1. (a) All contract managers, with the support of contract administration, will perform a risk analysis prior to the execution of a contract to determine whether enhanced contract or performance monitoring is necessary. The impact and probability of the following attributes will be considered, as applicable:

   1. (1) contract cost revisions;
   2. (2) contract duration limitations;
   3. (3) transaction and data volume;
   4. (4) monitoring and quality assurance;
   5. (5) vendor control activities and data quality;
   6. (6) communication and customer service;
   7. (7) complexity of vendor operations and processes;
   8. (8) complexity of contract scope or deliverables;
   9. (9) close out, including untimely delivery, outstanding invoices or unresolved matters creating delays;
   10. (10) extent of government regulations;
   11. (11) vendor cooperation with audits;
   12. (12) potential for public disclosure;
   13. (13) vendor experience and past performance;
   14. (14) physical and system security;
   15. (15) data security;
   16. (16) business continuity/disaster recovery;
   17. (17) training;
   18. (18) financial assurance and credit worthiness;
   19. (19) fraud, waste and abuse; and/or
   20. (20) any other factors that may impact the contract.

2. (b) Any contract rated high risk will receive enhanced contract monitoring to be performed by the contract manager. Enhanced contract monitoring may include the following actions, as applicable:

   1. (1) weekly or monthly progress reports;
   2. (2) documented controlled correspondence;
   3. (3) regular site visits;
   4. (4) project team meetings; and/or
   5. (5) documentation of corrective actions.
3. (c) Contract and performance monitoring activities will be documented and reported to the board on a quarterly basis. Contract administration will immediately notify the board of any serious issue or risk that is identified with respect to a contract subject to enhanced monitoring.
4. (d) This process does not apply to an interagency agreement or contract, interlocal agreement, memorandum of understanding, or a contract for which there is not a cost.

Source Note:The provisions of this §353.140 adopted to be effective December 8, 2016, 41 TexReg 9588.