Contract Administration

1.         POLICY 

1. It is the policy of the City of Garland to conduct centralized procurement and contract administration functions efficiently, effectively, and in full compliance with applicable State laws and City ordinances. To that end, the authority to contract for goods and services for the City of Garland rests with the City Manager and those employees to whom he/she delegates that responsibility. The Director of Procurement and Contracts, has been delegated by the City Manager to contract for the City in accordance with this Contract Administration Directive. 

 1.2       Unauthorized personnel who attempt to contract in the name of the City, or personnel executing unauthorized contracts outside of the scope of this Contract Administration Directive, may be subject to disciplinary action, legal action, and personal financial liability.

 2.         RESPONSIBILITY/AUTHORITY

 2.1       City Manager – The City Manager establishes the rules and regulations for the contracting of all goods and services by means of Directives. The City Manager has delegated to the Purchasing Director and Contracts Manager the authority to contract for goods and services as well as to administer the purchasing rules and regulations as established by Texas State and Local Government Codes.

 2.2       Director of Procurement and Contracts – The Director of Procurement and Contracts oversees compliance with procurement and contracting requirements for goods and services as prescribed in the Texas Local Government Code and the City Directives. The Director of Procurement and Contracts ensures that procurement and contracting activities are conducted with the highest level of ethical standards.

 2.3       Contract Administration Office -  The Contract Administration Office is responsible routing, execution, retention, and life cycle management for all City contracts. This includes establishing and tracking contract data points, deliverables, and milestones in the Contract Lifecycle Management system.

 2.4       City Attorney’s Office – The City Attorney’s Office works with the requesting department in the formation of complex or high risk contracts. The City Attorney’s office also helps to ensure that all City contracts are routed and executed through the Contract Administration Office.

 2.4       Managing Directors – Each Managing Director is responsible for ensuring their department’s compliance with all contract administration policies and procedures outlined in this Directive and State Statutes.

 2.5       Contract Owner – Each Department is responsible for assigning a Contract Owner to ensure compliance with the performance of the contract. This includes managing the deliverables of the contract and acting as liaison with the Contract Administration Office.

  3.         APPROVAL AUTHORITY

 3.1       City Council has approval authority for all or contracts with either a one-time or anticipated annual expenditure of $100,000 and above. In addition, City Council has approval authority for all Change Orders greater than either $50,000 or 25% of the original Contract. These contracts must be routed and executed through the Contract Administration Office.

 3.2       The City Manager has approval authority for all or contracts with an anticipated annual expenditure up to $99,999, with the exception of Change Orders greater than either $50,000 or 25% of the original Contract. These contracts must be routed and executed through the Contract Administration Office.

 3.3       The Deputy City Manager, Assistant City Manager, and General Manager of GP&L have approval authority for all contracts with an anticipated annual expenditure up to $74,999 with the exception of Change Orders greater than either $50,000 or 25% of the original contract. These contracts must be routed and executed through the Contract Administration Office.

 3.4       Managing Directors, Chief Operations Officer of GP&L, Chief Financial Officer of GP&L, and GP&L Directors have approval authority for all contracts with an anticipated annual expenditure up to $49,999 with the exception of Change Orders greater than 25% of the original contract. These contracts must be routed and executed through the Contract Administration Office.

 3.5       Department Heads and/or Directors have approval authority for all contracts with an anticipated annual expenditure up to $24,999 with the exception of Change Orders greater than 25% of the original contract. These contracts may be routed and executed at the Department level.

 3.6      Director of Procurement and Contracts has delegated authority to execute all City Council approved contracts. 

4.         CONTRACT FORMATION

4.1       Standard Contracts - Standard contract templates are appropriate for procurement contracts that are routine in nature. These may include professional service agreements and infrastructure construction contracts. These contract templates have been approved as to legal form by the City Attorney’s Office. In most cases, a Purchase Order is sufficient for these types of contracts. These contracts must be routed and executed through the Contract Administration Office.

 4.2       Facilities Construction Contracts – All contracts for facilities construction will be executed using an AIA contract document approved by the City Attorney’s Office. These contracts must be routed and executed through the Contract Administration Office.

4.3       Non-Standard Contracts - Non-standard contracts must be developed in cooperation with and approved by the City Attorney’s Office. These may include, but not limited to, economic development agreements, real estate transactions, and other contracts that involve a high degree of complexity and/or risk. These contracts must be routed and executed through the Contract Administration Office.

 4.4       Non-Standard Terms and Conditions – The City’s standard terms and conditions are recommended for all contracts. And exceptions to the City’s standard terms and conditions must be reviewed and approved through the Contract Administration Office. When necessary, the Contract Administration Office will coordinate with the City Attorney’s Office to resolve any discrepancies or conflicts in the terms and conditions.

5.         CONTRACT AMENDMENTS

 5.1       Contract amendments must follow the established approval authority and be made in accordance with the contract or governing terms and conditions. These amendments must be routed and executed through the Contract Administration Office.   

 6.         CONTRACT ENFORCEMENT

 6.1       Contract dispute resolution must be performed in accordance with the contract terms and conditions and/or governing law. Any resulting cure or termination notice must be managed by the Contract Administration Office.

7.         CONTRACT COMPLIANCE 

 7.1       Managing Directors – Each Managing Director is responsible for ensuring their department’s compliance with all contract compliance and performance requirements.

 7.2       Contract Owner – Each Department is responsible for assigning a Contract Owner to ensure compliance with the performance of the contract. This includes managing the deliverables of the contract and acting as liaison with the Contract Administration Office.

 7.3      Contract Administration Office -  The Contract Administration Office is responsible routing, execution, retention, and life cycle management for all City contracts. This includes establishing and tracking contract data points, deliverables, and milestones in the Contract Lifecycle Management system. The Contract Administration Office can assist Managing Directors and Contract Owners with any contract compliance and enforcement issues. When necessary, the Contract Administration Office will coordinate with the City Attorney’s Office to resolve any compliance and enforcement issues.