Contract Management

Policy

This policy is intended to ensure Agencies/Institutes of Higher Education (IHEs) are monitoring Contracts in a consistent and standardized way that complies with all State of Colorado Statutes, Rules, and Policies.

Definitions

• Contract: Any Commitment Voucher that constitutes a state contract or purchase order, where the principal purpose is to acquire supplies, services, or construction or to dispose of supplies for the direct benefit of the State.
• Contract Manager: the individual, usually residing in the program, division, or unit at the Agency/IHE who is responsible for the day to day management of the services being provided by the Contractor.
• Contract Management System (CMS): A centralized contract management system, maintained by the Department of Personnel & Administration (DPA), in which the Department is required to maintain information about personal service contracts over
  $100,000, in accordance with statutory requirements (§§ 24-106-103 through 24-106-107, C.R.S.).
• Contractor: An entity that is a party to a Contract as defined above.
• Personal Services Commitment Voucher: A Commitment Voucher, including Personal Service Contracts and Purchase Orders, between a State Agency or Institution of Higher Education and a Party, where the Party provides labor, time, or effort for the direct benefit of the State. An individual or entity performing services under a Personal Services Commitment Voucher is an independent contractor and not an employee of the State.
• Procurement: Buying, purchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction. “Procurement” includes all functions that pertain to the obtaining of any supply, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. “Procurement” also includes the procurement of information technology as defined in §24-37.5-102(11), C.R.S.
• Procurement Official: The individual of a purchasing agency with purchasing authority created pursuant to §24-102-202(3), C.R.S., or §24-102-302(2), C.R.S.
• Procurement Staff: The employee(s) at an Agency/IHE responsible for Procurement, also referred to as “procurement agents” in the Code and Rules.
• Program Staff: The employee(s) at an Agency/IHE, usually residing in the program, division, unit, or executive leadership whose duties include, but are not limited to, designating the Contract Manager for each Personal Services Commitment Voucher.
• SPCO: State Purchasing and Contracts Office within the Office of the State Controller.

Agency Responsibilities

The responsibilities listed in this policy are the responsibility of both Program Staff and Procurement Staff as determined below and within each Agency/IHE.

• Program Staff - Program staff at each Agency/IHE is responsible for designating a Contract Manager with subject matter expertise and responsibilities for day-to-day management of the Contract, over $100,000, including performance monitoring, §24-106- 107(3), C.R.S.. These Contract Manager responsibilities include, but are not limited to:
  • Participating in contract management training each fiscal year if Contract Manager manages a personal service commitment voucher over $100,000;
  • Being knowledgeable about the Contract terms, statement of work, available remedies, and any other exhibits or attachments referenced in the Contract;
  • Ensuring all Contract provisions are being adhered to by the parties (Contractor and Agency/IHE);
  • Tracking and documenting deliverables, including ensuring all goods/services are being delivered in accordance with the Contract requirements;
  • Documenting performance issues in a manner established in the Contract or in law, rules, policies or Agency/IHE guidelines;
  • Notifying the Agency/IHE Procurement Official immediately as issues arise or changes to the Contract are needed;
  • Meeting ethical standards and avoiding conflicts of interest per State law, Fiscal Rule requirements, and the State’s Conflict of Interest Policy and Technical Guidelines; and
  • For personal services contracts or information technology contracts of $100,000 or over, meeting all requirements listed in §24-106-107, C.R.S.
  • Managing the Contract Manager. These responsibilities include, but are not limited
    1.    Ensuring the appropriate individual is managing the Contract;
    • Ensuring the Contract Manager understands their responsibilities as a manager.
    • Ensuring that if a Contract Manager is not performing their duties as the Contract Manager, the Program Staff will work with the Agency/IHE leadership and Procurement Official to address the situation with the Contract Manager, up to and including replacing them as the Contract Manager.
    • Contract Manager – Contract Manager responsibilities include, but are not limited to:
      • Working with Contractor day-to-day;
      • Tracking deliverables in the Contract;
      • Approving invoices and complying with Agency/IHE payment policies and internal controls; and
      • Overseeing the Contractor’s performance and escalating performance issues.
      • The Contract Manager is responsible for documenting performance issues, notifying all applicable stakeholders, including, but not limited to, the Procurement Official, Agency/IHE leadership, project management staff, and other staff as appropriate, as well as putting concerns in writing to the Contractor.
  • Procurement Staff – Procurement Staff responsibilities include, but are not limited to:
    • Tracking Contract Management assignments.
    • At a minimum, is responsible for developing and maintaining a list of all Contract Managers.
    • Procurement Staff should enter the Contract Manager on each personal services Contract over $100,000 in CMS.
  • Agencies/IHEs
    • Agencies/ IHEs are encouraged to develop a Contract Manager agreement for their Contract Managers to sign. This agreement should define the Contract Manager’s responsibilities, any initial and ongoing training requirements, and provide the Contract Manager with copies of all relevant Contract documents. An example agreement is available on the SPCO website.
    • Agencies/IHEs are encouraged to include Contract Manager responsibilities in their performance evaluation process.

Training and Reporting Requirement

• Agencies/IHE will ensure all Contract Managers complete Contract Management training each fiscal year that complies with this Contract Management Policy and incorporates any Contract Management training guidance provided by the SPCO. Agencies/IHEs may include Agency/IHE specific information. Agency/IHE specific training should include other procurement training information and Agency/IHE-specific information, including but not limited to, who can make a purchase/sign a Contract, procurement staff contacts, thresholds, lead times, forms, contract routing review/processes, financial system information, and required approvals.
• The Procurement Official shall report compliance to the SPCO on a form determined by the SPCO by September 30th of each year, beginning in 2023.
• Failure to comply with training and reporting requirements is a violation of this policy and can result in disciplinary action by the Agency/IHE.

Policy Implementation

• Agencies/IHEs may develop an Agency/IHE-specific policy on Contract Management that further clarifies this statewide Policy. Any Agency/IHE-specific policy must incorporate all requirements listed in this statewide Policy.

 State Controller Policies

• View Policies & Guidance
• View Contract Policies