1. Contract Administration
Workshop
Presented by:
Lorie Messer
NOTES;
INTRODUCTION
How many of you are involved with contracts in you dept.?
How many of you are familiar with TAMU-CC contract forms?
Hopefully this workshop will provide you with a firm understanding of the responsibilities associated with Contracts and the fundamental skills which can be used to improve contracting practices within our University.

2. Objectives of the Workshop
Definition & basics of a contract
Responsibilities of the Department
Success & Challenges of Contract Administration
How to review a contract
Different types of contract forms
Contract *Delegation of Signature Authority
Notes:
Feel free to ask any questions….
Cover Contract Planning – What is the Need?
Procurements methods – PO or NON-PO
Contract Formation- Proper Scope of Services
Compensation Methods or no Compensation
Different Forms to use
Check list

3. Definition of Contract
A binding agreement between two or more persons or parties; especially: One legally enforceable.
A business arrangement for the supply of goods or services at a price.
Contracts are agreements which create an obligation to do or not do a particular thing.
Written contracts should be executed whenever TAMU-CC enters into a binding agreement with another party that involves any stated or implied consideration.
Notes
NO Oral Agreements – they are not binding – Unless under $500 the UCC (Uniform Commercial Code) does not require contracts under $500 but most dept. do it anyway because you have to have an invoice.
Examples: Cooperative Agreements: a combination of a group of vendors, agencies or Universities – for the purpose to lower the cost based on volume purchase
E&I, DIR, Buy Board, TXMAS

4. Definition of Contract Continuation
Contracts are construed to include, but not be limited to, the following:
Purchase Orders, Agreements, Cooperative agreements, Memorandums of Understanding, Interagency contracts, Grants, Loans, Easements, Licenses, Leases, Permits & Restrictions on acceptances of gifts, Stipends & Bequests (will).
Other parties include, but are not limited to:
Federal, state and local agencies, non-profit organizations, private businesses, partnerships & individuals.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. “Contract Administration” Built Upon Six Questions
What is to be accomplished by this agreement?
Ensure the contract contains provisions that hold the contractor accountable for producing desired results. Stay within budget. Has to be clearly understood & defined.
How is this project to be accomplished?
Involvement must be present from the start.
Does a certain sequence need to be performed in an orderly fashion?
Yes, through the Procurement Cycle sequence needs to be identified.
Notes
The Primary duties of a Contract Administrator are monitoring vendor performance, approving payments, and managing contract changes.

6. “Contract Administration” Built Upon Six Questions
When should these objectives or steps be satisfied?
During the term of the Contract.
Who are the responsible parties?
The party responsible for delivering the goods.
What is the cost & payment terms?
Important: Know how the cost was calculated.
Terms are net 30 days after receipt of goods.
Notes
The CA should also be involved throughout the procurement process so they are familiar with the contract requirements and the expectations of the end user.

7. 6- Factors to create a Contract
An offer & Acceptance
Legal Purpose
Mutuality of Obligation, also known as “meeting of the minds”
Consideration
Certainty of Competent Parties
Subject matter
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8. Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9. Contract Administration
Contract Administration is often one of the most neglected parts of the procurement process.
Good Contract Administration requires dedication and persistence.
The intensity and manner of contract administration will depend of the type of contract involved. Small dollar contracts with short durations or procurements for a one-time purchase may take less administration than those for large dollar projects of a lengthy duration.
Contract Administration is a critical element in the procurement cycle, and must be carried out in all public purchasing operations.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10. Contract Routing Cycle
Read Contract and have a full understanding
If it involves $$$ - Create a limited or Requisition in FAMIS & route for approval
If no $$$ involved – Fill out Contract Transmittal form & have department head sign
Route Contract to Purchasing Dept for review
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

11. Cont…
Contract Coordinator will review and/or modify, & contact the Company with any changes.
Reviewed contract will be given to the Buyer if it is encumbered in a Requisition or send back to the Dept. if it’s on a Limited.
If the Contract is encumbered on a Requisition, the Purchasing Dept. will mail out to the vendor for signature and provide the Dept. with a copy.

12. Contract Management
Plan: Identify contracting objectives & contracting strategies
Procurement: Fairly & objectively select the most qualified contractors
Contract Formation: Ensure the contract contains provisions that hold the contractor accountable for producing desired results
Rate/Price Establishment: Establish processes that are cost-effective & aligned with the cost of providing the goods & services
Contract Oversight: Monitor & enforce the terms of the contract and completion of contract
DON’T FORGET TO SET UP THE VENDOR IN FAMIS SYSTEM!
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

13. TAMU-CC Contract Addendum Form to Vendor’s Contract
Used to expedite vendor’s Contracts
Has all TAMU-CC Terms & Conditions
Legally binding
Can be found in our Website
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

14. Determining TAMU-CC Employee or ‘Independent Contractor’ (20 Factor test form)
Must fill out 20 Factor Test FORM to make the determination
20 Factor Test form needs to be routed through Purchasing Dept.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

15. An Employee is
An individual who performs a service for the University and is working under the direction & control of the University & its employees.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

16. Independent Contractor
☻Is an individual engaged by the University to perform a specific task & who is free to perform this task completely at the individual’s own discretion with regard to means & methods.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

17. Definition of Contract Workforce
The State of Texas defines “Contract
Workers” as:
▪ Independent Contractor’s
▪ Temporary workers (supplied by staffing company)
▪ Contract company workers
▪ Consultant (means the practice of studying & advising a University in a manner not involving the traditional employer/employee relationship).
If a contract is over $10,000 & using “State funds”, a Contract Work force analysis form must be completed & sent to the Purchasing Department.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

18. Contract Workforce Requirements Continuation P-2
●The contractor’s “Work force analysis form” could be audited & reviewed by the State Auditors Office in Austin.
●Must ensure that the contract worker fits into the Universities goals & objectives including:
● Compensation cost
● Productivity
● Nature of services to be provided
● The workload
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

19. TAMU-CC Contract/Agreement Short Form
Used for Contracts under $50,000
Page -1- Must fill out All the information
Page -2- to Enter Detail Costs if not lump sum
Page -3- Instructions for completing the form
Can be found in our website!!!
Not in your bundle…added it at the last minute to go over the form.

20. Misc. Contract Information
Dept. Heads can sign up to $5,000 ONLY if using “TAMU-CC Contract Form”
Should not exceed Five (5) Years
If Contract exceeds 5-years, must be approved by the “Board of Regents”
If over $50,000 needs Legal Review
Real Estate, regardless of $ needs to
go through TAMUS for review
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

21. Areas where Contract Administrators are involved:
Meets Milestones
Avoid “Risk” Regarding Liabilities
Communicate Internally and Externally
Maintain a Professional Relationship
Ensuring Compliance of the Contract
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

22. Ethics in Administering a Contract
Integrity
Fair Dealings
Confidentiality
Keep Favorable the Relationship
Maintain Impartiality -
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

23. Reasons for Problems in Contract Administration
Lack of Effective Communication
Inadequate Record keeping
Improperly Developed Specifications
“Fuzzy” Language
Lack of Timely Notices
Unable to Meet Terms
Poor Selection of Contractors
Improper Reimbursement Methods -
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

24. Compensation Section Price set amount Fixed Price Contract
Cost Plus Expenses
Hourly Rate -
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

25. Contract Termination Termination Conveniences Default -
Failure to Meet Contractual Obligation
Goes into Bankruptcy
Upon Tender of Notice to Seller
Conveniences
Default -
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

26. Satisfactory Completion
Prepare Final Contract closeout and Inspection
Properly Close File w/all required documents
Notify Purchasing Department of Contractor’s Performance
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

27. Delegated Authority TAMU-CC
Sponsored
Programs
Services &
Goods
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Certain Contracts Must be Approved by the Board of Regents
Refer to TAMUS Policy 2507)

28. Delegation of Authority
To determine who is “authorized” to sign any type of Contracts refer to the 2007 TAMU-CC Delegation of Authority for Contract Administration.
This form can be found in our Website:
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

29. ARAMARK CONTRACT Has “exclusive” rights for campus food & catering
READ Food Services “Campus Food services Rules” for exemptions
MUST fill out form – and be Approved before you can be exempt
For more info Contact: Liz Atkinson
X-5710

30. Texas A&M University-Corpus Christi “Contract/Agreement" Form
Approved by the Office of General Counsel
“Template” to use for TAMU-CC agreements- Fill in the blanks (i.e., Scope of Services)
Make sure you select the correct information that applies (i.e., Reimbursement for travel, etc.)
Has all TAMU-CC terms & conditions

31. TAMU-CC Contract Review Checklist Form
This is suggested as a useful tool for your
department.
It is not mandatory.
It is intended as a guide only.

32. TAMU-CC Contract Review Checklist Form
This is suggested as a useful tool for your
department.
It is not mandatory.
It is intended as a guide only.
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

33. Texas A&M University Contract Administration
Need
Contact:
Lorie Messer
Contract Coordinator
Tel: , Fax
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

34. The End Texas A&M University-Corpus Christi Purchasing Department
Judy Harral, Purchasing Director
Lorie Messer, Contract Coordinator
Notes:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________