[Insert name of Budget Centre]
[Template]
Contract Management Plan
Contract Management Plan
For
[insert details]
This template is sourced from the Victorian Government Purchasing Board as a guide to
assist staff in undertaking contract management for the provision of goods and services to
UTAS. It is recommended that a plan be developed for all contracts in excess of $100,000
cost over the life of the contract. However, complex contracts may require a lower threshold
and very simple contracts a value somewhat higher. The Plan can be customised to suit
specific Budget Centre needs.
The plan should be used as a management tool by staff to ensure key steps are recorded,
planned, resourced and implemented. Plans will be living documents needing update during
the life of the contract.]
[Insert Contract No.]
[Insert date]
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Part 1 Analysis
1.
Contract Summary
1.1
Documents
[List key purchasing documents available]
1.2
History
[Summarise how and why this contact was developed. Describe any options considered]
1.3
Objectives
[Detail objectives of the contract]
1.4
Key Deliverables
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2.
Contacts
2.1
People
[List key parties and indicate their roles]
2.2
Map of relationships
[Detail the reporting and functional links between key players:]
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Part 2 Preparation
3.
Communication
Strategies
[Identify key methods to be used for liaison, reporting, signalling problems, partnering
relationship eg
 contract review meetings
 internal review meetings]
4.
Performance Evaluation
Strategies
[Describe methods to be used to measure performance (outputs) and outcomes (including
user satisfaction]
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5.
Contingencies
5.1
Strategies
[Describe proposed approach to deal with adverse developments or under performance]
5.2
Disputes
[In the absence of a dispute resolution process clearly detailed in the contract, the following
should be considered:]
If a dispute arises between the parties then the parties agree to undertake the following steps.
1. The complainant shall raise the matter with other party setting out the background and the
issues in dispute, and the outcome desired.
2. If the dispute is not resolved in accordance with clause (a) the complainant shall raise the
matter with other party’s representatives. The parties shall make every effort to resolve
the dispute fairly. In doing so each party agrees to use their best efforts to:
 clearly communicate the background facts leading to or causing the dispute;
 set out clearly what action is required to settle the dispute;
 select a way of resolving the dispute and explain why that way of resolving the dispute
can be said to be a fair resolution of the dispute;
 identify, if the dispute is resolved, how the resolution of the dispute has or could enhance
the business relationship between the parties or the future. In particular, by identifying
specific means of avoiding such disputes arising between the parties in the future.
3. If the dispute is not resolved in accordance with clause (b) then the party may refer the
matter to its association’s facilitator or its negotiator
4. If the dispute is not resolved in accordance with clause (c) then the matter shall be
referred to mediation/conciliation or before (an agreed alternative resolution provider).
5.3
Variations
5.4
Non compliance
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5.5
Under performance
6.
Risk Management
Strategies
[Relate to earlier Risk Management plan developed as part of the Strategic Plan for
Procurement]
[List procedures to be implemented to reduce risks]
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Part 3 Implementation
7.
Transition
Transition-in
Impact
[List main expected impact of the contracted service on stakeholders]
[Note key transition tasks to be addressed including list of key documents required]
Action Plan
Milestones
[The key events in managing this contract are detailed in Appendix (i)]
Contracts Publishing System
[Provide details of the arrangements to report contracts over $100,000 on the Contracts
Publishing System together with entire contracts over $10 million in value]
Transition out
[List key documents required from current contractor]
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Part 4 Completion
8
Review of the Contract
[Describe methods to be used to evaluate the contract and the contract management
processes. Consider third party review of contractor feedback, and overall performance
assessment]
9.
Closure or rollover
[Summarise the outputs and outcomes expected from a successful rollover or re-tender result.
Describe the process and timetable to be adopted
Closure also affects warranty and ongoing obligations (eg training, spares, support) relate
back to ‘transition out’]
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Part 5 Core Files
The following is a suggested list of contract files to be held for and the key document to be
found in each file.

