Contract Monitoring

Policy Number: BFA-1200-001

Policy Title: Contract Monitoring

Vice Chancellor/Associate Chancellor: Associate Chancellor, Budget and Financial Administration

Unit Responsible for Policy: Budget and Financial Administration/UIC Purchasing

Effective Date: 7/1/2019

Contacts: Director of UIC Purchasing; Senior Assistant Director of UIC Purchasing, Contracts and Systems

Policy Statement: This policy applies to the following contract types regardless of funding source: 1) contracts processed by UIC Purchasing; 2) contracts processed by the Office of Business Development Services; 3) real estate leases, acquisitions, and trades that are handled by the UIC Office of Real Estate Services; and 4) contracts subject to additional oversight by the University of Illinois Hospital and Health Sciences System (UI Health). For contracts processed by the Office of the Vice Chancellor for Research, please see http://research.uic.edu for additional information. Monitoring the performance of UIC contractors is a key function of proper contract management and administration. The purpose of contract monitoring is to ensure that: 1) Contractors and UIC are satisfying all responsibilities in accordance with the terms and conditions of the contract as agreed to by the parties; 2) the financial interests of UIC are protected; 3) UIC is aware of and addressing any contractual issues in a timely manner; and 4) Business Enterprise for Minorities, Women, and Persons with Disabilities (BEP) Act goals are established and vendors are monitored for compliance with such goals in cooperation with the Office of Procurement Diversity. The cognizant Vice Chancellor, Dean and unit head share fiduciary responsibility for compliance with this policy and are responsible for assuring the contract monitoring is performed. Failure to comply may result in further employment action, including discipline.

For each contract, the User Department must assign a Contract Monitor. This individual is responsible for ensuring that contractual requirements are satisfied; goods and services are delivered in a timely manner; safety and risk issues are understood and addressed; and required payments are timely approved. The Contract Monitor is also responsible for striving to resolve discrepancies and the timely reporting of any unresolved discrepancies or compliance issues to the appropriate office depending on the contract type. Additional Central Office involvement may be required for certain contracts as identified in the Contract Monitoring procedures.

Reason for Policy: Inadequate Contract Monitoring increases UIC’s financial risk and exposure to potential negative consequences including but not limited to: 1) overpayments; 2) undercollection of revenues; 3) renewal of contracts for services that are no longer required; 4) legal challenges in resolving disputes with vendors due to insufficient documentation of contractor performance issues; 5) delivery of services for which no contract is in place; and/or 6) fines or penalties due to noncompliance with federal, state and/or sponsor requirements.

Minority Impact Statement: The policy has no disproportionate or unique effect on UIC’s minority students, faculty, or staff.

Who Should Read the Policy: UIC faculty, staff, and administrators.

Definitions:

Central Office: UIC Purchasing, Office of Business Development Services (OBDS), or UI Health, depending on the contract type.
Contract: An agreement between two or more parties (with at least one non-UIC party) that creates mutual obligations enforceable by law. NOTE: documents that meet this definition are contracts regardless of whether they are titled “Contract”, “Memorandum of Understanding”, “Intergovernmental Agreement (IGA)”, “License”, etc.
Contractor: The entity (can be UIC or a non-UIC party) that has the responsibility for providing the goods or services at a mutually agreed upon price and within a specified timeframe.
Contract Monitor: The employee responsible for Contract Monitoring under this policy.
Contract Monitoring: The process of observing and documenting contract performance to ensure compliance with all agreed-upon contractual requirements and that applicable regulatory, safety and risk issues are addressed.
User Department: The UIC department that initiates a contract (i.e. the UIC department with the contracting need).

Procedures: Contract Monitoring Procedures

Forms: Contract Risk Assessment; Sample Contract Monitoring Plan

Related Laws, Regulations, Statutes, and Policies: The Illinois Procurement Code and Administrative Rules; Business Enterprise for Minorities, Women, and Persons with Disabilities Act; University of Illinois Hospital Act; Intergovernmental Cooperation Act, as well as other State and Federal statutes and rules; the Health Insurance Portability and Accountability Act (HIPAA); the Illinois Personal Information Protection Act (PIPA); Centers for Medicare and Medicaid Services (CMS) requirements; Federal Uniform Guidance, etc.

Document History:

Last revised: 3/20/2019
Approved by: Committee on Policy, CVC, Chancellor
Approval date: 4/22/2019
Approved as: New Policy