Chapter 5101:9-4 Acquistion and Procurement

(A) Chapter 5101:9-4 of the Administrative Code establishes general standards and guidelines based on federal and state statutes, rules, and office of management and budget (OMB) circulars for procurement for supplies, rental or lease agreements, equipment, service contracts, food stamp investigation and prosecution contracts, and other service costs. These standards and guidelines are applicable to all county family services agencies, workforce development agencies and not for profit sub-recipients of county family services agencies and workforce development agencies. To the extent they are not inconsistent with the rules in this chapter, the administrative rules in Chapter 5101:12-10 governing IV-D service contracts between child support enforcement agencies (CSEA) and governmental and non-governmental contractors, remain in effect.

(B) The following definitions are applicable to Chapter 5101:9-4 of the Administrative Code:

(1) “Acquisition cost” – net invoice price of item including the cost of delivery, installations, modifications, attachments, accessories, or auxiliary apparatus necessary to make the item usable for the purpose for which it is acquired, regardless of whether purchased together or separately. For an item acquired by trading in another item and paying an additional amount, the acquisition cost is the amount received for the trade-in plus the additional outlay.

(2) “Aggregate procurement” – the total amount of small purchases made from a single vendor for one contract.

(3) “Asset” – buildings, capital improvements, and equipment.

(4) “Code of conduct” – standards governing conduct of employees involved in the procurement process.

(5) “Competitive sealed bidding” – methods that include competitive sealed bidding requirements referenced in paragraph (C) of rule 5101:9-4-07 of the Administrative Code.

(6) “Cost analysis” – the review and evaluation of the separate cost elements and the application of judgment to determine how well the proposed costs represent what the cost should be, assuming reasonable economy and efficiency. Comparisons should be with actual costs previously incurred by the same supplier; previous cost estimates for the same or similar items; other cost estimates received in response to the solicitation; independent cost estimates by technical personnel; or forecasts of planned expenditures.

(7) “County family services agency” – means the county department of job and family services (CDJFS), child support enforcement agency (CSEA), public children services agency (PCSA), whether or not the county family services agency is included in a fiscal agreement entered into between the Ohio department of job and family services (ODJFS) and the county commissioners board pursuant to section 5101.21 of the Revised Code. County family services agency also means any private or government entity designated by the board of county commissioners to serve as a county family services agency.

(8) “Equipment” – tangible personal property that has a useful life of more than one year and an acquisition cost of five thousand dollars or more, except that counties may adopt an acquisition cost limit lower than five thousand dollars.

(9) “Expensing” – method of allocating the cost of an asset to the period it is acquired for purposes of federal and/or state reimbursement.

(10) “Facilities” – land and buildings or any portion thereof; equipment, either in individual pieces or pieces aggregated for a common purpose; and any other tangible capital asset.

(11) “Invitation to Bid” (ITB) – The acquisition process used by county family services agencies to solicit competitive sealed bids from vendors.

(12) “Maintenance” – expenditures for services or items that keep assets in an efficient operating condition, do not add to the asset’s permanent value, and are not already included in a rental agreement or other charges for space. Repair work to an agency building which adds to the permanent value of the property or appreciably prolongs its intended life is a capital improvement and is not considered maintenance.

(13) Non-profit organization as defined in OMB “Circular A-133” is as follows.

(a) Any corporation, trust, association, cooperative, or other organization that:

(i) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;

(ii) Is not organized primarily for profit; and

(iii) Uses its net proceeds to maintain, improve, or expand its operations;

(b) The term non-profit organization includes non-profit institutions of higher education and hospitals.

(14) “Price analysis” – the process of examining, evaluating and comparing a proposed price to determine if it is fair and reasonable, without evaluating its separate cost elements. Comparison should be with other prices and quotations submitted; published catalog or market prices; prices set by law or regulation; prices for the same or similar items; prior quotations for the same or similar items; market data (indexes); or other standardized data.

(15) “Purchasing or procurement contract” – the agreement by which the vendor and the government agency bind themselves to the terms of a purchase or purchases.

(16) “Purchase order” – encumbering document used for all contracts to put into effect the prior certification of funds under division (D) of section 5705.41 of the Revised Code.

(17) “Service contract” – the contract by which the entity providing the service and the agency bind themselves to the terms of a service agreement for the purchase of services.

(18) “Sub-grant” – an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible sub-grantee. The term includes financial assistance when provided by contractual legal agreement, but does not include procurement purchases, nor does it include any form of assistance which is excluded from the definition of grant in this part.

(19) “Sub-grantee” – the government or other legal entity to which a sub-grant is awarded and which is accountable to the grantee for the use of the funds provided as defined in 7 C.F.R. 3016.36, 29 C.F.R. 97, and 45 C.F.R. 92.

(20) “Sub-recipient” – for the purpose of Chapter 5101:9-4 of the Administrative Code, sub-recipient means a non-federal entity that expends federal awards from a contract or grant agreement with either a county family services agency, a local area for workforce investment responsibilities as defined in section 6301.01 of the Revised Code, or a workforce development agency functioning as a pass through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program.

(21) “Supplies” – items consumed in the county family services agency and workforce development agency operations which do not fit the definition of equipment.

(22) “Use allowance” – method of allocating the cost of an asset in lieu of depreciation for purposes of federal and/or state reimbursement.

(23) “Useful life” – the period of time over which an asset is depreciated, which is determined by taking into consideration the type of construction, the nature of the equipment used, historical usage patterns, technological developments, and manufacturer documentation.

(24) “Vendor” – a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a federal program. These goods or services may be for an organization’s own use or for the use of beneficiaries of the federal program.

(25) “Workforce development agency” – the entity given responsibility for workforce development activities that is designated by the board of county commissioners in accordance with section 330.04 of the Revised Code, the chief elected official of a municipal corporation in accordance with section 763.05 of the Revised Code, or the chief elected officials of a local area.

