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Contract Establishment Guidelines
For information related to the purchase of services please download Contract Establishment Guidelines
Information in this document extends to every employee who is authorized to enter into a legally binding Contract to acquire services for Moody and its operations. These include service contracts, maintenance and repair contracts, construction contracts, installation contracts, supplier agreements, transportation contracts, sales contracts, and tenancy contracts.
DOCUMENTS LIST FOR CONTRACTING
PART 1 – DOCUMENTS FOR SOLICITING BIDS AND SELECTING A CONTRACTOR
Request for Bid or Request for Proposal (RFB/RFP) – An RFB or RFP document is a formal invitation sent to selected vendors to solicit their bids and proposals. An RFB template is on the Procurement Services Website (Resources/Purchasing Forms). Statement of Work and Specifications documents become part of the RFB/RFP.
Statement of Work (SOW) – The Statement of Work is a document drafted by the Project Representative that gives an overview of the project, states its objectives, and describes what actions are necessary for a successful outcome. This document is included as part of the RFB/RFP. A worksheet for drafting an effective SOW is on the Procurement Services Website (Resources/Purchasing Forms).
Specifications – If specific equipment, components, methods, products or materials are required to complete the project, the Project Representative includes this information in a specifications document. Specifications include such things as model numbers, SKUs, product names, manufacturer information, sell sheets, size, quantities, and any other pertinent information about the project requirements. Specifications are included as part of the RFB/RFP.
Architectural Drawings - When an Architect is involved, specifications are included in Architectural drawings. An electronic version of these drawings should be included in the documents sent to prospective Contractors. Architectural Drawings also allow the use of an AIA Standard Form of Contract between Owner and Contractor, which is familiar to most construction contractors.
Vendor Bid or Proposal – Vendors respond to invitations to bid by presenting a bid or proposal in a formal document that states what the vendor will do and how much they will charge for the specified work. The Project Representative should require as many revisions to these documents as necessary to ensure that they accurately reflect the entire scope and specifications of the project. When compared on an “apples-to-apples” basis, these documents are the instruments for selecting a “winning” bidder.
Certificate of Insurance (COI) – A business’s insurance coverage is reflected on a COI issued by the Vendor’s insurance agency. The Vendor’s COI should mirror, as closely as possible, the standards set by MBI. MBI’s boilerplate standards are included in the RFB. A sample COI is on Legal’s website. Insurance coverages may be negotiable, but any waivers or changes to MBI’s standards require the approval of Moody’s COO.
PART 2 – DOCUMENTS FOR LEGAL
Contract Submittal Checklist – The Contract Submittal Checklist identifies the key elements that Legal needs in order to prepare or review a Contract. It acts as the cover sheet for the Vendor’s Bid or Proposal, COI, SOW, Specifications, and drawings that are presented to Legal when requesting a Contract. The contract checklist is located on the Legal Department’s website on myMoody
Draft Contract – The draft contract is the initial Contract Legal sends to the Project Representative for review or editing. If no changes are necessary, the Contract is forwarded to the vendor for their review or editing. If the Vendor approves the Contract without any changes, they sign and return it. Otherwise, Legal modifies the draft contract as necessary to reflect the final agreement.
Stamped Contract – When the contract reflects the final agreement, Legal signifies their approval as to Legal form by affixing an official stamp on the signature page(s).
Fully Executed Contract – Once stamped by Legal and signed by the vendor, the contract is ready for signature by a Department VP or above. Contracts over $50,000 require the signature of the CFO. Contracts over $100,000 require the signature of the COO and CFO. The next step is to forward the fully executed Contract with a Purchase Requisition to Procurement Services and request a Purchase Order.
PART 3 – DOCUMENTS FOR PROCUREMENT/ACCOUNTING
Purchase Requisition (PR) – The PR authorizes the issuance of an Oracle Purchase Order (PO) for the Contract. The PR can be down loaded from the Procurement Services website on myMoody (Resources/Purchasing Forms). To obtain a PO, email the PR to Procurement Services and include a copy of the fully executed Contract and vendor COI.
Purchase Order (PO) – The official MBI PO serves as the cover page of the fully executed Contract. When sent to the Vendor, it signifies that work can begin. The PO is also an important part of the invoicing and payment process.
Invoices – Vendors bill their work via applications for payment or invoices. The Project Representative should review invoices carefully to ensure that MBI is billed correctly and in accordance with the terms and conditions of the Contract. If the invoice is okay to pay, forward it to Procurement for processing through the Oracle accounting system.
Lien Waivers – A lien waiver is a document used by the Contractor to state that they have received payment and waive future lien rights against the property. Construction contractors are required to provide lien waivers with each application for payment or invoice.
Check Requisition Form – When a check is needed to make an initial payment (I.E. down payment), and the vendor has not generated an invoice, a Check Requisition is used to request a check from Accounting. Accounting will mail the check to the vendor or deliver it to the person requesting the check, depending on the direction given to them. The Check Requisition Form (with instructions) is on the Treasury and Finance Website under Accounts Payable.