CONTRACT ADMINISTRATION Office of the Vice President for Finance and Administration Texas A&M Health Science Center

CONTRACT APPROVED MISSION Contract Administration's mission is to guide HSC members through the complex contracting processes to achieve their contract needs. CONTRACT APPROVED

CONTRACT ADMINISTRATION Planning Procurement Contract Type Contract Formation Lifecycle Management

There is no single “right” way to contract. CONTRACTING There is no single “right” way to contract.

RESEARCH CONTRACTS AND GRANTS Transactions involving furthering research projects must be processed through the HSC Office of the Vice President for Research and Graduate Studies. Research

POLICY & REGULATION This Contract Management Guide is intended to supplement A&M System policies and regulations: SPRM 25.07: Contract Administration SPRM 25.07.01: Contract Administration Procedures and Delegations SPRM 25.99.02: Component Purchasing Authority TAMUS Procurement Code State of Texas Contract Management Guide State of Texas Procurement Manual

Purchase Order (PO) or Contract? If vendor/other party accepts HSC term and conditions and does not require a signed contract, a purchase order may be used to obtain commonly available goods and services in excess of $5,000.00. If the subject matter of the transaction involves human performance, such as rendition of services, then a contract should be used.

CONTRACT APPROVAL PROCEDURES FLOWCHART Originator negotiates with one or more other parties to create contract. Contract original scanned into Laserfiche and sent to Contracts Administration HSC Review Folder. Contract deposited into contract reviewers review folder based on component criteria. If contract found not sufficient. Originator returns contract to Contract Administration through Laserfiche for further review. Contract found sufficient. Contract deposited into originating components return to component Laserfiche folder, originator asked to make changes.

CONTRACT APPROVAL PROCEDURES FLOWCHART Contract is forwarded via Laserfiche to the TAMUS Office of General Counsel for required review. Is contract over $50,000? Is contract length of term more than five years? If the answer to one of the questions is yes. If contract is found not legally sufficient. Contract found legally sufficient Contract returned to Contracts Administration. Originator asked to make recommended changes. Originator returns contract to Contracts Administration for further review. Contract may or may not require further review by Office of General Counsel. Contract Administration routes contract for final approval and signature based on delegation of signature authority.

  PROPER CONTRACT FORM Standard Form of Agreements: Standard agreements are forms that have been approved as such by the A&M System Office of General Counsel (OGC). Review by OGC is unnecessary for a standard form of agreement for three years unless substantive changes have been made to the agreement. Other Contracts:  Other parties prefer to use their contract for a transaction.  If the other party’s contract will be used for a transaction, the contract must be submitted for review to HSC Chief Legal Officer and/or OGC as to form and legal sufficiency.

COMPLETING THE CONTRACT All contracts must be submitted to the HSC Office of Contract Administration for compliance review. All contracts must be complete and all necessary information must be type written. Attach all necessary contract addenda. After compliance review, the signatures of officials with delegated authority must be obtained.

COMPLETING THE CONTRACT No contract shall be routed to the other party for review or signing without prior approval from HSC Contracts Administration. All contracts must have applicable contract administrative and legal reviews and appropriate signatures prior to performance by the parties as set forth within the contract.

SIGNATURES OF AUTHORIZED REPRESENTATIVES OF THE PARTIES No HSC employee has the authority to bind the HSC contractually except in accordance with A&M System policy. Else, the employee could be held personally liable. Contracts are legally binding on the HSC only upon signature by an HSC official with delegated contractual signatory authority (Delegation of Authority Matrix).

PROCESSING CONTRACTS The following must be submitted to the Office of Contracts Administration: An original of the contract submitted via Laserfiche document management system. Include addenda.

PROCESSING CONTRACTS When the Office of Contracts Administration receives contracts: The contract is issued a unique contract identifier number based on fiscal year. An electronic file folder is automatically created. The contract is given a cursory review to determine other HSC areas that may be necessary to review the contract. The contract processes through a formal review process by a contract reviewer. Upon completion of review, the contract is then routed through Laserfiche to the other party and/or appropriate HSC official(s) for signature.

X PROCESSING CONTRACTS After the contract has been signed by all parties: Contracts Administration will keep one fully signed scanned copy for its file - Contract Laserfiche Repository. One fully signed original kept by or returned to the other party. Originating department electronic notified that final contract has been placed into the Laserfiche Repository for further monitoring and recordkeeping. X

PROCESSING TIME FRAMES All forms of agreements less than $50,000 must be submitted to the HSC Office of Contracts Administration at least 15 business days prior to start date. Contracts originating from other party and/or at least $50,000 must be submitted at least 30 business days prior to start date.

PROCESSING TIME FRAMES Contracts for Consulting Services (Payment of more than $15,000 will be made) Submitted at least 60 business days prior to the start date for services.  Why? The additional time is to notify the Governor's Office of Budget Planning and Policy/Legislative Budget Board and to publish a request for proposal for the consulting services.

PROCESSING TIME FRAMES Contracts for Professional Services (As defined by state law for which the amount of the contract exceeds $14,000) Contract must be submitted at least 60 days prior to the start date for services.  Why? The additional time is to notify the Legislative Budget Board and to publish a request for proposal for the professional services.

Finance & Administration Research & Graduate Studies CONTRACT APPROVAL Contracts for which Vice President Recommended/Approval Must be Obtained (Less than $100,000.00)  Barry C. Nelson, Ph.D. Vice President for Finance & Administration Roderick McCallum, Ph.D. Vice President for Academic Affairs David S. Carlson, Ph.D. Vice President for Research & Graduate Studies NOTE: Rayellen Milburn, CPA, Senior Associate Vice President for Finance & Administration, has been assigned delegated authority to sign contracts less than $50,000.00

CONTRACT APPROVAL Contracts for which President Approval Must Be Obtained ($100,000.00 to $199,000.00)  The contract will require Vice President‘s and legal review and recommended approval before processing to the President for final approval. Nancy W. Dickey, M.D. President, Health Science Center Vice Chancellor for Health Affairs, Texas A&M System

CONTRACT APPROVAL Contracts for which Chancellor Approval Must Be Obtained ($200,000.00 to $299,000.00)  The contract will require HSC President‘s approval and required legal review before processing to the Chancellor for approval. The Chancellor approval process usually takes at least one to two weeks minimum. Chancellor Michael D. McKinney

The Texas A&M University System Board of Regents BOARD OF REGENTS Contracts for which A&M System Board of Regents Approval Must be Obtained ($300,000.00 or greater and/or term of contract longer than five years) HSC member business administrator should contact the Office of Contracts Administration for guidance with Agenda Items for contracts that must be approved by the Board of Regents. The Board of Regents approval process usually takes at least two months. The Texas A&M University System Board of Regents

Contract Processing Sooner than Later!