Transcript Monday - Contract Administration Plan

Contract
Administration
Stacy Sassman
Purchasing Agent
Iowa State University
Cory Harms
Associate Director of Purchasing
Iowa State University
Contract Administration
Session Outline
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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
Contract Administration
• What is a Contract Administration Plan (CAP)
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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
Contract Administration
• When do you need a plan?
– When the nature of the contract creates a need for
oversight
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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
What is the Value of a Contract
Administration Plan?
• Encourages open communication
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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
Writing a CAP
Purpose and Scope
• Describe the purpose of the contract administration
plan and the contract (Requirements)
• State what you want from the contract:
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Product/service delivered on-time
Quality product/service
Receive correct quantity
Accurate billing
Writing a CAP
Contract 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
Writing a CAP
Meetings
• Kick-off meeting
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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.
Writing a CAP
Vendor Requirements
• Requirements may be needed:
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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
Requirements
• Before the work can begin
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Certificates of insurance
Employee background checks
Surety/Payment bonds
Parking permits
Access cards or building keys
Equipment checks
Contractor registration number
Certifications/Licenses
Requirements
• After the work has started
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Milestone/progress meetings
Tests
Quarterly/Annual reports
Acceptance tests
Price audits
Payments
Surveys
Requirements
• Completion of the Work
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Testing/Tests
Final reports
Payments
Completed work (design, drawings, equipment, rights)
University Data
Escrow Rights
Requirements
• Post Completion
– Completed Operations Endorsement
– Protection of Records (University or Student)
– Audit of Vendor Records
Monitoring Performance
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Period of performance/delivery dates
Inspection and acceptance
Milestones
Potential issues:
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Wrong or unsatisfactory product delivered
Poor performance
Delays
Subcontractors
Property damage
Writing a CAP
Dispute Resolution
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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
Writing a CAP
Contract Changes
• Changes to:
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Contract period of performance
Dollar amount of contract
Scope of work
Terms and conditions changes
Assignment
Writing a CAP
Closing the Contract
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Final deliverables
Property
Payments & invoices
Evaluation
Helpful Tips
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Create a template for meeting notes
Track meetings and issues on a spreadsheet
Use the task function in Outlook
Documentation
Sample Plan
Common Issues
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Poor communication
Level of involvement
Vendor not a good fit
Expectations of Dept. and Vendor not met
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
Questions