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Contract Administration Skills A verbal contract isn't worth ...


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Contract Administration Skills A verbal contract isn't worth ...

  1. 1. Contract Administration Skills A verbal contract isn't worth the paper it's printed on. -Samuel Goldwyn
  2. 2. Welcome <ul><li>Name? </li></ul><ul><li>Where do you work? </li></ul><ul><li>How are you connected to Contracts? </li></ul><ul><li>What is your favorite ice cream? </li></ul>
  3. 3. Reference Packet
  4. 4. Consultant Services Web Site <ul><li> </li></ul><ul><li>THE GREAT WEB TREASURE HUNT </li></ul>
  5. 5. Scope of Services <ul><li>First things first: </li></ul><ul><li>Every good contract begins with a good Scope of Services. </li></ul>
  6. 6. Scope of Services <ul><li>What are some characteristics of a good Scope of Services? </li></ul>
  7. 7. Scope Hints <ul><li>KISS </li></ul><ul><li>State the obvious </li></ul><ul><li>Eliminate “gray” areas </li></ul><ul><li>Use “will” or “must” instead of “shall” </li></ul><ul><li>Declarative sentences </li></ul><ul><li>Avoid lists </li></ul><ul><li>Use outline format </li></ul><ul><li>No legalese </li></ul><ul><li>Just say no to added risk and responsibility </li></ul><ul><li>No technical jargon </li></ul><ul><li>Avoid ambiguity </li></ul><ul><li>Avoid judgmental terms </li></ul><ul><li>Focus on the WWWWH </li></ul><ul><li>20-30 word sentences </li></ul><ul><li>Eliminate prepositions </li></ul><ul><li>Say it once </li></ul><ul><li>Use active voice </li></ul><ul><li>Use 4 eyes! </li></ul>
  8. 8. Scope Exercise <ul><li>Read scenario/submittal from the Project Manager </li></ul><ul><li>With a partner, write down what additional information you might need from the Project Manager to write a good Scope of Services. </li></ul>
  9. 9. Scope Exercise <ul><li>Ask the Project Manager questions. Record your answers to help you write your scope. </li></ul><ul><li>Armed with the information from the Project Manager, write a Scope of Services for this project. </li></ul><ul><li>Use outline format, and no more than 2 pages long. </li></ul>
  10. 10. Scope Exercise <ul><li>Be sure to check for the 4 Cs: </li></ul><ul><li>C lear </li></ul><ul><li>C oncise </li></ul><ul><li>C omplete </li></ul><ul><li>C orrect </li></ul>
  11. 11. Scope Exercise <ul><li>The eyes have it! </li></ul><ul><li>Switch scopes with at least two people. Be prepared to present an idea or opinion about what you have read! </li></ul>
  12. 12. Contract Process Choices <ul><li>So many options…which one will I choose? </li></ul>
  13. 13. Process Choices <ul><li>Direct Select </li></ul><ul><li>Annual Plan </li></ul><ul><li>Informal RFP < $25K </li></ul><ul><li>Informal RFP > $25K < $100K </li></ul><ul><li>Formal RFP </li></ul><ul><li>Certified List Direct Select </li></ul><ul><li>Certified List RFP </li></ul><ul><li>T-Contract Work Order </li></ul><ul><li>Single Source </li></ul><ul><li>Joint Powers </li></ul><ul><li>Interagency </li></ul><ul><li>DOA Master Roster & Master Contract </li></ul><ul><li>Pre-qualified Direct Select < $100K </li></ul><ul><li>Pre-qualified >$100K & < $800K </li></ul><ul><li>Pre-qualified > $800K </li></ul>
  14. 14. Direct Select - < $5K <ul><li>Key points to remember: </li></ul><ul><li>No Certification Form </li></ul><ul><li>Do not write multiple contracts for the same Contractor under $5K </li></ul>
  15. 15. Annual Plan - $5K per year per Contractor <ul><li>Key points to remember: </li></ul><ul><li>No Certification Form </li></ul><ul><li>Check with Contract Management (Jim Cownie) before writing </li></ul><ul><li>Usually used for training, seminars, and workshops </li></ul>
  16. 16. Informal RFP - $5K to $25K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>No Public Notice Required </li></ul><ul><li>10 affirmative responses required if no Public Notice (recommend Public Notice) </li></ul><ul><li>Best Value Selection </li></ul>
