Contract Administration Principles - 2100.1

(Revised: 02/2022)

Contract Administrator

Personnel assigned to perform supplier performance and contract administration activities are often referred to as a “contract manager” or “contract administrator.”  This chapter will refer to the person assigned to perform all contract administrative functions as a contract administrator.

Buyers Remain Involved

Although contract administration assignments may be determined by departmental policies and procedures or the magnitude or complexity of the contract, it is critical that the buyer (aka “Procurement Official”) remains involved in the post award contract activities, including acting as the department’s contract administrator or as a liaison between the contracting parties and DGS as warranted.

Expectations of the Contract Administrator

Regardless of the title used, the person assigned contract administration functions must be made aware of the expectations and requirements of the position.  A contract administrator must:

• Have sufficient knowledge of contracting principles as it relates to their responsibilities in administering the contract.
• Communicate with both the buyer and supplier on contractual issues.
• Maintain records or logs to turn over to the procurement office at the completion of the contract.
• Before approving the final payment on a contract or purchase order that includes a commitment to use DVBE subcontractors, refer to SCM Vol. 2, Section 1203.1 and follow the department policy and procedures regarding the receipt of the Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817) and the associated withhold requirements.

Establish the Fundamentals

Once a purchase document has been executed, the buyer should communicate the contract administration responsibilities with the person assigned to the role.  Any additional contract administration activities specific to the transaction should also be reviewed.

Communication is Key

A key factor in successful contract administration is communication.  It is essential for contract administrators to understand the provisions of the purchase document, have the ability to communicate contractual obligations to all parties involved, and maintain control over the performance of the contract.

Post Award Orientations

Buyers, prior to turning over contract administration functions, determine whether or not a post-award orientation with assigned contract administrators, project managers, and suppliers is warranted to achieve a clear and mutual understanding of all contract requirements and to identify and resolve potential problems prior to any contract performance.

Post Award Orientation Activities

Post award orientations should include the following activities:

• Providing a complete copy of the authorized Contract/PO with all attachments to the involved parties.
• Identifying the key department and supplier personnel contacts and their responsibilities and authority.
• Reviewing any internal policies and procedures with all parties.
• Reviewing any contract reporting requirements with the contract administrator and/or the supplier.
• Reviewing any purchase order that includes a commitment to use DVBE subcontractors, refer to SCM Vol 2, Section 1203.1 and follow the department policy and procedures regarding the receipt of the Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817) and the associated withhold requirements.
• Reviewing the contract payment process, including review time, and processing time requirements to avoid payment penalties.
• Reviewing any acceptance criteria and review process as required by the contract.
• Reviewing the process for requesting an amendment/addendum/supplement/change.
• Reviewing the communication process for resolving disputes or any other contract issue.
• Reviewing documentation requirements for the Contract/PO audit files and retention.
• Review and document supplier performance.

Consider Departments’ Processes

In addition to information contained in the SCM, departments are encouraged to develop contract administration policies and procedures that are unique to their department’s business needs or processes.