CONTRACT ADMINISTRATION
Office of the Vice President for Finance and Administration
Texas A&M Health Science Center
MISSION
Contract Administration's mission is to guide HSC
members through the complex contracting processes
to achieve their contract needs.
CONTRACT ADMINISTRATION
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Planning
Procurement
Contract Type
Contract Formation
Lifecycle Management
CONTRACTING
There is no single “right” way to contract.
RESEARCH
CONTRACTS AND GRANTS
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Research
Research
Transactions involving
furthering research projects
must be processed through
the HSC Office of the Vice
President for Research and
Graduate Studies.
POLICY & REGULATION
This Contract Management Guide is intended to
supplement A&M System policies and regulations:
SPRM 25.07: Contract Administration
SPRM 25.07.01: Contract Administration Procedures
and Delegations
SPRM 25.99.02: Component Purchasing Authority
TAMUS Procurement Code
State of Texas Contract Management Guide
State of Texas Procurement Manual
Purchase Order (PO) or Contract?
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If vendor/other party accepts
HSC term and conditions and
does not require a signed
contract, a purchase order may
be used to obtain commonly
available goods and services in
excess of $5,000.00.
If the subject matter of the
transaction involves human
performance, such as rendition
of services, then a contract
should be used.
CONTRACT APPROVAL PROCEDURES
FLOWCHART
Originator negotiates
with one or more
other parties to
create contract.
Contract original
scanned into
Laserfiche and sent
to Contracts
Administration HSC
Review Folder.
Contract deposited
into contract
reviewers review
folder based on
component criteria.
Originator returns
contract to Contract
Administration
through Laserfiche
for further review.
Contract found
sufficient.
If contract found not
sufficient.
Contract deposited
into originating
components return
to component
Laserfiche folder,
originator asked to
make changes.
CONTRACT APPROVAL PROCEDURES
FLOWCHART
Is contract over
$50,000?
Is contract length of
term more than five
years?
If the answer to one
of the questions is
yes.
Contract is
forwarded via
Laserfiche to the
TAMUS Office of
General Counsel for
required review.
If contract is found
not legally sufficient.
Contract returned to
Contracts
Administration.
Originator asked to
make recommended
changes.
Originator returns
contract to Contracts
Administration for
further review.
Contract may or may
not require further
review by Office of
General Counsel.
Contract found
legally sufficient
Contract Administration routes
contract for final approval and
signature based on delegation of
signature authority.
PROPER CONTRACT FORM
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Standard Form of Agreements: Standard agreements are
forms that have been approved as such by the A&M System
Office of General Counsel (OGC).
Review by OGC is unnecessary for a standard form of
agreement for three years unless substantive changes have
been made to the agreement.
Other Contracts: Other parties prefer to use their contract for a
transaction. If the other party’s contract will be used for a
transaction, the contract must be submitted for review to HSC
Chief Legal Officer and/or OGC as to form and legal sufficiency.
COMPLETING THE
CONTRACT
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All contracts must be submitted
to the HSC Office of Contract
Administration for compliance
review.
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All contracts must be complete
and all necessary information
must be type written.
Attach all necessary contract
addenda.
After compliance review, the
signatures of officials with
delegated authority must be
obtained.
COMPLETING THE
CONTRACT
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No contract shall be routed to
the other party for review or
signing without prior approval
from HSC Contracts
Administration.
All contracts must have
applicable contract
administrative and legal reviews
and appropriate signatures prior
to performance by the parties as
set forth within the contract.
SIGNATURES OF AUTHORIZED
REPRESENTATIVES OF THE PARTIES
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No HSC employee has the authority
to bind the HSC contractually except
in accordance with A&M System
policy. Else, the employee could be
held personally liable.
Contracts are legally binding on the
HSC only upon signature by an HSC
official with delegated contractual
signatory authority (Delegation of
Authority Matrix).
PROCESSING CONTRACTS
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The following must be submitted to the Office
of Contracts Administration:
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An original of the contract submitted via
Laserfiche document management
system.
Include addenda.
PROCESSING CONTRACTS
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When the Office of Contracts
Administration receives contracts:
The contract is issued a unique contract
identifier number based on fiscal year.
An electronic file folder is automatically created.
The contract is given a cursory review to
determine other HSC areas that may be
necessary to review the contract.
The contract processes through a formal review
process by a contract reviewer.
Upon completion of review, the contract is then
routed through Laserfiche to the other party
and/or appropriate HSC official(s) for signature.
PROCESSING CONTRACTS
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After the contract has been
signed by all parties:
Contracts Administration will keep
one fully signed scanned copy for
its file - Contract Laserfiche
Repository.
One fully signed original kept by or
returned to the other party.
Originating department electronic
notified that final contract has been
placed into the Laserfiche
Repository for further monitoring
and recordkeeping.
X
PROCESSING TIME FRAMES
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All forms of agreements less
than $50,000 must be submitted
to the HSC Office of Contracts
Administration at least 15
business days prior to start date.
Contracts originating from other
party and/or at least $50,000
must be submitted at least 30
business days prior to start date.
PROCESSING TIME FRAMES
Contracts for Consulting Services
(Payment of more than $15,000 will be made)
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Submitted at least 60 business days prior to the start date for services.
Why?
The additional time is to notify the Governor's Office of Budget Planning
and Policy/Legislative Budget Board and to publish a request for
proposal for the consulting services.
PROCESSING TIME FRAMES
Contracts for Professional Services
(As defined by state law for which the amount of the contract exceeds $14,000)
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Contract must be submitted at least 60 days prior to the start date for
services.
Why?
The additional time is to notify the Legislative Budget Board and to
publish a request for proposal for the professional services.
CONTRACT APPROVAL
Contracts for which Vice President Recommended/Approval Must
be Obtained (Less than $100,000.00)
Barry C. Nelson, Ph.D.
Vice President for
Finance & Administration
Roderick McCallum, Ph.D.
Vice President for
Academic Affairs
David S. Carlson, Ph.D.
Vice President for
Research & Graduate Studies
NOTE: Rayellen Milburn, CPA, Senior Associate Vice President for Finance &
Administration, has been assigned delegated authority to sign contracts less than
$50,000.00
CONTRACT APPROVAL
Contracts for which President Approval Must Be
Obtained ($100,000.00 to $199,000.00)
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Nancy W. Dickey, M.D.
President, Health Science Center
Vice Chancellor for Health Affairs, Texas A&M System
The contract will require Vice
President‘s and legal review and
recommended approval before
processing to the President for
final approval.
CONTRACT APPROVAL
Contracts for which Chancellor Approval Must Be
Obtained ($200,000.00 to $299,000.00)
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Chancellor
Michael D. McKinney
The contract will require HSC
President‘s approval and
required legal review before
processing to the Chancellor for
approval.
The Chancellor approval process
usually takes at least one to two
weeks minimum.
BOARD OF REGENTS
Contracts for which A&M System Board of Regents Approval Must be Obtained
($300,000.00 or greater and/or term of contract longer than five years)
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HSC member business administrator
should contact the Office of
Contracts Administration for
guidance with Agenda Items for
contracts that must be approved by
the Board of Regents. The Board of
Regents approval process usually
takes at least two months.
The Texas A&M University System Board of Regents
Contract Processing
Sooner than Later!