  17. 17. Informal RFP - $25K - $100K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>Public Notice (10 business days) </li></ul><ul><li>Sealed Proposal NOT required </li></ul><ul><li>Best Value Selection </li></ul><ul><li>Over $50K – need pre-award </li></ul>
  18. 18. Formal RFP - > $100K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>Public Notice (15 business days) </li></ul><ul><li>Sealed proposals REQUIRED </li></ul><ul><li>Best Value Selection </li></ul><ul><li>Over $50K – need pre-award </li></ul>
  19. 19. Certified List – Direct Select <ul><li>Key points to remember: </li></ul><ul><li>Only used for Market Research and Asbestos/Regulated Waste </li></ul><ul><li>Standing Certification Form </li></ul>
  20. 20. Certified List - RFP <ul><li>Key points to remember: </li></ul><ul><li>Only used for Market Research and Asbestos/Regulated Waste </li></ul><ul><li>Best Value Selection </li></ul><ul><li>Standing Certification Form </li></ul>
  21. 21. T-Contract Work Order <ul><li>Key points to remember: </li></ul><ul><li>NO more T-CONTRACTS! </li></ul>
  22. 22. Single Source <ul><li>Key points to remember: </li></ul><ul><li>Good idea to run it by Consultant Services before the Contractor is contacted </li></ul><ul><li>Certification Form </li></ul><ul><li>Single Source Justification Form </li></ul><ul><li>Over $50K – need pre-award </li></ul>
  23. 23. Joint Powers <ul><li>Key points to remember: </li></ul><ul><li>Contract with city, county, school district, U of M, other states, or governmental entities </li></ul><ul><li>One party may exercise common power on behalf of other party </li></ul><ul><li>Certification Form </li></ul><ul><li>Single Source Justification Form </li></ul><ul><li>Over $50K need pre-award </li></ul>
  24. 24. Interagency <ul><li>Key points to remember: </li></ul><ul><li>Contract with another State agency </li></ul><ul><li>NO Certification Form </li></ul><ul><li>Two signatures (each agency) </li></ul><ul><li>NOT Met Council or University of Minnesota </li></ul>
  25. 25. DOA Master Roster & Master Contract <ul><li>Key points to remember: </li></ul><ul><li>For information technology projects up to $2 million </li></ul><ul><li>Uses special forms (on contract management web site) </li></ul><ul><li>Direct selection up to $25K </li></ul><ul><li>Limited to vendors on the list </li></ul>
  26. 26. Pre-qualified < $100K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>Spread the work around </li></ul><ul><li>All subcontractors must be pre-qualified </li></ul><ul><li>Must obtain approval of selection </li></ul>
  27. 27. Pre-qualified > $100K & < $800K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>Public Notice soliciting Letters of Interest (10 business days) </li></ul><ul><li>Selection Committee </li></ul><ul><li>Must obtain approval of selection </li></ul><ul><li>All subcontractors must be pre-qualified </li></ul>
  28. 28. Pre-qualified > $800K <ul><li>Key points to remember: </li></ul><ul><li>Certification Form </li></ul><ul><li>Public Notice soliciting Letters of Interest (10 business days) </li></ul><ul><li>Selection Committee short lists 3-5 firms </li></ul><ul><li>RFP to short-listed firms </li></ul><ul><li>Best Value Selection – same committee </li></ul><ul><li>Must obtain approval of selection </li></ul><ul><li>All subcontractors must be pre-qualified </li></ul>
  29. 29. Federal Posting Times <ul><li>Please check your reference packet for required posting times for Federal funded contracts! </li></ul>
  30. 30. Flow Charts <ul><li>Flow charts are on the web! </li></ul><ul><li>Call the HELP DESK if you need guidance: 651-297-7505 </li></ul>
  31. 31. Process Exercise
  32. 32. Process Exercise <ul><li>It’s the old “Pass the Envelope” exercise! </li></ul>
  33. 34. Hands-On Training <ul><li>Work with Consultant Services to establish correct Work Types! </li></ul><ul><li>Call John Kellerman at (651) 296-6519 to obtain Mn/DOT Contract Number </li></ul>
  34. 35. Hands-On Training CPS Form Encumbrance Form Certification form (with Scope) Pre-Qualification Announcement (Over $100K) Fill out and forward to Consultant Services with Consultant Coordinator signature.
