Contract Guide


Published on

  • Be the first to comment

  • Be the first to like this

Contract Guide

  1. 1. CONTRACT ADMINISTRATION <ul><li>Office of the Vice President for Finance and Administration </li></ul><ul><li>Texas A&M Health Science Center </li></ul>
  2. 2. CONTRACT APPROVED Contract Administration's mission is to guide HSC members through the complex contracting processes to achieve their contract needs. MISSION
  3. 3. CONTRACT ADMINISTRATION <ul><li>Planning </li></ul><ul><li>Procurement </li></ul><ul><li>Contract Type </li></ul><ul><li>Contract Formation </li></ul><ul><li>Lifecycle Management </li></ul>
  4. 4. CONTRACTING There is no single “right” way to contract.
  6. 6. RESEARCH CONTRACTS AND GRANTS <ul><li>Transactions involving furthering research projects must be processed through the HSC Office of the Vice President for Research and Graduate Studies . </li></ul>Research Research
  7. 7. 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
  8. 8. Purchase Order (PO) or Contract? <ul><li>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. </li></ul><ul><li>If the subject matter of the transaction involves human performance , such as rendition of services, then a contract should be used. </li></ul>
  9. 9. CONTRACT APPROVAL PROCEDURES FLOWCHART Originator negotiates with one or more other parties to create contract. Contract originals (two originals) may be sent to Contracts Administration with Transmittal Form. Contract entered into database. Contract Administration reviews contract. If contract found not sufficient. Originator asked to make changes. Contract found sufficient. Originator returns contract to Contracts Administration for further review.
  10. 10. CONTRACT APPROVAL PROCEDURES FLOWCHART Is contract over $50,000? Is contract developed by other party? If the answer to one of the questions is yes. Contract is forwarded to the HSC Chief Legal Officer for review. If contract is found not sufficient. Contract returned to Contracts Administration. Originator asked to make recommended changes. Contract found sufficient Originator returns contract to Contracts Administration for further review. Contract Administration updates database.
  11. 11. CONTRACT APPROVAL PROCEDURES FLOWCHART Contract Administration advises originator the contract is ready to begin routing for signatures. A transmittal form needs to be completed by the originator. Two unsigned originals of the contract should be attached to the transmittal form. Contract found sufficient Originator obtains necessary internal signatures for the transmittal form up to Dean/Director level and submits contract and transmittal form to Contracts Administration. After fully signed contract is received, HSC Contracts Administration keeps one fully executed original and if necessary sends the other fully executed original back to the other party. One PDF/TIF copy of the fully signed contract is forwarded to the originator for recordkeeping. Contracts Administration routes to appropriate HSC signatories and to the other party for signature.
  12. 12.   PROPER CONTRACT FORM <ul><li>Standard Form of Agreements: Standard agreements are forms that have been approved as such by the A&M System Office of General Counsel (OGC). </li></ul><ul><li>Review by OGC is unnecessary for a standard form of agreement for three years unless substantive changes have been made to the agreement. </li></ul><ul><li>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. </li></ul>
  13. 13. COMPLETING THE CONTRACT <ul><li>All contracts must be submitted to the HSC Office of Contract Administration for compliance review. </li></ul><ul><li>All contracts must be complete and all necessary information must be type written. </li></ul><ul><li>Attach all necessary contract addenda. </li></ul><ul><li>After compliance review, the signatures of officials with delegated authority must be obtained. </li></ul>
  14. 14. COMPLETING THE CONTRACT <ul><li>No contract shall be routed to the other party for review or signing without prior approval from HSC Contracts Administration. </li></ul><ul><li>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. </li></ul>
  15. 15. SIGNATURES OF AUTHORIZED REPRESENTATIVES OF THE PARTIES <ul><li>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. </li></ul><ul><li>Contracts are legally binding on the HSC only upon signature by an HSC official with delegated contractual signatory authority ( Delegation of Authority Matrix ). </li></ul>
  16. 16. PROCESSING CONTRACTS <ul><li>The following must be submitted to the Office of Contracts Administration: </li></ul><ul><ul><li>An original of the contract submitted via Laserfiche document management system; </li></ul></ul><ul><ul><li>Include addenda; and </li></ul></ul><ul><ul><li>Completed Contract / Agreement Transmittal Approval Form . </li></ul></ul>
  17. 17. PROCESSING CONTRACTS <ul><li>When the Office of Contracts Administration receives contracts: </li></ul><ul><li>The contracts / agreement transmittal approval form is date stamped. </li></ul><ul><li>The contract is issued a contract number. </li></ul><ul><li>A temporary file folder is created. </li></ul><ul><li>The formal review process commences. </li></ul><ul><li>Upon completion of review, the contract is then routed to the other party and/or appropriate HSC official(s) for signature. </li></ul>
  18. 18. PROCESSING CONTRACTS <ul><li>After the contract has been signed by all parties: </li></ul><ul><li>Contracts Administration will keep one fully signed scanned copy for its file - Contract Repository. </li></ul><ul><li>One fully signed original kept by or returned to the other party. </li></ul><ul><li>One Tagged Image File (“TIF”) copy of the contract forwarded to the originating department for recordkeeping/contracting monitoring. </li></ul>X
  19. 19. PROCESSING TIME FRAMES <ul><li>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. </li></ul><ul><li>Contracts originating from other party and/or at least $50,000 must be submitted at least 30 business days prior to start date. </li></ul>
  20. 20. PROCESSING TIME FRAMES <ul><li>Contracts for Consulting Services </li></ul><ul><li>(Payment of more than $15,000 will be made) </li></ul><ul><li>Submitted at least 60 business days prior to the start date for services .  </li></ul><ul><li>Why? </li></ul><ul><li>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. </li></ul>
  21. 21. PROCESSING TIME FRAMES <ul><li>Contracts for Professional Services </li></ul><ul><li>(As defined by state law for which the amount of the contract exceeds $14,000) </li></ul><ul><li>Contract must be submitted at least 60 days prior to the start date for services .  </li></ul><ul><li>Why? </li></ul><ul><li>The additional time is to notify the Legislative Budget Board and to publish a request for proposal for the professional services. </li></ul>
  22. 22. 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 David S. Carlson, Ph.D. Vice President for Research & Graduate Studies Roderick McCallum, Ph.D. Vice President for Academic Affairs NOTE: Rayellen Milburn, CPA, Senior Associate Vice President for Finance & Administration, has been assigned delegated authority to sign contracts less than $50,000.00
  23. 23. CONTRACT APPROVAL Contracts for which President Approval Must Be Obtained ($100,000.00 to $199,000.00)  <ul><li>The contract will require Vice President‘s and legal review and recommended approval before processing to the President for final approval. </li></ul>Nancy W. Dickey, M.D. President, Health Science Center Vice Chancellor for Health Affairs, Texas A&M System
  24. 24. CONTRACT APPROVAL Contracts for which Chancellor Approval Must Be Obtained ($200,000.00 to $299,000.00)  <ul><li>The contract will require HSC President‘s approval and required legal review before processing to the Chancellor for approval. </li></ul><ul><li>The Chancellor approval process usually takes at least one to two weeks minimum. </li></ul>Chancellor Michael D. McKinney
  25. 25. 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) <ul><li>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. </li></ul>The Texas A&M University System Board of Regents
  26. 26. Contract Processing Sooner than Later!