What is a Work Order Contract?
A Work Order Contract is a contract issued against a master price
agreement that has established a pool of suppliers to provide a general
or professional service. An agency can issue a work order to the pool of
suppliers using the appropriate process, including any screening and
selection process, for the given master price agreement.
Generally, the State Chief Procurement Officer (State CPO) will establish
DAS Statewide Price Agreements
for agencies’ mandatory or discretionary use. Depending on their
procurement authority, however, an agency or group of agencies may also
establish a similar contract for their use.
A procurement professional can use a Work Order Contract to
efficiently identify, engage and contract with one or more eligible
service providers that meet an agency’s needs. The Work Order Contract
includes a statement of work that details the specific scope of services
required to meet the agency need, and incorporates any required tasks
and deliverables, NTE pricing, terms and conditions agreed to between
the state and the service provider in the master price agreement,
expediting the procurement process.
When to Use a Work Order Contract
An agency must make its Buy Decision in the priority order
specified in administrative rule. DAS Statewide Price Agreements are the
fourth priority source. An agency may not elect to procure through a
lower priority source unless the agency determines that a price
agreement cannot meet its procurement need.
If DAS offers an applicable price agreement, and it is a mandatory
use agreement, an agency must use the price agreement to fulfill its
procurement need. If the price agreement is not designated as mandatory
use, it is at the agency’s discretion to either use an existing price
agreement or acquire the needed products and services from other
sources, including its own price agreement.
An agency should use price agreements where possible because this
is the most efficient acquisition method. However, if an agency chooses
to procure needed services outside of available price agreements, it is
subject to all the requirements of the procurement method selected.
When an agency seeks to procure general or professional services
for which there is not a current DAS Statewide Price Agreement or agency
price agreement, it should consider the value of establishing a price
agreement with a Work Order Contract approach. If the agency plans to
procure the same or similar services numerous times throughout the year,
it should consider establishing a price agreement with a Work Order
Contract approach.
How to Use a Work Order Contract
The specific process for how to execute a Work Order Contract is dependent on the price agreement type.
DAS Statewide Price Agreements include “Buyers’ Guides” that provide details of the contract including:
- The method and process for developing a Work Order.
- Required templates to solicit, evaluate and screen responses from
multiple eligible service providers, select one for award, and execute a
Work Order under the contract.
If the agency is using its own price agreement, the agency will
need to reference its contract and appropriate supporting documentation
for proper use of the contract.