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Texas Building and Procurement Texas Building and Procurement CommissionCommissionStatewide Contracting ProgramStatewide Contracting Program
TBPC Brown Bag PresentationTexas State Government
Contract Management 101Presented by Adrian Pineda
and Sergio UptonMay 9, 2007
Contract Management 101
• Contract Planning• Contract Procurement• Statewide Contracting Processes• Contract Administration• CATRAD Overview/Demonstration
Contract Management Framework
Contract Planning
Five Core Processes:
Plan – Identify contracting objectives and contracting strategy Procurement – Fairly and objectively select the most qualified
contractors Rate/Price Establishment – Establish processes that are cost-
effective and aligned with the cost of providing the goods and services.
Contract Formation – Ensure the contract contains provisions that hold the contractor accountable for producing desired results.
Contract Oversight – Monitor and enforce the terms of the contract.
General Contract Planning
Needs Assessment (on-going)
Communications Plan (Inter-disciplinary)
Cost Estimates (Relevant by industry)
Risk Management
Needs Assessment
Establishes a clear definition of the contracting objectives and purpose to be accomplished by the contract.
Identifies existing statutory requirements, agency rules, policies and business processes
The following questions aid the assessment:
1. What does your agency specifically need?
2. What will fulfilling this need do for the agency?
3. How will your agency know when the need has been met?
Communications Plan
Manages and controls internal and external communication through:
1. Identifying the stakeholders
2. Determines the type, content and frequency of reporting
3. Choosing the appropriate procurement method (i.e. IFB, RFI, RFO, RFP, RFQ)
Cost Estimates
Estimated cost will provide an idea of the range of commodities/services that can be procured
Estimates can be attained through internal subject matter experts or obtaining pricing from vendors
Care should be taken to avoid giving potential bidders a competitive advantage
Risk Management
Defined as the combination of the probability of an event and its consequences.
Provides foundation for critical contracting components in later phases
Proper risk management can increase likelihood of project success, mitigate chance of project failure and clarify organization objectives of the project
Three-part process:1. Develop and implement a process by which to continually
identify and re-evaluate risks.2. Quantify and analyze the likelihood of potential impact of
identified risks3. Limit, lessen, or abolish risks
Preparing the Solicitation
• Background and Introduction• Statement of Work (SOW)• Vendor Qualifications/Financial Background / References• Contract Term(s)• Evaluation Criteria• Deliverables• Reporting• Payment Method(s)• Independent Quality Assurance Program • Most Recent Terms and Conditions• HUB Requirements / Good Faith Effort / HSP• Negotiation• Execution of Offer
Contract Procurement
Some External Major Contract Requirements:
Quality Assurance Team (QAT) Texas Project Delivery Framework Contract Advisory Team (CAT) Reviews
CAT Enabling Legislation: As mandated by the Texas Government Code 2262.101 in subchapter C, The Contract Advisory Team is created to assist state agencies in improving contract management practices by reviewing the solicitation of major contracts by state agencies.
Major contracts are defined as any contract that has an estimated value of at least $1,000,000.
State agencies are required to submit major contract solicitations to the CAT team for review through CATRAD. The CAT has 30 days upon receipt of solicitation to review the initiating agency's major contract.
CAT Review
Review and Delegation
Delegation Requests: For purchases of services estimated to cost more than $100,000, agencies must submit solicitations to TBPC for review and delegation. Texas Government Code 2156.121.
TBPC has 14 days upon receipt of solicitation to review the initiating agency's request for delegation.
Advertising the Solicitation
Central Master Bidder’s List (CMBL) notifies interested vendors of business opportunities
Posting on Electronic State Business Daily (ESBD) for solicitations over $25K
Response Evaluation
Evaluation TeamEvaluation CriteriaScoring MethodologiesInterviews and Oral PresentationsScore Tabulation
Contract Award/Notification
ESBD
Major Contract Reporting requirement for contracts over $5M
Professional and Consultant Services/Construction Contracts to LBB
Contract Administration
• Vendor Performance Tracking System• Monitoring Contractor Performance• Types of Contract Reviews/Audits• Payment Approval• Change Management• Dispute Resolution• Schedule Issues• Quality Assurance• Contract Extension and Renewal• Contract Closeout
CATRAD Overview
(C)ontract (A)dvisory (T)eam (R)eview (A)nd (D)elegation
CATRAD Version 1 – Currently available for state agencies to use.
Planned CATRAD Version 2 Release – We will continue to log feedback from internal and external users of program and develop the requirements for a second version in spring of 2007.
The CATRAD application provides agencies with the ability to submit and track online progress of their major contract solicitation requests and delegation requests.
Access is administered by designated agency “Superusers”.
Agency solicitations and other related documents are uploaded into the CATRAD system by end-user.
DIR is electronically notified of solicitations containing a technology component.
The submission of the Major Contract Questionnaire (MCQ) is no longer a requirement for CAT reviews.
CATRAD Features
CATRAD Application
Benefits
Increased organization Users can provide a preferred response date for the
review to facilitate expedited schedules New administrative functions including automated
assignment of reviews, system generated responses and customized reporting
Increased visibility of solicitation and delegation requests to designated TBPC Procurement Division staff and CAT Team members
CATRAD Demonstration
CATRAD Application
CATRAD Application
CATRAD Application
CATRAD Application
Questions???
CATRAD Application
Statewide Contracting ProgramContact Information
Adrian Pineda
(512) 463-3414
Sergio Upton
(512) 463-8169
CATRAD Application