Effective: 01/30/2007

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 307.86, 329.04

Prior Effective Dates: 9/20/80, 8/13/82, 5/1/96, 9/5/97, 9/12/05, 10/30/06

(A) Each county job and family services agency and workforce development agency shall establish written acquisition standards to ensure that all purchases of services, supplies, and equipment are performed in accordance with applicable state law and regulations, including all of the requirements of this chapter, and applicable federal law and regulations including office of management and budget (OMB) Circulars A-87 and A-102, and 7 C.F.R. 3016.36 applicable to expenditure of food and nutrition service funds, 29 C.F.R. 95 applicable to not for profit organizations expending department of labor (D.O.L.) funds, and 29 C.F.R. 97 applicable to governments expending D.O.L. funds, 45 C.F.R. 74 to not for profit organizations expending department of health and human services (HHS) funds and 45 C.F.R. 92 applicable to government expending HHS funds, and OMB Circulars A-87, A-102, and A-133. This chapter contains a number of provisions from the applicable federal rules, but not all such provisions. County family services agencies and workforce development agencies shall refer to all applicable federal and state acquisition requirements in developing their acquisition standards. These acquisition standards are the procedures the county family services agency and workforce development agency will follow in making acquisitions. Such written standards shall contain, at a minimum, all of the provisions of this chapter. County standards may contain additional, more restrictive provisions adopted by the county or workforce development agency which do not conflict with the provisions of this chapter. County acquisition standards are applicable to all state or federal funds received from the Ohio department of job and family services (ODJFS), as well or any county funds used to match state or federal funds received from ODJFS. The requirements contained in this section are not applicable to acquisitions made exclusively with county funds, and which are not used to match state or federal funds received from ODJFS.

(B) Each county family services agency and workforce development agency is legally responsible to ensure that all acquisitions meet the acquisition standards established under this section and all applicable federal and state procurement requirements contained in OMB circulars and federal and state law and rules. The county family services agency and workforce development agency must ensure that all county family services agency and workforce development agency employees know and comply with these acquisition standards.

(C) Each county job and family services, child support enforcement, workforce development , and children services agency shall ensure that any sub-grantee entity is aware of the requirements contained in paragraph (A) of this rule and is given written notice contained in any contract or grant agreement that all acquisitions made by the sub-grantee entity must conform to these requirements.

Effective: 09/12/2005

Promulgated Under: 111.15

Statutory Authority: 125.04, 329.04, 307.86, 5101.02.

Rule Amplifies: 125.04, 307.86

(A) The county family services agency and workforce development agency shall maintain a written code of standards of conduct that will govern the performance of its officers and employees engaged in awarding, recommending, approving, monitoring, and administration of contracts, other purchases of goods and services, and grants. The county family services agency and workforce development agency is also responsible for the conduct of its agents who are not county family services agency and workforce development agency employees, and the county family services and workforce development agency shall also ensure that this code governs the conduct of such agents. The county family services agency and workforce development agency shall provide a copy of the written code to each employee or agency engaged in the award or administration of contracts and shall ensure that such employees and agents receive sufficient training to understand how to apply the written code. The county family services agency’s and workforce development agency’s written code of standards of conduct shall, at a minimum, comply with both of the following federal and state requirements:

(1) All provisions included in 7 C.F.R. section 3016.36 (b) (3), 29 C.F.R. section 97.36

(b)(3) and 45 C.F.R. 92.36(b) (3), and

(2) Revised Code sections 102.03, 102.04, 2921.42 and 2921.43.

(B) In addition to meeting the requirements of state and federal law listed in paragraph

(A) of this rule, the county family services agency’s and workforce development agency’s written code of standards of conduct shall, at a minimum, include all of the following requirements and prohibitions.

(1) The county family services agency and workforce development agency employees or agents shall not solicit or accept gratuities, favors, or anything of value, as defined in section 1.03 of the Revised Code from anyone doing business with or seeking to do business with, or regulated by the agency, including contractors vendors, grantees, and potential contractors, vendors, and grantees.

(2) The county family services agency and workforce development agency employees or agents shall not participate in the selections, award recommendation, approval, monitoring, or administration of contract, purchase, or grant if a real, potential, or apparent conflict of interest could arise. A conflict of interest could arise if one or more of the following individuals or organizations has a financial, personal or other interest in the individual or company selected for the award of a contract, purchase, or grant:

(a) The employee or agent or any member of his or her immediate family,

(b) The partner or business associate of the employee or agent,

(c) Any person or organization which employs or is about to employ the employee or agent, a member of his or her immediate family, his or her partner or business associates.

(3) The written code of standards of conduct shall ensure that each county family services agency and workforce development agency employee or agent engaged in the awarding, recommendation, approval, or administration of a county family services agency and workforce development agency contract, purchase, or grant receives a copy of Ohio ethics laws which can be found at http://www.ethics.ohio.gov/ethicslawrevisedcode.html. The code shall also advise such employees and agents how to obtain educational information related to Ohio’s ethics laws (see http://www.ethics. ohio.gov/EducationandPublicInfo Publication.html) and information regarding who in the county family services agency and workforce development agency or the county prosecuting attorney’s office to contact when an employee who is unsure as to whether any particular course of conduct violates the requirements of the county family service agency’s and workforce development agency’s standards of conduct or Ohio’s ethics laws. The information shall advise employees/agents that they may discuss the concerns on the telephone or obtain an advisory opinion from the Ohio ethics commission so long as the advice or opinion is obtained before the employee engages in the conduct.

(4) County family services agency and workforce development agency employees are prohibited from selling or attempting to sell any goods or services to the Ohio department of job and family services (ODJFS), a county department of job and family services (CDJFS), a public children’s services agency (PCSA), a child support enforcement agency (CSEA), a workforce development agency, or a one-stop agency.

(5) County family services agency and workforce development agency employees are prohibited from soliciting or accepting employment from anyone doing business with such agencies unless the employee completely withdraws, with the agency’s approval, from the county family services agency or workforce development agency activities regarding the party offering employment.

(6) County family services agency and workforce development agency employees and the employee’s immediate family members and business associates are prohibited from benefiting from any contract, purchase, or grant authorized or approved by the county family services agency and workforce development agency unless all criteria established by Revised Code section 2921.42 are met.

