Contract Management (CM) State Practices
The three primary elements for effective CM are Contract Administration and Oversight
, Change Management Processes
and Dispute Resolution
. These elements are for statewide information technology (IT) and telecommunications contracts, and apply to both agencies and business partners.
Contract Administration and Oversight
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Change Management Processes
- Understanding all components of the solicitation and contract:
- Expected outcome measures
- Contract performance
- Acceptance/rejection terms
- Contract dates
- Contact information
- Monitoring Contract Performance
- Determine what to monitor.
- Establish expectations for individuals responsible for contract monitoring.
- Understand what will be monitored and the criteria used to evaluate contractor performance.
- Determine risk assessment to select which contractors should be reviewed, the level of review for each contractor, and the subject matter to include in the review.
- Use the results of the reviews to coach contractors and agencies.
- Payment Approval
- Authorize payments consistent with contract terms.
- Ensure appropriate documentation and signatures.
- Change Management
- Administrative changes - changes within the scope (e.g.; contact information, change in personnel, etc.)
- Substantive changes - contractual changes that affect both parties (e.g.; change in the following: price, delivery schedule, quantity, nature of deliverables, key personnel, or terms and conditions)
- Constructive changes - work ordered by the user where the contractor perceives that work is beyond the scope of the contract (e.g.; suggestions, accelerated delivery schedule, work to be performed differently, change sequencing of work, delay in accepting or rejecting deliverables, delay reviewing invoices and approving payment, interfere with or hinder performance).
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- Ensure formal, written approval of all changes prior to the changes taking place. Do not verbally authorize the contractor to begin working on a change before the formal process is fully analyzed, documented and approved in writing.
- Evaluate the impact of each change to the contracting objective, the corresponding deliverable and/or products, the schedule, cost, and increase in agency overhead resulting from the change, impact to work in progress/completed work, standards, and acceptance criteria.
- Develop a plan for request and approval for how the contingency "draws" against the allowance, if the contract contains a contingency allowance.
- Document all changes, no matter how small, to avoid circumventing the formal change process.
- Establish a single point of contact to recommend or authorize any change. Document the change as approved or disapproved. If a change is approved, document the impact to the scope of work through a contract amendment or purchase order change notice, whichever is applicable.
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- Identify problem
- Research facts
- Conduct evaluations
- Ensure open communication
- Resolve issue
- Document resolution activities