Contract Management System. Information Communications Technology (ICT) Innovations. Anthony Schlinsog, State CIO. Kansas
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1 Contract Management System Information Communications Technology (ICT) Innovations Anthony Schlinsog, State CIO Kansas Project Initiation Date: 01/11/2013 Project Completion Date: 04/12/2013 Page 1
2 Executive Summary The new web centric Contract Management System allows for the creation and maintenance of contracts online. The system has been developed by Kansas Department for Aging and Disability Services (KDADS) IT staff, evolving the agency from a fragmented desktop solution of individual documents, various entry and storage sources, and an uncontrolled distribution system. All the information relative to contracts and grants, hereinafter solely referred to as contracts, is contained within the system. This even extends to the electronic signature process used by parties both within and outside of the agency. The application manages the more than 700 annual contracts and grants that KDADS central office and the 5 state hospitals have with various vendors, contractors and other state agencies. The application was developed over a 3 month process, utilizing primarily one application programmer. The application is part of the KDADS web centric environment which utilizes the Oracle database and the associated web development tool, Application Express (APEX). It contains over 25 web pages, encompassing over 1,200 items, and utilizing 20 data tables. The Directory Listing is a list of the most current version of all contracts. It has features that allow for quick sorting and filtering and includes a link for accessing the contract details. Color coding provides a visual reminder for contract renewals. Individual contract details are entered on a set of data entry pages and then plugged into the legalese text which has been standardized across all templates. This makes it easy to approve contracts because there is confidence regarding the contract language and the consistent use of the data elements. The system uses an on-line Approval Process to track electronic signatures. A routing path is used to determine who the next designated approver is. Once the contract is signed by the current approver, an is sent to the next approver and their designees. The status reflects where the contract is in regards to the chain of approvals. The finished contract can be viewed on-line by both authorized agency users (log-in required) and non-agency users. In addition to the specific template language and detail elements, it includes the Scope of Work, Appendices and the Contractual Provisions Attachment. Page 2
3 The Problem: After assimilating a large division from another state agency, the very small KDADS legal staff was left with the daunting task of reviewing and approving hundreds of new to KDADS contracts in various forms and states of disarray. To make matters worse, many department staff were having difficulty finding the paper contracts as they were stashed in various places and on various people s desks. It would also require enormous amounts of time from the limited legal staff to review and approve the various types and styles of contracts that had originated in another agency. Many of the original contracts were written with minimal legal language, specifying the terms of the contract in the barest way. The Solution: At that time, the IT staff had a very simple application that listed contract vendors and highlighted upcoming renewal dates. When the legal staff approached IT with a request for assistance it quickly became apparent that just making a list of contracts and adding features to keep track of what types of contracts they were was still very limited help and it would still require someone to enter and maintain that information. The lead lawyer had a vision to create a set of contract templates that would standardize all contracts and grants and make the approval process much quicker and easier. The idea was born to create the templates within a web-based application instead of just using WORD templates to print standardized contracts. This would allow the various agency departments to create and enter contract detail on line, to view the finished contract on-line and would allowe for automated approval routing and tracking of electronic signatures. The contract application consists of the following major features: Directory Listing - A directory of all contracts that can be searched, sorted, filtered and/or modified to display information in a variety of ad hoc ways. It can be used to limit the display to whatever search criteria is entered, for example, a particular user s current contracts. Color coding on the individual contracts lines warns of 30- day (green) and 60-day (orange) contract expiration dates. Directory Listing of Contracts Page 3
4 The default format of the directory is to display all unsigned contracts but a simple change of a default filter will display the most current version of all contracts, whatever the status. A link on each contract line connects to the contract detail. Security - Application security is controlled by web application login and password and a three-level authorization system that limits access to the contracts directory to those who have at least the minimum contract authorization. Authorization levels control user functionality, specifically, who can approve a contract. The originator of the contract is the only person who can enter or change contract details. Templates - All contracts are generated from a standard set of 14 templates that contain the legal language for the contract. Contract data elements are entered on the contract detail entry pages that populate the data specific to each contract type. These standardized templates make approving the contracts much quicker and easier since the legal department can be confident that the language has been written in a way that defines the contract elements in the detail they require. Contract Detail Entry - The first contract detail page records general information related to all contracts. Contract Detail Entry Page 4
5 A second contract detail page requires entry of the data elements specific to the template type defined on the first detail page. Validations on the second page require all data entry to be completed prior to viewing the on-line, printable contract. Additional Contract Template Information View Contract Other data entry pages are available to enter a Scope of Work, Exhibits, Appendices and Amendments. The Scope of Work has pre-defined text areas where details specific to that contract must be entered, such as, objectives, goals, cost, time-frame and deliverables. Exhibits, appendices and amendments are free text areas that use a rich text editor with common word processing icons and functionality. After the all the contract details have been completed, the contract is submitted for approval. Once a contract is submitted for approval no changes can be made to the contract details with the exception of the procurement staff who can enter purchasing information. Approval Processing - The application uses an on-line approval process to track electronic signatures. A specified routing path is used to determine who the next designated approver is. Once the contract is signed by the current approver, an is sent to the next approver and their designees. The status of the contract reflects where the contract is in regards to the chain of approvals. The notification that is sent to each approver records the addresses of those the is sent to. It posts the date that the is sent and creates a Page 5
6 secure link in the that must match the secure key defined by the system when the is sent. The link is only valid for seven days. If the link is not used within the seven days, the contract originator must resend the notification to the approver. A link in the notification has two links, one to open as an authenticated user (log-in required) and another for un-authenticated users who do not have sign-ins to KDADS web applications. The authenticated link gives the user full access to the contract system once they login. Unauthenticated users can only view the contract and enter their approval information. Contract Approval Form View Contract If a contract does not pass scrutiny, the signatory can deny approval in which case a reason for denial is required and an is sent to the originator to make needed amendments. The originator can create a new version of the contract, make the requested revisions and resubmit it to the approval process. A recent modification to the system allows procurement to return the contract to the originator for simple corrections, such as typos and data inconsistencies, without requiring the originator to create a new version or to restart the approval process. For historical reference, previous versions are viewable but not modifiable. Page 6
7 The system tracks the name, date, approval decision, i.e. approved or denied, and an area for comments for each signatory. A list of the signature information is displayed on the first contract detail page. Maintenance Utilities - A maintenance screen is available to a limited number of authorized staff to maintain and update the designated approvers and their designees. Each designated approver has two additional designees that can sign in place of the approver if the designated approver is not available. Individuals designated as approvers, or their designees, must be granted contract approval authorization through agency security prior to being available for selection in the Approver Maintenance screen. The same vendors in the procurement system are used for the contract system, eliminating duplication of vendor/contractor information. A utility function in the application allows the procurement division to easily create new vendors for procurement based on the contract information. Significance to the improvement of the operation of government (section 4): The Contract Management System is used by agency staff, other state agencies for approvals requiring other state agency signatures, and vendors. It has eliminated the signature process which required each signatory to print the ed attachment, sign it, scan and save the signed contract. The signatory would then send a reply to the contract originator with a new attachment for the signed contract, who would then forward it on to the next signatory. Save copies and repeat for all signatories. Benefits of the project (Section 5): The Contract Management System makes tracking and managing hundreds of contracts quicker and easier. It has consolidated all contracts into one location and minimized the need for additional resources to track the type, status and location of contracts. A contract is reviewable at any moment in time and it is never necessary to hunt down the paper document. In fact, paper contracts have almost been eliminated entirely reducing the time and cost of paper, copying, scanning, and filing. KDADS legal staff, other state agencies, and vendors have enthusiastically embraced the evolution from desktop management and printing of contracts to the new data centric application. Page 7
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