CONTRACT ADMINISTRATION STANDARD OPERATING PROCEDURES

Transcription

1 CONTRACT ADMINISTRATION STANDARD OPERATING PROCEDURES SOP #.004 Title: MONITORING OF CONTRACT PERFOMANCE AND DELIVERABLES Version: 1 Approval Date: May 10, Purpose. The purpose of a contract monitoring to ensure that the Contractor is performing in accordance with the contract terms and conditions. The objectives of contract monitoring are: Adequate planning and monitoring activities. Ensure monitoring tools and activities are appropriate for the nature of the services and contract. Verify contractor performance against contract requirements. Identify and document contractor s performance strengths and weaknesses. Address corrective actions and follow-up timely and with the contractor. Monitor all aspects of the contract. Open communication with contractor regarding activities and concerns. Contract monitoring may be viewed as a preventive function; as an opportunity to determine the Contractor s need for technical guidance (any technical guidance provided by the County must not cause the Contractor to perform outside of the requirements of the Contract); and as a valuable source of information concerning the effectiveness and quality of the goods and services being provided. The Contract Administrative Agent is not responsible for monitoring the relationship between the Contractor and any of its sub-contractors. However, this does not preclude the Contract Administrative Agent from monitoring or ensuring that the Primary Contractor is performing the required duties and responsibilities under the terms of the contract even if through sub-contractors and identify any corrective actions. Page 1 of 5

2 2.1. Need. Small dollar value or less complex Contracts normally require little, if any, monitoring. However, that does not preclude the possibility of more detailed monitoring if deemed necessary by the County. Conversely, large dollar Contracts may need little monitoring if the items or services purchased are not complex, and it is determined that there is a lower level of risk associated with the procurement. The amount of monitoring should be limited in type, scope and frequency so as to be sufficient to achieve the desired result without unnecessarily increasing costs. Unnecessarily burdensome performance metrics or over-monitoring of the Contract can interfere with the Contractor s ability to accomplish the work and may unnecessarily and inadvertently increase the costs of the work. MONITORING 3.1. Areas of Monitoring The monitoring is a planned, ongoing, and periodic activity to determine: Compliance by the Contractor with the contract terms and conditions and any applicable laws and regulations. All required activities are being or have been performed in accordance with the contract. Deliverables have been completed. Funds have been accounted for and used appropriately. The contract/program goals and objectives are being met. Any performance metrics must be clearly stated in the solicitation. The scope of work should identify the services required, including, but not limited to, specific deadlines for completion of tasks and a schedule for submittal of deliverables, required meetings, presentations or other activities The Contract Administrative Agent should carefully review the contract and develop an individual monitoring checklist for review and verification of contract requirements. The checklist should include but is not limited to the following as may be applicable to the specific contract: Reports to be submitted and due dates. Source documentation that will be used to verify services. Interview that may be conducted. Schedule of deliverables and due dates. Schedule of anticipated outcomes or projections of performance costs. Schedule of monitoring and/or on-site visits as well as a clear description of how these activities will be performed. Page 2 of 5

3 The Contract Administrate Agent should consider the following questions when determining what to monitor: 3.2. Timeframe. How will the County know it is receiving what it paid for? How will the County know that the Contractor is complying with the requirements, terms and conditions of the Contract? How will the County know the Contract is complete and ready for Contract close-out? The contracts should be monitored from the inception to the completion in accordance established by the Contract Administrative Agent. The review and evaluation of the Contractor s performance and compliance with the contract terms and conditions is considered contract monitoring. This function in general is accomplished by a combination of activities, tasks, and methods to ensure that the Contractor is fulfilling contractual obligations Third Party Monitoring Requirements. Different funding sources such as federal grants may have specific requirements for Contract Monitoring. The Administrative Agent must be familiar with these requirements and include them in the scope of work. In some instance the obligation of monitoring the progress of a Contract is assigned to another Contractor, such as in construction projects General Categories of Monitoring: Programmatic Monitoring - Focuses on the delivery of services and compliance of contract requirements. Fiscal Monitoring Focuses on the accounting for all contract funds/expenditures and determining that funds have been expended in accordance with the contract and all applicable laws, rules and regulations. Both programmatic monitoring and fiscal monitoring involves information collection about the Contractor s services and is not limited to site visits or the completion of formal reviews. Every communication with the Contractor provides a monitoring opportunity and must be documented accordingly. Below are some goals for each type of monitoring: Determines that the Contractor has adequately demonstrated the satisfactory performance of all services required by the contract. Determine that the Contractor has completed all deliverables. Determine that the outcomes or goals identified in the contract have been meet. Determine, where applicable, that funds were properly accounted for. Determine, where applicable, were made in accordance with applicable laws, rules, and regulations; were authorized by the contract, were directly related to the project. Verifies that total payments are within the limits set by the contract. Page 3 of 5

4 3.5. Outcomes. The Contract s requirements are deliverables to which the parties will agree under the Contract. However, the monitoring program should be designed so as it focuses on requirements that are considered most important. Generally, this means to focus the monitoring on the outcomes that the Contract will require. The following are examples of outcomes: The Count receives the services require by the Contract. Services costs are within budget, as identified in the Contract. The Contractor protects assets purchased with tax dollars. The Contractor provides accurate reports. The Contractor makes corrections to goods and/or services identified as not meeting requirements. Goods/services are provided on time Types of Monitoring Activities. The solicitation should include a section that outlines how monitoring will be conducted so that individuals responsible for Contract Monitoring and the Contractor all understand what will be monitored and the criteria that will be used to evaluate Contractor performance. Reports: The Contractor is required to submit progress reports or other appropriate report, based on a pre-defined criteria and review of the Contractor s reports for verification of services. Onsite Inspection: Conduct onsite inspections and the results of these visits should be documented in writing and compared with the contract requirements. Surveys: Survey customers concerning contract service delivery and quality. Require the Contractor to resolve complaints and keep records of both the complaint and method of resolution. Samples: Random sampling of product being installed. Inspections and Testing. Ensures the contract is fully performed by guaranteeing that the product or service is received in the correct quality, correct quantity and in a timely manner. Other Periodic Contact: Maintain an open line of communication to review progress on a regular basis. The documentation of these contacts become important when resolving any issues or concerns regarding the contract. Invoice Reviews. Compare billings with the terms agreed upon in the contract. Ensure that the costs being charged are within the contract parameters and required services performed. Page 4 of 5

5 3.7. Reporting. The Contract Administrative Agent should prepare a monitoring summary report outline the date monitored, areas monitored document, progress, and any deficiencies. The Contract Administrative Agent should cite any deficiencies in the Corrective Action Report and immediately discuss with the Contractor. The Corrective Action Report should also be uploaded in the County s Vendor Performance Evaluation database and retained in the contract file. The Corrective Action Report form is available from the Procurement Division SharePoint. Page 5 of 5