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 – • E-mail – 512.245.2550

[email protected]

• URL http://www.vpfss.txstate.edu/contracts/