(a) Introduction. Local project funding contract is defined in Executive Order 95-26 as an agreement to accomplish a public purpose and where the direct benefits of such a contract accrue primarily to the local population rather than the state as a whole. The order provides that local project funding contracts are awarded on the basis of merit, as measured by the Agency's objective criteria and that Agency rules and procedures for making such awards are adopted through rules, as provided by law.

(b) Submission of contracts. When DHS determines that a local project should be funded and is prepared to submit a contract to the Office of State Finance (OSF) for encumbrance, the Agency attaches a completed OSF Form 81, Local Project Funding Notification of Award of Contract, to each contract submitted.

(c) Responsibilities of DHS Contracts and Purchasing Unit. The Contracts and Purchasing Unit is charged with reviewing and monitoring the local project funding contracts and awards to ensure selection is based upon merit. This includes sign-off authority that each award program contains programmatic goal guidelines based upon:

• (1) a criteria for use of local project funding;
• (2) local project advertised as prescribed by OSF;
• (3) Contracts and Purchasing Unit ensuring proper procedures are followed; and
• (4) Contracts and Purchasing Unit submitting DCS Form OSF-81 for the Director's signature.