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RULE §732.269What contract remedies does DFPS use?

(a) DFPS is responsible for identifying and investigating contract deficiencies and violations. DFPS reserves the right to implement those contract remedies which are necessary to rectify contract deficiencies and violations.

  (1) If DFPS finds that performance issues, problems, or deficiencies exist with a contract provider of services, DFPS may investigate to determine whether there is a contract violation, including violations that have already occurred, violations that currently exist, or imminent violations.

  (2) If DFPS determines that there is a contract violation, then DFPS will decide on the appropriate contract remedy to be imposed.

  (3) As required by the contract, DFPS will give written notice to the contracted provider, describing the contract violation, the contract remedy to be imposed, the method by which reimbursement (if applicable) to DFPS will be made, and the time frame for resolution of the issue.

(b) DFPS reserves the right to use the following remedies, including, but not limited to:

  (1) assessment of liquidated damages;

  (2) assessment of consequential damages;

  (3) imposition of a corrective action plan;

  (4) suspension or debarment;

  (5) involuntary suspension of a contract or portion of a contract;

  (6) involuntary termination of a contract or portion of a contract;

  (7) a vendor hold or similar temporary delay in payment; or

  (8) any agreed temporary remedial measure intended to facilitate contract compliance.

(c) When a licensed residential child-care provider contracts with DFPS to provide substitute care to children in DFPS's managing conservatorship, the provider must ensure that each child-care facility operating under the contract secures and protects the health, safety, and welfare of each child in placement there. If at any time DFPS discovers that conditions exist in a contracted or subcontracted residential child-care facility which constitute an immediate threat to the health, safety, or welfare of any child currently or prospectively in placement there, DFPS has the authority to take any actions necessary to protect that child. The actions that DFPS may take in such circumstances include, but are not limited to:

  (1) the immediate removal from the facility of any or all of the children whom DFPS has placed there; and/or

  (2) the cessation of any or all new DFPS placements in the facility.

(d) In addition to taking the actions specified in this section, DFPS has the authority to impose any lesser remedies available to remove conditions constituting a threat to the health, safety, or welfare of clients under a contract or to monitor and protect public funds.

Source Note: The provisions of this §732.269 adopted to be effective August 1, 2012, 37 TexReg 5635

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