Title: Section 87.13 - Purchases and contracts

87.13 Purchases and contracts.

(a) Purchases and contracts for materials and services will be limited to those items needed for company operation. Such purchases and contracts are subject to budgetary limitations except where the expenditure is necessary to protect life or property from imminent danger.

(b) Purchases and contracts will be awarded by a nursing home company only after every reasonable effort has been made to obtain the lowest possible cost commitment consistent with prudent operation. Substantial construction contracts, as defined in the State Hospital Code, shall require verification of cost by competitive bidding acceptable to the State Department of Health.

(c) Prior to permitting any supplier or contractor to perform, a company will require the contractor to submit satisfactory evidence of any insurance coverages and performance and payment bonds that may be required by the contract or purchase documents.