(a) The area agency must use subgrants or subcontracts with service providers to provide all services funded under the area plan unless the office grants permission for one or more services to be delivered directly by the area agency.

(b) For OAA services, the office may grant permission for direct service delivery by an area agency if the area agency demonstrates that provision of such service by the area agency is necessary to assure an adequate supply of the service, or that the service is directly related to the area agency's administrative functions, or that service of comparable quality can be provided more economically by the area agency.

(c) For CSE or EISEP services, except for case management under EISEP, the office may grant permission for direct service delivery by an area agency if the agency provided the service prior to approval of the area agency's first CSE plan, or if the area agency demonstrates that direct provision of such service by the area agency is necessary due to the absence of an existing suitable provider to assure an adequate supply of the service, or to ensure the quality of the service provided. (The office may approve direct delivery of EISEP case management services without such a demonstration.)

(d) The area agency may plan, coordinate, and provide services for the elderly funded through other programs or from other sources if it continues to meet its responsibilities under this Chapter.

(e) An area agency which provides services directly shall develop and obtain approval from the office of a mechanism for internal monitoring.