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CONTRACT MANAGEMENT HANDBOOK the University of Texas at San Antonio CMH (02.26.16) (Rev

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CONTRACT MANAGEMENT HANDBOOK the University of Texas at San Antonio CMH (02.26.16) (Rev The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) The University of Texas at San Antonio CONTRACT MANAGEMENT HANDBOOK The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) TABLE OF CONTENTS Chapter 1 Introduction ………….…………………………………………………………………………………….. 4 1.1 Purpose 1.2 Definitions 1.3 Acronyms 1.4 Training for Purchasing and Contracting Personnel 1.5 Ethics Standards and Policies 1.6 Conflict of Interest 1.7 New Legislative Requirements Related to Ethics, Purchasing, and Contracting 1.8 Disclosure of Interested Parties Chapter 2 Planning …….………………………………………………………………………………………. 20 2.1 Contract Management Team 2.2 Communications Plan 2.3 Determining Competitive Procurement Method 2.4 Planning for Contract Content 2.5 Information Security; Access to Electronic and Information Resources 2.6 Record Retention Chapter 3 Preparing the Solicitation ………………………………………………………………………… 41 3.1 Historically Underutilized Business (HUB) Requirements 3.2 Contract Term 3.3 Background Information 3.4 Proposal Submission Requirements 3.5 Evaluation of Proposals 3.6 Solicitation Requirements 3.7 Payment Types Chapter 4 Publication of the Solicitation .………………………………………………………………………. 55 4.1 Advertising 4.2 Solicitation Announcements 4.3 Communication with Respondents 4.4 Written Questions 4.5 Pre-Proposal Conferences 4.6 Solicitation Submission and Opening Chapter 5 Evaluation and Award .…………………………………………………………………………………… 59 5.1 Evaluation Guide 5.2 Evaluation Team 5.3 Scoring Matrix 5.4 Responsive Proposals 5.5 Evaluation Team(s) Training 5.6 Single Responses 5.7 Proposal Evaluation 5.8 References 5.9 Oral Presentations/Discussions 5.10 Best and Final Offers 5.11 Negotiations 5.12 Award Page 2 of 132 The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) Chapter 6 Contract Formation .…………………………………………………………………………………. 67 6.1 Approach to Contract Formation 6.2 Legal Elements of a Contract 6.3 Drafting the Contract 6.4 Planning for Contract Preparation 6.5 Form of the Contract 6.6 Contract Terms 6.7 Authority to Sign Contracts 6.8 Required Check of Vendor Hold Status Chapter 7 Contract Administration ………………………...…………………………………………… 77 7.1 Planning and Importance of SOW 7.2 Performance Monitoring 7.3 Contract Reporting Obligations 7.4 Invoices and Payments 7.5 Change Management Process 7.6 Dispute Resolution Process 7.7 Termination 7.8 Contract Close-Out Version History ……………….……………………....……………………………………………………………….… 94 Appendices APPENDIX 1 Contract Management Best Practices Matrix APPENDIX 2 UTSA Procurement Training and Certification Program APPENDIX 3 Summary of 2015 Procurement and Contracting Legislation APPENDIX 4 Summary of UT Procurement Guidelines APPENDIX 5 Goods and Services Exempt from Procurement Competition APPENDIX 6 Exclusive Acquisition Justification Form APPENDIX 7 Sample Non-Disclosure Statement APPENDIX 8 Sample Solicitation Announcement APPENDIX 9 Sample Pre-Proposal Conference Guidelines APPENDIX 10 Sample Proposal Score Sheet APPENDIX 11 Sample Administrative Review Checklist APPENDIX 12 Evaluation Team Guidelines and Purchasing Office Responsibilities APPENDIX 13 Sample Evaluation Team Written Instructions APPENDIX 14 Sample Reference Check Form APPENDIX 15 Protest Procedures APPENDIX 16 Sample Contract Terms APPENDIX 17 Guidelines for Establishing Risk in Procurement Projects APPENDIX 18 Sample Contract Monitoring Worksheet Page 3 of 132 The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) CHAPTER 1 INTRODUCTION 1.1 Purpose The purpose of this Contract Management Handbook (Handbook) is to offer purchasing personnel, business contract officers, and other administrators recommendations on documenting existing procurement and contracting processes and practices in connection with the procurement of goods/services. 1.1.1 Transactions Not Covered by Handbook. Various types of contracts are subject to different statutory standards, practices, processes, and strategies for successful implementation. The suggestions, comments, techniques, examples and recommendations included in this Handbook are not appropriate for every type of contract. Nevertheless, this Handbook may provide helpful information useful in connection with contracts that are not governed by the Handbook, such as those listed below. This Handbook does not govern • Real estate transaction contracts (even if the transaction is a lease under which an Institution provides services in exchange for compensation), • Sponsorship agreements under which Institutions receive compensation in exchange for recognition of the sponsor, • Sponsored research contracts or other intellectual property agreements where Institutions convey an interest in intellectual property. • Construction contracts, including professional architectural and engineering contracts. Construction-related Contracts: Construction and professional architectural and engineering contracts (“Construction Contracts”) are governed by specific statutory requirements and must be procured in accordance with the UT System Construction Contracting Guidelines promulgated by the Construction Law Specialty Area within UT System Office of General Counsel (“OGC”). The Construction Contracting Guidelines, as well as Construction Contract agreements and related policies and procedures, are located on OGC’s website at http://www.utsystem.edu/offices/general-counsel/construction-law-0. 