(7) County family services agency and workforce development agency employees are prohibited from voting, authorizing, recommending, or in any other way using his or her position to secure approval of a county family services agency and workforce development agency contract, purchase, or grant in which the employee, a member of the employee’s immediate family, or anyone with whom the employee has a business or employment relationship has an interest.

(8) County family services agency and workforce development agency employees shall not act in a representative capacity, in any manner, before a public agency on behalf of any contractor or other person on any matter in which the employee personally participated through decision, approval, disapproval, recommendation or other substantial exercise of administrative discretion.

(9) No contractor, grantee, individual, company or organization seeking a contract or grant or seeking to sell goods or services to a county family services agency and workforce development agency will promise or give to any county family services agency and workforce development agency employee anything of value, including employment or promise of employment within the scope of his or her job duties. No contractor, sub-grantee or individual, company or organization seeking a contract or grant or seeking to sell goods or services to a county family services agency and workforce development agency will ask a county family services agency and workforce development agency employee to violate any of the code of standards of conduct requirements. Any contractor or grantee acting on behalf of county agencies will refrain from activities which could result in violations of this rule.

(10) Any contractor, sub-grantee, or potential contractor or potential sub-grantee who violates the requirements and prohibitions of paragraph (B)(9) of this rule or sections 102.03, 102.04, or 2921.42 of the Revised Code is subject to having the contract terminated, having a county family services agency and workforce development agency refuse to enter into a contract, and/or prosecution. A county family services agency and workforce development agency shall reserve the right to exercise civil remedies against a contractor that violates paragraph (B)(9) of this rule.

(11) Employees, contractors, and sub-grantees who violate sections 102.03, 102.04, 2921.42 or 2921.43 of the Revised Code may be prosecuted for criminal violations.

(12) The signature of any county family services agency and workforce development agency employee on a requisition, invoice, or other document requesting or approving the purchase of or payment for purchases of goods or services shall be considered to be a certification that he or she has complied with the requirements and prohibitions of this rule.

(C) The county family services agency and workforce development agency shall enforce the requirements contained in the agency’s written code of standards of conduct which shall include standards governing penalties, sanctions, or disciplinary actions, including suspension or removal, when a county family services agency and workforce development agency employee or agent or a contractor violates the code of standards of conduct.

(D) All county family services agency and workforce development agency contracts and grants shall contain a provision requiring the contractor or grantee to refrain from promising or giving to any county family services agency and workforce development agency employee anything of value that is of such a character as to manifest a substantial and improper influence upon the employee with respect to his or her duties, agrees that it will not solicit a county family services agency and workforce development agency employee to violate the county agency’s code of standards of conduct or sections 102.03, 102.04, 2921.42 or 2921.43 of the Revised Code, and will refrain from conflicts of interest, whether direct or indirect. The county family services agency and workforce development agency contract or grant shall also include a certification by the contractor or grantee that it is in compliance with and will maintain compliance with the requirements of sections 102.03, 102.04, 2921.42, and 2921.43 of the Revised Code and the portions of the county family service agency’s and workforce development agency’s code of standards of conduct applicable to contractors and grantees, and that the contractor or grantee will promptly notify the county family services agency and workforce development agency of any newly arising conflicts of interest or potential violations of state ethics laws.

Replaces: 5101-5-04

Effective: 09/12/2005

Promulgated Under: 111.15

Statutory Authority: 102.03, 102.04, 307.86, 329.04, 2921.42, 2921.43, 5101.02.

Rule Amplifies: 102.03, 102.04, 307.86, 329.04, 2921.42, 2921.43.

Prior Effective Dates: 9/20/80, 8/13/82, 5/1/96, 9/5/97

The county family services agency and workforce development agency shall make efforts to utilize small and minority-owned businesses, women’s business enterprises and labor surplus area firms when they are potential resources for supplies, equipment, construction, and services as established in 7 C.F.R. 3016.36, 45 C.F.R. 92.36, and 29 C.F.R. 97.36. These efforts include:

(A) Placing qualified small and minority businesses, and women’s business enterprises on solicitation lists, and assuring that those businesses are solicited whenever they are potential resources.

(B) Dividing total requirements into small tasks or quantities to permit maximum small and minority businesses and women’s business enterprises participation when economically feasible. When tasks are divided to allow small businesses and women’s business enterprises to compete, the separation cannot be done to avoid competitive bidding requirements.

(C) Establishing delivery schedules which will encourage participation by small and minority businesses, and women’s business enterprises where the requirement permits.

(D) Using the services and assistance of the small business administration, the office of minority business development agency of the U.S. department of commerce, the community services administration, and other entities, as appropriate.

(E) Requiring the prime contractor to take affirmative steps as listed in paragraphs (A) to (E) of this rule if any subcontracts are to be let.

(F) Encourage contracting with consortiums of small business and minority-owned firms and women’s business enterprises when a contract is too large for one of these firms to handle individually.

Replaces: 5101-5-06

Effective: 09/12/2005

Promulgated Under: 111.15

Statutory Authority: 307.86, 329.04, 5101.02.

Rule Amplifies: 307.86.

Prior Effective Dates: 8/13/82, 5/1/96, 9/5/97

The written acquisition standards established by the county family services agency and workforce development agency pursuant to rule 5101:9-4-02 of the Administrative Code shall include the following requirements governing acquisitions.

(A) Applicable requirements

(1) Unless applicable local requirements are more restrictive, acquisitions that are made in whole or in part with federal funds, including instances where state or county funds are used as a match for state/federal funds, county family services agencies and workforce development agencies, shall follow the federal requirements set forth in paragraphs (B) to (F) of this rule. The only federal funding source excluded from the requirements of this chapter is Title XX social services block grant (SSBG).

(2) Section 307.86 of the Revised Code exempts acquisitions made under section 329.04 of the Revised Code. Exemptions consist of family services duties, including those which are financial and administrative, and workforce development activities. It is important to note that acquisitions exempt from state competitive bidding requirements are not exempt from all federal requirements as referenced in paragraph (A)(1) of this rule.

