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Keep the End in Mind at the Beginning

Keep the End in Mind at the Beginning. Contract Management, Administration and Compliance VAGP 2012 Spring Conference Francine C. Barnes Toya Peterson March 22-23, 012. Keep the End in Mind at the Beginning. Course Objectives Contract Process Contract Management Contract Administration

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Keep the End in Mind at the Beginning

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  1. Keep the End in Mind at the Beginning Contract Management, Administration and Compliance VAGP 2012 Spring Conference Francine C. Barnes Toya Peterson March 22-23, 012

  2. Keep the End in Mind at the Beginning • Course Objectives • Contract Process • Contract Management • Contract Administration • Contract Compliance • Provide tips and strategies to prepare effective contracts

  3. Contracting Process Objectives of the Contracting Process • To obtain goods and services within the budgeted cost in accordance with the project schedule and the contract performance requirements and/or specifications

  4. Contracting Process PROCUREMENT PLANNING SOLICITATION PLANNING SOLICITATION CONTRACT CLOSE OUT or TERMINATION CONTRACT ADMINISTRATION SOURCE SELECTION

  5. Contracting Process • Procurement Planning Determining what to procure and when • Solicitation Planning Documenting product requirements and identifying potential sources • Solicitation Develop and issue invitation for bids or request for proposals

  6. Contracting Process • Source Selection Award solicitation in accordance with award clause • Contract Administration Manage the contractual relationship with the contractor • Contract Close Out or Termination Completion and settlement of the contract including resolution of any open item

  7. Contract Management Definition of Contract Management • The art and science of managing a contractual agreement throughout the contracting process

  8. Results Of Neglected Contract Management • End user frustration because of poor contract performance in timeliness & quality • Lack of contractor accountability • Agency acceptance of poor quality • Increased costs; and • Under or overpayment to a contractor

  9. Contract Management Team

  10. Roles and Responsibilities Owner of the contract • Overall responsibility for meeting project and contract objectives • Cost • Schedule • Performance

  11. Roles and Responsibilities Contract Officer • Responsible for providing procurement support throughout the contracting process • Authority comes from the Virginia Public Procurement Act

  12. Roles and Responsibilities Contract Officer • Prepare solicitation and addendum for posting and distribution with input from end user • Receive and evaluate bids and proposals • Award contract

  13. Roles and Responsibilities Contract Officer • Communicate duties & responsibilities to the Contract Administrator • Mediates with contractor and Contract Administrator if performance is unsatisfactory

  14. Roles and Responsibilities Contract Officer is the only one Authorized to make binding changes and modifications to a contract (including exercising contract renewal options)

  15. Roles and Responsibilities Contract Administrator Manages the contractual relationship with the contractor in accordance with the contract specifications, scope of work and performance requirements

  16. Roles and Responsibilities Contract Administrator • Review the contract award package upon receipt • Retain a file copy of contract • Distribute contract copy to Contract Monitor • Coordinate delivery of goods and services in accordance with contract • Verify receipt and condition of goods and services immediately

  17. Roles and Responsibilities Contract Administrator • Contact Contract Officer for ANY changes or modifications to contract • Report contractor’s persistent/serious service delivery failures to Contract Officer • Review invoices for accuracy, approve partial or full payments, & pay promptly • Track payments against contract progress

  18. Roles and Responsibilities Contract Administrator • Ensure expenditures do not exceed the total contract cost • Maintain an open line of communication with the Contract Officer and the Contractor • Communicate need for contract renewal to Contract Officer • Provide input in development of future solicitations

  19. Roles and Responsibilities Contract Monitor • Understand specific tasks of contract requirements • Review contract award package and receive clear direction from Contract Administrator • Schedule the delivery of goods and performance of services with contractor • Timely inspect the condition of goods received and quality of work performed • Document and report the contractor’s failures to the Contract Administrator • Provide input in development of future solicitations

  20. CONTRACT ADMINISTRATOR CONTRACT START-UP DUTIES • Review designation letter • Sign and return to Contract Officer • Identify contract requirements • Identify and consult with contract team members • Communicate roles and responsibilities

  21. CONTRACT ADMINISTRATOR CONTRACT START-UP DUTIES • Conduct implementation meeting • Coordinate other start-up activities as needed • Create a file/binder to retain all contract information

  22. Contract Management Team A Successful Team • Has effective communication • Defined project expectations • Accountability of all team members • Dedication from contract management team

  23. Measurement of Teams Success • Solicitations effectively convey requirements • Early involvement to resolve contract issues • No merit to protest and claims received • Contractor performance tracked through proper documentation • Expenditures within budget

  24. Guiding Principles of Conflict Resolution • Think Before Reacting • Listen Actively • Assure a Fair Process • Attack the Problem

  25. Guiding Principles of Contract Resolution • Accept Responsibility • Use Direct Communication • Look for Interest • Focus on the Future • Options for Mutual Gain

  26. Identifying Contract Risks Eliminate the possibility of differing interpretations of the intent of contract Avoid using ambiguous phrases

  27. Types Of Contract Risks Proposal Surety and Liability Contractual Schedule Performance Price

  28. Sample Ambiguous Phrases • The repair is to be warranted for a minimum of 12 months. • The trailer to be furnished to conform to the latest specifications. • Equipment is to be delivered to the Main Headquarters. • Any exceptions to these specifications must be listed in a letter attached to this bid.

