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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />7.2.1 Subcontracts of $25,000 or less: <br />CONTRACTOR shall develop a standard form Purchase Order, <br />subject to prior written approval of ADMINISTRATOR, to be utilized for the <br />purchase of services by CONTRACTOR when the cumulative total cost of the <br />services to be provided by any organization is anticipated to be twenty-five <br />thousand dollars ($25,000) or less during the term of this Agreement. The <br />basis for costs incurred by any such Purchase Order(s) shall be the actual <br />cost of providing services or the usual and customary charges established by <br />the organization(s) providing the services. <br />7.2.2 Subcontracts in excess of $25,000: <br />CONTRACTOR shall develop and submit for approval to <br />ADMINISTRATOR a system for the procurement of subcontracts with any <br />organization in which the total cumulative cost of services provided by any <br />single organization is anticipated to exceed twenty-five thousand dollars <br />($25,000) during the term of this Agreement. CONTRACTOR's proposed <br />procurement system shall take into consideration such factors as: degree of <br />price competition: pricing policies and techniques; experience and quality of <br />service: methods of evaluating subcontractor responsibility: relationship of <br />subcontractor to CONTRACTOR: and planning, award, and post-award management of <br />subcontracts, including internal audit procedures and monitoring of <br />subcontractor's performance until completion of services. <br />Upon ADMINISTRATOR's approval of CONTRACTOR's proposed <br />procurement system, CONTRACTOR shall comply with such procurement system in <br />obtaining subcontracts with a total cost in excess of twenty-five thousand <br />dollars ($25,000) during the term of this Agreement. In addition, CONTRACTOR <br />shall obtain ADMINISTRATOR's written consent prior to entering into a <br />subcontract with any organization when the total cumulative cost of services <br />to be provided by that organization is anticipated to exceed twenty-five <br />I (WAM0313) <br />10 of 40 <br />(April 8. 2013)