(B) Small purchase procedure

(1) For purchases where price is the overriding factor and which involve standardized products or services (e.g., office equipment and supplies) and where the aggregate acquisition costs do not exceed the small purchase threshold (currently set at one hundred thousand dollars for purchases involving U.S. department of health and human services and U.S. department of labor funds and U.S. department of agriculture food and nutrition service funds), county family services agencies and workforce development agencies may use relatively simple and informal procurement methods by obtaining price or rate quotations from an adequate number of qualified sources but not less than three sources, if available.

(2) For relatively simple and straight forward purchases that do not cost more than the small purchase threshold, where price is not the overriding factor and where relative quality and performance must be evaluated (e.g., consultant services), county family services agencies and workforce development agencies shall seek proposals from an adequate number of qualified sources, but not less than three sources if available. County family services agencies shall maintain a list of qualified sources from which to solicit proposals, and the list shall include qualified sources that have expressed an interest in providing products or services to the county family services agency or workforce development agency. The request for proposals must identify the evaluation factors and their relative importance, and awards will be made to the responsible source whose proposal is most advantageous to the program, with price and other factors considered.

(C) Competitive sealed bidding

(1) County family services agencies and workforce development agencies shall use competitive sealed bidding (formal advertising) under the following conditions:

(a) A complete, adequate, and realistic specification or purchase description is available;

(b) Two or more responsible bidders are willing and able to compete effectively for the business; and

(c) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

(2) County family services agencies and workforce development agencies shall adhere to the following procedural requirements in administering competitive sealed bidding (formal advertising):

(a) The invitation for bids (ITB) will be publicly advertised and bids shall be solicited from an adequate number of known suppliers, providing them sufficient time prior to the date set for opening the bids.

(b) The ITB which will include any specifications and pertinent attachments, shall define the items or services in order for the bidder to properly respond.

(c) All bids will be publicly opened at the time and place prescribed in the invitation for bids.

(d) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation costs and life cycle costs shall be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of and any or all bids may be rejected if there is a sound documented reason.

(D) Competitive proposals

(1) County family services agencies and workforce development agencies shall use competitive proposals when the conditions are not appropriate for the use of competitive sealed bidding, small purchases, or non-competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, either a fixed price or cost reimbursement type contract is awarded, and the following conditions are met:

(a) The complex and technical nature of the procurement cannot be described in bid specifications;

(b) It is logical to award a contract on factors other than price. Evaluation factors other than price can only be used when they are clearly explained in the purchasing agency’s bid specifications, called a request for proposal (RFP).

(2) County family services agencies and workforce development agencies shall comply with the following procedural requirements in administering competitive proposal procurements, commensurate with the scope and complexity of the acquisition:

(a) Requests for proposals will be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals shall be honored to the maximum extent practical.

(b) Proposals will be solicited from an adequate number of qualified sources.

(c) County family services agencies and workforce development agencies will have a method for conducting technical evaluations of the proposals received and for selecting awardees. A technical evaluation is a review to verify that the technical requirements contained in the request for proposals are met.

(d) Awards will be made to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered.

(e) County family services agencies and workforce development agencies may use competitive proposal procedures for qualification based procurement of architectural/engineering (A/E) professional services whereby competitor’s qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

(E) Noncompetitive proposals

(1) County family services agencies and workforce development agencies may use noncompetitive proposals only when the award of a contract is infeasible under small purchase procedure, competitive sealed bidding or competitive proposals and one of the following conditions applies:

(a) The item is available only from a single source;

(b) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;

(c) The federal agency making the award authorizes noncompetitive proposals;

(d) After solicitation of a number of sources, competition is determined inadequate. County family services agencies and workforce development agencies shall also conduct a cost analysis in connection with any noncompetitive proposal, as is required for any acquisition in paragraph (F) of this rule. Cost analysis means to verify the proposed cost data and projections of the data, and the evaluation of the specific elements of costs and profits.

(e) The purchases are for equipment or services where the prices are established by law for technical equipment requiring standardization and interchangeability of parts with existing equipment.

Noncompetitive proposals require the mutual discussion and arrangement of terms of a transaction or agreement for the purpose of arriving at a common understanding of contract essentials such as technical requirements, schedules, prices, and terms. From any noncompetitive proposal in excess of the small purchase threshold, a written justification must be included in the records to show why a noncompetitive proposal was used instead of competitive sealed bidding. This method may be used only when the award of a contract is infeasible under small purchase procedures, competitive sealed bidding, or competitive proposals.

(2) In cases of non-emergency, noncompetitive proposals, the county must maintain documentation of its attempts to solicit competition. Such documentation must include the following items:

(a) A copy of the public advertisement.

(b) A list of providers contacted.

(c) Copies of all letters received from prospective bidders or respondents, including those indicating a bidder’s lack of interest in competing for the contract.

(d) Any other materials which would justify the agency’s use of noncompetitive procurement methods.

(e) Cost analysis, the projections of the data, and the evaluation of the specific elements of costs and profit. Independent estimates must be made before receiving bids or proposals.

(F) Contract cost and price analysis

(1) County family services agencies and workforce development agencies must perform a cost or price analysis in connection with every procurement action including contract modification. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation. A cost analysis must be performed when the bidder is required to submit the elements of the estimate cost, e.g., under professional consulting and architectural engineering services contracts. A cost analysis will be necessary when adequate price competition is lacking, and for sole source procurements, including contract modifications or change orders, unless price reasonableness can be established on the basis of catalog or market price of commercial product sold in substantial quantities to the general public or based on prices set by law or regulation. A price analysis will be used in all other instances to determine the reasonableness of the proposed contract price.

(2) County family services agencies and workforce development agencies will negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed, except that government entities are prohibited by law from receiving a profit. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne, by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

(3) Costs or prices based on estimated costs for contracts under grants will be allowable only to the extent that costs incurred or cost estimates included in negotiated prices are consistent with federal cost principles. Grantees may reference their own cost principles that comply with the applicable federal cost principles.

(4) The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used.

(G) Foster care maintenance purchases and child welfare service purchases

(1) Purchases for foster care placement services that include public and private agency foster homes, group homes, children’s residential centers, residential parenting facilities, adoption services and other services made by a public children services agency (PCSA) in the discharge of its duties under Chapter 5153. of the Revised Code, including services on behalf of a child in the custody of a PCSA and purchases made pursuant to rule 5101:2-47-23.1 of the Administrative Code, will generally be considered noncompetitive proposals as specified in paragraph (E) of this rule when they are purchased for individually specific cases and their need(s) presented, and such decision making is affirmatively documented by the PCSA in records that support each such case. When purchasing case specific services other than foster care placement and adoption services and where there are vendors in close proximity providing substantially similar services, and who are equally qualified to meet the service need presented, the PCSA must document that the process of awarding the contract to the vendor was done in a manner that demonstrates that the comparative cost of the vendors has been evaluated.

(2) A PCSA may not establish an exclusive or preferential relationship with foster care maintenance providers, adoption services providers, or other service vendors to the exclusion of all other foster care maintenance providers, adoption service providers or service vendors, with the exception of those relationships resulting from the competitive means as described in this rule. In addition to following such procurement procedures, the PCSA must also document the reasons for seeking an exclusive relationship with the foster care maintenance provider, adoption service provider, or service vendor. Such documentation must include a demonstration that the foster care maintenance provider, adoption service provider, or service vendor is qualified to meet the needs of all children and families who will receive services from the provider or vendor, and provide assurances that no child or family will be denied services due to the exclusive nature of the relationship with the foster care maintenance provider, adoption service provider, or service vendor.

(3) Procurements of goods and services made by a PCSA must conform to the requirements of this rule. This includes the purchase of child welfare services that benefit children and families that are not purchased in response to a specific case need. Examples of such services include, but are not limited to, outreach and recruitment campaigns; promotional items; training for staff, adoptive families, and foster parents; master contracts for home studies from third parties; visitation center leases; child abuse prevention campaigns; and foster parent liability insurance master contracts.

(H) Contracts funded in whole or part with federal funds and which are entered into by a county family services agency or workforce development agency with another county family services agency or workforce development agency within the county or workforce development area are not subject to the requirements contained in paragraphs (B) to (F) of this rule, providing that such contracts are documented with either a memorandum of understanding or interagency agreement between the entities.

(I) Purchases made by a county family services agency and workforce development agency through state purchasing contracts which that meet all of the requirements contained in section 125.04 of the Revised Code are not subject to the requirements contained in paragraphs (B) to

(F) of this rule.

However, purchases made by a county family service agency using the state term schedule to obtain a pre-qualified vendor list must follow the requirements contained in paragraphs (B) to

(F) of this rule. State term schedules are lists of pre-qualified products or service vendors and do not represent competitive procurement.

(J) The following are general procedural requirements applicable to all procurements.

(1) Non-profit and for-profit sub-grantees

County family services agencies and workforce development agencies shall inform sub-grantees of applicable procurement requirements in any contract or other applicable types of agreement used in awarding the contract or grant. Such contract or agreement shall contain reference to the applicable federal procurement requirements. The applicable procurement requirements for sub-grants awarding department of labor (DOL) funds to non-profit and for-profit organizations are located in 29 C.F.R. 95.40- to 95.46. The applicable procurement requirements for sub-grants awarding health and human services (HHS) funds to non-profit and for-profit organizations are located in 45 C.F.R. 74.41- to 74.48.

(2) Geographic preference

For purchases made in whole or in part with federal funds, or with state on local funds required for match, county family services agencies and workforce development agencies will conduct procurement in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographical preferences in evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

When only state and/or local funds are used for a purchase, the board of county commissioners, by resolution, may adopt the model system of preferences for products mined or produced in Ohio and for Ohio-based contractors (formerly “Buy-Ohio”). The resolution shall specify the class or classes of contracts to which the system of preferences apply. While the system of preferences is in effect, no county officer or employee shall award a contract in violation of the preference system.

(3) Non-profit agencies for persons with severe disabilities

Before determining which method of procurement to use, the county family services agency and workforce development agency shall determine whether a product or service is on the procurement list for products and services provided by persons with severe disabilities in section 4115.33 of the Revised Code. If the product or service is on the procurement list and is available within the period required by that agency, the agency must procure the product or service at the price established by the state use committee from a qualified nonprofit agency.

If the provision of the product or service cannot be made in either the time period required or in the amount specified by the agency, the county family services agency and workforce development agency may pursue the procedures outlined in Chapter 5101:9-4 of the Administrative Code.

(4) State purchasing contracts

Purchases may be made by the county under state purchasing contracts. A county cannot access state purchasing contracts when competitive bidding by the county has already occurred unless the state purchasing contract has the same terms, conditions, and specifications at a lower price.

To participate in state purchasing contracts, a certified copy of a resolution by the board of county commissioners must be filed with the department of administrative services (DAS) office of state purchasing. The resolution must request that the agency be authorized to participate in the purchasing contracts, agree that the agency is bound by terms and conditions set by DAS, and agree that the agency will directly pay the vendor under each purchase contract.

A county family services agency and workforce development agency may also use the price contained in a state purchasing contract in other competitive selection procedures performed pursuant to this rule.

State term contracts are not to be confused with state term schedules, which are non-competitive schedules of products or services and should be treated only as a pre-qualified vendor list.

(5) Competition

All procurement transactions will be conducted in a manner providing full and open competition consistent with the standards of 45 C.F.R. 92.36 H.H.S., 29 C.F.R. section 97.36 D.O.L., and 7 C.F.R. 3016.36 F.N.S. Some of the situations considered to be restrictive of competition include but are not limited to:

(a) Placing unreasonable requirements on firms in order for them to qualify to do business,

(b) Requiring unnecessary experience and excessive bonding,

(c) Non-competitive pricing practices between firms or between affiliated companies,

(d) Non-competitive awards to consultants that are on retainer contracts,

(e) Organizational conflicts of interest,

(f) Specifying only a “brand name” product instead of allowing an “equal” product to be offered and describing the performance of other relevant requirements of procurement, and

(g) Any arbitrary action in the procurement process.

