and serving as liaison with the contractor. The provider's primary point of
contact is the employee delegated to serve as the providers representative and liaison to the contract
funder.

PROCUREMENT

The acquisition of goods or services in exchange for money.

PROGRAMMATIC MONITORING

The review, evaluation and validation of the providers actual program performance against the
specific program goals and expected outcomes required by the contract.

PROTEST

An objection by any person or firm who has, or considers they have, been adversely affected by a
decision or intended decision concerning a bid solicitation, or by a notice of contract award.

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PROVIDER

An organization or individual providing services or materials in accordance with the terms of a

contract. Also referred to as contractor.

PROVIDERS FISCAL YEAR

An accounting period of twelve consecutive months selected by a provider as a basis for auditing.

PUBLIC ENTITY CRIME

A violation of any state or federal law by a person with respect to and directly related to the
transaction of business with any public entity or with an agency or political subdivision of any other
state or with the United States, including, but not limited to, any bid or contract for goods or
services, any lease for real property, or any contract for the construction or repair of a public
building or public work, involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy,
or material misrepresentation. [10-22.-3(4), F.A.C.]

PURCHASE ORDER

A purchasing document to formalize a purchase transaction executed with a vendor.

QUALITY ASSURANCE

A process by which an entity reviews the effectiveness and the quality of its service provisions and
deliveries.

RANDOM SAMPLE

A subset of the population selected by a method in which each unit in the population has an equal
chance of being chosen.

RATE CONTRACT

A contract that establishes a rate of payment for a specified unit of service.

RECORDS RETENTION

The requirement to keep all client records, financial records, supporting documents, statistical
records, and any other documents (including electronic storage media) pertinent to the contract for a
period of five (5) years after termination of the contract, or if an audit has been initiated and audit
findings have not been resolved at the end of five (5) years, the records shall be retained until
resolution of the audit findings or any litigation which may be based on the terms of the contract.

RECORD SAMPLING

Selection and evaluation of a limited number of records to validate a providers compliance with the
terms and conditions of a contract.
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RENEWAL

Contracting for the same services with the same provider for an additional contract period after the
initial contract period.

REQUEST FOR PROPOSALS (RFP)

RFP is a written solicitation for competitive sealed proposals with the title, date, and hour of the
public opening designated. RFPs include a statement of the services sought, contractual terms and
conditions applicable to the services, proposal evaluation criteria, and specific instructions for
submitting proposals.

SERVICES TO BE PROVIDED

A section of the Attachment I which provides a detailed expression of the services to be provided.

SINGLE SOURCE PROCUREMENT

The purchase of a contractual service that is available from only one source.

SMALL BUSINESS

An independently owned and operated business concern that employs 200 or fewer permanent full-
time employees and that, together with its affiliates, has a net worth of not more than $5 million
orany firm based in this state which has a Small Business Administration 8(a) certification. As
applicable to sole proprietorships, the $5 million net worth shall include both personal and business
investments. [subsection 288.703(1), F.S.]

SOLICITATION DOCUMENT

A written, competitive procurement instrument.

SOLICITATION OPENING CLERK

The individual charged with the responsibility of receiving, logging, and opening solicitation
documents.

SPECIAL PROVISIONS

A section of the Attachment I containing any special requirements not covered elsewhere in the
contract.

STATE FISCAL YEAR (SFY)

For Florida, an accounting period of twelve consecutive months starting of July 1, and ending on the
last day of June.

STATEMENT OF NEED

A narrative describing the circumstances which contribute to the necessity for the project to exist.
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STATEMENT OF PURPOSE

A narrative relating to the Statement of Need describing what the project must accomplish.

STATEMENT OF WORK

A narrative describing what services are to be provided, how the services are to be provided,
measurable objectives, products to be delivered, and schedules of performance.

SUBCONTRACT

A written contract between a contracted provider and another entity to deliver program services
included within the providers contract with its funder.

TERM CONTRACT

An indefinite quantity contract wherein a party agrees to furnish commodities or contractual services
during a prescribed period of time, the expiration of which concludes the contract.

TRADE SECRETS

The whole or any portion or phase of any formula, pattern, device, combination of devices, or
compilation of information which is for use, or is used, in the operation of a business and which
provides the business an advantage, or an opportunity to obtain an advantage, over those who do
not know or use it.

UNALLOWABLE EXPENDITURES

Expenses that are not included in the contractual agreement and, therefore, are deemed
inappropriate for payment.

UNSCHEDULED VISITS

On-site monitoring visits that are not pre-arranged with the provider.

VENDOR

A person who sells or offers to sell commodities or contractual services.

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