Standards for Canadian organizations

2020 Edition

Risk Prevention and Management (CA-RPM) 6: Contracts and Service Agreements

The pursuit of contracts and service agreements is:
  1. consistent with the organization’s mission;
  2. aligned with, and supportive of, the organization’s service array and resource development goals; and
  3. responsive to the needs and desired outcomes of persons served.

Interpretation

These standards apply to all contracts entered into by the organization in which it acts as a purchaser or vendor of social and human services as well as to contracts for the purchase of support services, such as maintenance or transportation services.
2020 Edition

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Purpose

Comprehensive, systematic, and effective risk prevention and management practices sustain the organization's ability to positively impact the communities and people it serves by reducing its risk, loss, and liability exposure.
1
The organization's practices fully meet the standard, as indicated by full implementation of the practices outlined in the CA-RPM 6 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the CA-RPM 6 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the CA-RPM 6 Practice standards.
4
Implementation of the standard is minimal or there is no evidence of implementation at all, as noted in the ratings for the CA-RPM 6 Practice standards.
Self-Study EvidenceOn-Site EvidenceOn-Site Activities
  • Contracting procedures
  • List of contracts/service agreements/memoranda of understanding (MOU)
  • Contracts/service agreements/MOUs
  • Board meeting minutes of governing body review of significant contracts from the previous 12 months
  • Interviews may include:
    1. Governing Body
    2. CEO/CFO
    3. Contract manager(s)
    4. Vendors

 

CA-RPM 6.01

The organization:
  1. establishes a system of standardized contracting practices;
  2. pursues contracts that serve the organization’s and service recipient’s best interests, not private interests;
  3. conducts due diligence in contracting activities including review of possible risks;
  4. uses competitive bidding, when applicable; and
  5. ensures governing body review of significant contracts.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • One of the elements needs strengthening.
3
Practice requires significant improvement; e.g.,
  • Two of the elements need strengthening; or
  • One element is not addressed at all; or
  • The governing body does not review significant contracts.
4
Implementation of the standard is minimal or there is no evidence of implementation at all.

 
Fundamental Practice

CA-RPM 6.02

Written contracts:
  1. are reviewed by legal counsel or another qualified individual prior to signing; and
  2. contain all significant terms and conditions in accordance with applicable law.

Interpretation

 “Significant terms” should include, as appropriate to the type of contract:
  1. roles and responsibilities of participating organizations;
  2. services to be provided;
  3. clearly defined performance goals;
  4. measurable outcomes;
  5. service authorization, including eligibility criteria;
  6. provisions for training and technical support, as necessary;
  7. duration of contract, including delineation of follow-up services;
  8. policies and procedures for sharing information;
  9. methods for resolving disputes;
  10. a plan and procedure for timely payment, and consequences for failure to pay;
  11. necessary documentation and means of reporting to, funding or oversight bodies; and
  12. conditions for termination of the contract.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • Though all contracts are reviewed, contracting procedures do not address the standard.
3
Practice requires significant improvement; e.g.,
  • Terms and conditions of contracts are often general, nonspecific, or unclear; or
  • There is evidence that some contracts have not been reviewed as required by the standard.
4
Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.
  • Contracts are totally inadequate in specification of terms and conditions; or
  • Contracts are not routinely reviewed as required.

 

CA-RPM 6.03

Non-contractual service agreements include, as appropriate:
  1. services exchanged or provided, and/or the goals and objectives of such collaborations;
  2. roles and responsibilities of each organization including reporting responsibilities;
  3. procedures for sharing information;
  4. confidentiality protections including signed written consent forms;
  5. assignment of case coordination responsibilities;
  6. service authorization procedures including accepting or rejecting cases; and
  7. how to resolve communication difficulties.

Interpretation

This standard applies to non-contractual arrangements, also known as Memorandums of Understanding (MOUs), in which organizations collaborate with service providers to deliver specific services to a person or persons. This could include, for example, a service in which a service provider voluntarily comes into the host organization’s facility to provide weekly smoking cessation classes.
NA The organization does not enter into non-contractual service agreements.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • Procedures need strengthening; or
  • One element is not addressed at all.
3
Practice requires significant improvement; e.g.,
  • Terms and conditions of service agreements are often general, nonspecific, or unclear; or
  • At least two of the elements are not addressed at all.
4
Implementation of the standard is minimal or there is no evidence of implementation at all.