Contract Administration (cont'd)

Purpose: This document sets forth requirements applicable to all contractual instruments for services.
References: MAPP 04.04.01A, SAM 03.A.05
PT. I: Types of Contracts & Forms Required
PT. II: Processing Different Contracts
PT. III: Encumbering & Paying Contracts
PT. IV: Amendments to Contracts
PT. V: Late Contract Justification
PT. VI: Instructions for Submitting Contracts Electronically for Review
Examples: Cover Sheets


Review and Responsibility:
  • Responsible Party: Director, NSM Business Operations
  • Review: Every two years, on or before August 31
  • Director, NSM Business Operations - Fred McGhee
  • Dean, NSM - John Bear
  • Date of Dean's Approval: 09/01/2008

III: Encumbering & Paying Contracts

All Contracts administered by the college should be encumbered in PeopleSoft either by the executing office or by the department.

The department will use a Purchase Requisition to encumber contracts. Choose the applicable Business Unit (BU):

  • RC730 - for contracts using grant funds (Federal and Non-Federal Agreements). Select the OCG path, and select your assigned OCG Buyer. This will route the requisition to the Office of Contracts and Grants for final approval. Approved contracts will be assigned a contract number (R#).
  • CN730 - for contracts over $10,000 using non-grant funds. The department assigns a "K" contract number.
  • 00730 - for contracts over $5,000 and under $10,000. The department assigns a "K" contract number.
  • Letters of Contract must be encumbered using business unit CN730.

A Purchase Order will be created from the requisition and emailed to the DBA. When preparing the PO Voucher to pay the contract:

  • For Grants: Use the assigned contract number (R#); do not use the requisition number. Documentation from the PI indicating that the work is completed and payment should be made must be included with the PO Voucher. Also, a written activity report providing a description of services rendered and the results of those services will be completed by the contractor and attached to the PO Voucher for payment. (Per Sponsored Contract Agreement form, Section #7 - Certification of Principal Investigator).
  • For non-grants: ;Use the assigned Requisition #. Reference the K# in the voucher comments.

IV: Amendments to Contracts

  • Can only be prepared if the original contract has not expired.
  • Two (2) original amendment forms are necessary and the original contract must be attached.
  • Must be executed before payment related to the amendment is made.
  • Must have all signatures as the original contract.
  • Amendments to amounts should be analyzed to ensure the resulting contract still has the proper forms and required approvals as the original contract. Otherwise, more forms or certifications may be necessary.
  • The amounts of the amendment, if any, add value to the original contract for a cumulative contract total. If this cumulative total reaches $25,000, the amendment and contract must be sent to Contracts Administration for processing.
  • If the scope of work changes, a new contract should be prepared.

V: Late Contract Justification

If contracts will be approved after the contractor begins his/her work, a Justification for Untimely Contract Submittal outlining the reason for the delay must be attached to each copy of the contract. It is a good practice to inform the processing office ahead of time of any delays and obtain their advice and approvals on "RUSH" or "Walk Through".