[Minor revision–posted 5/8/23 (replaces 10/28/21 edition)]
Operating Policy and Procedure
OP 72.02: Contract Management Procedures
DATE: May 8, 2023
PURPOSE: The purpose of this Operating Policy/Procedure (OP) is to outline the policy/procedures to be followed in the development, negotiation, and approval of all contracts between Texas Tech University (TTU) / Texas Tech University System (TTUS) and other parties. This policy will apply to all contracts except for sponsored project proposals and related contracts, technology commercialization contracts, user agency contracts as described by the Department of Defense, contracts with an investment manager funded with assets owned or controlled by TTUS, and construction contracts processed by the TTUS Office of Facilities Planning & Construction.
REVIEW: This OP will be reviewed in June of odd-numbered years by the Chief Procurement Officer with substantive revisions forwarded to the Senior Vice President for Administration & Finance and Chief Financial Officer (SVPAF/CFO).
Contract: A legally binding written agreement executed between TTUS/TTU and a third party in which the parties agree to perform in accordance with the obligations therein. Contracts include, but are not limited to, letter agreements, cooperative agreements, memorandums of understanding (MOU), interagency contracts, Interlocal contracts, easements, licenses, leases, and Purchase Orders (Regents' Rules, Chapter 07).
Contract Administrator: The Contract Administrator is the department-level individual responsible for adherence to all provisions contained within a Contract and for managing the performance of a Contract.
Contract Close-Out: The process conducted at the completion of the Contract during which the Contract Administrator confirms and documents compliance with the terms and conditions of the Contract, final Deliverables are received, and outstanding payments are made.
Contractor: An individual or legal entity that has a Contract to provide Goods or Services to TTUS/TTU. A Contractor includes, but is not limited to, federal, state, and local agencies; nonprofit organizations; private businesses; corporations; partnerships; and individuals.
Contract Manager: A person who: (A) is employed by a state agency; and (B) has significant Contract Management duties for the state agency, as determined by the agency in consultation with the state auditor (Texas Government Code 2262.001(3)). This is the Procurement/Purchasing/Contract Office representative, which may differ in organization structure at each institution, but the term shall include all related offices at the respective Institutions.
Goods: Supplies, materials, or equipment as defined in Texas Government Code § 2155.001. Goods do not include Services or real property.
Procurement (Procure): Purchasing, renting, leasing, or otherwise acquiring any Goods or Services, including all functions that pertain to the acquisition through Contract Close-Out.
Service(s): The furnishing of labor, time, and effort by a Contractor or Auxiliary Enterprise, including for a Construction Project, which may involve to a lesser degree the delivery or supply of Goods.
2. Approval and Execution of Contracts
No staff, faculty, student, or agent has the authority to commit Texas Tech University (TTU) or the Texas Tech University System (TTUS) for any purpose (i.e., enter into contracts) except as authorized in Section 07.12, Regents' Rules.
This policy shall apply to all contracts for the initial periods, and for amendments, or extensions thereto. For the purpose of determining whether a contract requires approval of the board, any option(s) to extend or renew a contract shall be counted in the overall term of the contract.
3. Procurement Services Office Responsibilities
The responsibilities of the Procurement Services Office include:
a. Verifying that all Contracts subject to this policy are in compliance with Texas state and federal laws and TTU Operating Policies and Procedures;
b. Ensuring that all expenditure and revenue transactions comply with federal, state, and TTU Operating Policies and Procedures;
c. Ensuring that Contracts subject to this policy are reviewed and signed by the appropriate personnel and signatory;
d. Serving as the repository for TTU/TTUS Contracts, subject to this policy and TTU records retention policies (see OP 10.10, Records Retention);
e. Verifying that the Contractor is eligible to contract with TTU/TTUS in accordance with federal and state laws;
f. Verifying that bonds and insurance are provided and are compliant with the requirements of the Contract and TTU/TTUS requirements;
g. Ensuring that risk is analyzed and eliminated or reduced through insurance or contract provisions;
h. Ensuring that departments encumber the funding for expense Contracts and that payments are made in compliance with the requirements of the Contract and OP 72.11, Payment of Purchase Orders;
i. Providing oversight to departments ensuring that each Contract is performed in accordance with the terms and conditions of the Contract as required by OP 72.04, Contract Administration;
j. Managing the Contract renewal and expiration process; and
k. Providing enhanced contract monitoring as required by policy.
4. Guidelines for Processing Contracts
a. General Guidelines
Written Contracts shall be executed whenever TTUS/TTU enters into a binding agreement with another party that involves any material consideration.
b. Procurement Guidelines
The department requesting the Goods or Services in consultation with the Procurement Services Office shall first determine if a competitive solicitation is required. See OP 72.09, Procurement of Goods and Services.
For Contracts that require an expenditure, the department shall submit a requisition in TechBuy, and electronically attach the draft Contract and a signed Contract Routing Sheet demonstrating it has adequate funding and departmental approval. If the Contract does not require an expenditure of TTUS/TTU funds, the Contract and signed Contract Routing Sheet shall be emailed to the Procurement Services Office at firstname.lastname@example.org.
Procurement Services will work with the department and the Contractor to develop and negotiate a mutually satisfactory Contract that complies with the Contract Management Handbook and applicable statutes.
Procurement Services will obtain review and signature approval from the appropriate TTUS/TTU officials and the Contractor. Only individuals delegated authority or by express authority of the Chancellor or President may sign Contracts.
A fully executed Contract will be retained in the Procurement Services Office contract repository system and distributed to both the department and the Contractor along with a summary of obligations.
c. Contract Management Handbook
All contracts are subject to the requirements detailed in the Contract Management Handbook adopted by the TTU System. In the event there is a conflict between the Contract Management Handbook and any applicable statutes, the statutes will prevail.
5. Contract Renewals
The Procurement Services Office is the office of record for all TTUS/TTU Contracts subject to this policy. This responsibility requires that the Chief Procurement Officer and his/her delegates maintain files of all Contracts that fall under the purview of Procurement Services.
6. Contract Training
In accordance with Texas Education Code 51.9337, Texas Tech University (“TTU”) and Texas Tech University System (“TTUS”) officers and employees authorized to execute contracts on behalf of TTU or TTUS or to exercise discretion in awarding contracts are required to receive training, including training in ethics, selection of appropriate procurement methods, and information resources procurement technologies.
Training is required for:
a. Faculty and staff with contract signature authority, delegated by the TTUS Regents' Rules or further delegated in writing by the Chancellor or President.
b. Faculty and staff with a Financial Manager role in TeamApp (https://banapps.texastech.edu/team/QuickLinks.aspx).
c. Faculty and staff with authority to approve a transaction in TechBuy.
Faculty and staff are responsible for ensuring that the required training is completed every two years. A notification will be sent out from the Cornerstone training program. For any questions relating to the mandatory training, please email email@example.com.
Any questions concerning this OP should be directed to the Procurement Services Office, 806.742.3844, or emailed to firstname.lastname@example.org.
04 Audit Services
30 Academic and Student Affairs – General
32 Academic Policies – Faculty
34 Academic Policies – Students
36 Academic Programs
40 Equal Opportunity and Affirmative Action
48 Communication Services
52 Information Technology
60 Environmental Health and Safety
61 Facilities Management
62 Financial and Accounting
63 General Services
64 Graduate Programs (Faculty and Students)
65 Research Accounting
67 Mail Services
68 Communications and Marketing
69 Payroll and Tax Services
70 Human Resources
72 Purchasing, Contracting, and Payables
77 Student Services and Registrar
78 Traffic and Parking
Operating Policies & Procedures
AddressTexas Tech Downtown Center Room 218