Contract Administration

1. Contract Administration Understanding the Policies and Procedures Fall 2009

2. What’s New? Quiz/Review Overview Today’s Session Questions From You “No Can Do” Walk Through FAQ

3. What’s New? New Signature Authority New Contract Cover Sheet

4. What’s New? Signature Authority LaShonda White Up to and Including $5,000 All Areas

5. What’s New? Contract Cover Sheet Page 1: Financial information more specific New Page 3: Accountability

6. What’s on the Horizon? New Standard Contract Addendum Document being finalized Addendum for nonstandard or vendor contracts valued at less than $25,000 Both contracting parties must sign contract document as well as Standard Contract Addendum

7. Page1: Contract Cover Sheet • Summarizes contract information for Contract Administration Office and UHD signatory Internal Document Updated Periodically Page 2: • Questionnaire designed to maintain alignment with regulations, policies and procedures Page 3: • Certification of UHS/UHD policies, procedures as well as contract terms and condition have been met

8. Reminder! Put in place to report FRAUD http://www.mysafecampus.com/ Anonymous Confidential Reporting system Ask questions Clarify issues Report suspected fraud

9. FRAUD Use of occupation Done in secret Personal enrichment Violates trust Normally considered a criminal act Deliberate misuse Financial benefit Cost company resources/assets

10. Falsifying Documents • Timesheets • Expense Reimbursements • Financial Statements Examples of FRAUD Stealing • Property • Supplies • Cash Family and Friends • Awarding contracts to family members • Awarding scholarships/grants not based on merit

12. What is a Contract? An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable by law. This includes but is not limited to: • Terms and Conditions • Leases • Letters of Agreement • Memoranda of Understanding • Letters of Intent • Interagency or Intra-system Agreements

13. Based upon: • State regulations • UHS/UHD policies and procedures Contracting Process Two key policy documents: • System Administrative Memorandum 03.A.05 Contract Administration • UHD Policy Statements 05.A.06 Contract Administration Policy

14. Tier 1: Predefined Consequences of Contracting Policy Violations • Notification to Employee regarding corrective action provided throughout contracting process Tier 2: • “Violation of UHD Policy Statement” Serious Violation/Fraud: • Disciplinary action up to and including termination

16. Contract on a Retroactive Basis University of Houston System Administrative Memorandum        03.A.05 Contract Administration 2. POLICY 2.3. All contracts shall have all applicable administrative and legal reviews completed and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.

17. Contract with UHS Employee 12 Month Non-Employee Requirement University of Houston System Administrative Memorandum        02.A.24 Employees and Independent Contractors 3.2. Under provisions of State and federal law, an individual may not be hired as an independent contractor when currently on the payroll of any component university. Similarly, State law requires that an individual may not be hired as a consultant on an independent contractor basis if employed by any component of the System during the previous twelve month period.

18. Unauthorized Contract Signatory Requires written authorization from UHD President UH-Downtown Policy Statement 05.A.06 Contract Administration Policy 2. POLICY/PROCEDURES 2.1 All delegations of contracting authority must be made in writing, approved by the President, and filed with the Board. No employee, officer, or agent of the University shall have the authority to execute contracts unless expressly delegated such authority pursuant to this policy

19. Contracts without OGC Review/Approval Initiate work before contract fully executed University of Houston System Administrative Memorandum        03.A.05 Contract Administration 2. POLICY 2.3. All contracts shall have all applicable administrative and legal reviewscompleted and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.

20. Vendor “On Hold” with State of Texas UHS will not pay vendor who owes taxes to State of Texas State Law (Texas Government Code 403.0551) § 403.0551. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR TAX DELINQUENCIES. (a) Except as provided by Subsections (b) and (d), the comptroller may deduct the amount of a person's indebtedness to the state or tax delinquency from any amount the state owes the person or the person's successor..

22. Do I Need A Contract? Human performance rendering service on campus Yes An off-campus event that requires facilities, catering of service specifically for UHD

23. Do I Need A Contract? Commonly available goods (i.e. office supplies) No Nominal services (a $30 equipment repair) A purchase made through Texas Comptroller of Public Accounts of DIRect (DIR) [Note: Contact Purchasing to determine availability of this option]

24. Do I Need A Contract? • Is off-campus, • Not associated with a major UHD event, and • Not specifically for UHD, i.e., is available to the general public at the same time • [Note: This includes food ordered from a menu at an off-campus restaurant and taking a group to a public facility such as a museum.] No

25. Do I Need A Contract? • Is for travel arrangements made through UHD's Travel Office for a guest speaker or consultant, AND • No additional monies will be paid or reimbursed to the individual. No

26. Who Can Sign A Contract? Listed on the Contract Website

27. Who Can Sign A Contract? Listed on the Contract Website

28. Is Competitive Bidding Required? Yes No The value of the contract is expected to equal or exceed $5,000 in state or local funds Contact Purchasing for assistance (713) 226-5525 • Services that cost less than $5,000 • Professional or Consulting services • Proprietary/Sole Source or “One-of-a-kind” services • Workshops, training or seminars • Advertising • Hotels for special events • Internal repairs • Interagency agreements

29. Do I Need A Purchase Requisition? • Higher Education Assistance Funds (HEAF) transactions Yes • Software purchases State contract items Cost of the service is equal to or expected to exceed $5,000

30. Which Contract Should I Use? Used for businesses that do not require insurance (i.e. lecturers, guest speakers or individuals performing a service)

31. Which Contract Should I Use?

32. Which Contract Should I Use?

33. Which Contract Should I Use?

34. What Special Requirements Should I Know About? Texas Market Place - Procurements of $25,000 or more must be posted for: • 14 days if the entire bid or proposal solicitation package is posted, or • 21 days if the entire bid or proposal solicitation package is not posted Expect the process to take a minimum of 30 calendar days prior to the start date of services

35. Consulting Services Contracts – Over $25,000 : What Special Requirements Should I Know About? • Legislative Budget Board (LBB) and Governor’s Office of Budget and Planning (OGBP) notification through OGC.  • Must be published in the Texas Register a minimum of 30 days prior to execution of the contract. (Process typically takes 6 weeks.)

37. Contract Cover Sheet Internal Document • Check “No Can Do” list • Use most current Contract Cover Sheet • Read through and answer all questions on page 2 • Get appropriate signatures (pages 1 and 3) • Attach “Vendor Verification” form

38. OGC Approved Contracts On Contracting Website • Include assigned contract number • Define scope of work clearly/specifically • 3 original signature hardcopy contract packages • 1 fully executed original signature contract package to Contracting department Contracting office will be happy to review the contracting package before it is forwarded to the vendor

39. Miscellaneous • Pending: Standard Contract Addendum can be attached to non-standard or vendor contracts valued at less than $25,000 • Non-standard and vendor valued at $25,000 or more, or revisions to OGC approved contracts must be approved by the Office of General Counsel • Processed through the Contract Administration Office • Electronic copy of vendor contract preferred

40. Key Things to Remember Allow yourself enough time to complete the contracting process Goal: Contract fully executed 5 days prior to contract start date Requirement: Contract fully executed prior to any work performed on the contract

41. Key Things to Remember Allow yourself enough time to complete the contracting process Texas Market Place: Expect minimum of 30 days Consulting Contracts: Expect 30 days to 6 weeks OGC Contract Review: Allowed 20 days Note: You cannot add to, change or delete The terms of an OGC approved contract

42. Key Things to Remember Facsimile Contracts • University of Houston System Administrative Memorandum • 03.A.05 Contract Administration • 3. GENERAL PROVISIONS 3.1. Contract Management: • a. “… Although original and signed contracts are required by this document, certain limited situations exist…that may require facsimile copies of the contract and contract signatures so that contract performance may begin. In these rare and limited situations, original signed agreements (not facsimiles) must be forwarded to the originating unit within 10 business days from the date the contract facsimile is received and processed by the originating unit and/or applicable contracting office.”

43. Key Things to Remember Facsimile Contracts • Limit Use • Hard copy follow-up in 10 business days • Same signatory on fax and hard copy follow-up • Same date on fax and hard copy follow-up Contracting package not complete until original signature contract with correct signatories and signature date forwarded to the Contract Administration Office

44. Key Things to Remember Amending the Contract • Must still be in effect • Soft Rule: Up to 25% increase in current contract dollar value • Same process as original contract • Same signatories/signatory positions as original contract

45. Key Things to Remember Miscellaneous • 3 sets of original signature hardcopy contract packages • Consider multiple year contracts where possible • No “white-outs” • No hand writing (other than signature and initialing revisions) • Earliest start date is “date of full execution”

48. Questions may have more than one correct answer #1 • The UHD contracting process: • Was developed based upon UHS policy • Was developed based upon UHD policy • Was designed to meet State of Texas regulations • Was designed to be user friendly • All of the above

49. Answer #1 • The UHD contracting process: • Was developed based upon UHS policy • Was developed based upon UHD policy • Was designed to meet State of Texas regulations • Was designed to be user friendly • All of the above

50. #2 • The Contract Cover Sheet: • Summarizes information about the contract • Informs the user of UHS and UHD policy requirements • Requires the signature of the vendor • Is updated periodically and includes the effective date • All of the above