Centralization of Texas State Contract Compliance Functions Rev. May 24, 2007

WHY CENTRALIZE? State Auditor’s Office Recommended Texas State Ensure That University Divisions: Follow University policies and procedures for the development and approval of contracts; Develop and implement written contracting and monitoring procedures that adequately protect the interests of the University; and, Report all required Texas State contracts to the appropriate State agency as mandated.

WHY CENTRALIZE? Streamline the contract review and approval process of routine contracts: Highlight areas of possible concern for review by University Attorney when Contractor proposes additional T’s & C’s. Assist the University Attorney in contract review when no exceptions taken to Texas State’s T’s and C’s.

WHY CENTRALIZE? (Cont’d) Consistent Independent Contract Review Helps To: Avoid risk of executing contracts with unfavorable terms or conditions; and, Makes sure favorable terms or conditions are considered, when applicable.

WHY CENTRALIZE? (Cont’d) Ensures notifications are transmitted and approvals are obtained prior to entering into a contract: TSUS Chancellor or Board of Regents Governor’s Office Texas Register Legislative Budget Board (LBB) Electronic State Business Daily

WHY CENTRALIZE? (Cont’d) Ensures that any required notices of contract award are issued in a timely manner to: Legislative Budget Board (LBB) Texas Register Electronic State Business Daily

WHY CENTRALIZE? (Cont’d) Provide Oversight Of The University’s Procurement And Contracting Processes To Assure: Compliance with applicable contracting/procurement statutes, rules, regulations and policies; and, The “best value” is obtained for the goods or services provided under the terms of a contract.

WHY CENTRALIZE? (Cont’d) Standardize University’s Contracting Processes For: Contract approval/execution; Transmittal of executed contract documents to other contracting parties; Internal distribution of executed contracts; Record retention of contracts and supporting documentation; and, Monitoring and processing contract renewals.

WHAT CONTRACTS ARE INVOLVED? Major Contracts For: Goods ($ 100k+); Non-Professional Services ($ 25k+) including: Consultant; Maintenance; “Personal Services” (Guest Lecturers, Entertainers, etc.; and, Lease of space by Texas State

WHAT CONTRACTS ARE EXCLUDED? Those routed through, or administered by, the Office of Sponsored Programs; Construction related contracts administered by the Office of Facilities Planning, Design and Construction; Faculty Teaching Contracts; and, Lease of Texas State space to other entities

Duties of the Contract Compliance Office Update contract compliance, management and administration policies and procedures; Assist in the: Drafting and issuing of complex procurement solicitations; Reviewing, evaluating and clarifying responses to determine the “best value” to the University; Recommending award of contracts to meet identified needs; and, Preparing and reviewing contract documents including interagency and inter-local cooperation contracts and agreements;

Duties of the Contract Compliance Office (Cont’d) Submit contract documents to proper authorities for signature and execution; Distribute executed contract documents and notify appropriate parties as necessary; Serve as the Texas State “office of record” for applicable major contracts and agreements;

Duties of the Contract Compliance Office (Cont’d) Provide follow-up for the renewal of existing contracts; Monitor contractor performance: Assist in the resolution of contractual disputes; and, Recommend remedies to exercise when a contractor’s performance is determined to be in deficit;

Duties of the Contract Compliance Office (Cont’d) Develop and conduct internal training on contract preparation, execution and management “best practices”; Provide mandated contract information to the appropriate State agencies; and Maintain and update the Texas State contract information database for the purpose of information management and reporting.

What’s Next? Review and update contract related UPPS’s and FSS/PPS’s: UPPS 03.04.04 “Approval of Contracts – Revised UPPS in review cycle UPPS 03.04.02 “Contracting Authority to Commit the University“ – Proposed incorporating into UPPS 03.04.04 UPPS 05.02.01 “Interagency Cooperation Contracts” – Awaiting approval of revised UPPS 03.04.04. Proposed move to UPPS Section 03.04 “Contract and Grant Administration” and expand to include Interlocal agreements FSS/PPS 08.01.01 “Facilities Leases” – Scheduled for review in Fall ‘07 Office of Contract Compliance Website - Created Contract Management training for Texas State personnel – In development

CONTRACTING RESOURCES Texas Building & Procurement Commission (TBPC) “Contract Management Guide” Department of Information Resources (DIR) “Project Delivery Framework”

Questions Or Clarification? Contact Rob Moerke, Director of Contract Compliance: Telephone – 512.245.2550 E-mail – rm01@txstate.edu URL - http://www.vpfss.txstate.edu/contracts/