Material Subcontracts/Subcontractors Sample Clauses
The Material Subcontracts/Subcontractors clause defines the requirements and procedures for engaging third-party subcontractors to perform significant portions of work under a contract. Typically, it requires the primary contractor to obtain approval from the client or owner before hiring any subcontractor for major tasks, and may set standards for the qualifications or performance of those subcontractors. This clause ensures that all critical work is performed by competent and approved parties, thereby managing risk and maintaining quality control throughout the project.
Material Subcontracts/Subcontractors a. Prior to contracting with a Material Subcontractor, the Contractor shall evaluate the prospective Material Subcontractor’s ability to perform the activities to be subcontracted.
b. All Material Subcontracts must be prior approved by EOHHS. To obtain such approval, the Contractor shall make a request in writing and submit with that request a completed Material Subcontractor checklist using the template provided by EOHHS and attached hereto as Appendix I, as may be modified by EOHHS from time-to-time, at least 60 days prior to the date the Contractor expects to execute the Material Subcontract. Among other things required in the checklist, the Contractor must describe the process for selecting the Material Subcontractor, including the selection criteria used.
c. The Contractor shall provide EOHHS with any additional information requested by EOHHS in addition to the information required in the checklist.
d. The Material Subcontract shall:
1) Be a written agreement;
2) Specify, and require compliance with, all applicable requirements of this Contract and the activities and reporting responsibilities the Material Subcontractor is obligated to provide;
3) Provide for imposing sanctions, including contract termination, if the Material Subcontractor’s performance is inadequate;
4) Require the Material Subcontractor to comply with all applicable Medicaid laws, regulations, and applicable subregulatory guidance;
5) Comply with the audit and inspection requirements set forth in 42 CFR 438.230(c)(3), such that the Material Subcontract requires the Material Subcontractor to agree as follows. See also Section 6.
Material Subcontracts/Subcontractors. 2.3.7.1 Prior to contracting with a material subcontractor, the Contractor shall evaluate the prospective material subcontractor’s ability to perform the activities to be subcontracted.
2.3.7.2 The Contractor shall request prior approval of all material subcontracts, amendments, and substitutions from LDH. To obtain such approval, the Contractor shall submit a written request and a completed material subcontractor checklist using the template provided by LDH included in the MCO Manual. The request shall also describe how the Contractor will oversee the material subcontractor.
2.3.7.3 The Contractor shall provide LDH with any additional information requested by LDH in addition to the information required in the checklist, including identifying whether the proposed material subcontractor is part of an organization related to the Contractor.
2.3.7.4 The material subcontract shall:
2.3.7.4.1 Be written;
2.3.7.4.2 Specify, and require compliance with, all applicable requirements of this Contract and the activities and reporting responsibilities the material subcontractor is obligated to provide;
2.3.7.4.3 Provide for imposing penalties, including Contract termination, if the State or the Contractor determines that the material subcontractor’s performance is inadequate or non-compliant;
2.3.7.4.4 Require the material subcontractor to comply with all applicable Medicaid laws, regulations, and applicable subregulatory guidance; and
2.3.7.4.5 Comply with the audit and inspection requirements set forth in 42 C.F.R.
2.3.7.5 The State, including LDH, Louisiana Office of the Attorney General Medicaid Fraud Control Unit (MFCU), and the Louisiana Legislative Auditor (LLA), and the federal government, including, CMS, HHS Inspector General, and the General Accounting Office, or their designees, have the right to audit, evaluate, and inspect any records or systems that pertain to any activities performed or amounts payable under this Contract at any time.
2.3.7.5.1 This right exists for ten (10) years from the termination of this Contract for the Contractor and any material subcontractors or from the date of completion of any audit, whichever is later; provided, however that if any of the entities above determine that there is a reasonable possibility of fraud or similar risk, they may audit, evaluate, and inspect at any time;
2.3.7.5.2 The Contractor and any material subcontractors shall make their premises, facilities, equipment, records, and systems available for the pur...