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Contract Administration. Understanding the Policies and Procedures Fall 2009. What’s New?. Quiz/Review. Overview. Today’s Session. Questions From You. “No Can Do”. Walk Through. FAQ. What’s New?. New Signature Authority. New Contract Cover Sheet. What’s New?. Signature Authority.

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Contract administration

Contract Administration

Understanding the

Policies and Procedures

Fall 2009


What’s New?

Quiz/Review

Overview

Today’s Session

Questions From You

“No Can Do”

Walk Through

FAQ


What’s New?

New Signature Authority

New

Contract Cover Sheet


What’s New?

Signature Authority

LaShonda White

Up to and Including $5,000

All Areas


What’s New?

Contract Cover Sheet

Page 1: Financial information more specific

New Page 3: Accountability


What’s on the Horizon?

New Standard Contract Addendum

Document being finalized

Addendum for nonstandard or vendor contracts valued at less than $25,000

Both contracting parties must sign contract document as well as Standard Contract Addendum


Page1:

Contract Cover Sheet

  • Summarizes contract information for Contract Administration Office and UHD signatory

Internal Document

Updated Periodically

Page 2:

  • Questionnaire designed to maintain alignment with regulations, policies and procedures

Page 3:

  • Certification of UHS/UHD policies, procedures as well as contract terms and condition have been met


Reminder!

Put in place to report FRAUD

http://www.mysafecampus.com/

Anonymous

Confidential

Reporting system

Ask questions

Clarify issues

Report suspected fraud


FRAUD

Use of occupation

Done in secret

Personal enrichment

Violates trust

Normally considered a criminal act

Deliberate misuse

Financial benefit

Cost company resources/assets


Falsifying Documents

  • Timesheets

  • Expense Reimbursements

  • Financial Statements

Examples of FRAUD

Stealing

  • Property

  • Supplies

  • Cash

Family and Friends

  • Awarding contracts to family members

  • Awarding scholarships/grants not based on merit


What is a Contract?

An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable by law. This includes but is not limited to:

  • Terms and Conditions

  • Leases

  • Letters of Agreement

  • Memoranda of Understanding

  • Letters of Intent

  • Interagency or Intra-system Agreements


Based upon:

  • State regulations

  • UHS/UHD policies and procedures

Contracting Process

Two key policy documents:

  • System Administrative Memorandum 03.A.05 Contract Administration

  • UHD Policy Statements 05.A.06 Contract Administration Policy


Tier 1:

Predefined Consequences of Contracting Policy Violations

  • Notification to Employee regarding corrective action provided throughout contracting process

Tier 2:

  • “Violation of UHD Policy Statement”

Serious Violation/Fraud:

  • Disciplinary action up to and including termination


Contract on a Retroactive Basis

University of Houston System Administrative Memorandum       

03.A.05 Contract Administration

2. POLICY

2.3. All contracts shall have all applicable administrative and legal reviews completed and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.


Contract with

UHS Employee

12 Month

Non-Employee Requirement

University of Houston System Administrative Memorandum       

02.A.24 Employees and Independent Contractors

3.2. Under provisions of State and federal law, an individual may not be hired as an independent contractor when currently on the payroll of any component university.

Similarly, State law requires that an individual may not be hired as a consultant on an independent contractor basis if employed by any component of the System during the previous twelve month period.


Unauthorized Contract Signatory

Requires written authorization from UHD President

UH-Downtown Policy Statement

05.A.06 Contract Administration Policy

2. POLICY/PROCEDURES

2.1 All delegations of contracting authority must be made in writing, approved by the President, and filed with the Board. No employee, officer, or agent of the University shall have the authority to execute contracts unless expressly delegated such authority pursuant to this policy


Contracts without OGC Review/Approval

Initiate work before contract fully executed

University of Houston System Administrative Memorandum       

03.A.05 Contract Administration

2. POLICY

2.3. All contracts shall have all applicable administrative and legal reviewscompleted and be signed by all parties prior to commencement of any duties/actions by the parties as stipulated in the contract.


