Contractual Requirements

(1) In addition to applicable statutory and/or regulatory requirements departments must include in all contracts, purchase orders, master-service agreements, price agreements and other forms of contracts, provisions which describe the invoicing and bill paying procedures which govern the contract including: (a) the form of the required invoice, specifying the standard Commonwealth invoice (Mosaic Form PV) or other Mosaic form, time sheet, vendor-generated invoice, magnetic tape or other form of invoice; (b) the information which must be included in the invoice (including department reference numbers, and charges); (c) the documentation which must be included with the invoice to demonstrate to the department that the goods and/or services were delivered; (d) the method of presentment, including when and where the invoice will be submitted, provided invoices shall be submitted after the goods and/or service have been delivered and accepted and the final invoice must be received by the department within 30 days of delivery and acceptance of the goods and/or services or July 31st whichever is sooner; (e) the required payment date, which shall be the date required by statute, the standard payment date used by the industry, the date negotiated by the vendor and the department, or 45 days, whichever is longer, and; (f) the application procedures to request payment for late penalty interest as delineated in 815 CMR 4.05. (2) Departments must have contracts executed and encumbrances approved on Mosaic prior to the delivery of the goods and/or services in compliance with the Office of the Comptroller’s policies and procedures, as well as compliance with applicable procurement regulation, and/or other administrative rules. (3) Departments must establish encumbrances for emergency procurements so as to assure the availability of funds and approvals to pay invoices for such emergency goods and/or services procured. The payment date for emergency procurements shall be 45 days. (4) The payment date for contracts which do not specify a payment date or for purchases which are authorized to be made without a purchase order or contract shall be 45 days. Departments procuring the services of Medicaid providers shall continue to process payments in accordance with federal standards delineated in 42 CFR § 447.45(d).