Similarities and Differences between Managing Simple and Complex Contracts
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Transcript of Similarities and Differences between Managing Simple and Complex Contracts
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Similarities and DifferencesSimilarities and Differencesbetween Managing Simple between Managing Simple and Complex Contractsand Complex Contracts
Presented by Angela Zgabay-Zgarba and Andy MarkerTexas Lottery Commission
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Agency OverviewAgency OverviewOperate Lottery and Regulate
BingoUnaudited Sales FY 2012
$4,190,815,913Unaudited Transfers to State FY
2012 $1,153,560,513317 FTE’s
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Contracts AdministrationContracts Administration2 Contract Administrators2 Attorneys who focus on
Contracts3 Purchasers1 HUB Coordinator1 Director & 2 Managers Contract Sponsors
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TLC ContractsTLC Contracts75 -100 Active Contracts
◦Prime (15)◦High Risk (11)◦Other
Lease Interagency
60 Annual Promotional Event Contracts
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Statutes & RulesStatutes & RulesTexas Gov’t Code
◦§466.014◦§466.101◦§466.102◦§466.103◦§466.105Texas Administrative Code◦§401.101 - 104
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ProceduresProcedures36 for Purchasing/Contracts/HUB19 govern Contracts
Administration3 specific to Lottery Operator
Contract◦Vendor Background Risk Assessment◦Needs & Risk Assessment
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Risk AssessmentRisk AssessmentSolicitation DocumentStatutes & RulesProceduresSecurity and Integrity of Lottery
GamesConflicts of InterestBackground Investigations
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Contract ManagementContract ManagementMonthly Disclosure of LitigationBonds and InsuranceContract Sponsor reported issuesAnnual Contract Compliance
meetings with Contract SponsorsCommunication and
Correspondence with ContractorsContract AmendmentsSOW’s or Change Orders
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Sanctions & Liquidated Sanctions & Liquidated DamagesDamagesLiquidated Damages in most of
our ContractsSanctions are in many of our
ContractsCompel Contractor PerformanceProvide RemediesSanction, LD & Warning Letters
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Lottery Operator ContractLottery Operator Contract$1 Billion over life - $85M+ per
yearOver 1,000 deliverablesChange ordersContract compliance vendorApproximately 70 SanctionsApproximately 10 LD’s
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Advertising ContractAdvertising Contract$32 M per yearAdvertising & Media PlanningReportingBilling and invoicingStaffing
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Instant Ticket Instant Ticket ManufacturersManufacturers3 Contractors$19.5 M per year Approximately 75% of agency
sales are instant tickets85-90 instant games printed
each year
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Simple vs. ComplexSimple vs. ComplexComplex
◦ Bonds and Insurance Required
◦ Long Contract Term◦ Significant Risk
Associated ◦ In-depth Background
Investigations◦ Many Sanctions or
Liquidated Damages◦ Extensive Terms &
Conditions
Simple◦ No Bonds or
Insurance◦ Short Contract Term◦ Limited Risk
Associated◦ Background
Certification◦ Few Sanctions or
Liquidated Damages◦ Minimal Terms &
Conditions
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Questions?Questions?