LOS ANGELES COUNTY
DEPARTMENT OF MENTAL HEALTH
  Policy 1005.01 Suspension of Payments Due to Contractor Default
 
  PROCEDURES
  1. Upon the DMH Director's determination the contractor is in default under any of the provisions described in this Policy, the DMH Director or designee shall issue an order to the Financial Services Bureau to effect suspension of payments to the contractor.
     
  2. Simultaneously or immediately following the order of the suspension of payments:
     
    1. The DMH Director or designee shall promptly provide notice by fax or certified or registered mail to the contractor of the default(s).
       
    2. The contractor shall submit a complete plan of correction to the DMH Director within 30 days following the date of the DMH Director’s notice described in Section B.1. The plan shall include time frames for completion of corrective implementation and shall be subject to the DMH Director’s written approval.
       
    3. The DMH Director or designee shall make reasonable efforts to assist the contractor in the implementation of the plan of correction, as appropriate. It is recognized, however, the contractor shall be totally liable and responsible for the implementation of the plan of correction.
       
    4. The contractor shall work cooperatively with the County to correct all areas in which the contractor was found to be in default.
       
  3. Any or all of the provisions of Section B may be waived at the sole discretion of the DMH Director. In the event the DMH Director, in his/her sole judgment, determines the contractor has failed to comply in a timely manner with any of the provisions of Section B above, the contractor shall be deemed to have waived the provisions of Section B.