Implementing contracts is important because it ensures that all parties involved are on the same page. In more detail, contracts help outline clear goals, evaluation criteria, and additional terms and conditions for the services that will be provided.
This section addresses the requirements related to contracting for purchased services. Uniform Guidance requires that States follow the same policies and procedures it uses for procurements with non-Federal funds 2 CFR § 200.317. Contract policies are necessary to ensure that contract language results in the VR agency receiving allowable services, can appropriately assign the obligation to a grant award, can ensure expenditures align with original obligations, and receive the necessary data that it must collect and report with the frequency required by the terms and conditions of the VR award 22 CFR § 200.302(b)(7), and 234 CFR § 361.51.
In addition, VR agencies are responsible for the oversight of the Federal award. The recipient must monitor its activities under Federal awards to ensure they are compliant with all requirements and meeting performance expectations: 2 CFR § 200.329(a).
Through the use of contracts, VR agencies must relate financial data and accomplishments to performance goals and objectives of the Federal award, consistent with the reporting of data on the SF-425, RSA-17, and RSA-911 reports 22 CFR § 200.329(b).