(6) Written selection procedures

County family services agencies and workforce development agencies will have written selection procedures for procurement transactions.

(a) These procedures will ensure that all solicitations:

(i) Incorporate a clear and accurate description of the technical requirements to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standard to which it must conform if it is to satisfy its intended use. Detailed products specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of technical requirements, a “brand name or equal” description maybe used as a means to define the performance or other salient requirements of procurement. the specific features of the named brand which must be met by bidders must be clearly stated.

(ii) Identify all requirements that the bidder must fulfill and all other factors to be used in evaluating bids or proposals.

(iii) County family services agencies and workforce development agencies will ensure that all pre-qualified lists of persons, firms or products which are used in acquiring goods and services are current and included enough qualified sources to ensure maximum open and free competition. County family services agencies and workforce development agencies will not preclude potential bidders from qualifying during the solicitation period.

(b) County family services agency and workforce development agency procedures will provide for a review of proposed procurements to avoid purchase of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. Breaking out procurements should only be done to obtain a more economical price, and is not to be done to avoid procedural requirements.

(7) Debarment and suspension

County family services agency and workforce development agency procedures must include requirements to ensure that no contracts are entered into with or purchases made from a person or entity which is debarred or suspended or is otherwise ineligible for participation in federal assistance programs under Executive Order 12549, debarment and suspension, and other applicable regulations and statutes, including 7 C.F.R. Part 3017, 29 C.F.R. Part 97, and 45 C.F.R. Part 76. Persons and entities barred or suspended are listed in the “Excluded Parties List System” which may be accessed via the internet at http://www.ARNet.gov/epls/. County family agency and workforce development agency procedures must also include provisions that purchases will be made in conformance with section 9.24 of the Revised Code which prohibits the awarding of contracts, paid for in whole or in part with state funds, to a person against whom a finding for recovery has been issued by the auditor of state on or after January 1, 2001, if the finding for recovery is unresolved. Refer to the auditor of state’s website for information about these requirements and the database of unresolved findings: http://www.auditor.state.oh.us/WhatsNew/FFR/.

(8) Monitoring

County family services agencies and workforce development agencies will maintain a contract administration system that ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

(K) Contract provisions

The county family services agency’s and workforce development agency’s contracts must contain the provisions in this subsection. Federal agencies are permitted to require changes, remedies, changed conditions, access and records retention, suspension of work, and other clauses approved by the office of federal procurement policy.

(1) Administrative, contractual, or legal remedies in instances where contractors violate or beach contract terms, and provide for such sanctions and penalties as may be appropriate.

(2) Termination for cause and for convenience by the county family services agency and workforce development agency including the manner by which it will be effected and the basis for settlement.

(All contracts in excess of ten thousand dollars.)

(3) Compliance with executive order 11246 of September 24, 1965, entitled “Equal Employment Opportunity,” as amended by executive order 11375 of October 13, 1967, and as supplemented in department of labor regulations (41 C.F.R. chapter 60).

(All construction contracts awarded in excess of ten thousand dollars by grantees and their contractors or sub-grantees)

(4) Compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874) as supplemented in department of labor regulations (29 C.F.R. Part 3).

(5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by department of labor regulations (29 C.F.R. Part 5).

(6) Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by department of labor regulations (29 C.F.R. Part 5).

(7) Notice of awarding agency requirements and regulations pertaining to patent rights with respect to any discovery or invention which arises or is developed in the course of or under such contract.

(8) Notice of awarding agency requirements and regulations pertaining to reporting.

(9) Awarding agency requirements and regulations pertaining to copyrights and rights in data.

(10) Access by the ODJFS, the county family services agency and workforce development agency, the federal grantor agency, the comptroller general of the United States, or any of their duly authorized representatives to any books, documents, papers, and record of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions.

(11) Compliance with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857 (h). )section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and environmental protection agency regulations (40 C.F.R. part 15).

(12) Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871).

(13) Financial, programmatic, statistical, recipient records and supporting documents must be retained for a minimum of three years after the ODJFS acceptance of the final closeout expenditure report, or as otherwise provided by any minimum retention requirements specified by applicable state or federal law. If any litigation, claim, negotiation, audit or other action involving the records has started before the expiration of the three year period, the records must be retained until the completion of the action and resolution of all issues that arise from it, or until the end of the regular three year period, whichever is later.

Effective: 10/30/2006

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 153.54, 307.86, 307.87, 307.88, 307.89, 307.90, 307.91

Prior Effective Dates: 9/20/80, 8/13/82, 1/1/86 (Emer), 4/1/86, 10/1/86 (Emer), 12/15/86, 5/1/96, 9/5/97, 9/12/05

[This rule designated an internal management rule]

(A) Unlike other Title IV-E administration and training costs, which are claimed via random moment sample time study and calculated through a cost pool, Title IV-E contract costs are direct billed. Direct billing is possible because all contract costs are established prior to contract execution.

The following types of Title IV-E contract costs are eligible for direct billing:

(1) Recruitment, study and certification of persons desiring to be foster parents;

(2) Recruitment, study, and supervision of persons desiring to be adoptive parents;

(3) Training of public children services agency (PCSA) staff and short-term training of current or prospective foster or adoptive parents;

(4) Transportation of foster children (direct billing for transportation of foster children is limited to transportation provided by those other than foster parents; the cost of transportation by foster care parents is included in the foster care maintenance payment);

(5) Contracted services for eligibility determination; and

(6) Services of a prosecutor or private counsel.

(B) Federal financial participation (FFP) for each of these contract types is calculated on a county specific basis and will vary quarterly. In some instances, the amount of the FFP paid will reflect apportionment of the amount paid to the vendor, provider, or PCSA sub-grantee by the applicable Title IV-E eligibility ratio prior to the computation of the actual federal share.

