1. Performance Monitoring All All Contracts require basic monitoring once awarded. The Goal of contract monitoring is to ensure that the contract is satisfactorily performed and the responsibilities of both parties are properly discharged. An effective contract monitoring system mitigates risk, with risk defined as the probability of an event or action having an adverse effect a state agency. In addition, effective contract monitoring minimizes or eliminates problems and potential claims and disputes The objective is the performance of the contract not control of the contractor’s business or means and methods.

2. Performance Monitoring The specific function required to be monitored under any contract are determined based on contract terms and conditions and scope of work. The contract cannot be properly monitored and ENFORCED unless the appropriate contract language/content is incorporated into the contract at contract construction. The contract should be reviewed immediately after the award to determine functions to be performed and the responsible parties.

3. Performance Monitoring All contracts should have a performance Monitoring Plan Monitoring Plan and it should be designed to focus on items most important. The plan should address the following: What’s the required level of monitoring based on the risk? What specific component within the contract is going to be monitored? How is the monitoring going to occur? Who is going to perform the monitoring function? When will the monitoring begin?

4. Performance Monitoring The extent for contract monitoring will not be the same for all contracts. The level of contract monitoring must be consistent with the complexity and level of risk of the contract, the Risk Assessment terms and conditions, and dollar value. Risk Assessment Determinants Determinants or general risk factors to be considered are: Contract value and complexity Contract type The impact of poor contractor performance on agency services Contractor’s past performance or experience with similar initiatives Urgency of the delivery schedule Prior experience with the contractor Contractor’s administrative and financial capacity Turnover in Key contractor personnel Independent audit coverage Prior complaints or inquires Cost over runs and significant problems with payment requests

5. Performance Monitoring Critical Areas of Monitoring Critical Areas of Monitoring include: Timetables and Schedules Acceptance Deliverables Quality of Deliverables Changes Data and Information Contractor Performance Budget and Payment Triggers Risk of Failure Subcontractors

6. Performance Monitoring Monitoring can be performed through: Site Visits Physical Inspections Desk Reviews Expenditure/Payment Reviews and Approval Document Reviews Interviews or Peer Reviews Collection of indicators or measures Analysis of indicators or measures Scheduled Reports and Analysis

7. Performance Monitoring Monitoring Excellence Monitoring Excellence will include: Established schedule for effectively monitoring the contract. Documentation of core contract activity, both successes and improvements. Administrative documentation that reflects an effort to capture critical elements of the contract terms and conditions. Maximized communication and correspondence with internal and external partners.

8. Performance Monitoring Timely reports of monitoring results permits corrective action Corrective action needs to be followed-up in writing by monitoring staff All Monitoring activities need to be documented In addition to identifying problems in performance or improper practices, the results may point to protocol deficiencies.

9. Performance Monitoring Who conducts your monitoring? Monitoring are most effectively conducted by objective individuals trained for this function. Sub recipient Monitoring should not supplant the basic, “common sense approach”, and daily contract monitoring (i.e. invoice & expenditure reviews, reports, data, output and outcome review, deliverables and schedules, etc). These points helps to ensure that the contractor is performing all duties in accordance with the contract and monitoring of these activities should begin immediately.