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ContractReviewProcedures

SectionVII.LegalAffairs

ContractReviewProcedures

TheseproceduressupplementandclarifySectionVII.oftheLoneStarCollegeSystemDistrict

Policy Manual (“Policy Manual”) last revised by the Board of Trustees on February 5,

2015—settingouttheCollege’spoliciesregardingtheOfficeoftheGeneralCounsel(“OGC”).

The Policy Manual controls when a conflict arises between it andtheproceduresbelow.

TheseprocedureswereadoptedonAugust 2018.Thenoticeandcommentperiodfor

theseprocedureswasopentothepubliconlinefromJune27,2018toJuly27,2018.

1. Scope of Procedures. The procedures below are intended to apply to all College

contractsexceptforemploymentcontractsandcontractsforlegalservices.

2. Definitions

a. Contractmeansawrittendocumentintendedtocreatebindingrightsandobligations

betweentheCollege(oroneormoreofitscolleges)andanyotherpersonorentity,

including but not limited to any amendment, addendum, schedule, renewal, or

extensiontoanothercontract.

b. Standard Contractmeansthecurrentversionofaformcontractpre‐approvedby

OGC with no subsequent modifications, including page additions, except for the

appropriate information entered into the empty, designated fields.Thelanguage,

“StandardFormApprovedbyLoneStarCollegeOfficeoftheGeneralCounsel”inthe

footeroftheformcontractdenotesaStandardContract.

c. Non‐standardContractmeansanycontractthatisnotastandardcontract,including

anymodifiedStandardContract.

3. DoesOGCNeedtoReviewthisContract?ToprotecttheCollegefromlegalrisk,OGC

must review all contracts—regardless of the contract’s value—absentawrittenvariance

fromtheGeneralCounsel.However,unmodifiedstandardcontracts totaling less than

$50,000ofCollegeexpensesdonotrequireadditionalOGCreview.Collegeemployeesmay

downloadcurrentversionsofstandardcontractsat:

https://intranet.lonestar.edu/OGC/SharedDocuments/Forms/AllItems.aspx.

Downloadthecurrentversioneachtimeyouuseastandardcontract;oldversionsarenot

approvedforusewithoutadditionalOGCreview.Theoriginatingdepartmentmustreview

FormVII.1. Contract Review Checklist included in the appendix to these procedures. All

standard contracts must satisfy the criteria within that checklist, and the originating

department is responsible for any failure to verify the criteria therein. The originating

departmentshouldreviewallcontractprovisionsandcorrespondingdocumentstoensure

thatallinformationisaccurateandthattheintendedbusinessoutcomeislikelytoresult.

Thechecklistisfortheoriginatingdepartment’srecordsandshouldnotbesenttoOGC.

Standardcontractstotaling$50,000ormoreofCollegeexpensesandnon‐standardcontracts

require specific OGC review regardless of the sum at issue. Some example scenarios are

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ContractReviewProcedures

includedintheappendixtotheseprocedures.IfunsurewhetheracontractrequiresOGC

review,pleasesubmititforOGCreview.

4. HowtoSubmitaContractforOGCReview.

a. Pre‐SubmissionChecklist.

Before submitting a contract for OGC review, the originating department must review

FormVII.1. Contract Review Checklist included in the appendix to these procedures. The

originating department is responsible for any failure to verifythecriteriatherein.The

originatingdepartmentshouldreviewallcontractprovisionsandcorrespondingdocuments

toensurethatallinformationisaccurateandthattheintendedbusinessoutcomeislikelyto

result.Thechecklistisfortheoriginatingdepartment’srecordsandshouldnotbesentto

OGC.

b. SubmittingaContractforOGCReview.

TosubmitacontractforOGCreview,pleasefollowthestepslistedintheappendixtothese

proceduresentitled“SubmittingaRequestforContractReviewinServiceNow.”