(C) Title IV-E contract costs are direct billed on the JFS 02820 “Children Services Monthly Financial Statement”, using the appropriate Title IV-E administration and training activity codes.

Replaces: 5101-05-09

Effective: 08/19/2006

Promulgated Under: 111.15

Statutory Authority: 5101.02, 329.04, 307.86

Rule Amplifies: 307.86

Prior Effective Dates: 3/28/88, 1/1/91, 9/30/93, 7/1/94, 9/1/95, 9/1/96, 4/3/98

Each CFSA and WIA area shall develop a written policy for the reimbursement of the costs of CFSA/WIA area assets that complies with state, federal, and local requirements and includes asset classification standards and a useful life schedule. The CFSA and WIA area shall follow the state and federal requirements unless local requirements are more restrictive. The policy shall be consistent with the practices reflected in the county’s comprehensive annual financial report (CAFR) or other local annual financial reports, and meet requirements for reasonableness, allowability, and allocability as outlined in office of management and budget (OMB) circular A-87 and 2 C.F.R. part 225. A CFSA or a WIA area may adopt the written policy of the county auditor when the county auditor’s policy is, at minimum, as restrictive as the federal requirements. When a WIA area is composed of workforce development agencies from multiple counties, the WIA area shall follow the most restrictive of state, federal, and local requirements when seeking federal or state reimbursement for an asset.

(A) Expensing, depreciation, and use allowance are the three methods of asset reimbursement that can be utilized for claiming federal financial participation. An item with an acquisition cost of less than five thousand dollars is considered a supply and is expensed as a direct or indirect charge. Unless local requirements are more restrictive, when seeking federal reimbursement for the costs of an asset with an acquisition cost of five thousand dollars or more, the cost shall be recovered through depreciation or use allowance as an indirect cost. The only exception to the capitalization threshold is established in paragraph (B) of this rule and applies to equipment that will only benefit programs supported solely by United States department of labor (DOL) funds in WIA areas that are not covered by more restrictive local requirements.

(B) A local WIA area may direct charge equipment with an acquisition cost of more than five thousand dollars as an expense with prior written approval from the Ohio department of job and family services (ODJFS).

(1) A local area shall request such approval by submitting a completed JFS 01994 “Request for Approval to Direct Charge Workforce Investment Act (WIA) Area Funds for Equipment” (3/2009). The ODJFS review criteria include the following items:

(a) The existence of any local requirements, either at the WIA area or at the county level if the WIA area is acting on behalf of a county workforce development agency.

(b) The purchase of the equipment must meet the standard federal guidelines of reasonableness and allowability.

(c) The proposed methodology of allocating the costs between the adult, dislocated, and youth grants, and any administration costs must ensure the grants are charged in accordance with relative benefits received.

(d) All supporting documentation required on the JFS 01994.

(2) ODJFS will provide additional guidance on a case-by-case basis for approved requests to expense and direct charge the cost of equipment, including timing of the direct charge and reporting of the expenditure.

(C) Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting from the asset’s use. In accordance with OMB circular A-87 attachment B, section 11(a) and 2 C.F.R. part 225, appendix B, section 11(a), a combination of the two methods may not be used in connection with a single class of fixed assets (e.g., buildings, office equipment, computer equipment, etc.) unless the asset is considered to be fully depreciated and approval of a use allowance is obtained in accordance with the process outlined in paragraph (K) of this rule.

(D) The calculation of depreciation or use allowances shall be based on the acquisition cost of the assets involved. Where actual cost records are not available, CFSAs and WIA areas shall determine the acquisition cost in accordance with section (11)(b) of OMB circular A-87 (2 C.F.R. part 225, appendix B, section 11(b)).

The value of an asset donated to the CFSA by an unrelated third party shall be its fair market value at the time of donation. Government or quasi-governmental organizations located within the same county shall not be considered unrelated third parties for this purpose.

(E) The calculation of depreciation or use allowance shall exclude:

(1) The cost of land;

(2) Any portion of the cost of buildings and equipment borne by or donated by the federal government irrespective of where the title was originally vested or where it presently resides; and

(3) Any portion of the cost of buildings and equipment contributed by or for the CFSA or WIA area in satisfaction of a matching requirement.

(F) When a CFSA or WIA area is following the depreciation or use allowance method, it shall determine the period of useful service (useful life) for the assets being depreciated. Unless the county can document clearly that expected consumption of the asset will be significantly greater in the early portions of the useful life of the asset than in the later portions, the straight line method of depreciation shall be used. In determining the useful life of assets, the following factors must be considered:

(1) Type of construction;

(2) Nature of the equipment used;

(3) Historical usage patterns;

(4) Technological developments; and

(5) The renewal and replacement policies of the local government entity for the individual items or classes of assets involved.

(G) Depreciation methods shall not be changed unless approved by the (ODJFS). The CFSA or WIA area shall submit all requests to change the method of depreciation to the ODJFS fiscal supervisor. All requests shall include no less than the following information:

(1) The useful life of the item;

(2) The history of the method of costing that has been used for the life of the asset; and

(3) The reasoning behind the request to change the asset reimbursement method.

(H) In the event that the depreciation method is approved for an asset previously subject to a use allowance, the annual depreciation cost may not exceed the amount that would have resulted had the depreciation method been in effect from the date of acquisition of the asset. The combination of use allowances and depreciation applicable to the asset shall not exceed the total acquisition cost of the asset or fair market value at time of donation.

(I) The CFSA or WIA area has two options for cost recovery when the depreciation method is used for buildings.

(1) The building’s shell may be segregated from the major components of the building (e.g., plumbing system, heating, air conditioning system, etc.) and each major component depreciated over its estimated useful life; or

(2) The entire building (i.e., the shell and all components) may be treated as a single asset and depreciated over a single useful life.

(J) If a CFSA or WIA area utilizes the use allowance for buildings and improvements (including land improvements, such as paved areas, fences, and sidewalks), use allowance shall be calculated at an annual rate not to exceed two per cent of the acquisition costs.

(1) When the use allowance method is used for a building, the entire building must be treated as a single asset; the building’s components (e.g., plumbing system, heating, air conditioning system, etc.) cannot be segregated from the building’s shell.

(2) The two per cent limitation does not apply to equipment that is not permanently fixed to the building and is used as furnishings, decorations, or used for specialized purposes.

(a) Such equipment shall be considered as not being permanently fixed to the building when it can be removed without the destruction of, or need for costly or extensive alterations or repairs to the building, or the equipment.

(b) The use allowance for equipment will be computed at an annual rate not to exceed six and two-thirds per cent of the acquisition cost.

(K) The CFSA or WIA area may request approval to report a reasonable use allowance for assets that are considered to be fully depreciated by contacting the ODJFS fiscal supervisor. ODJFS approval shall be based on the following factors:

(1) The amount of depreciation previously charged to the government;

(2) The estimated useful life remaining at the time of the determination;

(3) The effect of any increased maintenance charges;

(4) Decreased efficiency due to age; and

(5) Any other factors pertinent to the utilization of the asset.

(L) Charges for use allowances or depreciation must be supported by adequate property records. When the depreciation method is followed, depreciation records indicating the amount of depreciation taken each period must also be maintained.

(M) To receive reimbursement for assets by using the depreciation or use allowance method, the CFSA or the WIA area shall report the appropriate amount on the applicable monthly financial statement.

(1) County departments of job and family services shall use the JFS 02827 “Monthly Financial Statement-Public Assistance Fund Certification Sheet” (rev. 11/2000).

(2) Public children services agencies shall use the JFS 02820 “Monthly Financial Statement-Children Services Fund” (rev. 3/2004).

(3) Child support enforcement agencies shall use the JFS 02750 “Child Support Administrative Fund Monthly Financial Statement” (rev. 10/2005).

(4) Workforce investment areas shall use the JFS 01992 “Workforce Investment Act (WIA) Fund Certification Sheet Monthly Financial Statement” (rev. 4/2006).

Effective: 06/05/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 329.04

Prior Effective Dates: 8/24/81, 7/15/84, 2/2/85, 1/1/86 (Emer), 4/1/86, 7/11/88, 9/5/97, 1/31/08

(A) The county family service agency shall follow federal, state, and local regulations when seeking federal financial participation (FFP) for the costs associated with the rent or lease of property or equipment. The costs must be necessary and reasonable for proper and efficient performance and administration of the specific program financing the cost and must be in compliance with office of budget and management (OMB) Circular A-87, attachment B and Code of Federal Regulations (C.F.R.) 2 C.F.R. part 225.

(B) In determining the reasonableness of rental or lease costs, the county family service agency must ensure that the following factors are considered:

(1) Rental costs of comparable property, if any exist;

(2) Market conditions in the area;

(3) Alternatives available; and

(4) The type, life expectancy, condition, and value of the property/equipment being leased. The county family service agency shall review rental arrangements periodically to determine if circumstances have changed and other options are available.

(C) When the other party of a lease agreement is able to substantially influence the action of the county family service agency, rental costs under the lease are allowable only up to the amount that would be allowed had title to the property been vested in the county family service agency. Such leases include, but are not limited to, those between:

(1) Divisions of a governmental unit;

(2) Governmental units under common control through common officers, directors, or members; and,

(3) To the extent otherwise allowable, a governmental unit and a director, trustee, officer, or key personnel of the governmental unit or his/her immediate family, either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest.

(D) Rental costs under material equity leases are allowable under the same cost principles

(e.g. depreciation or use allowances, maintenance, taxes, insurances, and other allocable costs) that would apply if the county family service agency had purchased the property on the date the lease agreement was executed. A material equity lease is defined as a lease under which the county family service agency acquires a material equity in the leased property. A material equity lease is only revocable upon the occurrence of a remote contingency and has at least one of the following characteristics:

(1) The county family service agency has the right to purchase the property for a price that at the beginning of the lease is substantially less than the probable fair market value at the time it is permitted to purchase the property;

(2) Title to the property/equipment passes to the county family service agency during or after the lease period; or

(3) The term of the lease/leases (including initial term and renewal options) is equal to or more than seventy-five per cent of the economic life of the property.

Effective: 11/20/2006

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 5101.02

Assets acquired in whole or in part with federal funds must be disposed of in compliance with the office of management and budget (OMB) circular A-87 attachment B, and the code of federal regulations 2 (C.F.R.) part 225, 7 C.F.R. part 277, 29 C.F.R. part 97, and 45 C.F.R. part 92 and part 95 in accordance with state and local requirements. The most restrictive regulations shall apply.

(A) The county agency must notify the board of county commissioners for disposal of an asset when one of the following apply:

(1) The loss of the asset was claimed for federal financial participation (FFP);

(2) The asset is not needed by the county agency for public use; or

(3) The asset is obsolete or unfit for the use for which the county agency acquired it.

(B) Once the board of county commissioners is notified by the county agency, it is the board’s responsibility to dispose of the asset.

(C) In accordance with section 307.12 of the Revised Code, when the board of county commissioners finds, by resolution, that the county has an asset that is not needed for public use or is obsolete or unfit for the use for which it was acquired, disposal options include the following:

(1) An asset that has been determined to have no value may be discarded or salvaged;

(2) An asset with a fair market value under two thousand five hundred dollars, as determined by the board, may be sold by private sale, without advertisement or public notification;

(3) An asset with a fair market value over two thousand five hundred dollars, as determined by the board, may be sold at public auction or by sealed bid to the highest bidder; and

(4) A vehicle valued at or less than four thousand five hundred dollars may be donated to a nonprofit organization exempt from federal income taxation for the purpose of meeting transportation needs of Ohio works first and/or prevention, retention, and contingency program participants.

(D) When the county agency notifies the board that an asset is not of immediate need, the board may lease the asset to any municipal corporation, township, or other political subdivision of the state.

Replaces: 5101-5-15

Effective: 02/18/2007

Promulgated Under: 111.15

Statutory Authority: 5101.02, 307.12

Rule Amplifies: 5101.02, 307.12

Prior Effective Dates: 2/1/98, 9/15/98