  35. 36. Consultant Services will: <ul><li>Update Consultant Agreement Reporting and Tracking) CART </li></ul><ul><li>Return CPS to Administrator </li></ul><ul><li>Route Certification Form for signatures </li></ul><ul><li>Return signed Certification Form to Administrator </li></ul>
  36. 37. Hands-On Training <ul><li>Contract Administrator will: </li></ul><ul><li>Solidify dates in announcement </li></ul><ul><li>Email announcement to Melissa McGinnis so she can post it on the Web – be sure to include Mn/DOT Contract number! </li></ul>
  37. 38. Hand-On Training <ul><li>Selection Committee-Approval of Committee </li></ul><ul><li>Selection Committee - Conflict Of Interest </li></ul><ul><li>Selection Committee – Rating Form </li></ul><ul><li>During 10 day LOI period, CA will: </li></ul><ul><li>Organize Technical Selection Committee </li></ul><ul><li>Obtain approval of Committee from Dick Stehr </li></ul><ul><li>Accept Letters of Interest </li></ul><ul><li>Schedule Selection Committee meeting </li></ul>
  38. 39. Hands-On Training <ul><li>Contract Administrator will: </li></ul><ul><li>Compile a list of firms that submitted a LOI </li></ul><ul><li>Review the list to verify Pre-qualified status </li></ul><ul><li>Forward the list via email to Brad Hamilton </li></ul><ul><li>Request any documentation needed from Consultant Services </li></ul>
  39. 40. Hand-On Training <ul><li>Selection Committee – Ranking Form </li></ul><ul><li>Selection Approval Memo </li></ul><ul><li>Selection Committee –Successful Respondent Letter </li></ul><ul><li>Selection Committee –Unsuccessful Respondent Letter </li></ul><ul><li>Contract Administrator will: </li></ul><ul><li>Conduct Selection Committee meeting </li></ul><ul><li>Email Brad Hamilton the name of selected Consultant </li></ul><ul><li>Send out letters to selected and non-selected firms </li></ul><ul><li>Obtain approval of selection from Dick Stehr </li></ul>
  40. 41. Hand-On Training <ul><li>Negotiations </li></ul><ul><li>Finalize scope </li></ul><ul><li>$$$ </li></ul><ul><li>Schedule </li></ul><ul><li>Team </li></ul><ul><li>Deliverables </li></ul>
  41. 42. Hand-On Training <ul><li>Project Authorization Form </li></ul><ul><li>“TC08” </li></ul><ul><li>Fill out and send to Artemis Coordinator </li></ul>
  42. 43. Write the Contract
  43. 44. Hands-On Training <ul><li>Contract – High Risk </li></ul><ul><li>Contract Administrator will fill out the Special Terms </li></ul>
  44. 45. Hands-On Training <ul><li>General Terms </li></ul><ul><li>Attach the General Terms to the Special Terms. Make sure that you add a header! </li></ul><ul><li>The Signature Page goes after the General Terms and before the Exhibits. </li></ul>
  45. 46. Hands-On Training <ul><li>Exhibits </li></ul><ul><li>Scope </li></ul><ul><li>Budget </li></ul><ul><li>Invoice </li></ul><ul><li>Progress Report </li></ul><ul><li>Key Personnel </li></ul>
  46. 47. Hands-On Training <ul><li>Contract Review </li></ul><ul><li>Locate the Contract Check List from the web site and check it against your contract. </li></ul><ul><li>Send the Contract to Consultant Services for review. </li></ul>
  47. 48. Hands-On Training <ul><li>Contract Routing </li></ul><ul><li>Signature Letter - Contractor </li></ul><ul><li>Contract Administrator will: </li></ul><ul><li>-Make changes/corrections to the contract </li></ul><ul><li>-Make 5 copies – front page YELLOW – </li></ul><ul><li>-Send with cover letter to the Contractor for signature </li></ul>
  48. 49. Hands-On Training <ul><li>Contract Routing </li></ul><ul><li>When the contract comes back signed, the Contract Administrator will: </li></ul><ul><li>- Check to make sure that signatures are correct (see hand-out) </li></ul><ul><li>- Send all 5 copies with a copy of the Certification Form , Announcement , fully filled out Encumbrance Form , and TC08 to Dalia Jorge in Consultant Services. </li></ul>
  49. 50. Signature Routing <ul><li>Consultant Services will route for signatures. Once fully signed, CS will send back to the Contract Administrator. </li></ul>
  50. 51. Hands-On Training <ul><li>Notice to Proceed </li></ul><ul><li>Contract Administrator will send fully executed contract to the Contractor with the Notice to Proceed Letter. </li></ul><ul><li>Other copies: </li></ul><ul><li>-2 to Project Accounting MS 215 </li></ul><ul><li>-1 to Project Manager </li></ul>
  51. 52. FILE DOCUMENTATION <ul><li>See Reference Packet </li></ul>
  52. 53. Questions & Discussion
  53. 54. Class Evaluations