Tender Evaluation Team
- Tender history
- RFT
- Notice of meetings
- Probity Plan
- Users contacted
- Tender Briefing Meeting
- Lodgement of tender
- Conflict of interest declarations
- Evaluation summary
- Minutes of meeting
- Unsuccessful notification
- Shortlisted tenderer information
- Successful notification
- Post tender negotiation
- Recommendation

Unsuccessful Tenderers
- Non-shortlisted tenderers
- Unsuccessful letters
- Shortlisted tenderers
- Meeting/interview documentation
- Unsuccessful letters

Transition Arrangements

Contract Management
- RFT – Successful tenderer(s)
- Agreement/Contract
- Insurance details
- Guidelines
- Licences eg EPA, hazardous waste, asbestos
- Performance measures and targets
- Contractor meetings
- Regular
- High level
- Client Meetings/Feedback
- Sub file
Price Variations/Changes
GST impact
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
Renewal/Re-tender Strategy

Special Issues
- eg
Government initiated variations
Contractor initiated variations
Breach of contract
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Part 6 Asset Management / Disposal
Strategy
Relevant references:
 Internal UTAS guidelines and systems reporting requirements
 Asset Policies and Guidelines (ie Acquisitiosn/ Disposals)
Contract Administration issues:
 Asset treatment (classification, depreciation, etc)
 Control mechanisms (security, responsibilities, etc)
 Maintenance / warranty arrangements
 Review and Reporting requirements
 Financial (accrual accounting) management requirements
End of life arrangements:
 Transfer of ownership
 Disposal options
 Financial arrangements (valuation v/s residual, write offs, etc)
 Necessary approvals
 Accounting system adjustments
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Appendix (i)
Contract Management Plan Schedule
Task

Milestones
Prepare for Handover
- Establish Contract Management Structure
- Establish Service Level Compliance Performance Measures
- Finalise Human Resources
- Finalise Billing Procedures
- Transfer / Dispose of Assets
- Prepare Expiry / Termination Plans and Procedures

-
Transition to Service Provider
Collect relevant contract data and information ready for the
handover
Execute Transition and Monitor Progress
Prepare Notification of Handover
Conduct Independent Review

-
Liaise with User Groups
Survey User Requirements and Satisfaction
Review Changes to Strategy and Plans
Identify Additional / Redundant Requirements
Confirm Value of Service
Prepare Business Unit Report
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Responsibility
Action
Comments
 Manage Service Levels
- Modify Service Levels
- Modify Costs
- Negotiate Changes
- Update Service Level Agreements
- Update Fee Schedule
- Conduct Annual Benchmark Review
- Prepare Annual Budget Projections
 Monitor Performance
- Confirm Service Levels
- Assess Performance
- Conduct Quality Assurance Review
- Prepare Performance Report


-
Administer Contract
Administer Variations
Pay Contract Fees
Resolve Disputes
Conduct Regular Review Meetings
Evaluate Options for Extension of Contract
Evaluate Contract Satisfaction
Identify Options
Benchmark Options
Review Contract Termination Conditions
Cost Options
Evaluate Benefits and Risks
Develop Future Outsourcing Recommendations
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
-
Retain Existing Service Provider
Review Existing Strategies and Plans
Prepare Contract Re-Negotiation Plan
Obtain Price Quotation
Negotiate Contract
Transition to New Contract
OR
 Retender
- Commence tender process
 Select Replacement Service Provider
-
Prepare Request for Proposal Strategy
Prepare Request for Proposal Document
Prepare Request for Proposal
Conduct Service Provider Evaluation
Select Preferred Service Provider(s)
Develop Implementation Plan
Negotiate Contract
Prepare for Handover
Transition to Replacement Service Provider

-
Migrate to In-House Services
Review Existing Strategies and Plans
Consider Organisation Requirements
Identify Infrastructure Requirements
Define In-House Option
Develop Implementation Plan
Transition to in-House Service Provision
OR
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CONTRACT MANAGEMENT
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