Guidelines for the Disbursement of Funds

Consulting Services

Requirements before entering into any Consulting Services Contract

Prior to entering into any consulting services contract, a state agency must:

  1. Determine the necessity for consulting services.
    A state agency may only contract with a consultant if:
    • there is a substantial need for the consulting services, and
    • the agency cannot adequately perform the services with its own personnel or through a contract with a state governmental entity.
  2. Select a consultant.
    When selecting a consultant, a state agency must:
    • base its choice on demonstrated competence, knowledge and qualifications, and on the reasonableness of the proposed fee for the services, and
    • if other considerations are equal, give preference to a consultant whose primary place of business is in the state or who will manage the consulting contract from an office in the state.

Note: A state agency may not accept a bid or award a contract that would benefit a person who was paid by the agency to prepare the specifications on which the bid or contract is based.

Requirements before entering into a Major Consulting Services Contract

The state has very specific requirements to enter into a Major Consulting Services Contract. This would be considered a non-delegated purchase and would require a requisition through Procurement Services. Procurement Services would help the department navigate through these specific requirements.

These requirements do not apply to consulting services by:

  • A provider of a professional service
  • A private legal counsel
  • An investment counselor
  • An actuary
  • A medical or dental service provider
  • Other consultants whose services are determined by the governing board of a retirement system trust fund to be necessary for the governing board to perform its constitutional duties