7._Exhibit_B_BDPP_Sample.pdf

California Department of Corrections and Rehabilitation (CDCR)/ Bid Number: SD24-00021 California Correctional Health Care Services (CCHCS) Exhibit B Budget Detail and Payment Provisions

Rev. 6/10/2025 Page 1 of 4

PROSTHETIC AND ORTHOTIC SERVICES AND DEVICES

ARTICLE I

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Invoices and Payment

a. For services satisfactorily rendered, and upon receipt and approval of Contractor’s invoices, California Department of Corrections and Rehabilitation/California Correctional Health Care Services (CDCR/CCHCS) agrees to compensate Contractor for completed services in accordance with the rates specified in Exhibit B-1 – Bid Rate Sheet, which is included as part of this Agreement. Except for emergency care, CDCR/CCHCS shall not compensate Contractor for services which did not receive prior authorization in accordance with Exhibit A – Scope of Work, and/or Exhibit A-1 – Service Specifications, and/or exceed the services as defined in California Code of Regulations (CCR), Title 15, Section 3999.98 and 3999.200.

b. Services shall be completed as set forth in Exhibit A – Scope of Work, and/or Exhibit A-1 – Service Specifications, and in accordance with prior authorization provisions, and all other terms and conditions of this Agreement.

c. Invoices shall be reimbursed in accordance with Exhibit B-1 – Bid Rate Sheet and with the following terms: no CDCR/CCHCS employee may independently negotiate or implement a rate increase on behalf of CDCR/CCHCS. Rate increases must be formalized by Direct Care Contracts Section (DCCS) through a formal amendment. Any invoice that is sent to CDCR/CCHCS with reimbursement rates above that specified by CDCR/CCHCS in writing within the contract shall be invalid. Payment of an erroneous invoice does not constitute acceptance of the erroneous pricing and CDCR/CCHCS may seek reimbursement of the overpayment or may withhold such overpayment from future invoices.

d. CDCR/CCHCS will not accept requests for early payment, down payment, or partial payment.

2. Budget Contingency Clause

a. It is mutually agreed that if the California State Budget Act for the current fiscal year and/or any subsequent fiscal years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor, or to furnish any other considerations under this Agreement, and Contractor shall not be obligated to perform any provisions of this Agreement.

b. If funding for the purposes of this program is reduced or deleted for any fiscal year by the California State Budget Act, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an Agreement amendment to Contractor to reflect the reduced amount.

3. Prompt Payment Clause

Payment will be made in accordance with, and within the time specified in, California Government Code (GC) Section 927 et seq. Payment to a small business or microbusiness shall be made in accordance with, and within the time specified in, GC Section 927 et seq.

SAMPLE

CDCR/CCHCS Bid Number: SD21400021 Budget Detail and Payment Provisions Exhibit B

Rev. 6/10/2025 Page 2 of 4

4. Subcontractors

For all Agreements, with the exception of Interagency Agreements and other governmental entities/auxiliaries that are exempt from bidding, nothing contained in this Agreement, or otherwise, shall create any contractual relationship between the State and any subcontractors, and no subcontract shall relieve Contractor of Contractor’s responsibilities and obligations hereunder. Contractor agrees to be as fully responsible to the State for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by any of them, as it is for the acts and omissions of persons directly employed by Contractor. Contractor’s obligation to pay its subcontractors is an independent obligation from the State’s obligation to make payments to Contractor. As a result, the State shall have no obligation to pay or to enforce the payment of any monies to any subcontractor.

ARTICLE II

SPECIAL BUDGET DETAIL AND PAYMENT PROVISIONS

1. Orientation and Training Requirements

At the discretion of each institution, Contractor shall ensure that on-site health care service providers complete orientation as specified in Exhibit A – Scope of Work.

a. On-Site Institution Orientation/Training

Contractor agrees that all providers shall attend on-site orientation and any other required training (i.e. annual block training and Learning Management System [LMS]) prior to reporting to work at the institution. Orientation/training is designed to assist providers to become familiar with the operations of the institution, its medical facilities, Title 15 of the CCRs that may apply to the institution. To maintain continuity of services and ensure safety for all workers, Contractor shall make available to the institution only those providers who have completed the orientation.

b. Self-Certification Orientation Process

This process may be utilized in place of attending an on-site institution orientation based on institution approval. The parties agree that there will be no reimbursement for assigned providers who have been approved to utilize the Self-Certification Orientation Process.

(1) Contractor shall obtain a copy of the Health Care On-Site Contractor’s Orientation Handbook from institution and return the signed copy of the CCHCS Orientation Acknowledgement form once complete.

(2) Contractor shall be responsible for ensuring that all providers complete the orientation and sign the Self-Certification Acknowledgement.

(3) Contractor shall maintain the signed copies (new and renewed) of the CCHCS Orientation

Acknowledgement and provide to CDCR/CCHCS upon request.

2. Submission of Invoices

a. In order to ensure prompt and accurate payment, all invoices shall be submitted according to the applicable directions listed below. It is the responsibility of Contractor to ensure that invoices are sent to the correct address as set forth below according to service type. Invoices sent to the incorrect

Budget Detail and Payment Provisions Exhibit B

Rev. 6/10/2025 Page 3 of 4 address will be deemed not submitted, will not be processed for payment, and will not be subject to late payment penalties per GC Sections 927.2, subdivision (j) and 927.4.

b. All invoices must be completed thoroughly, with all applicable fields completed. Invoices that are submitted to the appropriate location but have been altered, are inaccurate, or do not provide all necessary information, will not be accepted and will be denied and returned to Contractor for correction.

c. Any changes to this provision relating to the invoice submittal process, including but not limited to an address, form, or process change, shall be an administrative change managed through the appropriate designated CDCR/CCHCS office and shall not require an Agreement amendment.

d. Invoices submitted shall include the following information and must be legible in order to be considered complete and acceptable for processing or the invoice will be returned and disputed back to Contractor. Disputed/returned invoices shall not be subject to late payment penalties, as set forth in GC Section 927.4

(1) Invoice Date

(2) Invoice Number

(3) Contract/Agreement Number

(4) Purchase Order Number

(5) Contractor Name

(6) Remit Address

(7) Institution name or acronym

(8) Institution Physical Address

(9) Date of Service

(10) Healthcare Common Procedure Coding System Code (HCPCS)

(11) Item Description

(12) Quantity of Each Item(s)

(13) Price of Each Item(s)

(14) Total price of Item(s)

(15) Total Invoice Amount

(16) Net 45 Days

e. CDCR/CCHCS shall render payment in accordance with and within the time specified in GC Section 927 et seq. CDCR/CCHCS reserves the right to deny Contractor’s invoice if Contractor fails to submit it in the appropriate format or within the appropriate time frame specified in this section.

CDCR/CCHCS will provide an explanation along with the invoice denial and the basis for invoice rejection. Contractor will have the right to appeal or otherwise resubmit the invoice with the reasonably required documentation.

f. Invoices submitted for payment must be typewritten, legible, accurate, and submitted within twelve

(12) months and/or one year after the provision of services. Invoices submitted after twelve (12) months and/or one (1) year may not receive payment for these invoices. Invoices older than twelve

(12) months and/or one (1) year shall be submitted in accordance with Exhibit D – Special Terms and Conditions & Additional Provisions, Section 2, Dispute Resolution Process, (b)(3) First Level Appeal.

g. . Invoices shall also include the Agreement Number and the Purchase Order Number.

h. Health care goods, equipment, and supplies must be reviewed and approved prior to Contractor’s and/or provider’s submittal of an invoice for payment by the ordering institution. Approved health care goods, equipment, and supply invoices shall be submitted via email to APA.invoices@cdcr.ca.gov and mailto:APA.invoices@cdcr.ca.gov

Budget Detail and Payment Provisions Exhibit B

Rev. 6/10/2025 Page 4 of 4 copy m_ContractSupport@cdcr.ca.gov. If email submittal is not available, invoices may be mailed to the following address:

Sacramento Regional Accounting Office Attention: Accounts Payable A P.O. Box 187015 Sacramento, CA 95818-7015

3. Rejection of Contractor’s Invoice

CDCR/CCHCS reserves the right to reject Contractor’s invoice if Contractor fails to submit the invoice in the appropriate format or within the appropriate time frame specified within this Agreement. Disputed invoices will be returned to Contractor without payment and will include an explanation of the invoice dispute. Contractor will have the right to appeal or otherwise resubmit the invoice with the pertinent documentation to the address below. Disputed/returned invoices shall not be subject to late payment penalties, as set forth in GC Section 927.4.

4. Invoice Billing Appeals

For disagreements regarding payments or denials by CDCR/CCHCS for an invoice submitted under the Agreement, Contractor may submit a formal appeal letter with a copy of the invoice originally submitted, a cover page detailing the reason(s) why Contractor believes the invoice was underpaid or denied in error. Contractor may include any documentation provided by CDCR/CCHCS explaining the payment adjustment and any other documentation in support of the appeal. An appeal may be submitted by email or sent via U.S. Mail to the following offices:

Sacramento Regional Accounting Office Attention: Accounts Payable “A” P.O. Box 187015 Sacramento, CA 95818-7015 Email address: APA.invoices@cdcr.ca.gov

5. Invoice Audits and Refunds

CDCR/CCHCS has the right to review invoices retrospectively to ensure invoices were processed correctly and per the contract terms. Should CDCR/CCHCS determine that an invoice resulted in an overpayment; CDCR/CCHCS shall request a refund. Contractor shall refund any monies found from these retrospective audits. Contract shall refer to Exhibit D – Special Terms and Conditions & Additional Provisions, Section 63, Overpayments and Offsets for specific information regarding overpayments.

6. Invoice Payment Inquiry

Should a Contractor have questions or concerns regarding the processing and/or payment of invoices, the parties shall make a first attempt in good faith to resolve the question or concern through informal discussion(s). The parties agree that CDCR/CCHCS should be used as a resource in solving potential health care invoice disputes. Contractor shall refer to the following entity for detailed dispute information.

Goods/Durable Medical Equipment Invoice

Contractor shall contact the Sacramento Regional Accounting Office via email at APA.invoices@cdcr.ca.gov and copy m_ContractSupport@cdcr.ca.gov with any questions or concerns regarding the goods/durable medical equipment invoice submittal process.

mailto:m_ContractSupport@cdcr.ca.gov mailto:APA.invoices@cdcr.ca.gov mailto:APA.invoices@cdcr.ca.gov mailto:m_ContractSupport@cdcr.ca.gov