Contract Management

Idaho
Department
of Correction Standard
Operating
Procedure
Title:
Contract Management

1 of 11

147.001
Version:
3
Adopted:
05/20/2011

Kim Brown, Chief of Management Services, approved this document and it
was published on 10/28/2026.
Open to the public: Yes No
SCOPE
This standard operating procedure (SOP) applies to any Idaho Department of
Correction (IDOC) employee involved in the procurement, oversight,
administration, and monitoring of services and commodities provided by
contractors, including concession services.
Version Summary
Version 3: Updates definitions and responsibilities, incorporates legislative changes,
and clarifies oversight and reporting requirements. Version 3 removes redundant
sections and clarifies guidance for property leases, professional service agreements,
and contract oversight manuals for high-value contracts.
TABLE OF CONTENTS
Scope ....................................................................................................... 1
Table of Contents ........................................................................................ 1
A. Statutory Authority ................................................................................. 2
B. Board of Correction IDAPA Rule ................................................................. 2
C. Governing Policy Statement ...................................................................... 2
D. Purpose ................................................................................................ 2
E. Responsibility ......................................................................................... 2
F. Definitions .............................................................................................. 3
G. Standard Procedures ............................................................................... 4
1. Introduction ....................................................................................... 4
2. Contract Administration ....................................................................... 4
3. Property Leases .................................................................................. 5
4. Professional and Consultant Service Agreements ..................................... 5
5. Contract Oversight .............................................................................. 5
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6. Recordkeeping ................................................................................... 6
7. Monitoring, Reporting, and Change Management ..................................... 7
8. Payment Verification and Approval ......................................................... 9
9. Escalation Plan ................................................................................. 10
10. Remedy and Cure ........................................................................... 10
H. References .......................................................................................... 10

A. STATUTORY AUTHORITY
1. Idaho Code § 20-217A, Appointment of Director – Salary – Powers and Duties
2. Idaho Code § 67-9219, Contract Oversight
B. BOARD OF CORRECTION IDAPA RULE
None
C. GOVERNING POLICY STATEMENT
1. It is the policy of the Board of Correction that IDOC shall establish authority,
responsibilities, and procedures for the oversight, procurement, development,
and administration of contracted goods and services.
2. SOPs must provide guidance in the following areas, at a minimum: contract
administration; contract oversight; procurement; performance and closeout
responsibilities and timeframes; monitoring and reporting; payment verification
and approval; escalation; quality assurance; and remedy and cure.
D. PURPOSE
1. To establish the roles and responsibilities of key personnel involved in contract
management.
2. To provide expected oversight elements for qualifying contracts and other key
contracts as directed by IDOC leadership.
3. To establish general guidelines that ensure contracted goods and services are
consistently evaluated for contractual compliance and satisfactory performance.
4. To provide general documentation requirements that ensure consistent and
complete recordkeeping of all essential materials and information
E. RESPONSIBILITY
1. IDOC Director
a. Designate authorized signatories for contracts.
2. Contract Supervisor
a. Oversee the activities of contract officers and the purchasing team to ensure
this SOP and the applicable oversight manuals are being followed.
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3. Contract Officer
a. Manage day-to-day administration of contracts.
b. Serve as the primary point of contact between the IDOC and the contractor
related to contract-specific items.
c. Assume the responsibilities of a contract monitor for contracts not assigned
to a separate IDOC contract monitor.
4. Contract Monitor
a. If applicable, monitor key deliverables and performance indicators and report
on the findings.
5. Business Unit Staff
a. Contact the Contract Administration Unit before pursuing any contracts.
b. Verify receipt of goods (if applicable) or services.
c. Are the subject matter expert and point of contact/owner for the goods or
services.
6. Deputy Attorney General (DAG)
a. Review IDOC contracts as requested by contract staff and/or authorized
signatories for legal concerns or questions.
F. DEFINITIONS
1. Authorized Spending Authority: The manager or designee of a designated
budgetary unit (organizational cost center), as on file with fiscal.
2. Business Unit: The relevant unit within IDOC receiving the goods or services
provided through a particular contract.
3. 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.
4. Contract Management: All administrative and monitoring activities associated
with the handling of contracts (including, memoranda of agreement,
memoranda of understanding, purchase and sale agreements, and other legal
agreements) 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.
5. Qualifying Contract: As defined by Idaho Code § 67-9219(5), contracts
requiring additional reporting to the legislature per Idaho Code § 67-9219(4).
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G. STANDARD PROCEDURES
1. Introduction
a. The IDOC director must sign or designate authorized signatories for
contracts.
i. Only the director or designee is an authorized signatory.
ii. The Contract Administration Unit (CAU) must keep the list of authorized
signatories and their designated authority.
b. Business unit staff must contact the CAU prior to pursuing any contract to
ensure contract management compliance.
c. Contract management duties can include, but are not limited to:
i. Acting as the liaison between the IDOC and Idaho Division of Purchasing
(DOP) for contracts managed by DOP.
ii. Managing the procurement process, to include the development of the
appropriate bidding tool, the evaluation processes and the contract.
iii. Facilitating pre-award and post-award activities.
iv. Coordinating contract implementation activities.
v. Acting as the liaison between the IDOC and the contractor.
vi. Developing and maintaining an oversight manual, if applicable.
vii. Providing clarification of contract language and technical assistance.
viii. Managing the contract change management process.
ix. Auditing and reviewing invoices for contract compliance, if applicable.
x. Managing the breach, remedy and cure processes.
xi. Coordinating contract close-out activities.
d. The CAU maintains a Contract Tracker for agency visibility and workload
management.
i. When a contract is within 90 days of expiring, the CAU will engage the
business unit to determine next actions.
e. Any employee involved in contract management must always conduct
business in an ethical and professional manner and in accordance with Idaho
Code §§ 67-9230 and 67-9233, SOP 217.07.01.001, Ethics and Standards of
Conduct, and SOP 147.004, Procurement.
2. Contract Administration
a. The Idaho Division of Purchasing (DOP) administers most aspects of the
contracting process for state agencies, including training for state personnel
on purchasing and solicitation requirements.
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b. For contracts where the type, scope, complexity, cost, and level of risk
involved require DOP involvement, contract administration activities are
shared between the IDOC contract officer and the DOP liaison as set forth in
IDAPA 38.05.01.
c. Legal Review:
i. CAU staff must review each contract to determine if and where legal
review is necessary.
ii. The DAG will review any contract as requested by the CAU or authorized
signatory.
iii. When CAU staff sends any contract to the authorized signatory for
approval, contract staff will include a note of whether the contract has
been through legal review or if legal review was unnecessary and why.
The authorized signatory may decide to sign as is or send to the DAG for
legal review prior to signature.
3. Property Leases
a. Leases and rentals of real property are managed by the Division of Public
Works (DPW). The contract officer will work with the DPW leasing manager
in initiating, canceling, and renewing leases. A copy of all signed leases is
maintained electronically by the CAU.
b. Any subletting is managed by DPW.
4. Professional and Consultant Service Agreements
a. Professional and consultant services are defined in IDAPA 38.05.01, which
also clarifies when such agreements are exempt from the formal sealed bid
procedure.
b. The department end user will work with the contract officer in developing the
scope of work and deliverables. The division requiring the contracted service
will assign a staff member to manage and monitor this contract by providing
periodic progress reports and, at the end of the contract, a closeout report.
c. It is the responsibility of the staff member to notify the contract officer of any
changes to the scope of work, contract term, or deliverables.
d. The department director, or designee, must sign all professional or consultant
service agreements. A central file of all signed agreements is maintained by
the CAU.
5. Contract Oversight
a. All contract oversight should include:
i. A list of the performance measures for each key performance requirement
area
ii. A description of the monitoring frequency for each key performance area
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iii. A list of the auditing/reporting requirements to include monitoring
methodology, protocols, and procedures
iv. A communication plan including the contractor’s chain of command and
points of contact
v. A contract change management plan, if applicable
vi. An escalation plan
vii. A remedy and cure plan
viii. A breakdown of the payment verification and approval process, if
applicable
ix. A closeout plan, if applicable
b. For contracts valued at more than $1,500,000 in total value or other
contracts identified by the contract supervisor required to have an oversight
manual, the manual must define the administrative and oversight protocols,
unique procedures, monitoring requirements, and reporting needs applicable
to the contract. The manual is assigned based on the level of contract
complexity.
i. At a minimum, the oversight manual must include the oversight elements
in G.5.a along with a description of the duties of the contract officer (and,
if applicable, the contract monitor) and a list of the key performance
requirements.
ii. Each oversight manual is developed and maintained by the contract officer
(and, if applicable, the contract monitor) and must be approved by the
contract supervisor.
iii. Contracts valued at more than $1,500,000 in total value must also meet
all oversight requirements in IDAPA 38.05.01.113.03.
