In consultation with state agencies, the Purchase of Service (POS) project establishes uniform policies and procedures for obtaining, managing and evaluating the quality and cost effectiveness of human services purchased from private providers.  It is the responsibility of OPM's Secretary to ensure that all state agencies purchasing human services comply with such policies and procedures.  The Secretary also reports biennially to the General Assembly on the system for the purchase of services in the state.

An inter-agency work group meets monthly to explore “best practices” and formulate recommendations to standardize, to the extent possible, all policies and procedures for obtaining, managing, and evaluating the quality and cost effectiveness of human services purchased from private providers.

A POS contract is an agreement between a state agency and an organization for the purchase of direct human services to agency clients.  The contract generally is not used for the sole purpose of purchasing administrative or clerical services, material goods, training and consulting services.  POS contracts are used to contract with partnerships, as well as corporations, but not with individuals.

C.G.S.§ 4-70b(c) assigns overall responsibility for developing standard policies and procedures for the purchase of human services to the Office of Policy and Management.  In collaboration with six state agencies (the Departments of Children and Families, Correction, Mental Health and Addiction Services, Developmental Services, Public Health and Department of Social Services), the Office of the Attorney General, and representatives of the nonprofit provider community, OPM has developed a standard contracting format, common language, and an amendment process.

The standard format, substantially revised in May 2005, contains two sections to allow for maximum contract uniformity while ensuring the programmatic and policy flexibility needs of each agency. Part I includes the scope of services, contract performance, budget reports and other program and department-specific provisions. Part II incorporates mandatory administrative policy language approved by the Office of the Attorney General and is standard to all human service contracts.

In September 2006, the Office of Policy and Management issued statewide cost standards for purchase of service (POS) contracts.

Connecticut General Statutes § 4-70b(c)Secretary of the Office of Policy and Management.  Finance, budget and management duties

"The secretary shall establish uniform policies and procedures for obtaining, managing and evaluating the quality and cost effectiveness of human services purchased from private providers.  The secretary shall ensure all state agencies which purchase human services comply with such policies and procedures.  The secretary shall report to the General Assembly on or before January 1, 1994, and biennially thereafter, on the system for the purchase of such services in the state.  The report shall include an analysis of (1) the relationship between the number of providers of a particular service in a region and the cost of the service and (2) the impact of the state's policies and procedures for the purchase of human services on the cost of purchasing such services."