6530     BUDGETARY APPROVAL OF CONTRACTS 
(Revised 2/98)

The SAM Section 1200 et. seq. provide policy direction for services, consultant services, interagency agreements; architectural engineering, and minor public works contracts.  SAM Sections 1215 and 1216 provide for contracts which are exempt and not exempt from review, respectively, by DGS.  The DGS reviews contracts for purpose, necessity or desirability, reasonableness of price and cost, the state's liability, compliance with law and legal sufficiency, among other factors.  The DGS does not review for budgetary or program considerations or for EDP related cost factors such as applications, systems, equipment services and related expenses.  Processing of other types of contracts is covered in SAM Sections 5200 et. seq.; 1400 et seq.; and 1300 et seq.  If the contract is not in accordance with the approved budget, contracts should be forwarded by departments to DOF for review/consideration.  The DOF may also request review of any contract based on its broad statutory authority.