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Policies and Procedures

Finance & Administration

4-OP-D-4 Contract Administration and Management

Responsible Executive:​ Finance and Administration
Approving Official: Vice President for Finance & Administration
Effective Date: January 1, 2021
Last Revision Date: January 1, 2021 *New*

 

I.  INTRODUCTION

To set forth policy (Policy) which establishes consistent guidance for composing, reviewing, approving, executing, amending, managing performance, and/or compliance with contract requirements throughout a contract’s lifecycle. 

The development and implementation of contract administration policies help ensure uniformity of contract operations and contract records management. This policy allows for a higher level of internal controls for the creation, routing, approving, storing and managing of contracts.

 
II.    POLICY

This policy does not apply to the following:

  1. Internal memoranda of understanding or similar agreements that govern internal Florida State University (FSU) relationships between FSU entities such as schools, departments, or offices;
  2. Personnel contracts or other contracts containing personal or confidential information;
  3. Sponsored Project Awards, related research agreements (excluding purchases of goods or services using grant funds), and Sub-Recipient Agreements;
  4. Agreements involving the University’s Receipt of Gifts.

A. DEFINITIONS

“Contract” is defined as any obligation agreed to by the University requiring performance of services, transfer of property, or payment of money to, by, or from the University. Renewals, amendments, addendums, change orders, or any similar documents intended to modify the terms of an existing contract are considered formal contract actions.

"Contract Administration Program” refers to the staff within the Office of Procurement Services that serve as liaisons with the University Contract Managers. The program is responsible for the oversight, compliance, and guidance of contract administration from creation to closeout. 

“Contract Administrator” is the designated individual reporting to the Chief Procurement Officer who is responsible for the ongoing oversight of this Policy and the implementation of resulting procedures as well as the Contract Administration Program.  

“Contract Manager” is the University faculty or staff with the duty to implement or monitor a contract between the University and a second party in connection with a particular transaction. The Contract Manager is responsible for overseeing the performance of a contract following the execution of the contract, even if that function is delegated. 

“Signature Authority” refers to the authority granted to an individual to execute a written contract with another party on behalf of the University, in accordance with the terms of Policy 2-7.

“University” includes, for purposes of this Policy, Florida State University Board of Trustees on behalf of Florida State University and its unincorporated schools, programs, departments, and operating units.

B.  CONTRACT ADMINISTRATION PROGRAM

1. Roles and Responsibilities of Contract Administrator

It is the responsibility of the Contract Administrator to oversee coordination and communication between the Contract Administration Program and Contract Managers, and to provide the following:

  1. Oversight and implementation of this Policy;
  2. Management of the University’s chosen contract systems related to contract administration and management;
  3. Review of contracts per the workflow rules assigned in the designated contract systems;
  4. Procedures related to the development, oversight, review, approval, execution, and storage of contracts;
  5. Training and other resources related to contract management.

2. Assignment of Contract Administration Program

The Contract Administration Program will reside within the Office of Procurement Services. The Contract Administrator will report to the Chief Procurement Officer.

3.Contract Repository and Other Contract Related Systems

The University has designated a contract system that serves as the system of record for contracts and their amendments/renewals as well as routing and executing contracts. Contracts must be routed and executed according to the Procedures defined here: https://procurement.fsu.edu/contracts. 

4.Contract Reviews

The Contract Administration Program may periodically perform Contract Reviews. Contract reviews are meant to be an informal review to determine if all requirements of this Policy and the terms and conditions of contracts are being met. Contract Reviews assist the University in creating efficiencies and mitigating risks. Contract Reviews may be performed in coordination with Contract Managers.

C.  CONTRACT MANAGER

1.  Roles and Responsibilities of Contract Manager

It is the responsibility of the Contract Manager to enforce the terms and conditions of assigned contracts. All contracts should be assigned one or more Contract Managers to ensure accountability. Contract Managers are responsible for the following:

  1. Assisting in the development of requirements or specifications of a desired contract;
  2. Serving as the main point of contact with external parties;
  3. Appropriately routing and executing contracts, including revisions, as noted in this Policy, using the designated Contract System;
  4. Monitoring external parties’ performance pursuant to the terms and conditions of the contract and addressing non-performance;
  5. Reviewing and approving invoices, where applicable;
  6. Documenting review and acceptance of major milestones, or deliverables, associated with the contract;
  7. Maintaining a contract management file with all relevant contract documents, including but not limited to:
  1. Monitoring documentation, i.e., evidence showing that all records and reports required for submittal to the University were received, reviewed, and analyzed.
  2. Performance standards and documentation, i.e., evidence showing that the University evaluated deliverables and performance based on provisions within the contract.
  3. Problem/deficiency documentation, i.e., evidence showing that any problems or deficiencies pertaining to contract or lease performance have been dually noted and communicated. In addition, documentation shall be maintained concerning follow-up actions and responses, including acknowledgment of deficiencies.
  4. Substantial and final completion documentation, i.e., all forms, correspondence and documents ascertaining to the fact that the contract or lease parties have complied with completion provisions.
  5. Payment documentation, i.e., records demonstrating that payments due have been verified, approved, and completed.

2.  Assignment of Contract Manager

The Contract Manager is the department designee with expertise relating to the goods or services being provided. This individual shall have authority and ability to carry out the responsibilities defined in this Policy. 

3.  Failure to comply with these policies, standards, and procedures may result in disciplinary action, up to and including termination of employment.

III.    LEGAL SUPPORT, JUSTIFICATION, AND REVIEW OF THIS POLICY

Article IX, Section 7, Florida Constitution;
BOG Regulation 1.001(2)(f) and (7);
FSU BOT Delegation of Authority to President;
President Delegation of Authority to Vice Presidents

The Vice President for Finance and Administration shall be responsible for review of this policy and for making any necessary revisions.