1 / 14

Similarities and Differences between Managing Simple and Complex Contracts

Similarities and Differences between Managing Simple and Complex Contracts. Presented by Angela Zgabay -Zgarba and Andy Marker Texas Lottery Commission. Agency Overview. Operate Lottery and Regulate Bingo Unaudited Sales FY 2012 $4,190,815,913

vevina
Download Presentation

Similarities and Differences between Managing Simple and Complex Contracts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Similarities and Differencesbetween Managing Simple and Complex Contracts Presented by Angela Zgabay-Zgarba and Andy Marker Texas Lottery Commission

  2. Agency Overview • Operate Lottery and Regulate Bingo • Unaudited Sales FY 2012 $4,190,815,913 • Unaudited Transfers to State FY 2012 $1,153,560,513 • 317 FTE’s

  3. Contracts Administration • 2 Contract Administrators • 2 Attorneys who focus on Contracts • 3 Purchasers • 1 HUB Coordinator • 1 Director & 2 Managers • Contract Sponsors

  4. TLC Contracts • 75 -100 Active Contracts • Prime (15) • High Risk (11) • Other • Lease • Interagency • 60 Annual Promotional Event Contracts

  5. Statutes & Rules • Texas Gov’t Code • §466.014 • §466.101 • §466.102 • §466.103 • §466.105 • Texas Administrative Code • §401.101 - 104

  6. Procedures • 36 for Purchasing/Contracts/HUB • 19 govern Contracts Administration • 3 specific to Lottery Operator Contract • Vendor Background Risk Assessment • Needs & Risk Assessment

  7. Risk Assessment • Solicitation Document • Statutes & Rules • Procedures • Security and Integrity of Lottery Games • Conflicts of Interest • Background Investigations

  8. Contract Management • Monthly Disclosure of Litigation • Bonds and Insurance • Contract Sponsor reported issues • Annual Contract Compliance meetings with Contract Sponsors • Communication and Correspondence with Contractors • Contract Amendments • SOW’s or Change Orders

  9. Sanctions & Liquidated Damages • Liquidated Damages in most of our Contracts • Sanctions are in many of our Contracts • Compel Contractor Performance • Provide Remedies • Sanction, LD & Warning Letters

  10. Lottery Operator Contract • $1 Billion over life - $85M+ per year • Over 1,000 deliverables • Change orders • Contract compliance vendor • Approximately 70 Sanctions • Approximately 10 LD’s

  11. Advertising Contract • $32 M per year • Advertising & Media Planning • Reporting • Billing and invoicing • Staffing

  12. Instant Ticket Manufacturers • 3 Contractors • $19.5 M per year • Approximately 75% of agency sales are instant tickets • 85-90 instant games printed each year

  13. Simple vs. Complex • Complex • Bonds and Insurance Required • Long Contract Term • Significant Risk Associated • In-depth Background Investigations • Many Sanctions or Liquidated Damages • Extensive Terms & Conditions • Simple • No Bonds or Insurance • Short Contract Term • Limited Risk Associated • Background Certification • Few Sanctions or Liquidated Damages • Minimal Terms & Conditions

  14. Questions?

More Related