To establish a process for the preparation, execution, review, payment, enforcement, and signatory authority for all contracts for Berea College’s Partners for Education (PFE) Department.
These procedures apply to all employees of Berea College’s Partners for Education Department.
For the purposes of these procedures, the term “contract” means any agreement creating an obligation, right, or liability for PFE or Berea College. The agreement may be a binding contract even though one party provides something of value to the other party at no charge. The procedures apply to the initial contract and any amendment or addendum, renewal or extension of such a contract.
Examples of PFE contracts include, but may not be limited to: agreements for the purchase, lease, or rental of space, goods or services; agreements with parents, students or teachers to participate in events; nondisclosure agreements; memoranda/letters of understanding or cooperation; or contracts with hotels, convention centers or other facilities which require a written agreement.
The term “execution” refers to signing and an accepting by an organization’s designated signatory authority to acknowledge the validity of an agreement.
The term “contract administration” means all the steps or actions taken by PFE after the agreement is executed to make certain the vendor has complied with the contract terms. Contract administration includes a contract closeout review.
Administrative Review – Employees wishing to enter into negotiations for contracts such as those described above must have the approval of their immediate supervisor and the Project Director. Employees must notify the Director of Finance and Operations of their intent to enter into an agreement by submitting a “Request for Purchase” form attached to this procedure.
Once preliminary approval is received and notification of intent is submitted, the employee initiating the contract is responsible for ensuring:
- The most recent contract template is used;
- The language is clear, consistent and accurately reflects the services or goods provided;
- The agreement meets the programmatic requirements for grant;
- The agreement terms and costs are allowable, reasonable and allocable; and
- The Purchasing Coordinator has obtained and prepared applicable documentation for any agreement over $2,000 per the College’s purchasing policy.
After the Administrative Review process is complete and the agreement is prepared, the vendor signs the agreement and the employee initiating the agreement sends the document to Finance and Operations for the Department Head signature. Depending on the dollar amount of the agreement, review and approval by the College’s legal and purchasing departments may also be required.
The vendor should not begin work until a fully executed agreement is in place. Additionally, for any agreements exceeding $2,000, a purchase order issued by the College’s Purchasing Department is necessary before services begin or goods are ordered.
After the agreement is executed and when applicable, a purchase order is issued, the vendor may begin work. It is the responsibility of the employee initiating the agreement to perform the following contract administration activities during the term of the agreement:
- Conduct a kick-off meeting or follow-up conference call with the vendor to confirm the services/goods provided.
- Monitor the activities of the vendor monthly or quarterly to ensure goods are delivered and services are rendered as agreed.
- Review the submission of invoices and make sure work is completed as indicated, invoices are submitted for payment on a timely basis and invoices do not exceed the approved amount of compensation.
- Resolve contract conflicts and provide ongoing support for the project until closeout.
- Ensure contract terms are satisfied and complete the contract closeout checklist.