5. OGCContractReview.

TheassignedOGCattorneywillreviewtheproposedcontractforlegalissuesandrisks.The

attorney will either approve the contract or respond to the requester explaining what

changes are recommended by the OGC attorneytothe proposed contract. The requester

mustthenasktheotherpartywhetheritwillagreetotherequestedchanges,independent

oftheOGCattorney’semailtotherequestor.This is NOT done by forwarding the

attorney’sconfidentialemailtotheotherparty.

6. Variances.OGCrecognizesthattheCollege’soperationalneeds,asdeterminedbythe

College’sseniorleadership,willsometimesrequiretheCollegetoenterintocontractswith

provisions that vary from the College’s standard contractual terms and conditions,

presentinglegalriskstotheCollege.Iftheotherpartywillnotagreetothecontractualterms

andconditionsrequestedbyLoneStarCollege,theCollege(oroneormoreofitscolleges)

may not execute that contract unless the Chancellor’s Cabinet member ultimately

responsibleforthatcontractapprovesacontractvarianceinwritingafterconsideringOGC’s

adviceregardingthelegalrisksthatthecontractpresents.OGC will coordinate contract

variancereviewwiththeappropriateseniorleadership.

7. Execution.StandardcontractsnotrequiringadditionalOGCreviewmaybeexecuted

byauthorizedrepresentativesofbothparties.Insuchcases,OGCdoesnotneedtoseethe

contractbeforeorafteritisexecuted unless and until a dispute later arises under that

contract, but the originating department should retain a copy (electronic is fine) of the

contractinitsfilesforreferenceforatleastfouryears,oraslongasotherwiserequiredby

law,afterthecontracttermhasended.

ForcontractsrequiringspecificOGCreview,oncethepartieshaveagreedonalltermsand

conditions,anOGCattorneywillstampthecontract,signalingOGCreviewofthedocument,

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ContractReviewProcedures

fortheCollege’sauthorizedrepresentativetosign.Whenpossible,theothercontractparty

should sign the contract before the College representative signs. Once all parties have

executedthecontract,theoriginatingdepartmentshouldretainacopy(electronicisfine)in

itsfilesandsendacopytoOGCandtotheotherpartyifitdoesnotalreadyhaveacopyof

thefullyexecutedcontract.

ForOGC’spurposes,electroniccopiesofcontractsaresufficient.Occasionally,anotherparty

willrequestanoriginal“wetink”signatureonitscopyofthecontract.OGCwillcoordinate

withtherequestorwhenwetinksignaturesarerequested.Notarysignaturesandnotarized

signaturesmustbeoriginallysignedinperson,butelectroniccopiesofsuchsignaturesare

sufficientonceoneoriginalhasbeensigned.

Whenacontractauthorizescounterpartsignatures,theparties’ representativesneed not

place their signatures on the same signature page of the contract;theymayeachsigna

signaturepage,andthecombinedsignaturepagesarethecontract’ssignaturepage.

Ifacontractrequiresthepartiestoinitialanyspecificclausesthathavebeenmodifiedor

added,bothparties’authorizedrepresentativesmustinitialwhereindicatedforthecontract

tobefullyexecuted.

8. Delegation of Contract Authority. Contracts do not bind the Collegeunlessthey

havebeensignedbytheparties’authorizedrepresentatives.Onlyindividualswithexpressly

delegatedcontractauthoritymaysigncontractsontheCollege’sbehalf,andnoindividual

maycontractuallybindtheCollege(oritscolleges)beyondthelimitofhisorherdelegated

authority.ContractauthorityisdelegatedbypolicyandbyBoardactionfromtheBoardof

Trustees to the Chancellor. The Chancellor may delegate contractauthorityinanysum

withintheChancellor’sauthoritytooneormoreCollegeemployees and may permit

additionalsub‐delegationofcontractauthority.Thoseempoweredtosub‐delegatecontract

authority may do so. Individuals who have received delegated contract authority are

responsiblefortheiruseofthatauthority.

Delegationsofcontractauthorityarenoteffectiveunlesstheyarewrittenandsubmittedto

OGC usingForm VII.2. Delegation of Contract Authorityincludedintheappendixtothese

procedures.