1.1.2 Applicable Laws; University Rules. Use of this Handbook does not relieve Institutions and contractors of their responsibility to comply with Applicable Laws and University Rules related to specific programs and funding sources. 1.1.3 Core Processes. For purposes of this Handbook, contract management includes the coordination and administration of four core processes: • Planning; • Procurement of goods or services (including complying with HUB laws and policies); • Contract Formation (including scope of work, specification of contract price or rate and other relevant terms and conditions); and • Contract Administration. Page 4 of 132 The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) The nature and level of risk associated with each of these contract management elements vary depending on the type of contract and the business relationship between the Institution and contractor. It is the responsibility of the chief business officer of each Institution to assign responsibilities, assure appropriate training and oversight, and monitor the processes so that each procurement achieves best value for the Institution. 1.1.4 Coordination of Disciplines and Roles Fully implemented contract management requires coordinating and administering the four core processes. Depending on the risk of a procurement, contract management may also involve coordination of a variety of distinct disciple ines and roles, including: • Executive Management; • Project Management; • Planning; • Program Staff (subject matter experts and monitors); • Contractor Interaction; • Purchasers; • Accounting and Budget; • Legal; • Audit; and • Quality Control/Assurance. 1.1.5 Overview of Handbook Content and Purpose. This Handbook: • Summarizes certain mandatory statutory, regulatory and policy compliance requirements related to Institution contracting activities that are evidenced by Handbook references to the applicable statute, regulation, or policy. • Provides practical suggestions and best practices related to Institution contracting activities which are encouraged but not mandatory. Taking into consideration the complexity of the contract on which the Institution is working, Institutions should exercise reasonable business judgment when applying practical suggestions and best practices. Recognizing that the needs of each Institution and the requirements of each contract are different, the information in this Handbook is intended to be applied flexibly, not mechanically. This Handbook provides a framework for making contracting decisions that are in the best interest of the Institution. • Provides a Contract Management Best Practices Matrix attached as APPENDIX 1 that includes a summary of best practices designed to help Institutions determine where a contract management program currently stands in relation to generally accepted contract management best practices. This matrix offers a number of best practices in several key contract management areas and may be used to improve practices and to implement the best contract management program possible. The matrix is intended to assist Institutions with organizing contract management programs and leveraging technology, metrics, training and lessons learned for the purpose of minimizing risks throughout the overall supply chain. The matrix also includes a reference section that points to the applicable Chapters of this Handbook related to each contract management component. • Describes the duties of the contract management team, including how to solicit and select a contractor, develop and negotiate a contract, and monitor contractor and (if applicable) subcontractor performance. • Supplements (but does not replace) Applicable Laws and University Rules. Each Institution is independently responsible for developing sound business policies and procedures in accordance with Applicable Laws and University Rules. Page 5 of 132 The University of Texas at San Antonio CMH (02.26.16) (Rev. 02.27.2020) • Discusses many general legal principles; however, these general principles include many exceptions. This Handbook Is not intended to be a manual on the law of
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