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Contract Administration

Contract Administration. Stacy Sassman Purchasing Agent Iowa State University Cory Harms Associate Director of Purchasing Iowa State University. Contract Administration Session Outline. What is a Contract Administration Plan Why have a Contract Administration Plan

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Contract Administration

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  1. Contract Administration Stacy Sassman Purchasing Agent Iowa State University Cory Harms Associate Director of Purchasing Iowa State University

  2. Contract AdministrationSession Outline • What is a Contract Administration Plan • Why have a Contract Administration Plan • Writing A Contract Administration Plan • Purpose and Scope • Contacts and Responsibilities • Meetings • Vendor Requirements • Monitoring Performance • Dispute Resolution • Changes to the Contract • Closing the Contract • Helpful Tips for a CAP • Common Issues • Questions

  3. Contract Administration • What is a Contract Administration Plan (CAP) • A loose set of guidelines • Flexible – allow the plan to fit the contract • Plan should be included in the contract • Plan should be agreed upon by Vendor • Plan should increase communication • What is a Performance Assessment Plan (PAP) • Monitor the performance of the contract • Created to administer the CAP

  4. Contract Administration • When do you need a plan? • When the nature of the contract creates a need for oversight • High Value Contracts • High Visibility Contracts • High Risk Potential in Contract • Customer Sensitive Contracts • Complex Contracts • Term of the contract creates a need for review • Past experience creates need

  5. What is the Value of a Contract Administration Plan? • Encourages open communication • Set a timeline for communication • Provide feedback • Maintain the relationship • Head off issues before they arise • Provides a clear understanding of roles and responsibilities • Identifies and minimizes the potential risks and problems

  6. Writing a CAPPurpose and Scope • Describe the purpose of the contract administration plan and the contract (Requirements) • State what you want from the contract: • Product/service delivered on-time • Quality product/service • Receive correct quantity • Accurate billing

  7. Writing a CAPContract Contacts and Responsibilities • Describe the roles and the responsibilities of each person involved. • Purchasing Agent/contract manager • Department contact (for operational issues only) • Vendor contact

  8. Writing a CAPMeetings • Kick-off meeting • Introduce contacts • Discuss scope of work in detail • Discuss contractual obligations of all parties (Requirements) • Establish communication protocols (email, phone, etc) • Additional meetings – quarterly, milestones, annually, etc.

  9. Writing a CAPVendor Requirements • Requirements may be needed: • Before work can begin • After work has started/during the life of the contract • Upon Completion of the Contract • Months or years after the Work is completed

  10. Requirements • Before the work can begin • Certificates of insurance • Employee background checks • Surety/Payment bonds • Parking permits • Access cards or building keys • Equipment checks • Contractor registration number • Certifications/Licenses

  11. Requirements • After the work has started • Milestone/progress meetings • Tests • Quarterly/Annual reports • Acceptance tests • Price audits • Payments • Surveys

  12. Requirements • Completion of the Work • Testing/Tests • Final reports • Payments • Completed work (design, drawings, equipment, rights) • University Data • Escrow Rights

  13. Requirements • Post Completion • Completed Operations Endorsement • Protection of Records (University or Student) • Audit of Vendor Records

  14. Monitoring Performance • Period of performance/delivery dates • Inspection and acceptance • Milestones • Potential issues: • Wrong or unsatisfactory product delivered • Poor performance • Delays • Subcontractors • Property damage

  15. Writing a CAP Dispute Resolution • Describe how disputes will be resolved • Who to contact • Actions to be taken if dispute is not resolved • Penalty clauses • Corrected work by another party

  16. Writing a CAPContract Changes • Changes to: • Contract period of performance • Dollar amount of contract • Scope of work • Terms and conditions changes • Assignment

  17. Writing a CAPClosing the Contract • Final deliverables • Property • Payments & invoices • Evaluation

  18. Helpful Tips • Create a template for meeting notes • Track meetings and issues on a spreadsheet • Use the task function in Outlook • Documentation • Sample Plan

  19. Common Issues • Poor communication • Level of involvement • Vendor not a good fit • Expectations of Dept. and Vendor not met

  20. Summary • What is a Contract Administration Plan? • Why have a Contract Administration Plan? • Writing A Contract Administration Plan • Purpose and Scope • Contacts and Responsibilities • Meetings • Vendor Requirements • Monitoring Performance • Dispute Resolution • Changes to the Contract • Closing the Contract • Helpful Tips for a CAP • Common Issues

  21. Questions

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