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Unraveling the Mysteries of Contract Management

Cal-PCA Contract Management Workshop
by

California Procurement and Contracting Academy

on 25 November 2014

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Transcript of Unraveling the Mysteries of Contract Management

Presented by
Welcome to
Cal-PCA
Get the Ball Rolling
S.M.A.R.T.
Agenda
Video Courtesy of Lucas Files and You Tube
Contract Manager
Delivery
Termination
Amendment
Renew
http://www.documents.dgs.ca.gov/pd/cmas/SOWMarch06-IM.pdf
Statement of Work Information Packet
Provides SOW information on:
Considerations
Planning
Developing
and Examples
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Clue game pieces photo courtesy of Parker Brothers
State Contract Manual
Understand what needs to be Purchased?
Unraveling the
Mysteries of Contract Management

The Players
Roles
Responsibilities
Funding
Time Frames
Statement of Work
Define the need!
Work with the Buyer
Post Award
Disputes
The Jig is UP
Closeout
Review
Communication!
Communicate!
Dept. Protocol
Delivery of Goods
Receiving
Rejecting
Returning
Budget
Invoices
Approving
Disputing
Time Frames
Discussions
Cure Letters
Termination
For Cause
For Convenience
Meetings
End
Renew
Back to the Beginning
Funding
Time Frames
When?
How?
Time or Money?
NCB!
Document
Std. 4
Reports
Records
Documents & Forms
Std 65
Std 213
GTC's & GP's
Solicitation Activities
Evaluation
Walk Through
Bidders Conference
Award
The Game is Afoot
The "Contract Manager", who may also be referred to as "Contract Administrator",
"Project Manager" or "Program Manager" is the authorized representative of the
State of California responsible for administering a contract and monitoring the
contractor's performance.

The contract manager serves as a liaison with the contractor and may perform administrative tasks ranging from the request of contract services through performance and final payment for completed services
Questions?
Survey Monkey
Video courtesy Paramount Network Televisions/CBS Televisions distribution and You Tube
Buyer
Contractor
SME
Vendor
Requestor
Supplier
Contract Administrator
Ethics
Procurement Specialist
Contract Analyst
Classification
Statement of Work
Funding
Communication
Disputes
Forms
Documents
Documentation
Six Classifications
Non-IT Goods
Non-IT Services
IT Goods
IT Services
Public Works (PW)
Architectural and Engineering (A&E)
Document
Document
Document
Am
Definition of a "Contract Manager"
Mystery Machine used courtesy of Warner Bros. Animation
Picture courtesy of CBS productions
Video Courtesy of Lucas Files and You Tube
Mystery Machine used courtesy of Warner Bros. Animation
Picture courtesy of CBS productions
Video courtesy Paramount Network Televisions/CBS Televisions distribution and You Tube
Clue game pieces photo courtesy of Parker Brothers
GC 19130
Exercise!
Classify the 10 examples using GC 19130 (b)
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=gov&group=19001-20000&file=19130-19135
Contract Request
General Terms and Conditions
http://www.dgs.ca.gov/pd/Home/FormsResourcesLibrary.aspx
General Provisions
http://www.documents.dgs.ca.gov/pd/modellang/GPnonIT060810.pdf
Exercise
Write a sample Cure Letter
State Contract Manual Vol. 1, Chapter 9
http://www.documents.dgs.ca.gov/ols/SCM%202012/SCM%20Nov%202012%20Complete.pdf
State Contract Manual Vol. 2 & 3, Chapter 11
http://www.documents.dgs.ca.gov/pd/poliproc/PDFCompleteSCMv2/PDFCompleteSCMv2.pdf
Jerry Maguire courtesy of Gracie films, Vinyl films and TriStar pictures
Toy Story courtesy of Walt Disney studios and Pixar Animation studios
Office Space courtesy of 20th Century Fox
Agenda:
Roles and Responsibilities
Get the Ball Rolling
Work with the Buyer
Post Award
Disputes
The Jig is Up
In the End
Justify the purchase
How can it be obtained?
Requirements: Critical Vs. Nice to Have
Workshop Objective
Student will know the fundamental elements, roles & responsibilities involved with overseeing successful completion of goods and services contracts.
http://www.documents.dgs.ca.gov/pd/poliproc/gspd401IT13_1127.pdf
http://www.documents.dgs.ca.gov/pd/poliproc/gspd401IT13_1127.pdf
1: Your department purchased a centrifuge for blood tests, but it was very loud and made horrible noises that distracted the office. You called the supplier who replaced it with a smaller unit that does not spin fast enough for the test. During the last two weeks, you've called several times and left messages, but the supplier has not responded at all.
2: You Department, CDCR, has a contract with a Native American Spiritual Leader, to perform religious ceremonies for inmates. He was caught distributing tobacco to inmates as part of a religious ceremony on the grounds despite a No-Tolerance, No-Tobacco policy, which was referenced in the special terms and conditions.
Your Department

How long have you worked there?
Your Favorite Game

A party contracting with the awarding agency. Vendor is often used synonymously, with contractor.
SCM Vol 1, Glossary of Terms
Supplier
1. An individual, sole proprietorship, firm, partnership, corporation, or any other business venture. 2. Sometimes used interchangeably with bidder, vendor, merchant or contractor.

Ca. Acquisition Glossary
SCM Vol 1, 9.04
Staff, other than buyers, that perform contract administration functions, not only need to understand how to administer a contract but are also expected to adhere to and conduct business by maintaining the same ethical standards as if they were a buyer.
SCM Vol 2, 11.3.0
SCM Vol 2, Chapter 10
This chapter describes the processes of receiving, inspecting, accepting and/or rejecting non-IT goods acquired through the purchasing authority procurement process.

Also included in this chapter is a discussion of asset management and the process of determining whether or not a service deliverable is acceptable.

Receiving staff should always consider the following questions before taking receipt of any shipment:






In addition, the following questions should also be considered when receiving goods on behalf of the department:






SCM Vol 2, 10.2.0
10.2.0 Questions to consider when receiving goods
http://www.documents.dgs.ca.gov/pd/poliproc/PDFCompleteSCMv2/PDFCompleteSCMv2.pdf
SCM Vol. 2, Chapter 10.5.0
Budget Monitoring Tips

Adjust the beginning balance by adding encumbrances (“deposits”) and subtracting disencumbrances and invoices paid (“withdrawals”)

Tips:
File disputes in writing w/in 15 days
Use Std 209 form

SCM Vol. 2, 9.A5.3
Prompt Payment

http://www.dgs.ca.gov/pd/Programs/OSDS/Promptpayment.aspx
Avoid the dispute to begin with
Be sure the contract addresses:

How do you know when you’ve got a dispute?

Most contractual disputes involve breach of contract

Defining “Breach”




Defining “Breach of Contract”
Disputes, regardless of magnitude, shall always be documented in the procurement file. When
informal discussions and negotiations
fail to render a satisfactory resolution for all parties, buyers shall follow the process identified...

SCM Vol. 2, 7.4.5
General Provisions 21, 22, 23
More information can be found at
Contract Processing Time Frames (in Months)

Request For Proposal (RFP) 7-9
Invitation For Bid (IFB) 4-6
Public Entity (PE) 4-6
Interagency Agreement (IA) 4
Amendment (All Types) 4
Non-Competitive Bid (NCB) 4
MSA / CMAS 2-4
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What you will NOT learn in this class
This class will not instruct it's students on how to be a manager over a contract unit within state service.
This is a secret thing
Building a Communications Management Plan
• Identify the stakeholders
Contractor, Contract Analyst, Contract Manager, Accounting, Warehouse personnel, Intake staff, project manager

• What project information should the stakeholders be kept informed about?
Budget, schedule, deliverables, changes, disputes, procedures, start/stop work, unanticipated tasks

• What kind of information do they need?
Status report, deliverable Acceptance Reports, expected quantities, appropriate forms

• When do they need it?
Daily, weekly, monthly; as deliverables arrive, are tested and accepted

• How will the information be provided to them?
Formal or informal process, written or verbal
Presentations, e-mails, memos, meetings, seminars, Webinars, conference calls, face-to-face discussions

Includes a packing slip identifying a Purchase Order
Is it for this department?
Is it damaged?
Is the piece count correct?

Is delivery significantly late, unsatisfactory or incomplete?
Does the item comply with the specifications and packaging requirements as defined by the contract, General Provisions or any special provisions of the order?
Does the delivery require further inspection by another more qualified person?
Have all the terms listed on the purchase document been met and properly documented?

Encumber funds as necessary at the beginning of each fiscal year
Encumber additional funds as necessary pursuant to approved contract amendments
Be sure there are authorizing contract documents for every addition
Disencumber un-used funds at the end of the contract
Monitor contract expenditures to ensure there are sufficient funds to pay for all services rendered as required by the contract
Use a Financial Transaction Tracking Log as the “check register” for your contract
Beginning Balance is the contract amount
Required functionality
Clear, stable and constrained requirements
Compatibility requirements
Anticipated lifespan
Acceptable levels of defects
Terminology clearly defined within the contract, especially jargon
Dispute Avoidance Guidelines
The software just doesn’t work right
Deliverables don’t meet acceptance criteria;
Contractor asks for more time and you don’t agree
Contractor asks for more money and you don’t agree
Lack of agreement however make sure it’s a real problem and not just poor communication
Delivery date has come and gone...
failure to maintain something: a failure to obey, keep, or preserve something such as a law, trust, or promise.
A failure of a party to perform his or her obligations as agreed to within the contract.
A legal claim that one party failed to perform as required under a valid agreement (contract) with the other party.
“...failing to perform any term of a contract without a legitimate legal excuse”.
http://www.documents.dgs.ca.gov/ols/SCM%202014/Chapter_9_-_Contract_Management.pdf
* Classification is primarily done by the contract analyst
Full transcript