Newsletter - May 2018 Print

The Procurement Classroom

Procurement ClassroomContract Administration Basics
byJorge Lynch
www.procurementclassroom.com

A contract is a written agreement, enforceable by law, between a procuring entity and a supplier, contractor or service provider for the provision of goods, works and services.

Contract administration involves all activities related to the monitoring of suppliers, contractors and service providers’ performance in the fulfillment of their contractual obligations, and to ensure appropriate actions are taken to promptly remedy any deficiencies observed in contract implementation, scope or terms and conditions.

Where does it start?

Preparation for contract administration begins with planning, which should begin during the bidding and selection process. This planning includes the nomination of contract administrators, a strategy for undertaking periodic performance review, the timeframe for certifying performance and acceptance of contract deliverables in order to avoid payment delays, and an understanding of the contract terms and conditions to ensure effective oversight.

Although the actual planning begins during the selection process, contract administration actually starts upon the signing of the contract, which is the point at which the parties to the contract are bound by its terms and conditions.

Who is responsible?

The procuring entity would usually appoint staff members or, preferably a team of qualified individuals, to take the responsibility of administering the contract. It is the responsibility of the Contract Administrator to perform the obligations and duties of the procuring entity specified in the contract and to ensure the suppliers, contractors and service providers implement the contract in accordance with its terms and conditions. Nonetheless, the supplier, contractor or services provider, has the primary responsibility to ensure that the goods, works or services meet the required standards and to advise on the need for any changes as a result of constraints faced during contract implementation.

Where does it end?

Contract Administration generally concludes with a final inspection and acceptance of the goods, works or services prior to the completion date or termination of the contract. The inspection and verification, prior to acceptance, should ensure as a minimum that:

  1. The correct quantity has been received,
  2. The goods, works or services meet the technical standards defined in the contract,
  3. Any variations to the contract are well documented and accounted for,
  4. The goods, works or services have been delivered or completed on time, or that any
    delay has been noted and appropriate actions taken as indicated in the contract, and
  5. All required manuals or documentation have been received.

How important is it really?

The contract implementation phase is very important because it is where the results of the procurement process are obtained and the requesting entity is in a position to finally receive the expected benefits of their procurement request. Without contract award and effective contract implementation, the objectives for initiating the procurement process cannot be attained. The supplier, contractor or service provider has the responsibility of performing the contract in accordance with its terms and conditions to meet all the technical and quality standards. The procuring entity also has the responsibility of complying with the terms and conditions of the contract; especially the obligations of ensuring payments are made on time.

Does it get the attention it deserves?

Contract administration involves the management of risks. Its basic purpose is to monitor performance to ensure the objectives of the contract are met on time and within the intended budget, and also to detect any deficiencies and find a remedy (including suspension or termination of the contract) before it’s too late.

Good contract administration is crucial to the success of the public contracting process, because it is during this stage that a significant amount of waste and abuse of public funds and corruption in public contracting happens. Most of the focus is placed on the procurement process, which is a comparatively shorter period than contract implementation. The real benefits, however, are obtained after the contract is awarded, so more attention needs to be placed on ensuring the contract is implemented consistent with its terms and conditions. This is not to lessen the importance of the procurement process in getting the contract awarded, but it is only after the contract is awarded that the real value of the entire procurement process is realized.

Back to top

Meeting Minutes

Meeting

Minutes of the VALUE Planning Committee
April 18, 2018

Present:
Laurie Schleimer
Jen White
Vicky Nash
Beth Schaack
Robert Barwick
Duane McKinney
Matthew Fleming
Craig Liesener
Bill Kurer

Learn From Your Peers

  1. Laurie Schleimer inquired about coding p-card transactions in US Bank, specifically on where the field is for inputting a description of the purchase. Members expressed that online training assets are available with US Bank and that they are helpful.
  2. Jen White brought up an issue with duplicate vendors in financial systems and how to keep files current while importing p-card transactions.
  3. The group discussed the limits for staff assigned p-cards and the pro’s and con’s to high vs low limits.
  4. The group discussed different thresholds for when bids and quotes are required. The thresholds varied greatly between agencies.
  5. Robert Barwick provided a reminder that road salt commitments are due today to the state.
  6. Bill Kurer discussed the value of having a purchasing office and strategies on promoting their value to the organization.
  7. Craig Liesener discussed Amazon business accounts. Free returns and free shipping depends on which products are purchased. Very similar to other platforms such as WisBuy and ESM.
  8. Vicky Nash inquired on how to handle price on an RFP when vendors get creative on providing the costs for the project, specifically when they enter zero on a line or include services as a package deal. The group discussed difference methods of a cost proposal format and strategies on how to handle departments that attempt to game the RFP outcome. Documentation of the process is a key factor along with training new management staff on the purchasing process early.
  9. Duane McKinney discussed lease vs purchase for vehicles. Discussion included effects on bond rating, grants, and the fleet management contract offered by Enterprise Car Rental.
  10. Robert Barwick discusses a change in state law regarding sign purchases for state agencies and the Wisconsin Procurement News newsletter.
  11. Bill Kurer agreed to do some research on eSupplier.
  12. Jen White inquired on the use of Gov Deals for surplus disposal.

Treasurer's Report
Balance as of March 31:

Savings $10,015.31
Checking $15,727.71

Future of VALUE
The group discussed hiring a tax professional to help close out the organization. Beth Schaack agreed to forward a contact to Matthew Fleming to investigate. Jen White agreed to reach out to a possible vendor as well.

2018 Value/WAPP Meeting Review
All expenses were reviewed and verified as correct

Back to top

NIGP Webinars

NIGP

Webinar

Technically, It's Not a Bid!  Practical Guidance for IFBs/ITTs

Date:  May 24, 2018
Time: 1:00 - 2:30 pm CST

Procurement has evolved from a job that practitioners fell into to a profession. With that evolution language has become increasingly important. We can no longer afford to refer to everything as a ‘bid.’ This practice focuses on the Invitation for Bids (IFB) procurement method, language for the solicitation that is issued and the offer that is submitted in response, and criteria and guidance for the successful use of an IFB.

 

Webinar

Fleets for the Future: Applying Innovative Cooperative Procurement Strategies to Public Fleets

Date:  May 30, 2018
Time: 1:00 - 2:30 pm CST

Leaders of the Fleets for the Future (F4F) project team will present their findings from working on cooperative procurement efforts in the nascent space of alternative fuel vehicle cooperative procurement. Fleets for the Future (F4F) is a national U.S. Department of Energy-funded partnership of regional councils, Clean Cities coalitions, and industry experts tasked with coordinating regional and national procurement initiatives to consolidate bulk orders of alternative fuel vehicles (AFVs) and infrastructure. Its scope includes zero-emissions sedans, retrofit hybrids, larger electric vehicles such as school buses, and various CNG and propane alternative fuel vehicles. The presenters will address the following topics during the session: barriers and opportunities to cooperative procurement, AFV education for fleets, outreach strategies, assessment tools developed for the projects, funding and financing options, development of procurement specifications, how to plan a cooperative procurement, and how to participate in existing cooperatives.

Webinar

Unleash the Power of LinkedIn & Leverage Your Government Agency

Date:  June 7, 2018
Time: 1:00 - 2:30 pm CST

An introduction to what is possible when using LinkedIn for yourself as an Industry Leader in Government Purchasing and the Profound Magnifying Amazing Impact that LinkedIn can have when embraced and properly used by a Community – Counties, Cities, States and Leading Organizations! Key word here is LEAD… Be the person and be part of the community others look to and see as the Leaders of our Country.

 

Back to top

Piggyback Updates

Pig

Below are changes or additions to the various piggyback opportunities available to VALUE member agencies.  Visit the piggyback page on the VALUE website, and click on the Pig to see the full list.

Do you have a contract to add to the list? Contact cmatz@co.walworth.wi.us to add your contracts to the piggyback list!

New Contracts

None

 

Contract Extensions

Clinical Dietician Services
Communication Equipment Maintenance
Lab Treatment Services
Linen Services
Medicare Reporting Services
On-Site Shredding Services
Supervised Visitations
Water Filtration Devices

 

Contract Expirations

Janitorial Supplies
Laser Printer Maintenance Services
Parking Checker Uniforms
Phosphoric Acid
Pipe Fittings
Reflective Sheeting & Film
Uniforms

 

 

Back to top

State of Wisconsin Contract Updates

Wisconsin

Updates to State of Wisconsin contracts are issued weekly by the State of Wisconsin.  VALUE is reprinting the weekly information received as a courtesy to our members. 

The following contracts have been updated for the week of 3/19/2018 - 3/23/2018:

505ENT-M15-TEOTONEISDN-01 TEO/Tone Commander Integrated Services Digital Network (ISDN) Telephone Equipment and Support - This contract will expire 6/26/2018.  Some equipment is reaching end of life. Please plan accordingly.

505ENT-M16-PRINTPAPER-00 Paper: Printing Grades, 50" Roll Stock (DET), and Copy Paper (White and Colors) - Veritiv sales representative Kurt Johnson is no longer with Veritiv. Updated Vendor Information has be uploaded with new contact for Veritiv.

