To be clarified
Financial management of major and strategic contracts
The ability to monitor the financial performance of contracts is of major importance as the absence of financial performance policies and controls may result in an inefficient use of the Organization’s resources.
The objectives are focused on improving the controls of affordability and budget availability prior to placing a contract and, subsequently, during the contract execution phase. To this end, financial risks inherent to the contracts need to be identified as early as possible in the process and recommendations made on how to mitigate the risks identified in close collaboration with all stakeholders involved.
The activities will focus on the following categories of contracts:
1. Major Contracts (pre-contract phase):
The RPC service shall be invited to the start-up meeting for all type of contracts that meet the following criteria, on the basis of the Departmental Request (DR):
- The estimated budget (DR) exceeds 10 MCHF and there is only one department involved;
- The estimated budget (DR) exceeds 5 MCHF and there is more than one department involved;
- The estimated budget (DR) exceeds 5 MCHF and the request is for a single-source/sole-source supplier;
- For contracts below the above-mentioned amounts when there is a substantial financial or technical risk for the Organization (ad-hoc requests), based on the “judgement” of the procurement service.
2. Strategic Contracts (contract execution phase):
The RPC service shall also be informed, if due to changes in scope of a running contract, the approved financial envelope is likely to be significantly exceeded. Specific attention shall be given to “strategic” contracts or groups of contracts representing a significant financial or business continuity risk, i.e. those contracts involving a high technical or financial impact for CERN in case of adverse circumstances and which are CERN-wide.
Contact
Quality control
- Financial planning documents, APR, Financial Statements, MTP, Budget
- Financial signatures, treasury and payments operations
- Representing Department in POW committees for Reporting and FAP-BC