1. A State agency proposing to award a contract – regardless of amount – funded in any part by general obligation bond proceeds must receive approval from the Board of Public Works before entering into the contract. “Contract” includes all agreements to expend funds, including grant agreements.
2. Most MCCBL-funded contracts are contracts that are required under the State Procurement Law (and regulations) to be presented to the Board of Public Works for approval. The Board’s approval of a procurement contract on an Action Agenda Item that contains a Fund Source field identifying MCCBL funds satisfies the State Finance Law requirement.
3. However, some MCCBL-funded contracts are either not subject to the State Procurement Law (because the agency or activity is exempt) or are within an agency’s delegated procurement authority. Those contracts – like all MCCBL-funded contracts – must be presented to the Board of Public Works for approval under the State Finance Law.
4. When an Action Agenda Item identifies a specific MCCBL in the Fund Source field, subsequent modifications and task orders that draw funds from the specified MCCBL may be processed without returning to the Board for permission to use that specified MCCBL.
PRACTICE NOTE: Remember, however, that the modifications and task orders may be subject to Board review under State Procurement regulations.
5. When an Action Agenda Item does not identify a specific MCCBL, a State agency must return to the Board with a further Action Agenda Item if the agency subsequently proposes to expend MCCBL funds on the contract. Approval of an Action Agenda Item that lists various fund sources but does not specifically list an MCCBL does not satisfy the requirements of the State Finance Article.
PRACTICE NOTE: BPW Advisory 2004-3 (Correcting Agenda Items) states, “The following corrections may be accomplished only through an Action Agenda Item: Adding or substituting a general-obligation bond source that was not previously approved for that project.”
6. When a State agency seeks to enter into a contract to be funded with current MCCBL proceeds and with future (“pre-authorized”) MCCBL proceeds, the Action Agenda Item may list the pre-authorized amount as a Fund Source. However, the agency may not spend under that contract beyond the current MCCBL proceeds, and the agency must return to the Board with an Action Agenda Item proposing to actually use those preauthorized funds once they have been appropriated and that future MCCBL has taken effect.
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