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Home My WebLink AboutContract Management: GeneralIdaho Department of Correction Standard Operating Procedure Title: Contract Management: General Page: 1 of 12 Control Number: 147.06.06.001 Version: 2.0 Adopted: 05-20-2011 IDOC Data Sensitivity Classification - L3 Restricted Pat Donaldson, chief of management services, approved this document on 02/01/17. Open to the public: Yes SCOPE This SOP applies to any IDOC employee involved in the procurement, oversight, administration, and monitoring of services and commodities provided by contractors, including concession services. Revision Summary Revision date (02/01/17) version 2.0: Major revision, combined SOPs 147.06.06.001 Contract Management: General, 147.06.06.002 Contract Management: Contracted Prison Operations; and 147.06.06.003, Contract Management: Healthcare Services into this SOP. Updates throughout the document. TABLE OF CONTENTS Board of Correction IDAPA Rule Number ........................................................................................ 2 Policy Control Number 147 ................................................................................................................ 2 Purpose ................................................................................................................................................. 2 Responsibility ....................................................................................................................................... 2 Standard Requirements ...................................................................................................................... 3 1. Ethical Conduct ............................................................................................................................. 3 2. Contract Administration ................................................................................................................ 3 3. Oversight Manual .......................................................................................................................... 3 4. Contract Management Team ....................................................................................................... 4 5. Recordkeeping ............................................................................................................................... 4 6. Procurement, Performance and Close-out Responsibilities and Timeframes ..................... 5 7. Contract Management .................................................................................................................. 5 8. Monitoring, Reporting, and Change Management ................................................................... 5 9. Payment Verification and Approval ............................................................................................ 7 10. Escalation Plan .............................................................................................................................. 8 Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 2 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted 11. Quality Assurance ....................................................................................................................... 10 12. Remedy and Cure ....................................................................................................................... 10 13. Inmate Surveys ............................................................................................................................ 11 14. Unique Procurements ................................................................................................................. 11 Definitions ........................................................................................................................................... 11 References.......................................................................................................................................... 11 BOARD OF CORRECTION IDAPA RULE NUMBER None POLICY CONTROL NUMBER 147 Contract Management PURPOSE Contract management consists of all administrative and monitoring activities associated with the handling of contracts, such as bidding, bid evaluation, award of contract, contract negotiation and finalization, implementation, monitoring and review of key performance indicators, computation of payments, and contract closeout activities. The purpose of this standard operating procedure (SOP) is to establish: • The roles and responsibilities of key personnel involved in contract management • The expected oversight elements for qualifying contracts, as defined in I.C. 67-9219 and IDAPA 38.05.01, and other key contracts as directed by IDOC leadership • The general guidelines that ensure contracted services and commodities are consistently evaluated for contractual compliance and satisfactory performance • The general documentation requirements that ensure consistent and complete recordkeeping of all essential materials and information RESPONSIBILITY Director of the IDOC The director of the IDOC or designee is responsible for contracting authority. Chief of the Management Services Division The chief of management services or designee is responsible for overseeing and monitoring the provisions provided herein. Deputy Warden, CPOU The deputy warden or designee of the contract prisons oversight unit (CPOU) is responsible for overseeing the activities of contract monitors assigned to specific contracts associated with private facilities, out-of-state facilities, and county jails. Health Services Director The health services director or designee of the health services unit (HSU) is responsible for providing oversight and monitoring of the health care services provided to inmates. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 3 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Business Support Manager The business support manager or designee of the management services division is responsible for overseeing the contract administration unit (CAU) and activities of contract officers to ensure the guidelines, standards and procedures set forth in this SOP, and the oversight manuals are being followed. Contract Officer The contract officer is responsible for the overall management and day-to-day administration and management of contracts and serves as the primary point of contact between the IDOC and the contractor related to contract specific items. Contract Monitor The contract monitor is responsible for monitoring key deliverables and performance indicators and reporting on the findings. STANDARD REQUIREMENTS 1. Ethical Conduct Any employee involved in the procurement, oversight, administration, management, and monitoring of services and commodities provided by a contracted third party must conduct all business in an ethical and professional manner at all times and in accordance with I.C. 67-9233, IDOC Policy 217, Ethics and Standards of Conduct and SOP 147.06.06.004 Purchasing and Contracting. 2. Contract Administration The Idaho Division of Purchasing (DOP) manages most aspects of the contracting process for state agencies, including training for state personnel on purchasing and solicitation requirements. For contracts, where the type, scope, complexity, cost, and level of risk involved require the DOP be involved, contract administration activities are shared between the IDOC contract officer and the DOP liaison as set forth in IDAPA 38.05.01 and the DOP’s “Guide to Roles and Responsibilities,” available at http://purchasing.idaho.gov/index.html. 3. Oversight Manual Each oversight manual shall define the administrative and oversight protocols and procedures of a specific contract. Each oversight manual addresses unique procedures, monitoring requirements and reporting needs applicable to the contract. The business support manager maintains a master oversight manual template in the proper electronic “forms and templates” folder. Each oversight manual is developed and maintained collaboratively by the contract officer and contract monitor and must be approved by the chief of management services and the business support manager. Any changes or updates to the oversight manual must be approved by the business support manager and chief of management services. As a baseline, each oversight manual must include, but is not limited to, the following: • A description of the duties of the contract officer and contract monitor Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 4 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted • A list of the key performance requirements • A list of the performance measures for each key performance requirement area • A description of the monitoring frequency for each key performance area • A list of the auditing/reporting requirements to include monitoring methodology, protocols, and procedures • A communication plan including the contractor’s chain of command and points of contact • A change management plan • An escalation plan • A remedy and cure plan • A breakdown of the payment verification and approval process, if applicable • If applicable, a closeout plan For contracts that do not rise to the level of a qualifying contract or that are not otherwise required to have an oversight manual, sections 3-11 of this SOP serve as the guide for oversight, analysis, and reporting requirements. 4. Contract Management Team A contract management team (CMT) may be established by the chief of the management services division for the purpose of managing complex, high risk, high value, or qualifying contracts. The CMT generally consists of the business support manager, a contract officer, and a contract monitor, or program manager, as applicable. One or more contract monitors or other IDOC staff as appropriate from the HSU may be involved for health services related contracts or the CPOU may be involved if the contract involves privately operated prisons, out-of-state facilities, or county jails. The contract officer facilitates each CMT, schedules meetings, and leads discussions on key performance requirements and contract compliance. When no CMT is established, the contract officer and contract monitor or program manager, if applicable, are responsible for properly managing the contract, monitoring key performance areas, reporting findings, the change management process, and close-out activities. 5. Recordkeeping All documents relating to each contract must be maintained in accordance with the IDOC CAU retention schedule. Documents relating to each contract’s development, evaluation, performance, and so forth must be maintained and filed pursuant to the CAU Integrated Contract File System. Copies of documents may be maintained as digital copies stored on the IDOC’s backed-up network drives and/or, in hard copy form (as determined by the CAU system) maintained in the management services file room. Public information requests (PIR) related to contract documents are handled in accordance with IDOC Policy 108, Public Access to Records, and IDOC Public Records User Manual. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 5 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted 6. Procurement, Performance and Close-out Responsibilities and Timeframes The IDOC follows DOP procurement processes for qualifying contracts. Where the type, scope, complexity, cost, level of risk require, or when purchasing authority restrictions apply, the resulting bidding tool, contract and oversight manual provides the structure, procurement process, key performance requirements and close-out activities, and delineates critical timeframes. In cases where the IDOC handles its own procurement, contract officers and contract monitors, if applicable, will develop and document the procurement process, key performance requirements, and close-out activities and establish critical timeframes. 