Vendor “On Hold” with State of Texas

UHS will not pay vendor who owes taxes to State of Texas

State Law (Texas Government Code 403.0551)

§ 403.0551. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR TAX DELINQUENCIES. (a) Except as provided by Subsections (b) and (d), the comptroller may deduct the amount of a person's indebtedness to the state or tax delinquency from any amount the state owes the person or the person's successor..


Do I Need A Contract?

Human performance rendering service on campus

Yes

An off-campus event that requires facilities, catering of service specifically for UHD


Do I Need A Contract?

Commonly available goods

(i.e. office supplies)

No

Nominal services

(a $30 equipment repair)

A purchase made through Texas Comptroller of Public Accounts of DIRect (DIR)

[Note: Contact Purchasing

to determine availability

of this option]


Do I Need A Contract?

  • Is off-campus,

  • Not associated with a major UHD event, and

  • Not specifically for UHD, i.e., is available to the general public at the same time

  • [Note: This includes food ordered from a menu at an off-campus restaurant and taking a group to a public facility such as a museum.]

No


Do I Need A Contract?

  • Is for travel arrangements made through UHD's Travel Office for a guest speaker or consultant, AND

  • No additional monies will be paid or reimbursed to the individual.

No


Who Can Sign A Contract?

Listed on the Contract Website


Who Can Sign A Contract?

Listed on the Contract Website


Is Competitive Bidding Required?

Yes

No

The value of the contract is expected to equal or exceed $5,000 in state or local funds

Contact Purchasing for assistance

(713) 226-5525

  • Services that cost less than $5,000

  • Professional or Consulting services

  • Proprietary/Sole Source or “One-of-a-kind” services

  • Workshops, training or seminars

  • Advertising

  • Hotels for special events

  • Internal repairs

  • Interagency agreements


Do I Need A Purchase Requisition?

  • Higher Education Assistance Funds (HEAF) transactions

Yes

  • Software purchases

State contract items

Cost of the service is equal to or expected to exceed $5,000


Which Contract Should I Use?

Used for businesses that do not require insurance (i.e. lecturers, guest speakers or individuals performing a service)





What Special Requirements Should I Know About?

Texas Market Place - Procurements of $25,000 or more must be posted for:

  • 14 days if the entire bid or proposal solicitation package is posted, or

  • 21 days if the entire bid or proposal solicitation package is not posted

Expect the process to take a minimum of 30 calendar days prior to the start date of services


Consulting Services Contracts – Over $25,000 :

What Special Requirements Should I Know About?

  • Legislative Budget Board (LBB) and Governor’s Office of Budget and Planning (OGBP) notification through OGC. 

  • Must be published in the Texas Register a minimum of 30 days prior to execution of the contract. (Process typically takes 6 weeks.)


Contract Cover Sheet

Internal Document

  • Check “No Can Do” list

  • Use most current Contract Cover Sheet

  • Read through and answer all questions on page 2

  • Get appropriate signatures (pages 1 and 3)

  • Attach “Vendor Verification” form


OGC Approved Contracts

On Contracting Website

  • Include assigned contract number

  • Define scope of work clearly/specifically

  • 3 original signature hardcopy contract packages

  • 1 fully executed original signature contract package to Contracting department

Contracting office will be happy to review the contracting package before it is forwarded to the vendor


Miscellaneous

  • Pending: Standard Contract Addendum can be attached to non-standard or vendor contracts valued at less than $25,000

  • Non-standard and vendor valued at $25,000 or more, or revisions to OGC approved contracts must be approved by the Office of General Counsel

  • Processed through the Contract Administration Office

  • Electronic copy of vendor contract preferred


Key Things to Remember

Allow yourself enough time to complete the contracting process

Goal:

Contract fully executed 5 days prior to

contract start date

Requirement:

