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41 <br />requirements are set forth in paragraph E, Prior CDSS Approval for <br />Subcontracts $10,000 and Above, below. <br />18. The consideration paid to the subcontractor, as provided in the subcontract, <br />should be stated to be the full compensation for all the subcontractor's <br />expenses incurred in the performance of the subcontract. <br />19. All subcontracts, rental agreements and other contractual arrangements <br />should include a termination for convenience clause permitting termination of <br />such agreements without cost to the contractor. <br />C. Private Agencies-Bids for Subcontracts (5 CCR 18027 & 2 CFR 200.320(f)) <br />1. Private contractors shall obtain at least three (3) bids or estimates for <br />subcontracts exceeding five thousand dollars ($5,000), prior to cost allocation <br />2. If three (3) bids or estimates cannot be obtained, the private contractor shall <br />maintain documents in its records that establish: <br />a. The reasons three (3) bids or estimates could not be obtained; and <br />b. The reasonableness of the proposed expenditure without three (3) bids or <br />estimates. <br />c. Documentation for the single-source vendor or service provider, including <br />the reason that vendor should be approved, must be submitted for <br />approval in lieu of three (3) bids. <br />3. The subcontract shall be awarded to the lowest responsible bidder. <br />4. The contractor shall not split subcontracts to avoid competitive bidding <br />requirements. <br />D. Public Agencies Subcontracts <br />Public Agencies shall award subcontracts in accordance with the Public Contract <br />Code. <br />E. Prior CDSS Approval for Subcontracts $10,000 and Above (5 CCR 18028- <br />18030) <br />1. Contractors shall obtain prior written approval from the CDSS for <br />subcontracts of ten thousand dollars ($10,000) or more, prior to cost <br />allocation, that are otherwise not excluded from the provisions as stated in <br />paragraph (A) above. <br />2. Prior to execution of a subcontract and commencement of work, the <br />contractor shall submit two (2) copies of the proposed subcontract to the