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Tips for Contract Management/Administration

Tips for Contract Management/Administration. Gary Johnson Contract Compliance Officer Division of Purchases & Supply. Workshop Objective. Understand the need for Contract Administration Management. Explore Contract Administration Techniques. THE NEED FOR CONTRACT MANAGEMENT.

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Tips for Contract Management/Administration

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  1. Tips for Contract Management/Administration Gary Johnson Contract Compliance Officer Division of Purchases & Supply DGS/DPS 2004

  2. Workshop Objective • Understand the need for Contract Administration Management. • Explore Contract Administration Techniques. DGS/DPS 2004

  3. THE NEED FOR CONTRACT MANAGEMENT •  TO ENSURE THAT THE USER/AGENCY ACQUIRES GOODS/SERVICES ON A TIMELY BASIS TO MEET ITS CORE MISSION. INCLUDES BUT NOT LIMITED TO: • IDENTIFYING FUTURE REQUIREMENTS • FAMILIARIZING YOURSELF WITH INDUSTRIES • MANAGING CONTRACTS LISTING • ORGANIZING A CONTRACT ADMINISTRATION PROGRAM. DGS/DPS 2004

  4. THE NEED FOR CONTRACT ADMINISTRATION  TO ENSURE THAT THE USER/AGENCY COMPLIES WITH ITS OBLIGATIONS UNDER THE USER/VENDOR AGREEMENT.  TO ENSURE THAT THE CONTRACTOR COMPLIES WITH ITS OBLIGATIONS UNDER THE AGREEMENT.  TO PROVIDE A WRITTEN RECORD OF USER AND VENDOR PERFORMANCE FOR PURPOSES OF ASSESSING COMPLIANCE, ENFORCING RIGHTS, AND MAKING FUTURE PROCUREMENT DECISIONS. DGS/DPS 2004

  5. The Why of Contract Administration • 1. AWARDING THE CONTRACT IS NOT THE END OF THE JOB. • a. You need to be more than lucky • b. Performance tends to rise to expectations • c. Yogi was right! "It ain't over till its over" • 2. PERFORMANCE VERIFICATION IS INCUMBENT UPON THE ASKER • a. You are the one authorizing pay • b. Vendor always works at or below minimum standards • c. Perseverance the answer: "When the cat's away, the mice will play." DGS/DPS 2004

  6. ADMINISTRATION CON’T • 3. THE ROLE OF COMPLETE WORK STATEMENT/SPECIFICATIONS • a. The contract contains the total agreement (plus) • b. It has to be understandable to be agreeable • c. We understand only what is easily explainable • d. You can describe anything! (see A-1) • 4. NON‑COMPLIANCE BY VENDOR AGAINST THE LAW . . . NOT REQUIRING COMPLIANCE IS ALSO AGAINST THE LAW • a. Malfeasance - Conduct illegal to official obligations • b. Misfeasance - Doing something that's right the wrong way • c. Nonfeasance - Failure to perform • d. State's rights - Can't give away what's not yours DGS/DPS 2004

  7. GOODS CONTRACTS • Order Following (Old Fashioned Expediting) • High Dollars • Award Based on Delivery • Indication of Vendor Problems (Bad Relationship) • Need Close Agency/Vendor Coordination • Production Materials • Liquidated Damages Clause • Technical/Complex Procurement DGS/DPS 2004

  8. Goods Contracts • Vendor Contacts You Concerning Order • Item at Variance with Expectations • Product Not as Specified • Difference In Order Quantity • Invoice Differs from Purchase Order • Prepare Receiving Report DGS/DPS 2004

  9. Service Contracts • Best Done By Using Contract Driven Checklist • For Consulting, Training, etc Use Mile Stones • Checklist Should Be Qualitative, Quantitative, and Comprehensive • Checklist Should Allow for Monetary Assessments • Can Be Developed By Either Party • Should Serve As A Basis For Payment DGS/DPS 2004

  10. Criteria for Increased Administration(Federal) • Nature & Extent of Preaward Survey • Value & Complexity of Contract • Urgency of Delivery Schedule • Extent of Subcontracting • Vendor Performance History • Complexity of Payment Arrangements (Progress Payments, etc.) DGS/DPS 2004

  11. Federal Methods • Detailed Administration Delegation Document • If Vendor Is Purchasing Items For Commonwealth, Consider Monitoring Vendor’s Purchasing System • Monitor Cost Overruns/Underruns of Estimates • Periodic Plant Inspections • Monitor Financial Solvency • Use Of Auditor • Monitor Contract With View Towards Closeout DGS/DPS 2004

  12. Remember • You Are Only as Good as your: • Specifications/Work Statement ,Helping to Make a Responsive/Responsible Award and Then Minding the Business Using Clear Cut Procedures Allowing Immediate Action-Taking By Using All Available Resources. DGS/DPS 2004

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