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SAM - Chapter 1200

1215     EXEMPTION FROM APPROVAL BY THE DEPARTMENT OF GENERAL SERVICES 
(Revised 8/01)

  1. All contracts must conform to the requirements for contracts as stated in statutes, regulations, and policy.
     
  2. The law requires all contracts to be approved by DGS unless exempted or there is a delegation to an agency.
     
  3. All contracts and interagency agreements are subject to approval by DGS except:
     
    1. Contracts of $35,000 or less, unless subject to the provisions of SAM Section 1216.  See Government Code Section 14616.
       
    2. Interagency agreements less than $50,000 unless subject to the provisions of SAM Section 1216.  See Government Code Section 14616.
       
    3. Contracts with specific statutory exemption from DGS approval.  See Public Contract Code (PCC) Section 10295.
       
    4. Amendment to a contract or interagency agreements that only extends the time for completion of performance for a period of one year or less.  A contract may only be amended once under this exemption.  See PCC 10335.
       
    5. Any contract for which the agency has a specific exemption letter from DGS under Government Code Section 14616, or PCC Section 10351.
       
  4. Considerations Related to Exempt Contracts
     
    1. No contract which exceeds $75,000 will be exempt from DGS review, without specific statutory authority.
       
    2. A copy of each exempt contract or interagency agreement is to be retained in the agency’s file for three years from the date of the final payment.
       
    3. Where the performance is other than monetary, such consideration must be valued on a monetary basis for the purpose of determining whether approval of DGS is required.
       
    4. Any state agency that enters into or expects to enter into more than one consulting services contract with the same individual, business firm, or corporation within a 12-month period for an aggregate amount of twelve thousand five hundred dollars ($12,500) or more, shall notify DGS in writing and shall have each contract that exceeds an aggregate amount of twelve thousand five hundred dollars ($12,500) approved by DGS.
       
    5. Splitting of contracts to avoid any monetary limitations is prohibited.  If it is found that more than one contract has been awarded to a single contractor in any one year for work normally considered one undertaking, and the total of the contracts exceeds $10,000 the agency may be denied the exemptions from DGS approval as granted in this and other sections of SAM.
       
    6. Revenue and reimbursable contracts are to be submitted to DGS under the same dollar categories as other contracts.
       
    7. Master agreements are to be submitted to DGS regardless of the dollar amount.  Contracts or subscription agreements pursuant to a master agreement are to be submitted to DGS under the same dollar categories as other contracts.

 
Updated : 7/6/2007