203 - Contract Administration Strategies Flashcards
Acceptance of Sampling (Acceptance Testing)
A quality control technique used to evaluate the overall condition of a given lot by physically inspecting a portion or sample of the lot
Acquisition
1.The process of obtaining supplies, services, or construction through purchase, lease, or grants
- Means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated
Addendum/Addenda
A written change, addition, alteration, correction or revision to bid, proposal or contract document
-commonly, the name given to the document used to revise a solicitation
Administer Contract
This is the post-award life cycle phase of contract management, and it is the “perform contract” domain.
-process of: establishing expectations, maintaining communication channels, processing contract documentation, conducting post-award performance reviews and assessing contract performance
Administrative change
A unilateral change to a contract in writing that does not affect the substantive rights of the parties
Ex: a change in the address to which an invoice is mailed
Administrative Contracting Officer
The contracting officer who is authorized to perform post - award contract administration duties, monitor the contractor’s performance and perform post-award contractual functions delegated by the purchasing office
Agency
- A legal relationship that exists between two parties by which one (the agent) is authorized to perform or transact specified business activities for the other (the principal).
- An administrative or organizational division of a government.
Ambiguity
Contract language that can be construed to have more than one meaning, definition, or interpretation
Amendment
An agreed addition to, deletion from, correction, or modification of a document or contract
Anti-trust Laws
State and federal laws enacted to ensure free, fair, and open competition by prohibiting monopolies or conspiracies in restraint of trade in interstate and foreign commerce
Appropriation
Legislative authorization to expend public funds for a specific purpose. Funds that have been set aside for a specific purpose
Assure Quality
The post-award life cycle phase of contract management, and it is in the “perform contract” domain. It is the process of: planning for contract performance delivery and monitoring and inspecting and accepting contract performance.
Bid
The response submitted by a bidder to an Invitation for Bids (IFB)
Bilateral Modification
Requires the written approval of both parties to a contract in signatory form and is often related to some alteration of one or more substantive terms of the contract.
Breach of contract
Failure by either contracting party to fulfill a contract, wholly or in part, without legal excuse.
Breach of warranty
The failure to meet an express or implied agreement as to the title, quality, content, or condition of something sold.
Change Order (CO)
A written alteration that is issued to modify or amend a contract or purchase order.
-bilateral or unilateral request that directs the contractor to make changes to the contracted scope of work or specifications
Close contract
The process of verifying all the requirements of the contract are satisfied, settling unresolved matters, and reconciling the contract to make final payment.
-takes place in the post-award life cycle phase of the contract management standard
Commodity
A marketable item produced to fulfill a need or want, and references both goods and services
Conflict of Interest (COI)
- A situation that can undermine a person due to self interest and public interest.
- A situation when parties discharge responsibility to a third party.
Contract
- An obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act
- A legally binding promise, enforceable by law
- An agreement between parties with binding legal and moral force, usually exchanging goods or services for money or other considerations
Contract Administration
A term used to describe the functions that are performed after the parties have signed the contract
-activities are goal oriented, aimed at ensuring enforcement of the contract terms and conditions while giving attention to the achievement of the stated output and outcome of the contract
Contract Administrator
Monitors progress to verify that services are performed as required and that all deadlines are being met
Convenience Contracts
Indefinite quantity contracts that are used by state agencies to purchase goods or services at the agency’s discretion
Cure Notice
A delinquency notice that must be issued prior to termination for default of a supply or service contract before the contract’s delivery date
-failure to issue a cure notice when required may result in an invalid termination for default
Debarment
- To prohibit a seller/contractor from bidding on future requirements for cause for a certain period of time
- A sanction brought against a seller whereby they may not engage in future procurement actions
- To exclude or shut out of future solicitations and contracting opportunities
Default
- The omission or failure to fulfill a duty, observe a promise, discharge an obligation, or perform an agreement
- Failure to make scheduled payments of interest or principal on a loan, bond, or other types of debt
Dispute
A contractual disagreement or misunderstanding between contracting parties specific to contract provisions or language
-When a resolution cannot be achieved, the parties may resort to alternative dispute resolution or litigation
Elements of a contract
must be present in a contract if the contract is to be binding. Offer, Acceptance, Consideration and Intent to create a legal relationship.
Indemnify
- To protect against hurt or loss; to exempt from incurred penalties or liabilities.
- To compensate or pay for damage.
Inspection
Examining and testing supplies or services to determine whether they conform to contract requirements
-The buyer’s legal right to inspect goods is stated in the Uniform Commercial Code (U.C.C.), Section 2-513(1)
Intellectual Property
Includes inventions, patents, copyrights, trade secrets, trademarks, technical data, industrial designs that are generally protected and proprietary
Invitation for Bids (IFB)
A procurement method used to solicit competitive sealed bid responses, sometimes called a formal bid, when price is the basis for award
Invoice
A supplier may submit an invoice (a bill) to the buyer for payment for contract performance
-made for the purpose of honoring a contractual obligation to pay for work accepted
Liquidated Damages
Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract
Liquidated Damages
Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract
Milestone Payments
payments to be made for this contract shall be based upon satisfactory completion by the Contractor of the milestones established in the schedule
Milestones
Designated steps of the planned acquisition which usually signify a completion of a requirement or delivery of materials
Modification
Any written alteration to a provision of any contract accomplished by mutual agreement of the parties to the contract
Broad Goals of Contract Administration
- The governent receives the needed performance on time and at the level of quality called for by the contract
- The contractor receives proper compensation
Contract Management
the overarching contracting process that can include activities in the pre-award, award, and post award phases
Contract Administration
Describes the activities in the post-award phase, or after a contract has been signed, and is only one part of the entire contract management process
Nondisclosure Agreement
egally binding document setting forth the conditions under which proprietary information is offered, received, used and protected between two or more parties
Offer
response to a solicitation that, if accepted, would bind the offeror to honor what was submitted
Offeror
generic term that refers to a person or entity who submits an offer in response to a solicitation
Partial Payments
Payment amount that is less than the due amount, is a part payment for an unfinished work
-can also occur when there is a dispute over the invoice amount when not in accordance with the contract
Privity of Contract
The direct contractual relationship existing between parties that allows either party to enforce contractual rights against the other and seek remedy directly from the other party with whom the relationship exists
OR
a doctrine of contract law that states that contracts should not give rights or obligations to entities other than those who are parties to the contract
Progress Payments
A timed sequence of payments made during the performance of contract; periodic payments made over the life of contract
-allow the contractor to submit invoices for payment as progress made in performing the contract
Proprietary (Information)
Owned by a private individual or corporation under a patent, copyright, trademark or other exclusive right
-Usually protected from release to the general public. Not subject to public disclosure
Purchase Order
A purchaser’s written document to a supplier formalizing all the terms and conditions of a proposed transaction
-such as description of the requested items, cost of items being purchased, delivery schedule, terms of payment, and transportation
Qualified Products List (QPL)
A list of products identified by manufacturers’ names and model numbers that are the only items that meet the minimum specifications as determined by the using entity
-used when quality is such a critical factor and testing so lengthy or expensive that the entity wants to stay with proven products
-prepared by testing products, either in the lab or in daily use
Quality Assurance (QA)
- Assuring that quality performance criteria contained within the contract is provided during contract delivery
- Specific to technology, a planned and systematic pattern of all actions necessary to provide adequate confidence that the product optimally fulfills customers’ expectations
Request for Proposal (RFP)
The document used to solicit proposals from potential providers (proposers) for goods and services
-Price is usually not a primary evaluation factor
- Provides for the negotiation of all terms, including price, prior to contract award
Request for Quotation (RFQ)
Purchasing method generally used for small orders under a certain dollar threshold, such as $1000.00
Scope of Work/Statement of Work (SOW)
Developed at the beginning of the procurement cycle and is a written description of the entity’s needs and desired outcomes for the procurement and becomes the basis for any resulting solicitation
-helps to ensure that the product or service meets the stated outcome and establishes the parameters of the resulting contract
Subcontractor
Any person or business entity employed to perform part of contractual obligation under the control of the principal contractor
Supplier, Vendor and Contractor
A person or entity that provides goods and/or services
Termination for Convenience (T4C)
A contract clause that may be contained within boilerplate language that allows for contract to be ended at the discretion of the governmental entity
Termination for Default (T4D)
A contract clause that may be contained within boilerplate language that allows either contracting party the right to cancel a contract, either in whole or in part, due to failure of the other party to perform satisfactorily
Terms and Conditions
Standard boilerplate language that includes standard clauses and rules that apply to bids and proposals formally solicited that may become incorporated into the final contract
Waiver
The intentional or voluntary relinquishment of a known right, or conduct that warrants an inference that the right has been relinquished
Warranty
A promise made by a seller to a buyer that is legally enforceable
-may be expressed or implied and is legally binding
Role of Administer Contract
- Establishing expectations,
- Maintaining communication channels,
- Processing contract documentation,
- Conducting post-award performance reviews, and
- Assessing contract performance
If it isn’t documented…
it doesn’t exist
The Contract Administrator MUST…
make written record of what they know, when they know it
Performance problems fall into two broad categories
International Standards Organization (ISO)
Organizes and creates quality specifications and standards throughout almost every industry. The ISO 9000 family creates a framework of standards for quality management.
International Standards Organization (ISO)
Organizes and creates quality specifications and standards throughout almost every industry. The ISO 9000 family creates a framework of standards for quality management.
Prime Contract
When a business entity enters into a direct contract with a jurisdiction
Prime Contractor
The business entity that signed a direct contract with a jurisdiction
Subcontract Management
The process of the prime contractor managing the supply chain it creates by subcontracting work to other business entities
-prime contractor is responsible for its own subscontracts
Prime Contractor is responsible for:
-Find its own subcontractors that meet the needs
-Technical and financial performance of its subcontractors
-Monitoring performance, and ensuring correct and timely payment is provided to any subcontractors or suppliers
Show Cause Letter
his type of remedy asks the contractor for explanation regarding the nonperformance, but does not ask for action like the “notice to cure” letter does.
-This letter asks the contractor to show why the contract should not be terminated for default.
