Program Operations Manual System (POMS)
DI 39542.005 Federal Requirements for Contracts Involving DDS Functions
Federal law, regulations, and other written guidelines which apply to a State's performance of DDS functions also apply to a contractor's.
Any questions concerning Federal requirements should be resolved by the appropriate SSA regional commissioner.
B. Operating policy
1. Procurement requirements
Contract proposals must contain provisions for:
giving equal and courteous treatment to disability claimants and beneficiaries;
safeguarding Social Security records including records created by the State or contractor;
the use of small business labor surplus areas and minority business concerns;
affirmative action for disabled veterans and Vietnam era veterans;
employment of the handicapped;
adherence to appropriate laws, regulations, and other written guidelines concerning the confidentiality of information.
2. Written guideline requirements
States may not contract out their final decisionmaking authority so as to:
remove from State management the control of DDS funds, personnel, or equipment; or
interfere with State response to changes in the disability programs, in the DDS, or in other State agencies. For example: States may not give a contractor the authority to make administrative decisions to procure space, equipment, supplies and services, to determine DDS staff ceilings, to hire or dismiss DDS personnel, to negotiate issues with unions, etc.
The termsof all contracts must provide for State and SSA oversight and control. This includes provisions that:
permit adjustments if work requirements change;
allow immediate termination if the contractor violates the terms of the contract;
require the contractor to make timely and accurate performance and fiscal reports;
enable both State and Federal representatives to observe and audit the work being done.