505 ENT M16-NATURALGASWI-01 Natural Gas Supply & Management - Primary Firm - Added TC for new state accounts behind MG&E. Extended contract to 3/31/19

 

The following contracts have been updated for the week of 3/26/2018 - 3/30/2018:

505ENT-O18-SAFETYVIDEO-00 NASPO Public Safety Video Systems - Added new vendor, WatchGuard Video

505ENT-M16-SLDWSTRMVL-00 Solid Waste and Recycling Services for the South Central Wisconsin Area - Updated pricing for Lots 1, 3 and 4 for Waste Management. New pricing effective with contract renewal date of July 1, 2018. Removed hotlink to Contract Pricing Sheet from Quick Start Guide.

505ENT-M14-FUEL OILSW-00 Fuel Oil – Statewide Locations (State-wide contract for fuel oil, dyed for off-road use only) - Updated supplier contact information.

505ENT-M10-VHICALRNTL-00 Nationwide Vehicle Rental Services - Added updated Hertz URL link. Updated User Quick Reference Guide & Enterprise Program Summary 

505ENT-M18-ENVELOPES-00 Class 8 Printing and Manufacturing of Envelopes: Commercial, Catalog, and Booklet Sizes - Many questions have been asked about Cenveo's Chapter 11 Bankruptcy. Cenveo is only restructuring and not going out of business. The contract between Cenveo and the State of Wisconsin is business as usual. Please read the attached file "CVO Restructuring Overview_March 2018 v4.pdf".

505ENT-U18-SPICES-01 Spices and Seasonings - State Use: Pack sizes were updated to ensure full containers without damaging the product for the following spices: 

    • Basil, Ground from 12 oz. to 14 oz. 
    • Cajun Seasoning from 20 oz. to 32 oz.
    • Garlic Powder from 5.25# to 6#
    • Paprika from 5# to 6.5#
    • Poultry Seasoning from 12 oz. to 16 oz.
    • Taco Seasoning from 6.5# to 5.5#

An updated User Guide and Order Form have been posted.

505ENT-O18-NASPOMAILEQ-00 NASPO ValuePoint Mailroom Equipment, Supplies and Maintenance - Pitney Bowes has a limited time promotion until July 31, 2018. Please read the offer attached and see if it fits your needs.

505ENT-O14-GNDMNTCEQP-00 Ground Maintenance Equipment - Updated links in the User Guide 

505ENT-M14-IWATSUREPR-01 Iwatsu Key Telephone Systems - This contract will expire 9/30/2018. Please plan accordingly. 

505ENT-M17-FLATFOLD-00 Class 4 Printing of Jobs Flat and/or Folded - Contract with Advertisers Press and Seaway Printing has been renewed for another year.  Price Chart LOT D chart 5 had an error in the paper stock section. This has been corrected and uploaded a new file.  Updated DOA-3008 Class 4 Print Order has been uploaded to this contract folder.  BID rates have changed on LOTs A, B, D, F, G, and H. Please see vendor index for new bid rates.  A.M. Mailing Services (AKA AM Solutions) is no longer on contract. LOTs A & B are now with Advertisers Press. Please see new vendor index.

505ENT-M16-COLDSET-01 Class 3 Printing of Cold Set Web Booklet Publications Collated and/or Bound in Digest, Magazine, or Tabloid Sizes - Updated DOA-3077 Class 3 Print Order form with new bid rate.  New vendor information in updated.  BID Rate has changed to -59.57%.  Contract has been renewed for another year.

505ENT-M18-MOVSTRGSVC-00 Moving and Storage Services - New Contract

 

The following contracts have been updated for the week of 4/2/2018 - 4/6/2018:

505ENT-M18-RATECERT-00 Class 5 Legal/Public Notices: Rate Certification Program - Certification Rates Bulletin updated for April 2018

505ENT-M14-OFFSUPPLY-01 STATEWIDE GENERAL OFFICE SUPPLIES AND NEW TONER - Renewed through March 31, 2019.   Final renewal.

505ENT-M18-ELCPLSUPLS-00 Electrical & Plumbing Maintenance, Repair & Operating Supplies (MRO) - Updated Crescent's main contact from Steve Thiel to Matt Derenne on the Vendor Contact Information page.

505ENT-M12-TIES&TUBES-00 New Tires, Tubes and Related Services - Updated Goodyear Tire and Service Pricing

505ENT-M16-SLDWSTRMVL-00 Solid Waste and Recycling Services for the South Central Wisconsin Area - Updated location pricing sheets.

505ENT-M18-MOVSTRGSVC-00 Moving and Storage Services - Price list for CPR has been updated to reflect a decrease in the daily storage rate.

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added new products to Creative Solutions price list.

 

The following contracts have been updated for the week of 4/9/2018 - 4/13/2018:

505ENT-O18-CONELCWPNS-01 Conducted Electrical Weapons (CEW) and Related Accessories - State of MN renewed contract with Axon. The contract end date has been updated to 2/28/19.

