The Do’s and Don’ts of Contract Administration - 2100.2

Contract Administration Do’s

Effective contract administration activities include:

• Notifying the contractor to begin work.
• Monitoring contract activities for compliance with:
  • Work progress to ensure services are performed according to the quality, quantity, objectives, timeframes, and manner specified within the contract.
  • SB and DVBE contractors and/or subcontractors to ensure attainment of approved contract participation goals and ensuring no unauthorized substitutions occur.
  • Commercially Useful Function requirements by SB/DVBE subcontractors;
  • Regulations and policy changes impacting contract goods and services
  • Review progress reports, status reports, and timesheets as required.

• Approving the final product or services by submitting a written document accepting the deliverables within FI$Cal or kept within the procurement file.
  • 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.
• Providing any documentation to the department’s procurement office.
• Monitoring expenditures, ensuring funding availability when contract extends over multiple years.
• Verifying accuracy of invoices and approving invoices for payment.
• Requesting amendments/addendums/supplements/changes and/or contract renewals in a timely fashion as determined by departmental policies and complexity of the request (often three – six months in advance).
• Verifying all work is completed and accepted by the department prior to the contract expiration date.
• Performing contract close out activities:
  • Completing Contractor Evaluation Report (STD. 4) for non-IT consulting services contracts.
  • Completing the Post Evaluation for IT Services Contracts (STD 971) for each completed information technology (IT) services contract totaling $500,000 or more AND related to an IT project (both delegated and non-delegated IT projects as defined by the State Administrative Manual).
  • Notifying responsible parties when funds can be disencumbered.
• Reporting any contract disputes immediately to the department procurement office.
• Keeping an accurate auditable paper trail of contract administration.
• Knowing how to identify and address SB/DVBE Program abuse allegations;
• Involving early and working closely with the department SB/DVBE advocates when applicable.

Contract Administration Don’ts

Contract administrators are not authorized to:

• Instruct the contractor to start work before the contract is fully executed.
• Change the scope of the contract without doing so through the formal Contract/PO amendment process.
• Direct the contractor to perform work that is not specifically described in and funded by the contract.
• Extend the time period of the contract without execution of an approved amendments/addendums/supplements/changes.
• Allow the contractor to incur any additional costs over the limit set by the contract.
• Sign a contract as the department’s authorized signatory unless authorized in writing.
• Sign any contractor’s contract form.
• Take any immediate actions against SB/DVBEs or prime contractors as a result of abuse allegations.