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53 <br />c. If the contract is placed on conditional status during the last ninety (90) <br />days of the contract period and the contractor is offered continued funding, <br />the contract for the subsequent contract period will also be on conditional <br />status. <br />2. Conditional Status Addendum (WIC 103975 CCR 18305) <br />a. If the contractor is placed on conditional status during the contract period, <br />a Conditional Status Addendum will be issued by the CDSS, and the <br />Conditional Status Addendum shall be considered a part of the annual <br />child development contract and binding on the contractor. <br />b. A Conditional Status Addendum shall contain a bill of particulars which <br />detail the items of noncompliance, the standards that must be met to avoid <br />termination of the contract and to qualify the contractor for clear contract <br />status. The Addendum shall include all the following: <br />i. The specific item(s) of noncompliance which the contractor must <br />correct; <br />ii. The specific corrective action(s) which must be taken; <br />iii. The time period within which the contractor must complete the <br />corrections; and <br />iv. Notice that failure to demonstrate substantive progress within six (6 ) <br />months shall constitute a breach of contract and may result in no offer <br />of continued funding, or termination of the contract. <br />3. Duration of Conditional Contract Status (WIC 10397(a)(3) and 5 CCR 18307) <br />a. A contractor shall remain on conditional contract status until the contractor <br />has corrected deficiencies and/or has met requirements identified in the <br />Conditional Status Addendum. <br />b. Failure to demonstrate substantive progress toward fiscal or program <br />compliance within six (6) months of being on conditional status shall <br />constitute a breach of contract and may subject to no offer of continued <br />funding or termination of the contract, in accordance with paragraph F, <br />Contract Termination Procedure, below. <br />a. A contractor with a repayment plan shall remain on conditional contract <br />status and not receive any apportionments until full repayment is made. <br />c. A contractor on conditional contract status that is not on a repayment plan <br />shall remain in that status until: