ContractAdministrationPolicy
Guidelinesforcontractapproval
March15,2010
5420OldOrchardRoad
Skokie,Illinois 60077-1083
847.966.6200 Fax 847.966.9781
GuidelinesforContractApproval
Allcontractsoragreementscreatinglegalobligationsand/orcommittingresourcesshallbereviewedbytheVicePresident‐OperationsandtheVicePresident‐Finance.
1. ContactVicePresident‐OperationstodetermineifcontractformatadherestothestandardPCA
contacttemplate.
DocumentsshouldbeforwardedtotheVicePresident‐OperationsforlegalreviewandadherestothePCAcontractadministrationprocessdescribedintheattachedContractAdministrationPolicy.
2. Uponapproval,thecontractwillbeforwardedtotheVicePresident‐Financetoreviewexpense(s),payment(s)schedule,orincomeinaccordancewiththecontracttermsandconditions.
3. Contractlevelforapprovalsandsignature:VicePresident–upto$5,000
President–over$5,000
031510
Overview
PCA
ContractAdministrationPolicy
Toensurepropercontractadministration,thiswillestablishproceduresandguidelinesforcontractapproval,contractcompliance,andacentralizedrepositoryforallcontracts.Typesofcontractsinclude:
Purchasing
Maintenanceagreementsonequipment
Lease/rentalagreements
Insurance
Professionalservices
Constructionagreements
Non‐purchasing
ContractswherePCAissellingservices
Contractswithorganizations,business,andindustryofferprogramsorservices
Hotelcontracts
Facilityrentalcontracts
Cooperativeagreementswithschoolsorotherorganizations
Thecontractadministrationprocesscanincludesolicitation,source/vendorselection,contractadministration,andcontractcloseout.ThePCAstaffwhooriginatesthecontractshallhaveresponsibilitiesinthefollowingkeyareasforeachcontractingphase.
ProcurementPlanninginvolvesdeterminingwhethertoprocure,howtoprocure,andwhentoprocure.Activitiesinclude:
Determineanddefinethesupplyorservicetoprocure
Developadescriptionofthesupplyorservicetobeprocured
Developpreliminarybudgetsandcostestimates
Considercontracttypeandanyspecialtermsandconditions
SolicitationPlanninginvolvestheprocessofpreparingthedocumentsrequiredtosupportthebiddingprocess.Thiscontractphaseincludes:
Selectingtheappropriatetype
Determiningtheprocurementdocument(RFP)
Determiningproposalevaluationcriteriasuchaslowestpricedversusbestvalue
Structuringcontracttermsandconditions
Solicitationistheprocessofobtaininginformation(bidsandproposals)whichincludes:
Conductpre‐proposalconferencewithappropriatemanagement
Providenoticetointerestedsuppliers
Developandmaintainqualifiedsupplierlist
SourceSelectionistheprocessofreceivingbidsorproposal.TheselectionprocessincludesthecontractnegotiationsbetweenPCAandthesupplier.Thesourceselectionprocessincludes:
Applyingevaluationcriteriatomanagement,cost,andtechnicalproposals
Negotiatingwithsuppliers
ReviewandApprovalofContracts
Allcontractsoragreementscreatinglegalobligationsand/orcommittingresourcesshallbereviewedbytheVicePresident‐OperationsandtheVicePresident‐Finance.TemplatesforstandardcontractsareavailablefromtheVicePresident‐Operations.Whenacontractoragreementissubmittedforreview
theoriginatorofthecontractshouldbeincludedalongwiththeapprovalbytheappropriateseniorstaff
memberorvicepresidentusingacontractroutingform(attached).
Agreementsinvolvingongoingorperiodicpurchasesorservicescanbehandledbyavendororsubcontractoragreementthatcoverstransactionsthroughoutthecalendaryearandcanbereviewedannually.
GroupVicePresident(s),seniorstaff,anddirector(s)responsiblefortheactivityshallreviewthecontracttodetermineifthecontractandactivityisinlinewithdepartmentalbudgetsandPCAgoals,needs,scorecard,andplanofwork.
VicePresident‐OperationsshallreviewallcontractsandamendmentstocontractstodetermineifthecontractmeetslegalrequirementsandadherestothePCAcontractadministrationprocessdescribedabove.
VicePresident‐FinanceAdministrationshallreviewallcontractandamendmentstomonitorexpensesandpayment(s)inaccordancewiththecontracttermsandconditions.
Approvalsandsignatures:VicePresident–upto$5,000
President–over$5,000
FilingofContracts
Allapprovedcontracts(inclusiveofcurrentoutstandingcontracts)willbefiledbythecontractoriginatoronthepublicdriveineachdepartment’srespectivefolders.
ContractCloseout
Contractcloseoutinvolvesproceduresofverifyingthatalladministrativemattershavebeenconcludedforacontract.Thecontractisphysicallycompletewhenallrequiredsuppliesorserviceshavebeendeliveredorperformed,inspected,andaccepted.Closeoutproceduresensurethatthereisnofurtheradministrationactionnecessaryonthecontract.ThecontractoriginatorshouldnotifytheVicePresident‐Financewhenthecontractisclosed.
PCACONTRACTAPPROVALTRACKING
ContractingPartywithPCA
Contractbegins:
Contractends:
Approvallevels:
_VicePresident–upto$5,000
President–over$5,000
ContractinitiatedandreviewedbySeniorManager
ContractreviewedbyVicePresident‐Operations
ContractreviewedbyVicePresident‐Finance
Contractsigned/executedandforwardedtoVicePresident‐Finance
Executedcontractaddedtopublicdrive(Stafforiginator)
Notes: