[Insert name of Budget Centre]

[Template]

Contract Management Plan

This template is sourced from the Victorian Government Purchasing Board as a guide to assist staff in undertaking contract management for the provision of goods and services to UTAS. It is recommended that a plan be developed for all contracts in excess of $100,000 cost over the life of the contract. However, complex contracts may require a lower threshold and very simple contracts a value somewhat higher. The Plan can be customised to suit specific Budget Centre needs.

The plan should be used as a management tool by staff to ensure key steps are recorded, planned, resourced and implemented. Plans will be living documents needing update during the life of the contract.]

[Insert Contract No.]

[Insert date]

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Contract Management PlanFor

[insert details]

Part 1 Analysis

1. Contract Summary

1.1 Documents[List key purchasing documents available]

1.2 History [Summarise how and why this contact was developed. Describe any options considered]

1.3 Objectives[Detail objectives of the contract]

1.4 Key Deliverables

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2. Contacts

2.1 People[List key parties and indicate their roles]

2.2 Map of relationships

[Detail the reporting and functional links between key players:]

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Part 2 Preparation

3. Communication

Strategies[Identify key methods to be used for liaison, reporting, signalling problems, partnering relationship eg contract review meetings internal review meetings]

4. Performance Evaluation

Strategies[Describe methods to be used to measure performance (outputs) and outcomes (including user satisfaction]

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5. Contingencies

5.1 Strategies[Describe proposed approach to deal with adverse developments or under performance]

5.2 Disputes

[In the absence of a dispute resolution process clearly detailed in the contract, the following should be considered:]

If a dispute arises between the parties then the parties agree to undertake the following steps.

1. The complainant shall raise the matter with other party setting out the background and the issues in dispute, and the outcome desired.

2. If the dispute is not resolved in accordance with clause (a) the complainant shall raise the matter with other party’s representatives. The parties shall make every effort to resolve the dispute fairly. In doing so each party agrees to use their best efforts to:

clearly communicate the background facts leading to or causing the dispute; set out clearly what action is required to settle the dispute; select a way of resolving the dispute and explain why that way of resolving the dispute

can be said to be a fair resolution of the dispute; identify, if the dispute is resolved, how the resolution of the dispute has or could enhance

the business relationship between the parties or the future. In particular, by identifying specific means of avoiding such disputes arising between the parties in the future.

3. If the dispute is not resolved in accordance with clause (b) then the party may refer the matter to its association’s facilitator or its negotiator

4. If the dispute is not resolved in accordance with clause (c) then the matter shall be referred to mediation/conciliation or before (an agreed alternative resolution provider).

5.3 Variations

5.4 Non compliance

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5.5 Under performance

6. Risk Management

Strategies[Relate to earlier Risk Management plan developed as part of the Strategic Plan for Procurement]

[List procedures to be implemented to reduce risks]

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Part 3 Implementation 7. Transition

Transition-inImpact[List main expected impact of the contracted service on stakeholders]

[Note key transition tasks to be addressed including list of key documents required]

Action PlanMilestones[The key events in managing this contract are detailed in Appendix (i)]

Contracts Publishing System[Provide details of the arrangements to report contracts over $100,000 on the Contracts Publishing System together with entire contracts over $10 million in value]

Transition out[List key documents required from current contractor]

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Part 4 Completion 8 Review of the Contract

[Describe methods to be used to evaluate the contract and the contract management processes. Consider third party review of contractor feedback, and overall performance assessment]

9. Closure or rollover[Summarise the outputs and outcomes expected from a successful rollover or re-tender result. Describe the process and timetable to be adopted

Closure also affects warranty and ongoing obligations (eg training, spares, support) relate back to ‘transition out’]

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Part 5 Core FilesThe following is a suggested list of contract files to be held for and the key document to be found in each file.

