Renewals and Contract Extensions

Contract renewals are permissible when the contract specifically states that there is an option to renew and the supplier or business partner is meeting the terms of the agreement in an acceptable manner.  Renewals are handled differently based on whether the agreement is related to a purchase where monetary funds were “due from KSU” for the receipt of goods and services or if the agreement was in exchange for some other form of consideration, i.e. affiliation or education agreements.  The difference in processing is that only procurement related contracts require a formal Annual Contract Review form.

Procurement contracts may be extended after all renewal options are exercised for up to one year if we are processing a formal solicitation and we receive approval from the State’s Department of Administrative Services.  A contract extension may also be processed when we choose not to exercise a renewal option but would like the services or goods for up to one year as we transition to a new provider.  This process also requires that an Annual Contract Review Form be completed. 

Non-procurement contracts may be extended at the end of their term instead of renewed, if it is determined that the university does not need a full-term renewal.  For non-procurement contracts, renewals and extensions require the same processing steps (see below).

• Renewal of Procurement Contracts – Ongoing Purchases of Goods & Services

  Renewals for the purchase of goods and services, where performance is satisfactory, a contract approved by the Contracts Compliance unit is in effect, and has an option to renew that the college or department would like to exercise, require the completion of an Annual Contract Review online form via the Contract Management System. 

  The Annual Contract Review form will be sent to you, the initial submitter of the contract for review, unless a preferred contact is listed, with a reminder that the contract needs to be renewed.  If an Annual Contract Review form is sent to you in error, please notify the Contract Compliance team. 

  Please note if this contract assessment form is not completed, Procurement and Contracts Compliance cannot renew the contract and it will be automatically terminated at the end of the current contract period. 

  • Before completing the Annual Contract Review, consult with other stakeholders or users of the contract so that your review reflects a composite review from all users. You may share your review with other reviewers when it has a status of “Assigned” or “In Progress”, before saving and submitting it to the next reviewer or the Contract Compliance unit.
  • The online Annual Contract Review Form allows for four reviewers, you and up to three additional reviewers. Additional reviewers are optional and based on your college or department’s approval structure. 
  • Once you complete the form, please send it to the other reviewers for their comments only. Other reviewers cannot change your rating in any category.  They can only add comments.
  • To forward your review to a second or third reviewer, please change the status of the review to “Pending Reviewer 2 or Pending Reviewer 3, as needed.“
  • If the contract is ending, a final Annual Contract Review form is still needed to properly close out the contract and to ensure that when another agency contacts the university about the contractor, we can provide verified feedback.

  The completed Annual Contract Review form is only the beginning of the renewal process.

• Satisfactory Performance

  Once the Contracts Compliance unit has the completed Annual Contract Review form and satisfactory performance is indicated (70% or more), the following steps are taken.

  • A contracting professional will follow-up with the supplier to obtain required supporting documentation to ensure that the supplier continues to be in compliance with the contract terms and State laws such as eVerify and an updated Certificate of Insurance for the upcoming renewal period.
  • A new contract is not needed to renew a contract, therefore, no submission to the Contract Management System is needed. If a supplier, once notified of the university’s interest in renewing the contract, submits a new contract, the Contracts office will submit it for review via CMS, to the department and all other interested parties, including Procurement and Legal Affairs. 
  • For contracts of $100,000 or more, the contracting professional must seek tax clearance from the State Department of Revenue indicating that the supplier is not in arrears with their tax payments.
  • If a purchase order is needed for the renewal contract, the department will be asked to submit a requisition in the fiscal year of the renewal period. For instance, most contracts are renewed at the beginning of the fiscal year, therefore, a requisition should not be submitted until PeopleSoft Financials-ePro module has been re-opened for the new fiscal year.
  • If applicable, the procurement buyer will issue the purchase order or blanket purchase order (estimated contract amount for the year or some lesser period) and send a copy to the college/department and the supplier. Note: Blanket purchase orders are not sent to the supplier.
• Low or Poor Performance Rating 

  If a contract receives a 69 percent rating or less on the Annual Contract Review form, it is deemed to be providing less than satisfactory service.  In this instance, the college or department should notify the Procurement office if it appears that the supplier is unable or unwilling to resolve or mitigate the issue in a satisfactory manner.  If there’s a continued need for the goods or service, a new solicitation will be needed in order to obtain a new supplier.  The formal solicitation may take up to six (6) months during which time we will have to use suppliers based on informal quotes or extend the existing provider for limited services.

  Note: At any time during a contract period, colleges and departments should notify Procurement whenever a contractor is performing poorly and forward all relevant documentation showing that attempts have been made to resolve the issue with the supplier.  Procurement will then work with the department and Legal Affairs to obtain satisfactory completion of the contract, via a “Cure Letter", or termination of the contract whichever is in the best interest of the university.

• Other Renewal Agreements – Non-Procurement Agreements and Memoranda of Understanding

  Renewals for these agreements do not require the completion of the Annual Contract Review online form.  However, it is recommended that departments set up their own protocol for determining whether an agreement is still meeting its goal or achieving the expected outcome(s).

  Colleges and departments may submit a request in CMS for the drafting of a renewal contract or submit a signed copy of the existing contract, if it was not submitted to the CMS repository after the contract was signed by all parties. 

  • The renewal request should specify the required contract term and any other changes to the agreement requested by the other party or university personnel.
  • Once a renewal agreement is drafted and fully approved by reviewers, you’ll receive an email advising you to share it with the other party or parties for review and signature.
  • If the other party requires changes and your department approves the changes, please send the agreement back to Contract Compliance for review and approval. 
  • When all parties agree on the terms of the agreement and Contract Compliance approves the contract, the other party or parties and the KSU Authorized Signatory may sign and execute the contract.
  • Once all signatures are obtained, the renewal should be submitted to CMS as the final signed copy of the agreement.