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42 <br />CDSS for approval, including a proposed line-item budget which shows the <br />costs of the services to be performed. The budget for a proposed subcontract <br />for renovation and repair shall show the total cost of labor and the total cost of <br />materials. Bids, if applicable, shall be submitted to the CDSS when <br />requesting approval. If three (3) bids were not obtained, the contractor shall <br />provide written justification when the subcontract is submitted to the CDSS for <br />prior approval. Contractors shall demonstrate that approval of the <br />subcontract is cost effective to the state. <br />3. For proposed capital outlay subcontracts, private agencies shall include <br />documents showing that the bidder selected by the contractor has obtained a <br />payment bond in an amount not less than one -half (1/2) the amount of the <br />proposed subcontract. <br />4. Requests for approval of subcontracts for transportation services shall include <br />a Certificate of Insurance of the subcontractor in an amount not less than $1 <br />million per occurrence (or a greater amount if required by the Public Utilities <br />Commission regulations), listing the contractor and the state as additional <br />named insured. <br />5. One copy of the subcontract will be retained by the CDSS, and the other copy <br />returned to the contractor approved or disapproved within thirty (30) calendar <br />days of receipt of all required documents. <br />6. No reimbursement shall be made to the contractor or subcontractor for work <br />performed prior to CDSS approval. A disapproved contract will include a <br />statement of the reason(s) for not approving the subcontract . If the request <br />for approval of a subcontract is denied, the contractor may appeal the <br />decision in accordance with instructions specified in Section II, paragraph P, <br />Resolution of Contracts and Administrative Disputes. <br />7. The CDSS does not assume any responsibility for performance of approved <br />subcontracts nor does the CDSS assume responsibility for any unpaid debt of <br />the contractor resulting from subcontracting liens. <br />8. Subcontracts which increase the contractor’s cost of performance are non - <br />reimbursable. Subcontracts which contain a provision for reimbursement for <br />cost-plus-a-percentage-of-cost are not reimbursable. <br />F. Audit Requirements for Subcontracts (5 CCR 18032) <br />1. An organization that operates a childcare and development program under a <br />direct service contract with the CDSS is called a contractor. The contractor <br />may choose to enter into an agreement with another organization <br />(subcontractor), where the subcontractor operates one or more of the <br />contractor’s childcare and development programs. Consequently, an entity <br />may be acting in the dual capacity of contractor and subcontractor for one or <br />  <br />  <br />City Council 8 – 62 9/16/2025