Contract Types OCTOBER | 2023 HUD TECHNICAL

Transcript:Contract Types OCTOBER | 2023 HUD TECHNICAL:
Contract Types OCTOBER | 2023 HUD TECHNICAL ASSISTANCE Agenda Contract Management Overview General Contracting Principles Contract Type Selection Considerations Contract Types and Scenarios Fixed Price Cost Reimbursement Time and Materials Intergovernmental Agency Agreements/Memorandums of Understanding Prohibited Contracts What is Contract Management? Contracts govern your organization’s relationships with vendors and subrecipients. Effective contract management ensures these relationships are efficient and cost-effective—that your organization receives benefit from every agreement in a timely and cost-effective manner. It also ensures that the implementation or delivery of contracts is satisfactory to all parties. Efficient contract management includes agreeing to, documenting, and reporting on changes from all parties, so you face no disputes or surprises. The Importance of Effective and Compliant Contract Management Improves the process for generating, negotiating, signing, and renewing contracts. Reduces expenses and administrative time by creating a standardized contract process. Creates strong relationships with your partners and vendors because you monitor contract performance and quickly identify problem areas. Ensures your suppliers are cooperative and responsive to your organization’s needs. Helps you assess, monitor, and mitigate financial, legal, and procurement risks. Contract Management in Government Government contracts also have considerations that are not typical in private-sector contract management: Agencies must comply with strict contract requirements related to evaluation guidelines, spending, and performance oversight. While there are additional considerations, most goods and services have a precedent or parallel for how to procure. Key considerations include: Billing structure. Performance requirements and penalties. Terms. Practicality to operationalize. General Contracting Principles There should be clear alignment between the core components of procurement and contracting, including: Scope of services. Payment terms. Performance expectations and associated penalties. Project schedule/contract term. Require expenditure and performance benchmarks. Reimbursement requests should be submitted timely. Contract for the time needed. Regularly scheduled reporting is a must. Read and understand your contract terms. Ensure your vendors and subrecipients understand their obligations. “All funds disbursed under this Contract are subject to recapture and repayment for non-compliance.” Contract Type Selection Considerations What am I seeking to procure? What is the best procurement method? What is the most appropriate billing structure? What is the most appropriate payment structure and terms? What systems, tracking, and monitoring are in place? What is the level of controls and oversight required? Administration of fixed price vs. cost reimbursement are different. What is the staffing capacity and capability to manage more complex contracts? Ability to manage the contract as written. Contract Type: