General Letter 71

• The contract must be signed by the awarded Contractor, Agency Authorized Signatory and the Attorney General.
• Required documents from the awarded Contractor in addition to bid requirements:
  • Certificate of Insurance (COI, ACORD form)
  • OPM Form 1 (if contract is $50K or more).
• Required documents for AG approval:
  • AG Checklist - Contract Approval Request
  • Agency Form Contract (including the contract terms through a hyperlink)
  • Exhibit A (detailing goods/services and pricing)
  • Other contract exhibits as applicable.
• Required documents for CTsource:
  • Agency Form Contract signed by all parties
  • Exhibit A (detailing goods/services and pricing)
  • Other contract exhibits as applicable
• See Core-CT job aids and CTsource Resources for issuance details.
• More information: Client Agency Resources

In Connecticut procurement, agency statutory authority refers to the specific purchasing powers granted directly to an agency by the Connecticut General Statutes (CGS).

Normally, procurement authority rests with the DAS under CGS Title 4a, Chapter 58, which centralizes purchasing for most state agencies. However, certain agencies are granted independent or limited purchasing authority by statute.

Key Points on Agency Statutory Authority:

1. Defined by Law – An agency may only exercise independent procurement authority if a CGS section explicitly grants that authority. Example: Some agencies may have the authority to procure services or subscriptions unique to their mission (consult legal counsel as needed).
2. Commissioner Approval – Even when authority exists, transactions typically require approval by the agency head/commissioner to ensure accountability.
3. Limits and Conditions – The statute will define scope, thresholds, or specific types of purchases (e.g., educational materials, healthcare services, or specialized research tools).
4. IT Transactions Exception—Regardless of statutory authority, CGS Title 4d requires the Chief Information Officer (CIO) to review and approve all IT-related acquisitions (hardware, software, cloud subscriptions, IT consulting, etc.).
5. Compliance Requirement – When exercising statutory authority, the agency must:
   1. Cite the applicable CGS section in procurement documentation.
   2. Ensure compliance with all statutory conditions (e.g., limits, reporting, or oversight).
   3. In Core-CT, create your requisition or PO, select the purchasing authority CGS, and reference the statute in the header comment.

Examples:

• Agency or program specific to educational memberships, dues, and fees
• Honoraria for speaking engagements to the public, clients, or institutional members managed by an agency.
• Mentorships
• Program specific purchasing dues and fees
• Sponsorships
• Tuitions

The use of the GL71 procurement authority is limited to purchases for agency operations and employees. For purchases where an agency is providing goods or services directly to the public or clients, there must be a specific statute authorizing that programmatic activity (e.g., bus passes, DSS benefits, DOE instructional materials, DPH public health supplies).

These purchases cannot be processed under GL71 and must instead be linked to the agency’s specific statutory program authority. You should first consult with your agency's legal counsel to identify the appropriate CGS that authorizes the purchase. Note: If a statute authorizes an agency to provide goods or services to the public, DAS procurement rules apply to buying goods, and OPM PSA rules are applicable if services are supplied directly to the public by external providers (e.g., professional development or social service delivery).

Key points to consider:

• GL71 authority, as delegated by DAS, applies only to the internal operations of state agencies.
• Purchases related to agency programs and client services are within the statutory authority given to your Commissioner by the Legislature.
• Your legal counsel can identify the specific CGS citation relevant to the program under which the purchase is made.
• Once confirmed, you should:

1. Use the CGS authority to generate your PO after conducting a competitive bidding process whenever practical and possible.
2. Reference the relevant statute in the PO’s comment field for documentation.

The Job Aids on the Core-CT website provide guidance on creating CGS-based POs.

If no active statewide DAS contract exists, recurring purchases of $25K or less with a performance period of up to one year fall under GL71a.ii. Purchases must be delivered or picked up within that year. Recurring purchases spanning multiple years fall under GL71b and should be solicited through written quotes or a bid process, when possible and practical.

When creating a blanket purchase order in Core-CT, go to the Header Details, under the PO Type select Blanket PO, and in the Line Details choose the appropriate purchasing authority (e.g., CGS, Contract, GL71a). When Blanket PO is selected in the header details, the printed PO will display ‘Blanket PO’ at the top of the PO. Note: GL71a can be used for blanket purchase orders for up to one year.

Emergency purchases are managed by issuing a retroactive PO with “Emergency” noted in the header comment. If no DAS contract exists, a justification must be attached to the PO. Purchases of $100K or more must be submitted to DAS Procurement using a DAS-BID requisition with supporting documentation.

Grant transactions are not authorized under GL71. Grants are not procurement purchases; they serve as a financial assistance mechanism authorized under separate statutes (e.g., CGS Title 4-28 for certain grants, or program-specific statutes in DSS, DPH, DECD, etc.). Grants require a contractual agreement (e.g., MOU, grant award) to establish terms of participation.

The contractual agreement must be entered into Core-CT for fiscal control and audit purposes. Agreements must be entered into Core-CT as procurement contracts. Use the contract option ‘Purchase Order’, with the State Identified Contract Type ‘Grant’ or ‘MOU’. Attach a copy of the agreement to the contract. Create a purchase order by copying from the contract. The Purchase Order type for a grant could be either ‘GRT’ or ‘MOU’ and the Purchase Authority for any contract type will be ’Contract‘. Refer to Core-CT job aid links: Create a contract or Creating a Purchase Order

Note: When the federal government distributes federal awards to designated recipients, the state agency acts as a pass-through entity. Payments are not linked to a state procurement contract but are routed based on federal approvals. Using the non-PO voucher process, these payments follow OSC and Core-CT processing guidelines.

Inter-agency payments, reimbursements, and transfers are not authorized under GL71. Inter-agency transactions are not “purchases” in the statutory sense under CGS §4a-51 through §4a-57, which cover procurement of supplies, materials, equipment, and services from contractors, not payments to other state agencies.

To process these transactions, use either a Memorandum of Understanding (MOU) or a Memorandum of Agreement (MOA) to establish a procurement contract in Core-CT or a non-PO voucher in Core-CT.

• If an inter-agency relationship is structured and recurring, an MOU/MOA must be documented as a contract in Core-CT to establish scope, budget, and accountability.
• If the payment is routine or incidental (e.g., DAS Fleet Garage charges), using a non-PO voucher is the correct approach.

An MOU/MOA ensures proper tracking because the agreement serves as the governing contract. It can cover multiple transactions over an extended period. If the agreement is signed and budget authority is in place, an MOU/MOA may include several transactions and span multiple fiscal years.

MOUs usually contain standard language that should be reviewed and approved by your agency’s legal team. Sometimes, the Office of the Attorney General (AG) may also need to approve it.

Once the MOU is fully executed by both agencies, the following steps should be taken in Core-CT:

Enter a Procurement Contract into Core-CT. Use the contract option ‘Purchase Order’, with the State Identified Contract Type as ‘MOU’. Attach a copy of the agreement to the contract. Create a purchase order by copying from the contract. The Purchase Order type is ‘MOU’ and the Purchase Authority for any contract type will be ‘Contract‘. Refer to Core-CT job aid links: Create a contract or Creating a Purchase Order

Inter-agency purchases are not permitted under GL71, with one exception: the DAS Print Shop.

GL71 is DAS-delegated purchasing authority for agency operational needs, not for inter-agency transfers. The DAS Print Shop is a special case because it functions as an internal service provider. Purchases from the DAS Print Shop must be made using a PO under GL71a or GL71b to track work orders and authorize costs.

Inter-agency exchanges are not considered ‘purchases’ and must be managed either as routine service reimbursements or through a formal inter-agency agreement (MOU).

• Non-PO Voucher – Suitable for routine service charges where no order is placed, such as DAS vehicle repairs. These are not considered purchases and do not require a PO. They cover routine maintenance and repairs performed by the DAS Fleet Garage.
• MOU (Procurement Contract in Core-CT) – Required when a formal agreement governs an inter-agency transaction, such as recurring services or specialized inter-agency support.

USPS Postage and delivery services like FedEx and UPS are not permitted under GL71. In Core-CT, use a non-PO voucher to pay for any incidental postage, including USPS metered postage. USPS is moving towards online account services to manage funds for metered mail and PO boxes. Contact the OSC Accounts Payable Division, osc.apdvf@ct.gov, if you do not have an account set up to process these purchases. Note: Pre-stamped envelopes and other select USPS products and services can also be paid for through a non-PO voucher.

If a statewide DAS contract exists for postage meters, agencies should purchase postage through the contract. If no contract exists, and the purchase is for internal agency operations (e.g., postage meter refills, maintenance), GL71a or GL71b may apply, depending on cost and term.

Real property transactions are not authorized under GL71. Real property (leases, acquisitions, rentals) is governed under CGS Title 4b, not Title 4a. DAS/Office of Real Estate executes the lease or rental agreement. Agencies must process payments in Core-CT by creating a Procurement Contract with the appropriate contract type designation ‘Rntl Lease – Rental Lease’. This ensures compliance with DAS leasing authority and proper tracking in Core-CT.