6. Recordkeeping
a. Documents relating to each contract’s development, evaluation, performance,
etc. must be maintained and filed accordingly in the IDOC CAU files.
b. The CAU must provide signed contract information to the State Controller’s
Office within 10 days of signature in accordance with Idaho Code §§ 67-
1085 and 67-1085A. Agency budget appropriation reduction (penalties) may
apply if not turned in within 10 days.
c. Annual report to the legislature is required for all qualifying contracts (see
Idaho Code § 67-9219(4)).
d. Public records requests related to contract documents are handled in
accordance with the Idaho Public Records Act, Title 74, Chapter 1, Idaho
Code and SOP 108.001, Public Records Requests.
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e. All documents relating to each contract must be maintained in accordance
with the IDOC retention schedule (per SOP 108.002, Records Retention and
Destruction).
7. Monitoring, Reporting, and Change Management
a. The contract officer (and, if applicable, contract monitor) are responsible for
understanding the terms and conditions of the contract and knowing the
scope and limitations of their authority.
i. Considering the type, scope, complexity, cost, and level of risk involved,
the IDOC deputy chief of management services determines whether to
assign a separate contract monitor.
ii. For all contracts not assigned to a separate contract monitor, and for all
concession services contracts, the contract officer assumes all the duties
of a contract monitor and reports to the contract supervisor.
b. Monitoring duties typically include, but are not limited to:
i. Evaluating on-site operations to determine compliance with contract terms
and conditions and key performance requirements.
ii. Measuring, monitoring, and tracking key performance areas.
iii. Analyzing contractor reporting and key performance measures.
iv. Escalating life-safety and security threat issues or material contract
violations.
v. Analyzing key indicators to identify patterns and trends over time.
vi. Managing the contractor payment verification and approval process.
vii. Completing compliance reports and briefing the contract monitor’s chain
of command and the contract officer on material contract and operational
issues.
viii. Reviewing a contractor’s progress on corrective action plans and holding
said contractor accountable to completion of the corrective action plans.
c. If the contract monitor identifies contract violations or key performance
deficiencies, the contract monitor documents such failures and reports those
findings to the contract officer, the contract supervisor, the business support
manager, and/or the deputy chief of management services.
d. 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
contract supervisor to identify reporting requirements, if any, that need to
be captured, the resulting output, and the appropriate frequency.
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e. Material changes to the time, scope, or cost of the contract or other
functional areas must be accomplished through a formal contract
amendment process through the CAU or, when appropriate, the DOP.
i. 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.
1) Changes must be reviewed and approved by impacted IDOC business
units, the contract supervisor, the business support manager, the
deputy chief of management services, DOP, and reviewed by the DAG
(if necessary). Such changes will be communicated to the contractors
via DOP.
2) Caution: Material changes to state bid contracts can result in the
cancellation of the contract and a public rebidding. Refer to the
contracts supervisor, DOP, or the DAG for guidance before taking
action.
ii. For contracts managed solely by IDOC, material changes to the contract
are managed, negotiated, and documented by the contract officer and
the contracts supervisor and reviewed by the DAG (if necessary).
f. Many contracts have negotiated change management plans. 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:
i. Identify the change(s) required and evaluate the impact of each change on
the contract as a whole, its objectives and deliverables and key
performance requirements.
ii. Facilitate internal discussions as required.
iii. Draft the amendment and obtain all necessary reviews and approvals
before submitting to the contractor for review.
iv. Ensure any contract extensions are reviewed by the DAG (if deemed
necessary by the contract officer) and approved by authorized signatory.
v. Provide a copy of the drafted document to contractor for review/approval.
vi. Negotiate with the contractor as needed.
vii. If there are significant changes, provide a revised document to internal
stakeholders for review/approval.
viii. Obtain the contractor’s final review/approval.
ix. Maintain proper documentation of all changes and approvals.
x. Obtain a signature from an authorized signatory for the contractor.
