Income contracts bring money into state agency accounts rather than expend money from those accounts. However, they are and should be processed as contracts to protect the agency and the state from liability and to clearly define each parties’ responsibility under the contract. These contracts have all kinds of names: use permits, leases, rental agreements, etc.; however, they are really contracts.
You need to ensure that your agency has the authority to accept payment for services it provides and that your accounting office has provided you the instructions necessary to get the funds into the proper account. If you have never done it before, this can be a complex experience. As with interagency agreements, the actual form used is not as important as what is included in it. Some agencies have specific existing guidance and forms that they use--this guidance and those forms should be used. OSP has provided an Income Contract template that you can use; however, that template may need to be modified to meet your specific needs and approved by your assistant attorney general and agency contract coordinator before you proceed to use it.
- Discuss scope of work with purchaser
- Develop Scope of Work and Deliverables
Negotiation and Contract Drafting
- Determine negotiation approach, prepare, and conduct negotiations
- Draft the contract using the Income Contract template
- Send draft contract to purchaser for review
- Send draft contract to Agency Contract Coordinator for review
- Route contract for signatures in the following order: Encumbrance, Contract, Agency, and Department of Administration
- Review signatures for legality, completeness, and accuracy
- Distribute executed copies to: purchaser, Agency and Project Manager
- Send written authorization to purchaser that work may begin