Tender Evaluation Team- Tender history- RFT- Notice of meetings- Probity Plan- Users contacted- Tender Briefing Meeting- Lodgement of tender- Conflict of interest declarations- Evaluation summary- Minutes of meeting- Unsuccessful notification- Shortlisted tenderer information- Successful notification- Post tender negotiation- Recommendation

Unsuccessful Tenderers- Non-shortlisted tenderers- Unsuccessful letters- Shortlisted tenderers- Meeting/interview documentation- Unsuccessful letters

Transition Arrangements

Contract Management- RFT – Successful tenderer(s)- Agreement/Contract- Insurance details- Guidelines- Licences eg EPA, hazardous waste, asbestos- Performance measures and targets- Contractor meetings

- Regular- High level- Client Meetings/Feedback

- Sub filePrice Variations/ChangesGST impact

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Renewal/Re-tender Strategy

Special Issues- eg Government initiated variations

Contractor initiated variationsBreach of contract

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Part 6 Asset Management / Disposal Strategy

Relevant references: Internal UTAS guidelines and systems reporting requirements Asset Policies and Guidelines (ie Acquisitiosn/ Disposals)

Contract Administration issues: Asset treatment (classification, depreciation, etc) Control mechanisms (security, responsibilities, etc) Maintenance / warranty arrangements Review and Reporting requirements Financial (accrual accounting) management requirements

End of life arrangements: Transfer of ownership Disposal options Financial arrangements (valuation v/s residual, write offs, etc) Necessary approvals Accounting system adjustments

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Appendix (i)Contract Management Plan Schedule

Task Milestones Responsibility Action Comments Prepare for Handover

- Establish Contract Management Structure- Establish Service Level Compliance Performance Measures- Finalise Human Resources- Finalise Billing Procedures- Transfer / Dispose of Assets- Prepare Expiry / Termination Plans and Procedures

Transition to Service Provider- Collect relevant contract data and information ready for the

handover- Execute Transition and Monitor Progress- Prepare Notification of Handover- Conduct Independent Review

Liaise with User Groups- Survey User Requirements and Satisfaction- Review Changes to Strategy and Plans- Identify Additional / Redundant Requirements- Confirm Value of Service- Prepare Business Unit Report

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Manage Service Levels- Modify Service Levels- Modify Costs- Negotiate Changes- Update Service Level Agreements- Update Fee Schedule- Conduct Annual Benchmark Review- Prepare Annual Budget Projections

Monitor Performance- Confirm Service Levels- Assess Performance- Conduct Quality Assurance Review- Prepare Performance Report

Administer Contract- Administer Variations- Pay Contract Fees- Resolve Disputes- Conduct Regular Review Meetings Evaluate Options for Extension of Contract- Evaluate Contract Satisfaction- Identify Options- Benchmark Options- Review Contract Termination Conditions- Cost Options- Evaluate Benefits and Risks- Develop Future Outsourcing Recommendations

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Retain Existing Service Provider- Review Existing Strategies and Plans- Prepare Contract Re-Negotiation Plan- Obtain Price Quotation- Negotiate Contract- Transition to New Contract

OR Retender

- Commence tender process

Select Replacement Service Provider- Prepare Request for Proposal Strategy- Prepare Request for Proposal Document- Prepare Request for Proposal- Conduct Service Provider Evaluation- Select Preferred Service Provider(s)- Develop Implementation Plan- Negotiate Contract- Prepare for Handover- Transition to Replacement Service Provider

OR Migrate to In-House Services- Review Existing Strategies and Plans- Consider Organisation Requirements- Identify Infrastructure Requirements- Define In-House Option- Develop Implementation Plan- Transition to in-House Service Provision

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CONTRACT MANAGEMENT

ID Task Name Start Finish1 Transition in Tue 3/10/00 Fri 29/12/00

2 Contract management plan Tue 3/10/00 Fri 29/12/00

3 Meet transitional team Wed 4/10/00 Fri 29/12/00

4 Communicate with users Thu 5/10/00 Fri 29/12/00

5 Contract Administration Fri 6/10/00 Fri 29/12/00

6 Manage relationship Fri 6/10/00 Fri 29/12/00

7 Liaise with users Mon 9/10/00 Fri 29/12/00

8 Manage performance against targetTue 10/10/00 Fri 29/12/00

9 Transition out Wed 11/10/00 Fri 29/12/00

10 Contract review Wed 11/10/00 Fri 29/12/00

11 Arrange transition out Thu 12/10/00 Fri 29/12/00

2/10 9/10 16/10 23/10 30/10 6/11 13/11 20/11 27/11 4/12 11/12 18/12 25/12ctober November December

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