(1) For purposes of this section, "governmental body" has the same meaning as set forth in section 24-101-301 (18); except that, for purposes of this section, "governmental body" shall also include elected officials. (2) Each personal services contract entered into pursuant to this code with a value of one hundred thousand dollars or more shall contain: (a) Performance measures and standards developed specifically for the contract by the governmental body administering the contract. The performance measures and standards shall be negotiated by the governmental body and the vendor prior to execution of the contract and shall be incorporated into the contract. The measures and standards shall be used by the governmental body to evaluate the performance of the vendor under the contract. (b) An accountability section that requires the vendor to report regularly on achievement of the performance measures and standards specified in the contract and that allows the governmental body to withhold payment until successful completion of all or part of the contract and the achievement of established performance standards. The accountability section shall include a requirement that payment by the governmental body to the vendor shall be made without delay upon successful completion of all or any part of the contract in accordance with the payment schedule specified in the contract or as otherwise agreed upon by the parties. (c) Monitoring requirements that specify how the governmental body will evaluate the vendor's performance, including progress reports, site visits, inspections, and reviews of performance data. The governmental body shall use one or more monitoring processes to ensure that the results, objectives, and obligations of the contract are met. (d) Methods and mechanisms to resolve any situation in which the governmental body's monitoring assessment determines noncompliance, including termination of the contract. (3) Each governmental body administering the personal services contract shall, within existing resources of the governmental body, designate a contract manager with subject matter expertise within the governmental body responsible for day-to-day management of the contract, including performance monitoring. (4) If the governmental body determines that the vendor has not complied with the contract terms, including but not limited to performance standards and measurable outcomes, the state may pursue remedies in accordance with article 109 of this title 24 and shall be entitled to any remedy available under law in the case of contract nonperformance, including but not limited to termination of the contract and the return of any and all payments made to the vendor by the state under the contract; except that the recovery of any moneys by the state shall be reduced by the value of any contractual benefits realized by the state from partial performance by the vendor under the contract. If a vendor is deemed to be in default under any one particular contract with the state, the state may, upon a showing of good cause, declare any or all other contracts it has entered into with the vendor to be in default. (5) [Editor's note: This version of subsection (5) is effective until July 1, 2025.] Notwithstanding any other provision of this section, nothing in this section shall be construed to apply to any contract to which the state is a party under medicare, the "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5, the "Children's Basic Health Plan Act", article 8 of title 25.5, or the "Colorado Indigent Care Program", part 1 of article 3 of title 25.5. (5) [Editor's note: This version of subsection (5) is effective July 1, 2025.] Notwithstanding this section to the contrary, this section does not apply to any contract to which the state is a party under medicare, the "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5, or the "Children's Basic Health Plan Act", article 8 of title 25.5.
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