• If parking is part of a lease agreement (e.g., spaces leased in conjunction with office property), payments must be tied to the lease contract in Core-CT.
• If parking is purchased separately for staff (e.g., monthly passes at a garage not tied to property leasing), it may qualify as an operational purchase under GL71a or GL71b, depending on the cost thresholds.
• Pass-through payments to landlords for utility reimbursements at leased buildings must be tied to the lease contract in Core-CT. These payments are not separate procurement transactions under GL71.

If no DAS contract exists, use GL71a or GL71b as appropriate. Purchases exceeding $100K must be submitted to Procurement through a DAS-BID requisition with supporting documentation attached. Other online subscriptions or digital resources (e.g., newspapers, web-based textbooks, or instructional subscriptions) can be purchased under GL71a or GL71b, provided they are below the $100K threshold. If the subscription involves software, SaaS, or IT-related services, CGS Title 4d requires CIO review and approval, regardless of cost.

Before purchasing any software or software license, your first step should be to consult with your BITS Customer Success Manager (CSM) or IT Manager. They will ensure compliance, prevent duplication, and leverage statewide contracts (e.g., Cloud Solutions, SVAR) that might be more suitable and cost-effective for obtaining the license.

If it is decided that continuing with the current provider or publisher is the best option, follow the guidance outlined in GL71b and use the agency-form contract.

Note: Competitive bidding should be conducted whenever feasible. However, for renewing an existing license, bidding might not be practical. If so, proceed with a contract extension, ensuring the rationale is clearly and thoroughly documented. Before finalizing, verify that the Statement of Work (SOW) has been reviewed with the CSM. IT procurements require review of scope and technical specifications with BITS/CSM. If you need assistance, the Technology Contracting Team is always available to support you throughout the process. The contract value must not exceed $100K for the term of the contract.

Agencies may exercise independent statutory purchasing authority when explicitly authorized under the CGS, subject to approval from their agency head or commissioner. Such authority may include subscriptions, sponsorship agreements, or other transactions expressly permitted by law. When exercising this authority, agencies must:

• Cite the specific CGS section granting the agency independent purchasing authority.
• Ensure full compliance with any conditions or requirements established within that statute.

Under CGS Title 4d, all technology-related purchases, including IT subscriptions, software, or related services, must be reviewed and approved by the Chief Information Officer (CIO) of DAS, regardless of an agency’s independent statutory authority.

For subscriptions exceeding $100,000 that are agency-specific, the following procurement rules apply:

• Agencies must submit a DAS-BID requisition through Core-CT for all purchases estimated to be $100,000 or more.
• If the purchase involves a sole source or standardization transaction (such as continuing a subscription service like PowerSchool), the agency must request a waiver of competitive bidding.
• This requires submitting formal justification and supporting documentation that demonstrates no reasonable alternative exists.

The request must be reviewed and approved by the DAS Standardization Committee before the contract is awarded.

• Standard training course purchases related to any state employee (e.g., Skillpath, Coursera) should use GL71a. If the purchase is over $25K or will recur in more than a year, use GL71b. Depending on your agency’s specifics, the purchase may fall under OPM as a PSA or within your agency’s statutory authority; confirm with your agency’s Chief Financial Officer or legal counsel.
• Depending on how often training occurs, the number of people needing certifications, and the total cost, you might consider a larger contract that DAS Procurement would manage. Submit a DAS-BID requisition.
• If the purchase is for professional development, it might qualify as a PSA under OPM. Professional development training that is individually tailored (e.g., executive coaching) with set criteria and/or certification for a specific program (e.g., DESPP training) should be evaluated on a case-by-case basis.
• Honoraria speaking to state employees will most likely be classified under GL71a. Honoraria for the public will fall under the agency's statutory authority, not GL71. Contact the OSC Accounts Payable, Special Processing Unit, osc.apdsp@ct.gov, for questions.

Utility transactions are not authorized under GL71. CGS §4a-57(e)(1) explicitly exempts public utility services (electricity, natural gas, water, etc.) from competitive bidding requirements. In Core-CT, agencies must process requisitions/POs for utilities citing the CGS purchasing authority and add a header comment referencing the appropriate statute: 4a-57(e)(1).

• Public utilities are defined as regulated entities under PURA (Public Utilities Regulatory Authority) typically electric, natural gas, and water.
• Cable/Wi-Fi (telecom services) and propane are not regulated utilities and must be processed using GL71a or GL71b.
• When sewer charges are included in a regulated utility bill (e.g., municipal water/sewer), the transaction falls under the utility exemption and should be processed using CGS with reference to CGS § 4a-57(e)(1).
• If sewer charges are billed as a standalone service (e.g., municipal invoice not tied to a utility provider), they are not covered by the utility exemption and must be processed like any other operational expense under GL71.