7. Contract Management Contract management is provided by a contract officer under the direction of the business support manager and the chief of management services. Contract management is the active management of IDOC’s contracts and involves the efficient and timely planning, execution, managing day-to-day operations, monitoring key performance areas, and contract closeout in order to maximize financial and operational performance while minimizing risk. Contract management duties can include, but are not limited to: • Managing the procurement process, to include the development of the appropriate bidding tool, the evaluation processes and the contract; • Facilitating pre-award and post-award activities • Coordinating contract implementation activities • Acting as the liaison between the IDOC and the contractor • Developing and maintaining the oversight manual, if applicable • Providing clarification of contract language and technical assistance • Managing the change management process • Approving invoices, if applicable • Managing the breach, remedy and cure processes • Coordinating contract close-out activities 8. Monitoring, Reporting, and Change Management The contract officer and contract monitor are responsible for understanding the contract terms and conditions, and knowing the scope and limitations of their authority. Monitoring Through the contract monitor’s regular interaction with the contractor, the contract monitor observes and tracks the contractor’s on-site operations to ensure that key performance areas are being met and that the contractor is in compliance, in all material respects, with the terms of the contract. Monitoring is accomplished through such means as, but not limited to, direct observation, document and record reviews, interviews, statistical analysis, unannounced inspections, and fact-finding. The contract monitor reports to the appropriate CPOU, HSU, or CAU leadership team. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 6 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Monitoring duties typically include, but are not limited to: • Evaluating on-site operations to determine material compliance with contract terms and conditions and key performance requirements • Measuring, monitoring, and tracking key performance areas • Analyzing contractor reporting and key performance measures • Escalating life-safety and security threat issues or material contract violations • Analyzing key indicators to identify patterns and trends over time • Managing the contractor payment verification and approval process • Completing compliance reports which includes briefing the chain of command and the contract officer on material contract and operational issues • Reviewing a contractor’s progress on corrective action plans If the contract monitor identifies material contract violations or key performance area deficiencies, the contract monitor documents such failures and reports those findings to the appropriate CPOU, HSU, or CAU leadership team, the contract officer, the business support manager and chief of management services. Communication plans for contracts, which do not involve DOP, follow the contract officer’s chain of command. Where the type, scope, complexity, cost, and level of risk involved do not rise to the level of requiring a contract monitor, and for all concession services agreements, the contract officer assumes all the duties of a contract monitor and reports to the business support manager. Reporting Reporting requirements and frequency vary by contract and any specific reporting requirements are described in the applicable oversight manual. If no oversight manual is required, the contract monitor works with the business support manager to identify reporting requirements, if any, that need to be captured, the resulting output, and the appropriate frequency. Change Management During the term of a contract, it may become necessary to make material changes to the time, scope, or cost of the contract or other functional areas. In every case, changes to a contract must be accomplished through a formal contract amendment process through the CAU or, when appropriate, the DOP. For contracts managed in concert with DOP that went through a formalized bidding process, the process for documenting and requesting a change is described in the contract and DOP rules. The change management process is managed by the contract officer. Changes must be reviewed and approved by impacted IDOC business areas, the business support manager, the chief management services, DOP, and reviewed by the IDOC DAG. Such changes will be communicated to the contractors via IPRO when DOP is involved. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 7 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Caution: material changes to state bid contracts can result in the cancellation of the contract and a public re-bidding. Refer to DOP or the IDOC DAG for guidance before taking action. For contracts managed solely by IDOC, material changes to the contract are managed, negotiated, and documented by the contract officer and the business support manager, and reviewed by the IDOC DAG. Many contracts have negotiated change management plans that will be followed. If a contract has neither a change management process nor an oversight manual, the contract officer and contract monitor must follow the steps below to manage change management: • Identify the change(s) required and evaluate the impact of each change to the contract as a whole, its objectives and deliverables and key performance requirements • Facilitate internal discussions as required • Draft the amendment and obtain all necessary reviews (IDOC stakeholders, DAG, DOP and so forth) and approvals before submitting to the contractor for review • Ensure any contract extensions are reviewed by the IDOC DAG and approved by appropriate IDOC leadership • Provide a copy of the drafted document to contractor for review/approval • Negotiate with the contractor as needed • If there are significant changes, provide a revised document to internal stakeholders for review/approval • Obtain the contractor’s final review/approval • Maintain proper documentation of all changes and approvals • Obtain a signature from an authorized signatory for the contractor • Obtain the signature from the IDOC signing authority • Distribute the fully signed document to necessary internal