CONTRACT/AGREEMENT
PROCEDURES
FOR
CONTRACT ADMINISTRATION
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OFFICE OF FINANCE & ADMINISTRATION
CONTRACT ADMINISTRATION
INSTRUCTIONS FOR CONTRACTS, AGREEMENTS,
MEMORADUM OF UNDERSTANDING (MOU) OR MEMORADUM OF AGREEMENT
(MOA)
GENERAL INFORMATION
A written contract is a binding agreement between two or more parties that involves stated or
implied consideration which creates an obligation to or not to do a particular thing. Contracts
may include, but are not limited to documents with the following titles if they have the required
elements specified below:
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Purchase Orders
Agreements
Cooperative Agreements
Grants
Loans
Licenses
Letters of Intent
Easements Agreements
Employment Contracts and Stipend Agreements
Memorandums of Understanding
Interagency Contracts
$0.00 Contracts
Releases/Waivers
Leases.
Parties to contracts may include, but are not limited to:
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Private business
Partnerships
Individuals
Federal, state and local agencies
Foreign governments
Nonprofit entities.
All contracts, agreements, MOUs, or MOAs must undergo campus-level review and approval.
In some cases System Office of General Counsel must review it as well. Depending on the type
of review process and length/complexity of the contract, it could take up to 6 weeks for the
review process to be completed. Any contract for a real estate lease must be reviewed and
approved by System Real Estate Office.
Only an individual with written delegation of authority from the President of the University may
execute and deliver contracts on behalf of the University. A University contract without an
authorized signature is invalid and unenforceable and may create individual liability for
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the unauthorized signer. The authority to enter into contracts on behalf of the University must
also be pursuant to System Policy 25.07 Contract Administration System Regulation 25.07.01
Contract Administration Procedures and Delegations and approved contract administration
procedures.
CONTRACT ADMINISTRATION
The purpose of contract administration is:
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To identify who the responsible parties are;
To ensure the involvement of all parties from the beginning;
To confirm all objectives or steps that are to be accomplished are addressed;
To validate the cost, know how the cost was calculated, and how funds are to be paid;
To ensure provisions are clearly defined and understood to hold the contractor
accountable for producing the desired results and staying within budget.
The elements required to create a contract are:
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An offer;
An acceptance in compliance with the offer;
Made by competent parties; and
Based on adequate consideration.
The involvement of the contract originator is to:
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Ensure compliance of the contract;
Communicate internally and externally with all responsible parties;
Maintain a professional relationship;
Meet milestones;
Avoid “risk” regarding liabilities.
Contract originators should:
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Keep elements of the contract confidential to the extent appropriate;
Strive to keep the relationship of all parties favorable;
Remain impartial;
Be fair in all dealings with involved parties;
Demonstrate integrity.
Problems in contract administration can be caused by:
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Inability to meet terms of the contract;
The poor selection of contractors;
Improperly developed specifications;
Lack of effective communication between parties;
Unsatisfactory reimbursement methods;
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 Unacceptable record keeping;
 Absence of timely notices;
 Unclear language.
The responsibilities of a contract originator are:
 Be the originator of the contract process;
 Contact the Director of Purchasing to determine if the vendor can be used for the contract
or if the service/product should go out for bid;
 Work with the Vice President for Finance and Administration if the vendor cannot
provide a contract or the university is the originator of the contract;
 Request an electronic version of the contract preferably in an editable format (such as a
Microsoft Word document), but PDF will be accepted if unable to get the contract in an
editable format from vendor;
 Read the contract, use the TAMUCT Contract Review Checklist to ensure all required
items are in the contract, work responsible parties to eliminate unacceptable items (if
unable to resolve, make a note of it on the face of the contract), and have a full
understanding of the document;
 Work with vendor on any corrections, omissions, and/or errors as needed during the
approval process;
 Request a contract start date that is far enough in the future to allow the contract review
process to be accomplished;
 Ensure the contract does not begin until after the start date and a purchase order is issued
if required;
 Verify with Director of Purchasing that the vendor is not on hold with the State
Comptroller’s office;
 Complete the Contract/Agreement Approval Transmittal Form (insert link) attaching a
copy of the contract and the checklist to begin the approval process;
 Be available throughout the process to answer any questions related to the contract;
 After the contract is fully executed, complete a purchase requisition (insert link) and
forward the requisition and a copy of the contract for the required approvals. Provide
vendor contact information to Accounts Payable so they can begin the process of
obtaining a W-9 from the vendor;
 Monitor and enforce all terms and conditions of the contract;
 Ensure all payments are made according to the contract;
 Determine whether or not to extend the contract if the option is available in the contract.
If the option is not available, the contract originator will decide if another contract is
warranted with the existing vendor or to change vendors for services/products needed.
 Notify the Purchasing Department of the vendor(s) performance upon contract
completion;
The responsibilities of the director are:
 Read the contract and all attachments to ensure the contract meets the department’s
requirements;
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 Ensure the timeline given in the contract are reasonable and corresponds with the
department’s goals and objectives;
 Confirm funds are available for payment;
 Verify the Contract/Agreement Approval Transmittal Form has been completed;
 Verify the contract originator has completed their portion of the TAMUCT Contract
Review Checklist;
 Sign the Contract/Agreement Approval Transmittal Form and attach it, the checklist, and
a copy of the contract and all attachments and forward to the next level approver as
shown on the President’s Delegation of Authority (insert link).
The responsibilities of the Provost/Vice President for Academic & Student Affairs are:
 Review all documents to ensure the contract/agreement is a valid need to further the
mission of the university;
 Verify funds are available to meet the obligations of the contract/agreement;
 Sign the Contract/Agreement Approval Transmittal Form and attach it, the checklist, and
a copy of the contract and all attachments and forward to the Director of Purchasing.
The responsibilities of the Director of Purchasing are:
 Review the contract and all attachments paying particular attention to details of:
o Insurance requirements
o Assignment of the contract
o Default and termination procedures
o Dispute resolution
o Payment terms
o Length of contract
o Contract start and end dates
o Contact information for all responsible parties
o Type of currency used in the contract
o State contracting requirements are included
o Notices
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Return all items to contract originator if items are missing;
Assist contract originator with any changes that need to be made to the contract;
Confirm all term and conditions of the contract meet state purchasing guidelines;
Sign the Contract/Agreement Approval Transmittal Form and attach it, the checklist, and
a copy of the contract and all attachments and forward to the Vice President for Finance
& Administration.
The responsibilities of the University Contract Officer (Vice President for Finance &
Administration)* are:
 Review the contract and all attachments paying particular attention to details of:
o Indemnification, Waivers, Attorney’s Fees, etc.
o Confidentiality
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o
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Venue for suits
Force Majeure
Governing law
Severability
 Determine if the contract should be forwarded to the System Office of General Counsel;
 Maintain contact with contract originator;
 Sign the Contract/Agreement Approval Transmittal Form and attach it, the checklist, and
a copy of the contract and all attachments and forward to the President if applicable.
 Return a copy of the fully executed contract and all attachments to the contract
administrator
 Keep a database of all contracts and inform contract originators and/or departments of
renewals and expirations
See the Flowchart for Contract Approvals under Standard Contract Forms for the steps involved
in Contract Administration.
*The University Contract Officer (Vice President for Finance & Administration) is not
responsible for overseeing any aspect of the contract other than all required terminology is
contained in the contract, the contract is fully executed, providing a secure location for all
fully executed contract documents and the supporting documentation for each contract, and
maintaining a database of contract information.
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