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xi. Obtain the signature from the IDOC authorized signatory.
xii. Distribute the fully signed document to necessary internal stakeholders,
if any.
xiii. Provide the contractor with a fully signed document.
xiv. Update the submission to the State Controller’s Office within 10 days of
signature in accordance with Idaho Code §§ 67-1085 and 67-1085A.
xv. Retain the fully signed document in the appropriate contract file.
8. Payment Verification and Approval
a. The IDOC provides a two-tiered review of all payments made.
i. The first in-depth review is performed by the contract monitor, if one is
assigned to the contract, otherwise by the appropriate business unit staff.
ii. The second-level review is the Authorized Spending Authority, prompted
by an email from fiscal. The Authorized Spending Authority provides
email confirmation to the AP representative who then creates an invoice
to continue the process.
b. Some contracts have prescribed payment verification and approval
processes, and those unique plans are captured in the appropriate oversight
manual.
c. Absent directed plans in an oversight manual, IDOC staff involved in payment
verification and approval must do the following steps:
i. The contract officer or contract monitor receives the monthly invoice and
reviews it for accuracy; any discrepancies must be addressed with the
contractor by the contract officer or contract monitor.
ii. The contract officer verifies whether liquidated damages, if applicable, will
be assessed and attaches any liquidated damage documents to the
invoice.
iii. The contract officer or contract monitor submits the invoice (and
liquidated damage documentation) to fiscal for processing.
iv. The contract officer or contract monitor retains a copy of invoice in the
appropriate electronic contract file.
d. Exceptions: Payments to the commissary vendor and resident phone provider
are excepted from the above payment verification and approval process. All
such payments are handled in conjunction with the commission payment
and are handled exclusively by fiscal. The contract officer receives monthly
reports of the payments made and commissions received from fiscal for
informational purposes only.
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9. Escalation Plan
a. 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.
b. Absent directed corrective action plans in an oversight manual, the contract
officer and contract monitor, if applicable, must follow this SOP for issue
escalation.
c. 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, immediately notify appropriate facility staff and facility
heads, and follow the requirements of SOP 105.001, Reporting of Major
Incidents.
i. The shift commander notifies the contract officer and forwards copies of all
pertinent information, data, pictures, and reports that substantiate the
identified issue(s).
ii. The contract officer must ensure proper documentation of the issue is
obtained and address the life-safety or security risk with the contractor.
Appropriate notification must also be made to the contract supervisor,
business support manager, deputy chief of management services, and
other leadership, as needed.
10. Remedy and Cure
a. Remedy and cure provisions are 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.
H. REFERENCES
1. Cited Documents
a. CAU Contract Tracker
b. Division of Purchasing, Laws and Policies |
https://purchasing.idaho.gov/laws-and-policies/
c. Idaho Code § 67-1085, Agreements Entered Into by State Agencies -
Reporting |
https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH10/SECT67-
1085/
d. Idaho Code § 67-1085A, State Agency Agreement Reporting Requirements |
https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH10/SECT67-
1085A/
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e. Idaho Code § 67-9219, Contract Oversight |
https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH92/SECT67-
9219/
f. Idaho Code § 67-9230, Prohibitions |
https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH92/SECT67-
9230/
g. Idaho Code § 67-9233, Ethics in Procurement |
https://legislature.idaho.gov/statutesrules/idstat/Title67/T67CH92/SECT67-
9233
h. Idaho Public Records Act, Title 74, Chapter 1, Idaho Code |
https://legislature.idaho.gov/statutesrules/idstat/Title74/T74CH1/
i. IDAPA 38.05.01 – Rules of the Division of Purchasing |
https://files.dfm.idaho.gov/dfm-admin-website/rules/current/38/380501.pdf
j. SOP 105.001, Reporting of Major Incidents
k. SOP 108.001, Public Records Requests
l. SOP 108.002, Records Retention and Destruction
m. SOP 147.004, Procurement
– End of Document –