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A TRUE COPY CERTIFICATION ON LAST PAGE RYAN L. BUTLER, CLERK exceed the existing contract in scope or volume of goods or services. A Sub -Recipient shall not use the preexisting contract merely as a "basis to begin negotiations" for a broader or materially different contract. Section 215.971, Florida Statutes Statutory changes enacted by the Legislature impose additional requirements on grant and Sub Recipient agreements funded with federal or state financial assistance. Section 215.971(1) states: An agency agreement that provides state financial assistance to a Recipient or Sub -Recipient, as those terms are defined in section215.97, Florida Statutes, or that provides federal financial assistance to a Sub -Recipient, as defined by applicable United States Office of Management and Budget circulars, shall include all of the following: • A provision specifying a Scope of Work that clearly establishes the tasks that the Recipient or Sub -Recipient is required to perform. • A provision dividing the agreement into quantifiable units of deliverables that shall be received and accepted in writing by the agency before payment. Each deliverable shall be directly related to the Scope of Work and specify the required minimum level of service to be performed and the criteria for evaluating the successful completion of each deliverable. A provision specifying the financial consequences that apply if the Recipient or Sub - Recipient fails to perform the minimum level of service required by the agreement. The provision can be excluded from the agreement only if financial consequences are prohibited by the federal agency awarding the grant. Funds refunded to a state agency from a Recipient or Sub -Recipient for failure to perform as required under the agreement may be expended only in direct support of the program from which the agreement originated. • A provision specifying that a Recipient or Sub -Recipient of federal or state financial assistance may expend funds only for allowable costs resulting from obligations incurred during the specified agreement period. • A provision specifying that any balance of unobligated funds which has been advanced or paid shall be refunded to the state agency. • A provision specifying that any funds paid in excess of the amount to which the Recipient or Sub -Recipient is entitled under the terms and conditions of the agreement shall be refunded to the state agency. • Any additional information required pursuant to s. 215.97. O. Unallowable Procurement Practices Noncompetitive Pricing Practices: Noncompetitive pricing practices between firms or between affiliated companies are prohibited. Subrecipients shall undertake reasonable efforts to ensure that prospective vendors have not engaged in noncompetitive pricing practices when responding to a solicitation, and that they themselves have not when soliciting vendors. If noncompetitive pricing practices are identified, the activity shall be reported to the Division. Below are common noncompetitive pricing practices: • Bid rigging: Occurs when conspiring competitors raise prices under a process where a purchaser acquires goods or services by soliciting competing bids. Competitors agree in advance who will submit the lowest priced or winning bid on a contract. Bid rigging takes many forms, but conspiracies usually fall into one or more of the following categories: bid suppression, complementary bidding, and bid rotation. 53