Contract fully executed prior to any work

performed on the contract


Key Things to Remember

Allow yourself enough time to complete the contracting process

Texas Market Place: Expect minimum of 30 days

Consulting Contracts: Expect 30 days to 6 weeks

OGC Contract Review: Allowed 20 days

Note: You cannot add to, change or delete

The terms of an OGC approved contract


Key Things to Remember

Facsimile Contracts

  • University of Houston System Administrative Memorandum

  • 03.A.05 Contract Administration

  • 3. GENERAL PROVISIONS 3.1. Contract Management:

    • a. “… Although original and signed contracts are required by this document, certain limited situations exist…that may require facsimile copies of the contract and contract signatures so that contract performance may begin. In these rare and limited situations, original signed agreements (not facsimiles) must be forwarded to the originating unit within 10 business days from the date the contract facsimile is received and processed by the originating unit and/or applicable contracting office.”


Key Things to Remember

Facsimile Contracts

  • Limit Use

  • Hard copy follow-up in 10 business days

  • Same signatory on fax and hard copy follow-up

  • Same date on fax and hard copy follow-up

Contracting package not complete until original signature contract with correct signatories and signature date forwarded to the Contract Administration Office


Key Things to Remember

Amending the Contract

  • Must still be in effect

  • Soft Rule: Up to 25% increase in current contract dollar value

  • Same process as original contract

  • Same signatories/signatory positions as original contract


Key Things to Remember

Miscellaneous

  • 3 sets of original signature hardcopy contract packages

  • Consider multiple year contracts where possible

  • No “white-outs”

  • No hand writing (other than signature and initialing revisions)

  • Earliest start date is “date of full execution”


Questions may have more

than one correct answer

#1

  • The UHD contracting process:

    • Was developed based upon UHS policy

    • Was developed based upon UHD policy

    • Was designed to meet State of Texas regulations

    • Was designed to be user friendly

    • All of the above


Answer

#1

  • The UHD contracting process:

    • Was developed based upon UHS policy

    • Was developed based upon UHD policy

    • Was designed to meet State of Texas regulations

    • Was designed to be user friendly

    • All of the above


#2

  • The Contract Cover Sheet:

    • Summarizes information about the contract

    • Informs the user of UHS and UHD policy requirements

    • Requires the signature of the vendor

    • Is updated periodically and includes the effective date

    • All of the above


Answer

#2

  • The Contract Cover Sheet:

    • Summarizes information about the contract

    • Informs the user of UHS and UHD policy requirements

    • Requires the signature of the vendor (The Contract Cover Sheet is an internal document.)

    • Is updated periodically and includes the effective date

    • All of the above


#3

  • State regulations and UHS/UHD policies and procedures do not allow the following:

    • Contracting with some one who has been employed by UHS in the past 18 months

    • Retroactive contracting

    • Persons to sign a contract unless they have written authorization from the President

    • Contracting with a vendor who is “On Hold” with the State of Texas

    • All of the above


Answer

#3

  • State regulations and UHS/UHD policies and procedures do not allow the following:

    • Contracting with some one who has been employed by UHS in the past 18 months (Past 12 months)

    • Retroactive contracting

    • Persons to sign a contract unless they have written authorization from the President

    • Contracting with a vendor who is “On Hold” with the State of Texas

    • All of the above


#4

  • A contract is required between UHD and the vendor if:

    • Travel arrangements are made through the UHD Travel Office

    • The service involves human performance that is rendered on campus

    • The service is purchased through DIR (Direct)

    • The product cost more than $5,000

    • None of the above


Answer

#4

  • A contract is required between UHD and the vendor if:

    • Travel arrangements are made through the UHD Travel Office (Travel can be, but is not required to be, on a contract if payment for a service is also included)

    • The service involves human performance that is rendered on campus

    • The service is purchased through DIR (Direct) (DIR is under State of Texas contract)

    • The product cost more than $5,000 (Contract needed for human performance)

    • None of the above


#5

  • Competitive bidding is required on all:

    • Services expected to equal or exceed $5,000 in state or local funds

    • Professional services

    • Printing services

    • Hotels for special events

    • All of the above


Answer

#5

  • Competitive bidding is required on all:

    • Services expected to equal or exceed $5,000 in state or local funds

    • Professional services

    • Printing services

    • Hotels for special events

    • All of the above


#6

  • Purchase Requisitions are required for:

    • Services expected to equal or exceed $5,000 in state or local funds

    • HEAF (Higher Education Assistance Funds) transactions

    • Software purchases

    • State contract items

    • All of the above


Answer

#6

  • Purchase Requisitions are required for:

    • Services expected to equal or exceed $5,000 in state or local funds

    • HEAF (Higher Education Assistance Funds) transactions

    • Software purchases

    • State contract items

    • All of the above


#7

  • Forty percent of the FY09 contracting at UHD use which one of the following OGC approved contract?

    • Independent Contractor Agreement

    • Vendor Agreement

    • Memorandum of Understanding

    • Purchasing Agreement for Goods and Services

    • None of the above


Answer

#7

  • Forty percent of the FY09 contracting at UHD use which one of the following OGC approved contract?

    • Independent Contractor Agreement

    • Vendor Agreement

    • Memorandum of Understanding

    • Purchasing Agreement for Goods and Services

    • None of the above


#8

  • Which of the following statements are true:

    • Non-standard, vendor and revised contract must be approved by the Office of General Counsel (OGC)

    • Contracts valued at $25,000 or more must be posted on the Texas Market Place

    • Consulting services contract valued at $25,000 or more must be approved by the Legislative Budget Board (LBB)

    • A contract is not required if the service is rendered off campus

    • The earliest date a contract can begin is the date of full execution


Answer

#8

  • Which of the following statements are true:

    • Non-standard, vendor and revised contract must be approved by the Office of General Counsel (OGC) [Note: Standard Contract addendum for contracts valued at less than $25,000 pending]

    • Contracts valued at $25,000 or more must be posted on the Texas Market Place

    • Consulting services contract valued at $25,000 or more must be approved by the Legislative Budget Board (LBB)

    • A contract is not required if the service is rendered off campus (Required if the service is specific to UHD)

    • The earliest date a contract can begin is the date of full execution


#9

  • Facsimile contracts:

    • Must be submitted in hardcopy original signature form within 10 business days after the faxed contract has been executed

    • Can be used routinely

    • Must have the same signatory on both the faxed and hard copy contracts

    • Must have the same signature dates on the faxed and hard copy contracts

    • All of the above


Answer

#9

  • Facsimile contracts:

    • Must be submitted in hardcopy original signature form within 10 business days after the faxed contract has been executed

    • Can be used routinely (Should be the exception as opposed to the rule)

    • Must have the same signatory on both the faxed and hard copy contracts

    • Must have the same signature dates on the faxed and hard copy contracts

    • All of the above


#10

  • You can amend a contract if:

    • The contract is still in effect

    • You have not used all of the money on the contract

    • The amended dollar value does not exceed 25% of the original contract value

    • The scope of the contract remains unchanged

    • The amendment goes through the same process and uses the same signatory/signatory position as the original contract


Answer

#10

  • You can amend a contract if:

    • The contract is still in effect

    • You have not used all of the money on the contract (You can add more money if the contract has not expired)

    • The amended dollar value does not exceed 25% of the original contract value [Note: Soft Rule]

    • The scope of the contract remains unchanged (You can add to the scope if it expands the original scope of work and is within about 25% of original contract value rule)

    • The amendment goes through the same process and uses the same signatory/signatory position as the original contract


Bonus Questions True or False

#11

If you answer the questionnaire on page 2 of the Contract Cover Sheet, most of these questions will be answered for you?

True

The Contract Administration Office will be happy to answer any questions or concerns you have regarding the contracting process.

Very True

#12


Thank You

for

Attending

Please be sure to sign the attendance sheet


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