1. Contract Administration Stacy Sassman Purchasing Agent Iowa State University Cory Harms Associate Director of Purchasing Iowa State University

2. Contract Administration Session Outline 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

3. Contract Administration What is a Contract Administration Plan (CAP) – 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

4. Contract Administration When do you need a plan? – When the nature of the contract creates a need for oversight 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

5. What is the Value of a Contract Administration Plan? Encourages open communication – 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

6. 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: – Product/service delivered on-time – Quality product/service – Receive correct quantity – Accurate billing

7. 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

8. Writing a CAP Meetings Kick-off meeting – 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.

9. Writing a CAP Vendor Requirements Requirements may be needed: – 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

10. Requirements Before the work can begin – Certificates of insurance – Employee background checks – Surety/Payment bonds – Parking permits – Access cards or building keys – Equipment checks – Contractor registration number – Certifications/Licenses

11. Requirements After the work has started – Milestone/progress meetings – Tests – Quarterly/Annual reports – Acceptance tests – Price audits – Payments – Surveys

12. Requirements Completion of the Work – Testing/Tests – Final reports – Payments – Completed work (design, drawings, equipment, rights) – University Data – Escrow Rights

13. Requirements Post Completion – Completed Operations Endorsement – Protection of Records (University or Student) – Audit of Vendor Records

14. Monitoring Performance Period of performance/delivery dates Inspection and acceptance Milestones Potential issues: – Wrong or unsatisfactory product delivered – Poor performance – Delays – Subcontractors – Property damage

15. Writing a CAP Dispute Resolution 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

16. Writing a CAP Contract Changes Changes to: – Contract period of performance – Dollar amount of contract – Scope of work – Terms and conditions changes – Assignment

17. Writing a CAP Closing the Contract Final deliverables Property Payments & invoices Evaluation

18. Helpful Tips Create a template for meeting notestemplate Track meetings and issues on a spreadsheetspreadsheet Use the task function in Outlook Documentation Sample Plan

19. Common Issues Poor communication Level of involvement Vendor not a good fit Expectations of Dept. and Vendor not met

20. 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

21. Questions