Contract Administration

The Commonwealth and University award term contracts for the procurement of goods, supplies, and services to secure more competitive pricing through volume purchasing, while reducing procurement lead-time and administrative efforts. All items available under term contracts must be purchased from the designated vendor, in accordance with the terms of the contract. Use of an alternative vendor is not permitted.

A Contract Administrator is assigned to oversee and support contracts for the delivery of goods and services over extended periods. The contract administration process empowers direct communication between the University representative receiving the goods or services and the vendor, ensuring that performance standards are met and verified. Active contract management and annual written evaluations of vendor performance are key to effective outsourcing. Contract Administrators are not authorized to make commitments or engage in negotiations that alter the scope of the contract or result in changes to financial expenditures.

At Virginia State University (VSU), the Contract Administration process ensures that all agreements for goods and services are effectively executed and managed in accordance with university policies and procurement regulations. Once a contract is awarded, a Contract Administrator is designated to oversee and support the contract’s lifecycle, particularly for ongoing or long-term deliveries and services. The Contract Administrator’s role includes monitoring vendor performance, ensuring compliance with contract terms, and facilitating direct communication between the university and the vendor to address any issues and maintain service quality. Proper contract administration helps ensure that the university receives the expected value from its agreements while maintaining accountability, transparency, and compliance with procurement guidelines.

Contract Do’s and Don’ts

Do’s:

• Ensure Compliance – Follow all terms and conditions outlined in the contract, including deadlines, payment schedules, and performance requirements.
• Monitor Performance – Regularly review vendor performance to ensure contract terms are met and that services or goods are delivered as expected.
• Document Everything – Keep accurate records of all communications, amendments, payments, and performance reports related to the contract.
• Communicate Effectively – Maintain clear and professional communication with vendors to resolve issues and avoid misunderstandings.
• Report Issues Promptly – If contract breaches or performance issues arise, report them immediately to the procurement office for resolution.
• Review Annually – For long-term contracts, conduct periodic reviews to ensure continued vendor compliance and service quality.

Don’ts:

• Don’t Modify Contracts Informally – Any changes or amendments must be approved through the proper procurement process and documented accordingly.
• Don’t Overlook Vendor Performance Issues – Address non-compliance or service failures early to prevent major disruptions.
• Don’t Approve Unauthorized Purchases – Ensure that all procurement activities align with the contract’s scope and university policies.
• Don’t Delay Payments Without Cause – Follow the agreed-upon payment schedule unless there are valid performance issues that require resolution.
• Don’t Disregard Legal and Policy Requirements – Ensure all contract administration activities comply with VSU’s procurement policies and applicable state regulations.