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added new products to Creative Solutions price list.

505ENT-M17-SFTGLASSES-01 Prescription Safety Glasses - Added Varilux Comfort as upgraded progressive Option #5, item #32 (Table 3)

505ENT-M06-SIGNAGECON-01 Signage - Revised user guide and purchase type.  Updated Synopsis with 2017 Act 146 information.

 

The following contracts have been updated for the week of 4/16/2018 - 4/20/2018:

505ENT-O16-ELECRECYCLE-01 Recycling of Electronic Waste Services - Edited VendorNet page to reflect the fact that P-Card can be used as a method of payment and this contract is available for municipalities.

505ENT-M11-HOSTEDVOIP-01 Hosted Voice over Internet Protocol (VoIP) Services (AT&T) - Documents were reloaded after making .pdf searchable and redacted

505ENT-M12-SERVICESIT-01 Vendor Managed Services Sourcing Contract - Updated IT Services Supplier Contact List

505ENT-M13-REMANTONER-01 STATEWIDE REMANUFACTURED TONER AND INK PRODUCTS - Contract extended through March 31, 2019

505ENT-M18-ENVELOPES-00 Class 8 Printing and Manufacturing of Envelopes: Commercial, Catalog, and Booklet Sizes - LOT C pricing has gone up due to the price of paper going up. Vendor has provided all mill letters justifying this price increase. The LOT C price chart has been updated and uploaded to this contract folder.

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added new product to Halverson Price List

The following contracts have been updated for the week of 4/23/2018 - 4/27/2018:

505ENT-M17-WIRELESSPH-XX Wireless Telephony and Broadband Plans, Equipment and Support - ATT Mobility Amendment 2 was uploaded

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added new products to HJ Martin Price List

505ENT-O15-TRAININGIT-01 Instructor Led Information Technology Training - Updated Vendor Phone Number in User's Guide

The following contracts have been updated for the week of 4/30/2018 - 5/4/2018:

505ENT-M16-NATURALGASWI-00 Natural Gas Supply & Management Non-Firm - Added pricing for 2019

505ENT-M16-COLDSET-01 Class 3 Printing of Cold Set Web Booklet Publications Collated and/or Bound in Digest, Magazine, or Tabloid Sizes - Paper prices have gone up on this contract. Please use the most current uploaded paper price chart.

505ENT-M16-CUSTOM-01 Class 8 Printing: Custom Forms: Continuous and Snapset - Paper prices have gone up causing the pricing for this contract to go up. Please use the most updated DOA-3404 Multiply Print Order and Price Chart (5-2018) documents uploaded here.

505ENT-M18-RATECERT-00 Class 5 Legal/Public Notices: Rate Certification Program - Certification Rates Bulletin updated for May 2018

505ENT-M15-HZRDSWSTSV-01 Hazardous Wastes Services - Updated Fuel Surcharge information.

505ENT-O17-BODYARMOR-00 Body Armor (NIJ approved Bullet/Stab Resistant Tactical Products, Including Vests) - Updated Product & Price Lists for Survival Armor, Point Blank, GH Armor, and US Armor 5/1/2018.  Uploaded Safariland Product and Price List 5/1/2018

505ENT-M11-HOSTEDVOIP-01 Hosted Voice over Internet Protocol (VoIP) Services (AT&T) - Amendment 8 - Hunt and Response Groups was uploaded.

505ENT-M17-DSPSBLPPRP-00 Universal Sized Cafeteria and Washroom Paper Products - Updated User guide with updated Schilling Customer Service phone number 5.2.18

505ENT-M15-MOTOR FUEL-00 Motor Fuels – Statewide - Updated locations listing.

505ENT-O16-ELECRECYCLE-01 Recycling of Electronic Waste Services - Updated User's Guide with the New Contract Manager's Information

505ENT-O15-TRAININGIT-01 Instructor Led Information Technology Training - Updated Contract Manager Information in User's Guide

505ENT-O14-TRAININGRM-01 Occupational Safety and Health Online Training - Updated Contract Manager Information in User's Guide

505ENT-O13-SERVICEPROF-00 Temporary Professional Services - Updated Contract Manager Information in User's Guide.  Updated "Contractor Contact Information" and "Approved Contractor List by Job Category" for CliftonLarsonAllen LLP (Formerly Known as Titus)

505ENT-M12-SERVICESIT-01 IT Vendor Managed Services Sourcing Contract - Updated Contract Manager Information in User's Guide.  Posted TAPFIN and Agency Fiscal Year-End Process Flowcharts for CBA, CA and Early Entry Purchase Orders (POs). TAPFIN Needs PO Numbers By End of Business Day, June 15, 2018.

Back to top