  29. Sample UnAmbiguous Phrases • All repairs shall be warranted for a minimum of 12 months from date repair is accepted by the department. • The trailer must conform to Section 110 of the 2008 Edition of the National Equipment Motor Co publication or latest specifications.

  30. Sample UnAmbiguous Phrases • Equipment must be delivered to Main Headquarters, 111 E Main Street, Richmond, VA on or before March 1, 2012. • There can be no exceptions….this is a mandatory requirement of an IFB.

  31. Ethics & Contract Administration • As government procurement-related employees we are all responsible to perform all duties on an ethically manner.

  32. The Code of Virginia Procurement Related Laws1. Code of Virginia 2.2-4370 Disclosure of subsequent employment2. Code of Virginia 2.2-4371. A Solicitation or Acceptance of Gifts3. Code of Virginia 2.2-4371. B Gifts by Bidders, Offerors, Contractors or Subcontractors4. Code of Virginia 2.2-4372 Kickbacks Ethics & Contract Administration

  33. Ethics in Contract Administration • Your Ethical Performance May Also Touch: • Immediate Family Members– spouse, children, parents, brothers, sisters, and any other person living in the same household as the employee lives • Official Responsibility – anyone having the administration or operating authority, whether intermediate of final to initiate, approve, disapprove or otherwise affect a procurement transaction or any claim resulting there from • Procurement Transaction – all functions that pertain to the obtaining of any goods, services or construction, including the description of requirements, selection and solicitation of sources, preparation and award, and all phrases of contract administration

  34. Code of Virginia 2.2-4377 • Penalty for Violation • Any person convicted of a willful violation of any provision of this article shall be guilty of Class 1 misdemeanor. • Upon conviction, any public employee, in addition to any other fine or penalty provided by law, shall forfeit his employment.

  35. Sample Ethics Violation A contract administrator of a landscaping contract has a daughter that is on the youth softball team. The coach is the contractor awarded the landscaping contract. The contract administrator was collecting donations to raise money for the youth softball team to go Disney World. The contractor donated $2,000 to the youth softball team.

  36. Sample Ethics Violation The same contract administrator needed to purchase a television and a DVD player for the conference room at the local office. The contractor of the landscaping contract was contacted to provide the television and DVD player. The contractor purchased the items from Best Buy for $2,100 and provided the items to the agency for $2,800.

  37. Sample Vendor Requirement A qualified firm that is approved, authorized or licensed by roofing system manufacturer’s product and that is eligible to receive manufacturer’s warranty if the repair components were being placed as a new roofing system. Installer Certificates: Signed by roofing system manufacturer certifying that Installer is approved, authorized, or licensed by manufacturer to install similar EPDM roofing systems.

  38. From: Your Manager’s Manager Sent: Tuesday, April 17, 2007 10:06 AMTo: Mr. Well Established Contract Administrator P.E.Cc: Your BossSubject: Coe Trailer Issue Mr. Well Established Contract Administrator P.E.– Senator Frank Wagner called me regarding a dispute the district is in with Coe Co from Virginia Beach. His understanding is that Mr. Coe’s company manufactured a trailer for us, we paid for it and then it fell apart. We asked Mr. Coe to repair and he did not do this so we have called the bond. Mr. Coe has stated to the Senator that we overloaded the trailer and that is what broke it. Can you give me background on this please. The Senator is also sending me some information.

  39. VDOT EQ ID R08601 – 16 Ton Tilt-Bed Trailer

  40. Trailer loaded with 30,486 Lb. Front End Loader

  41. Trailer Bowing under weight of 30,486 Lb. load Level across center

  42. Extent of bowing

  43. (1 ½” X 4”) tubing, spaced at 24” center, is too small to handle 16 ton load limit. Insufficient welds throughout trailer (incomplete and without penetration)

  44. Insufficient tubing is not supporting the decking

  45. When tilted for loading\unloading, the side channel is digging into the tire sidewall. The channel has bowed as far as to the top of the rim.

  46. There are plates welded between the frame and the hinge pins that are not completely welded and are without proper penetration of the weld. This is ALL that holds the bed to the frame! (shown on opposite side in next photo)

  47. The hinge pin is not secure in the hinges. It has slid three inches to one side against the frame.

  48. Tubing that the cushioning cylinder is attached to is not welded completely.

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