stakeholders, if any • Provide the contractor with a fully signed document • Retain the fully signed document in the appropriate contract file (electronic and hard copy) 9. Payment Verification and Approval The IDOC provides for a 2-tiered review of all payments made. The first in-depth review is performed by the appropriate business unit or contract monitor as applicable. The second level review is the appropriate signature authority. Many contracts have prescribed payment verification and approval processes and those unique plans are captured in the appropriate oversight manual. Absent directed plans in an oversight manual, IDOC staff involved in payment verification and approval must follow this SOP to ensure payments are reviewed, verified, approved, and processed in a timely manner using the following steps: Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 8 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted • The contract officer or contract monitor receives the monthly invoice and reviews it for accuracy; any discrepancies must be addressed with the contractor for correction • The contract officer verifies whether liquidated damages, if applicable, have been assessed; attach any liquidated damage documents to the invoice • The contract officer or contract monitor submits the invoice (and liquidated damage documentation) to the appropriate review authority:  deputy warden of the CPOU for privately operated prisons, director of HSU for medical  signature authority for all other areas • After receiving both approvals, forward the invoice to the fiscal unit for processing • Retain a copy of invoice in the appropriate contract file Excluded from this payment verification and approval process are payments to the commissary vendor and inmate phone provider. All such payments are handled in conjunction with the commission payment and are handled exclusively by IDOC fiscal staff. The contract officer receives monthly reports of the payments made and commissions received for informational purposes only. 10. Escalation Plan Material contract compliance issues identified by the contract officer or contract monitor must be dealt with in a manner that consistently works to ensure safety and security. The actions taken depend on the severity of the issue. Not all issues rise to the level of a formal corrective action plan. By virtue of the day-to-day management of a contract, the contract officer and/or contract monitor work directly with the contractor to address issues at the lowest level as they arise. If issues cannot be addressed informally, or in the event of a major failure or safety or security concern, the formal corrective action plan process is followed. Many contracts have negotiated communication and escalation plans which are captured in the oversight manual. Absent directed plans in an oversight manual, the contract officer and contract monitor must follow this SOP for issue escalation. Non-Life Safety or Security Issues If non-life safety performance issues or activities are identified, a qualified IDOC staff member must observe, review, assess the deficiency or issue, and report the findings to the appropriate work unit’s contract officer or contract monitor. • Findings must be discussed with consideration to the total circumstances involved and contract implications. • The contractor must be notified in writing of the findings and, if appropriate, instructed to provide a corrective action plan to address the issues. (Follow the appropriate communication plan in the contract or this SOP, as appropriate, as to written notice.) If a corrective action plan is required: • The contractor will submit a corrective action plan, to include a resolution timeframe, to the contract officer or contract monitor, as appropriate, for review. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 9 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted • The contract officer or contract monitor will present the corrective action plan to the business support manager and chief of management services. • The business support manager and chief of management services must review and approve any formal corrective action plan. • Once a corrective action plan is approved, the contract officer or contract monitor will notify the contractor and the approved plan implemented. • During the corrective action plan timeframe, the contract officer or contract monitor will conduct a follow-up review with the contractor to determine if the corrective action plan is followed and the issue adequately corrected, reporting back to the business support manager of the findings. • If the issue has not been corrected to the IDOC’s satisfaction, the contract officer or contract monitor and business support manager must gather the necessary documentation and work with the IDOC DAG on formal contract notifications and remedies in accordance with the contract as appropriate. Life Safety or Security Issues If life safety issues are identified or facility security is compromised due to a contractor’s performance or activities, IDOC staff must take immediate steps to correct the issue if possible and immediately notify appropriate facility staff and facility heads. Any staff member who observes a life safety or security issue must take the following steps. Functional Roles and Responsibilities Step Tasks Staff Member 1 If possible, take immediate action to reduce or eliminate the risk. 2 Notify the shift commander. Shift Commander 3 Take immediate action to reduce or eliminate the risk. 4 Notify the facility head or facility duty officer. 5 Complete a 105 Incident Report (General Reporting and Investigation of Major Incidents, SOP 105.02.01.001) 6 Notify the contract officer and forward copies of all pertinent information, data, pictures, and reports that substantiate the identified issue(s) Contract Officer 7 Compile information and notify the business support manager. Business Support Manager 8 Notify the chief of management services, and the manager of the CAU, CPOU or HSU as appropriate Business Support Manager or Contract Officer (as directed) 9 • Ensure that the life safety or security risk is (or identified to the contractor and addressed. • Ensure proper documentation. Business Support Manager 10 Send formal written notification to the contractor requesting an action plan to resolve the issue within 24 to 48 hours of contractor’s receipt of the written notice. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 10 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Functional Roles and Responsibilities Step Tasks Business Support Manager 11 Notify the contract officer of the contractor’s resolution plan. Contract Officer 12 Monitor the contractor’s resolution progress If progress is not made and a resolution achieved, notify the business support manager Business Support Manager 13 Meet with the chief of management services and other IDOC leadership, and IDOC DAG to discuss options and available course of action. 11. Quality Assurance IDOC contracts that are of a type, scope, complexity, cost, and level of risk may have a quality assurance (QA) plan within the contract, which is captured in the oversight manual. Absent directed quality assurance plans or auditing protocols within the contract and oversight manual, the contract officer and contract monitor will follow this SOP. • The business support manager determines if a formal QA plan is warranted. • If a QA plan is required, such identified contracts must be audited or reviewed on an annual basis to ensure compliance. • Each audit or review must be designed to measure key performance metrics or deliverables and to review the overall performance of a contractor. • The contract monitor is responsible for leading and facilitating contract compliance audits. The contract officer and contract monitor work in tandem to ensure proper documentation and auditing protocols are followed and maintained. When no contract monitor is assigned, the contract officer is responsible for the QA plan. • Upon conclusion of the audit or review, the contract monitor provides the results to the business support manager, the appropriate work unit leadership, and the contract officer as appropriate. The business support manager and/or the applicable work unit leadership present the findings to the chief of management services. The chief of management services determines when it is appropriate to bring any audit or review findings to the IDOC leadership team. • Any formal audit report must be provided to the contractor’s representative(s). • The contract officer meets with the contractor to discuss the report findings and if required reviews the report findings with the contractor to identify any amendments or exceptions that need to be completed in order to ensure that the contractor’s performance is in accordance with the contract and the contract is in accordance with current practices, policy, and SOP. If required, the contract monitor requests a corrective action plan to address any material key performance deficiencies identified. • The contract officer or contract monitor typically handle concern forms and grievances, which are processed and managed in accordance with SOP 316.02.01.001, Grievance and Informal Resolution Procedure for Offenders. • The contract officer maintains all audit documentation and files it in a centralized record-keeping area according to the CAU’s Integrated Contract File System. Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 11 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted 12. Remedy and Cure Remedy and cure provisions will be as stipulated in each contract. If not stated, the IDOC will utilize a standardized 30-day cure period, which begins once the notice has been received. 13. Inmate Surveys When directed by the business support manager, the contract officer may conduct inmate surveys that are designed to gauge the effectiveness of individual programs, services, and offerings provided by the contract. 14. Unique Procurements Concession Services Concession services are defined in IDAPA Rule 38.05.01.032 of the Idaho Department of Administration, Division of Purchasing, and cover services for which the IDOC does not pay. Concession services are managed by the contract officer and require an oversight manual. Concession services agreements follow a unique set of processing rules that are developed, managed, and administered solely by the CAU and the assigned contract officer. Examples of concession services include such things as inmate phone services, kiosk-based services, and commissary services. Delegated Authority The IDOC has delegated authority from the DOP to engage in purchasing activities and to administer agreements for concession services. DOP is not involved in the procurement of concession services agreements or in the day-to-day administration thereof. Solicitation When procuring concession services the IDOC is not required to go through a competitive bidding process or to utilize DOP; however, the IDOC may elect to conduct a competitive bidding process using a formalized concession services request (CSR) process. There are no statutory or administrative appeal rights within any CSR process and no dictated timing or delivery constraints; except as may be established by the contract officer and captured by the CSR and resulting contract. DEFINITIONS Contract Administration: Actions taken relating to changes to contracts, including amendments, renewals and extensions; as well as receipt, review and retaining of the contract and contract-related documents; and exercise of remedies. REFERENCES CAU Integrated Contract File System Policy 108, Public Access to Records Policy 217, Ethics and Standards of Conduct Control Number: 147.06.06.001 Version: 2.0 Title: Contract Management: General Page Number: 12 of 12 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Standard Operating Procedure 105.02.01.001, Reporting and Investigation of Major Incidents State of Idaho, Department of Administration (www.adm.idaho.gov) IDAPA Rule 38.05.01 IDOC Public Records User Manual Idaho Code Title 74, Chapter 1 Idaho Code 67-9207 Idaho Code 67-9219 Idaho Code 67-9233 – End of Document –