The delegator may amend or revoke delegations of contract authority at any time by

deliveringwrittennoticetoOGC.Adelegationofcontractauthorityisautomaticallyrevoked

when the delegator’s or delegee’s College employment is terminated, suspended, or

transferred to another position. When a delegation of contract authority is revoked, all

sub‐delegationsofcontractauthoritymadeundertheformer(nowrevoked)delegationare

alsorevoked.

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APPENDIX&FORMS

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DoesOGCNeedtoReviewThisContract?—Examples



 Example1:Acollegedepartmentplanstouseastandardcontracttoobtain$10,000

ofservices.Anaddendumisattachedtoexplaintheservicestheotherpartywillprovide.

OGC must review this contract because the addendum is a modification that makes the

contractanon‐standardcontract.

 Example 2: A college department plans to purchase goods for $30,000 using the

vendor’scontract.OGChasreviewedthisvendor’scontractinthe past and approved it

withoutchanges.OGCmustreviewthecontractagaineachtimethevendor’scontractisused

becauseitisanon‐standardcontract.

 Example 3: A college plans to execute a “Memorandum of Understanding” with a

non‐profitentitytoaccomplishasharedobjective.OGCmustreviewthiscontract.

 Example4:Acollegedepartmentplanstouseastandardcontracttopurchasefour

monthsofservicesforatotalof$44,000.OGCdoesnotneedtoreviewthiscontractifthere

are no modifications to the approved form other than filling in blanks with appropriate

informationsuchastheotherparty’sname,thepurchaseprice,andthedateofthecontract.

 Example5:ThesameasExample4,exceptthatthecontractincludesanaddendum

describing the services to be performed. OGC must review this contract because the

addendummakesthecontractanon‐standardcontract.

 Example6:ThesameasExample4,exceptthatthedepartmentwantstoextendthe

contractforanothermonth,bringingthetotalcostto$55,000.OGCmustspecificallyreview

thiscontractbecauseitisformorethan$50,000.

 Example7:Acollegedepartmentplanstouseanon‐standardcontractthatincludes

onlinetermsandconditionsthatmustbeacceptedthroughthevendor’swebsite.OGCmust

reviewthoseonlinetermsandconditions,aswellasthenon‐standardcontract,priorto

contractexecution.



1



SubmittingaRequestforContractReviewinServiceNow

1. GototheServicePortal(lonestar.service‐now.com/sp).



2. Select“OGCServices.”



3. Select“Contracts.”



4. Select“ContractRequest.”



5. Fillintheformfieldsasfollows:



a. Acknowledgment Checkbox:Checktheboxmarked“Iacknowledge”to

acknowledgethatyouhavereadthenoteatthetopsaying,“Thissubmission

containscertificationsthatmaygiverisetopersonal,criminal,andcivil

penaltiesunderTexaslaw.”(Thistextwillbemovedtothecheckboxinfuture

updates.)



2



b. RequestedBy:Thepersonsubmittingtheformisthe“Requestedby”person.

Thisshouldauto‐populatewithyourname.

c. RequestedFor:Ifyouaresubmittingtherequestonbehalfofsomeoneelse,

selectthatpersoninthe“RequestedFor”field.

d. Short Description:Thisshouldbrieflyclarifywhothecontractiswithand

whatthecontractisfor.Example:“WillyWonkaChocolateFactory—Tour

LiabilityReleaseAgreement.”

e. Fulldescription:AnyinformationaboutthecontractwhichtheOGCattorney

needstoknowtoreviewit.

f. Selectyourcollege/center:Thisisyourlocation,notnecessarilythelocation

ofthecontract.Thiswillselectwhomustcertifytherequest.

g. Verification.Checktheboxmarked“Iverify”toverifythattherequestorsand

certifiershave obtainedthe properprocurementapprovalsforthecontract

priortosubmittingtoOGCforreview.

h. Contractstartdate:Ifunknownor“uponexecution,”itisokaytoestimatea

timeinthefuture.Please make this selection using the calendar.Donot

enterthedateastext.AbuginServiceNow(whichwillbefixedinthenext

systemupdate)willpreventthedatefrombeingvisibletousifyoudonotuse

thecalendardropdown.

i. Contractenddate:Similarly,pleaseestimateifyoudon’thaveanexactdate,

andpleaseusethecalendar.

j. Amount:Thetotalcontractcostoveritsfullterm.Ifnone,put“0”(notN/A).

k. Contractwith:Thenameoftheotherparty/company.

l. BoardContractCheckbox:SelectthisifthecontractrequiresBoardapproval,

andbesuretoattachtheBoardAgendaItem.

m. File Type:Self‐explanatory;foranycontractthatisnotanaffiliationor

facilitiesagreement,select“Non‐StandardAgreement.”IfyouareusinganOGC

standardform,youdonotneedtosubmitittoOGCforreviewunlessyouor

the other party has made changes to the form (including adding any

attachment,addendum,exhibit,etc.)orunlesstheagreementisformorethan

$50,000orfortheChancellor’ssignature.



3



n. Rush:Ifyouneedthiscontractveryquickly,select“yes”andenterareason

for the rush request. We cannot provide exact estimates of contract

turnaroundtime.PleasecontacttheassignedOGCattorneyorparalegalfora

statusupdate.PleasealsorecognizethatOGCisresponsibleforhelpingthe

entiresystemandyourrushcontractmustbeweighedrelativetoallother

rushes.Pleasetrytousetherushoptionsparingly.Wheneverycontractfrom

yourdepartmentisarush,itsetsabadprecedent.



6. Attachacopyoftheagreement(includingallpages,amendments,exhibits,etc.)and

allsupportingdocumentation(emails,BoardAgendaItems,vendorproposals,etc.)

requiredforreview.Youmaydothiseitherbydragginganddroppingfilesontothe

windoworbyclicking“Addattachments”atthebottomoftheform.



7. Afteryouhavedouble‐checkedallinformation,click“Submit.”



8. Therequestwillbesubmittedfirsttothe“Requestedfor”individualforapproval(if

not the same as the “Requested by”) and then to the Certifier (generally the

Chancellor’sCabinetMemberoveryourlocationorarea).Oncecertified,itwillbe

submittedtoOGCandassignedtoanattorney.A matter is not received by OGC 

unlessanduntilitiscertified,andOGCisnotresponsibleforgettingcertifiers

to certifyor reject a matter. Youwillbeabletotrackthestatusofthematterby

accessing“MyTickets”ontherightsideofthetopnavigationbartheServicePortal.



9. If OGC requires any further information from you, you will receive an email

notificationandthemattermayshowas“WaitingonClient.”



1



FormVII.1:ContractReviewChecklist

DONOTSUBMITTHISFORMTOOGC.Thisisonlyheretohelpyou.



AsprovidedintheCollege’sContractReviewProcedures,acontract’s

originatingdepartmentandtheOfficeoftheGeneralCounsel(OGC)usethis

contractchecklisttoensurethatCollegecontractscomplywith relevant

lawsandCollegepoliciesandprocedures.



BeforesubmittingacontractforOGCreview,orwhenconsidering use of an unmodified

standardcontractnotrequiredtobesubmittedforOGCreview,theoriginatingdepartment

isresponsibleforensuringthatacontractsatisfiesthecriteriainthischecklist.Thechecklist

isfortheoriginatingdepartment’srecordsanddoesnotneedtobesenttoOGC.



 1. The contract ___ requires or ___ does not require(markone)BoardofTrustees

approval.BoardPolicyManualSectionIII.D.1.3.listsmosttypesofcontractsthatrequire

Boardapproval.IfyouhavequestionsregardingtheapplicabilityofBoardapprovalto

yourmatter,pleasecontactOGC.Note:TheBoardofTrusteesdelegates signature

authoritytotheChancellorordesigneeforcontractsrequiringBoardapproval.



 2.IfthecontractdoesnotrequireBoardapproval,identifytheindividualwithdelegated

authoritywhowillsignthecontractontheCollege’sbehalf.



