Any contract executed between a government entity and a contractor shall meet the following requirements:
(a) The execution of a professional or consulting services contract between a contractor and the Government shall be prospective. The government entities shall pay solely for the services rendered.
(b) The legal provision that authorizes the government entity to grant contracts shall be formalized in writing and included in the text of the contract.
(c) The contract shall include the full name of the contractor as registered in the Vital Statistics Registry or in the Department of Vital Statistics of his/her place of origin. When contracting a juridical person, its full name as it appears in the Register of Corporations or Partnerships of the Department of State or of the Department of the Treasury, as the case may be, must be included and the person appearing as its representative must be identified.
(d) The contract must include a detailed description of the personal information of the contractor. As part of the description of the contractor, the contract shall indicate the civil status, legal age, domicile and profession of the contractor. If the contractor is a corporate entity, a certified copy of its articles of incorporation issued by the Department of State must be included.
(e) The contract shall indicate the social security number of the party to be contracted. When contracting a juridical person, the employer social security number shall be included. When the contracting party is foreign and does not have a Social Security number, its passport or visa number shall be used.
(f) The contract shall establish the dates of its execution and of its effectiveness. As a general rule, government entities may not grant contracts that cover more than a fiscal year so as not to encumber future budgets. A contract may cover two (2) fiscal years, but it shall be limited to twelve (12) months and include a clause specifying that it shall terminate with the close of the year and that it shall be extended for twelve (12) calendar months, provided the parties agree and that there are funds available in the appropriate budgetary item. As an exception, multi-annual government contracts shall be allowed when the service can be obtained more efficiently and economically and when they are essential to guarantee the public service.
(g) The contract shall indicate precisely which services or duties are required by the Government. The contracted services must be described in detail in the contract text.
(h) It is necessary to establish in the contract the maximum amount to be paid to achieve an adequate fiscal control.
(i) The contract shall establish the manner of payment, that is, whether the invoice shall be based upon fees per hour, or by tasks or finished phases, or by means of a lump sum after the services to be rendered have been completed, among others.
(j) The invoice shall be specific, itemized and accompanied by a report detailing the services rendered and the hours worked in the rendering of said services. The invoice submitted shall include a certification indicating that the services were rendered and have not yet been paid for. It shall also indicate that no public servant of the contracting entity is a party to or has any interest in the profits or benefits product of the contract object of said invoice, and that if having been a party to or having had an interest in the profits or benefits product of the contract, the invoice shall specify whether a dispensation has been issued in that regard.
History —Aug. 31, 2004, No. 237, § 3.