contract guide

CONTRACT ADMINISTRATION

Office of the Vice President for Finance and Administration

Texas A&M Health Science Center

http://www.tamhsc.edu/

Contract Administration's mission is to guide HSC members through the complex contracting processes to achieve their contract needs.

CONTRACT APPROVED

MISSION

CONTRACT ADMINISTRATION

Planning Procurement Contract Type Contract Formation Lifecycle Management

CONTRACTING

There is no single “right” way to contract.

NUMBER OF CONTRACTSPROCESSED IN FY 2007

BCD

CBHEC

HSC

COM

IBT

PHARM

SRPH

72

85

52

88

18

59

22

Total: 396

RESEARCHCONTRACTS AND GRANTS

Transactions involving furthering research projects must be processed through the HSC Office of the Vice President for Research and Graduate Studies.

Research

Research

POLICY & REGULATION

This Contract Management Guide is intended to supplement A&M System policies and regulations:

SPRM 25.07: Contract Administration

SPRM 25.07.01: Contract Administration Procedures and Delegations

SPRM 25.99.02: Component Purchasing Authority

TAMUS Procurement Code

State of Texas Contract Management Guide

State of Texas Procurement Manual

Purchase Order (PO) or Contract?

If vendor/other party accepts HSC term and conditions and does not require a signed contract, a purchase order may be used to obtain commonly available goods and services in excess of $5,000.00.

If the subject matter of the transaction involves human performance, such as rendition of services, then a contract should be used.

CONTRACT APPROVAL PROCEDURESFLOWCHART

Originator negotiates with one or more other parties to create contract.

Contract originals (two originals) may

be sent to Contracts Administration with Transmittal Form.

Contract entered into database. Contract

Administration reviews contract.

If contract found not sufficient.

Originator asked to make changes.

Contract found sufficient.

Originator returns contract to Contracts

Administration for further review.


Is contract over $50,000?Is contract

developed by other party?

If the answer to one of the questions is

yes.

Contract is forwarded to the HSC Chief Legal Officer for review.

If contract is found not sufficient.

Contract returned to Contracts

Administration. Originator asked to

make recommended changes.

Contract found sufficient

Originator returns contract to Contracts

Administration for further review.

Contract Administration

updates database.


Contract Administration

advises originator the contract is ready to begin routing for

signatures. A transmittal form

needs to be completed by the originator. Two

unsigned originals of the contract should be attached to the transmittal form.

Contract found sufficient

Originator obtains necessary internal signatures for the

transmittal form up to Dean/Director level

and submits contract and transmittal form

to Contracts Administration.

After fully signed contract is received, HSC Contracts

Administration keeps one fully executed original and if

necessary sends the other fully executed original back to the

other party. One PDF/TIF copy of the fully signed contract is forwarded to the originator for

recordkeeping.

Contracts Administration routes to appropriate HSC signatories and to the other party for

signature.

PROPER CONTRACT FORM

Standard Form of Agreements: Standard agreements are forms that have been approved as such by the A&M System Office of General Counsel (OGC).

Review by OGC is unnecessary for a standard form of agreement for three years unless substantive changes have been made to the agreement.

Other Contracts: Other parties prefer to use their contract for a transaction. If the other party’s contract will be used for a transaction, the contract must be submitted for review to HSC Chief Legal Officer and/or OGC as to form and legal sufficiency.

COMPLETING THE CONTRACT

All contracts must be submitted to the HSC Office of Contract Administration for compliance review.

All contracts must be complete and all necessary information must be type written.

Attach all necessary contract addenda.

After compliance review, the signatures of officials with delegated authority must be obtained.

COMPLETING THE CONTRACT

No contract shall be routed to the other party for review or signing without prior approval from HSC Contracts Administration.

All contracts must have applicable contract administrative and legal reviews and appropriate signatures prior to performance by the parties as set forth within the contract.

SIGNATURES OF AUTHORIZED REPRESENTATIVES OF THE PARTIES

No HSC employee has the authority to bind the HSC contractually except in accordance with A&M System policy. Else, the employee could be held personally liable.

Contracts are legally binding on the HSC only upon signature by an HSC official with delegated contractual signatory authority (Delegation of Authority Matrix).

PROCESSING CONTRACTS

The following must be submitted to the Office of Contracts Administration:

– An original of the contract submitted via Laserfiche document management system;

– Include addenda; and

– Completed Contract / Agreement Transmittal Approval Form.


When the Office of Contracts Administration receives contracts:

1. The contracts / agreement transmittal approval form is date stamped.

2. The contract is issued a contract number.

3. A temporary file folder is created.

4. The formal review process commences.

5. Upon completion of review, the contract is then routed to the other party and/or appropriate HSC official(s) for signature.


After the contract has been signed by all parties:

1. Contracts Administration will keep one fully signed scanned copy for its file - Contract Repository.

2. One fully signed original kept by or returned to the other party.

3. One Tagged Image File (“TIF”) copy of the contract forwarded to the originating department for recordkeeping/contracting monitoring.

X

PROCESSING TIME FRAMES

All forms of agreements less than $50,000 must be submitted to the HSC Office of Contracts Administration at least 15 business days prior to start date.

Contracts originating from other party and/or at least $50,000 must be submitted at least 30 business days prior to start date.


Contracts for Consulting Services(Payment of more than $15,000 will be made)

Submitted at least 60 business days prior to the start date for services.

Why?

The additional time is to notify the Governor's Office of Budget Planning and Policy/Legislative Budget Board and to publish a request for proposal for the consulting services.


Contracts for Professional Services(As defined by state law for which the amount of the contract exceeds $14,000)

Contract must be submitted at least 60 days prior to the start date for services.

Why?

The additional time is to notify the Legislative Budget Board and to publish a request for proposal for the professional services.

CONTRACT APPROVAL

Contracts for which Vice President Recommended/Approval Must

be Obtained (Less than $100,000.00)

Barry C. Nelson, Ph.D.Vice President for

Finance & Administration

David S. Carlson, Ph.D.Vice President for

Research & Graduate Studies

Roderick McCallum, Ph.D.Vice President for Academic Affairs

NOTE: Rayellen Milburn, CPA, Senior Associate Vice President for Finance & Administration, has been assigned delegated authority to sign contracts less than $50,000.00

CONTRACT APPROVAL

Contracts for which President Approval Must Be

Obtained ($100,000.00 to $199,000.00)

The contract will require Vice President‘s and legal review and recommended approval before processing to the President for final approval.

Nancy W. Dickey, M.D.President, Health Science Center

Vice Chancellor for Health Affairs, Texas A&M System

CONTRACT APPROVAL

Contracts for which Chancellor Approval Must Be

Obtained ($200,000.00 to $299,000.00) The contract will require HSC

President‘s approval and required legal review before processing to the Chancellor for approval.

The Chancellor approval process usually takes at least one to two weeks minimum.

ChancellorMichael D. McKinney

BOARD OF REGENTSContracts for which A&M System Board of Regents Approval Must be Obtained

($300,000.00 or greater and/or term of contract longer than five years)

HSC member business administrator should contact the Office of Contracts Administration for guidance with Agenda Items for contracts that must be approved by the Board of Regents. The Board of Regents approval process usually takes at least two months.

The Texas A&M University System Board of Regents

Contract Processing

Sooner than Later!

contract guide

Documents