 3.Ifapplicable,theCollegehascompliedwithalllegallyrequiredcompetitiveprocesses

before selecting the other party to this contract. If you have questions regarding

applicablecompetitiveprocesses,pleasecontacttheCollege’sProcurementdepartment.

 4.Isthiscontractasolesourcepurchasefor$50,000ormore?Ifso,hasasolesource

affidavitbeenexecuted?

 5.WillgrantfundsawardedtotheCollegebespentunderthisagreement?Ifso,hasthe

College’sResourceDevelopmentAdministrationteambeeninvolveduptothispoint?If

not,pleasecontactthembeforeprocessingthecontractanyfurther.



 6.Thefollowinginformationabouttheotherpartyisaccurate:



LegalName 

StreetAddress 



 7.Theotherparty’sidentity(foranindividual)orlegalstatus(foranentity)hasbeen

verified.



2



 8.Ifpaymentswillbemade,theCollegeisthe___payoror___payee(markone)under

thisproposedcontract.



 9.Thefollowinginformationabouttheproposedtransactionisaccurate:



General

Sumtobepaid 

Contractstartdate 

Contractenddate 



Goods

Descriptionof

goods



Deliverydate 



Services

Descriptionof

services



Servicestartdate 

Serviceenddate 



 10.Theoriginatingdepartmenthasreviewedallcontractprovisionsandcorresponding

attachmentsandexhibitsandhasensuredthatallinformationthereinisaccurateand

thattheintendedbusinessoutcomesarelikelytoresult.



 11.Theproposedcontractclearlyidentifiestheparties’rightsandobligations,including

anytimeframesforperformingsuchobligations.Theoriginatingdepartmentshould

work out any adjustments in a contract’s business terms before submitting a

contractforOGCreview.



 12.TheCollegecanreasonablyfulfill its obligations under the contract within the

specifiedtimeframe.



 13.ThecontractwouldprovidevaluetotheCollegeandwouldensureadequatereturn

foranypublicfundstobespentand/orpublicpropertytobeusedduringthecontract.



 14.Thecontract’stermdoesnotexceedacumulativeperiodoffive years, including

renewalterms.ContractsfortheCollegetopurchasegoodsandservicesmaynotexceed

fiveyearsunderBoardpolicy.



 15.TheCollegeemployeesworkingonthiscontractknowofnoillegalityorunethical

conductassociatedwiththecontract.



FormVII.2:DelegationofContractAuthority

Delegee: __________________________________________________________________

  NameandTitle



  __________________________________________

Signature



Delegator: __________________________________________________________________

    NameandTitle



    __________________________________________

 Signature



Date:  ______________________________

Subject:  DelegationofAuthoritytoApproveandExecuteContracts

LoneStarCollegePolicyManual—AuthoritytoPurchaseGoodsandServices



UndertheCollege’sPolicyManualandChancellor’sProcedures,thismemorandumconfirms

thatthedelegeenamedabovehasdelegatedauthorityfromthedelegatortoapproveand

execute contracts that are less than $___________________ within the delegee’s area of

responsibility.



Thisdelegation___includesor___doesnotinclude(markone)authoritytosub‐delegate

contractauthorityunderestablishedprocedures.



Thisdelegationsupersedesandwillgovernanypriordelegationofauthorityissuedtothe

delegee.Thisdelegationofauthoritywillcontinueaslongasyou arean employeeofthe

Collegeunlessamendedorrevokedatthesolediscretionofthedelegatororthedelegator’s

supervisor(s)orbyautomaticrevocationunderrelevantChancellor’sProcedures.



Further,thisdelegationandyourapprovalandexecutionofcontractsaresubjecttoand

limitedby(i)existingand/orfutureBoard ofTrusteepolicies;(ii)existingand/orfuture

Chancellor’sProcedures;and(iii)reviewandapprovalofallproposedcontractsastolegal

formbytheOfficeoftheGeneralCounsel.



cc:MarioK.Castillo,GeneralCounsel





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