Contract Administration Policy

Transcription

1 Contract Administration Policy Guidelines for contract approval March 15, Old Orchard Road Skokie, Illinois Fax

2 Guidelines for Contract Approval All contracts or agreements creating legal obligations and /or committing resources shall be reviewed by the Vice President Operations and the Vice President Finance. 1. Contact Vice President Operations to determine if contract format adheres to the standard PCA contact template. Documents should be forwarded to the Vice President Operations for legal review and adheres to the PCA contract administration process described in the attached Contract Administration Policy. 2. Upon approval, the contract will be forwarded to the Vice President Finance to review expense(s), payment(s) schedule, or income in accordance with the contract terms and conditions. 3. Contract level for approvals and signature: Vice President up to $5,000 President over $5,

3 PCA Contract Administration Policy Overview To ensure proper contract administration, this will establish procedures and guidelines for contract approval, contract compliance, and a centralized repository for all contracts. Types of contracts include: Purchasing Maintenance agreements on equipment Lease/rental agreements Insurance Professional services Construction agreements Non purchasing Contracts where PCA is selling services Contracts with organizations, business, and industry offer programs or services Hotel contracts Facility rental contracts Cooperative agreements with schools or other organizations The contract administration process can include solicitation, source/vendor selection, contract administration, and contract closeout. The PCA staff who originates the contract shall have responsibilities in the following key areas for each contracting phase. Procurement Planning involves determining whether to procure, how to procure, and when to procure. Activities include: Determine and define the supply or service to procure Develop a description of the supply or service to be procured Develop preliminary budgets and cost estimates Consider contract type and any special terms and conditions Solicitation Planning involves the process of preparing the documents required to support the bidding process. This contract phase includes: Selecting the appropriate type Determining the procurement document (RFP) Determining proposal evaluation criteria such as lowest priced versus best value Structuring contract terms and conditions

4 Solicitation is the process of obtaining information (bids and proposals) which includes: Conduct pre proposal conference with appropriate management Provide notice to interested suppliers Develop and maintain qualified supplier list Source Selection is the process of receiving bids or proposal. The selection process includes the contract negotiations between PCA and the supplier. The source selection process includes: Applying evaluation criteria to management, cost, and technical proposals Negotiating with suppliers Review and Approval of Contracts All contracts or agreements creating legal obligations and /or committing resources shall be reviewed by the Vice President Operations and the Vice President Finance. Templates for standard contracts are available from the Vice President Operations. When a contract or agreement is submitted for review the originator of the contract should be included along with the approval by the appropriate senior staff member or vice president using a contract routing form (attached). Agreements involving ongoing or periodic purchases or services can be handled by a vendor or subcontractor agreement that covers transactions throughout the calendar year and can be reviewed annually. Group Vice President (s), senior staff, and director(s) responsible for the activity shall review the contract to determine if the contract and activity is in line with departmental budgets and PCA goals, needs, scorecard, and plan of work. Vice President Operations shall review all contracts and amendments to contracts to determine if the contract meets legal requirements and adheres to the PCA contract administration process described above. Vice President Finance & Administration shall review all contract and amendments to monitor expenses and payment(s) in accordance with the contract terms and conditions. Approvals and signatures: Vice President up to $5,000 President over $5,000

5 Filing of Contracts All approved contracts (inclusive of current outstanding contracts) will be filed by the contract originator on the public drive in each department s respective folders. Contract Closeout Contract closeout involves procedures of verifying that all administrative matters have been concluded for a contract. The contract is physically complete when all required supplies or services have been delivered or performed, inspected, and accepted. Closeout procedures ensure that there is no further administration action necessary on the contract. The contract originator should notify the Vice President Finance when the contract is closed.

6 PCA CONTRACT APPROVAL TRACKING Contracting Party with PCA Contract begins: Contract ends: Approval levels: Vice President up to $5,000 President over $5,000 Contract initiated and reviewed by Senior Manager Contract reviewed by Vice President Operations Contract reviewed by Vice President Finance Contract signed/executed and forwarded to Vice President Finance Executed contract added to public drive (Staff originator) Notes: