Contract Management

MnDOT Policy #FM014
Revised: August 6, 2025

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Deputy Chief Counsel - Contract Management
Policy Contact: Contract Management Supervisor

Policy statement

When writing, awarding, negotiating, executing, and administering contracts, the Minnesota Department of Transportation (MnDOT) must:

Comply with all applicable state and federal laws, rules, and regulations;
Comply with all applicable policies issued by oversight agencies, including the Minnesota Department of Administration and Minnesota Management & Budget;
Use written contracts that achieve MnDOT’s objectives while adequately managing risks to protect MnDOT’s interests;
Actively manage contracts to ensure that contractors are held accountable for the agreed upon scope of work and are paid only the agreed upon amount;
Protect and promote public trust and confidence in public contracting;
Take actions to prevent and report fraud, abuse, and misuse of public funds;
Follow the Contract Management Procedures, MnDOT Grant Management Policy, and Agency Grants Management Manual, as applicable;
Comply with the Code of Ethical Conduct Policy (PDF) and MnDOT requirements and procedures, including the avoidance of conflicts of interest; and
Ensure that “core contract data” (as defined by the Contract Management Section on the Contracts Agreements Auditing Tracking System “CAATS” Interchange page) is entered into the system of record (CAATS).

Reason for policy

MnDOT uses contracts as one method of achieving its mission. MnDOT’s legal rights as well as responsibilities and the public’s trust and confidence in MnDOT are significantly affected by the way MnDOT awards, writes, negotiates, executes, and administers contracts. This policy establishes uniform standards applicable to all MnDOT contracts topromote the agency's integrity and accountability, and to ensure legal and financial risks are properly addressed and managed.

Minnesota Statutes §§ 16A.15 and 16C.05 prescribe requirements for encumbrances and contract management. The Department of Administration’s Encumbrance and Contract Execution Policy 21-01provides further guidance to the executive branch for encumbering funds and executing contracts. MnDOT’s Contract Management Policy and Contract Management Procedures ensure compliance with Minnesota Statutes and the Department of Administration’s policy.

Applicability

All MnDOT employees must comply with this policy.

Key stakeholders with responsibilities under this policy include:

Employees responsible for awarding, writing, negotiating, executing, or administering contracts, including contract administrators, project managers, project engineers, consultant coordinators, and other employees who work with consultants, contractors, political subdivisions, other State agencies, Tribal Nations, and grantees.
Employees with delegated authority to execute contracts on behalf of MnDOT.
Supervisors and managers of employees responsible for awarding, writing, negotiating, executing, and administering contracts.

Definitions

Agreement/Contract

A written document signed by two or more parties describing the parties' respective rights and obligations for a particular transaction or exchange.

Note: In this policy, “contract” and “agreement” are interchangeable terms. All references to “contract” and “agreement” refer to a written legal obligation of MnDOT regardless of whether titled “contract” or “agreement.”

Amendment

A change to a contract, in writing and signed by the parties to the contract.

Note: The term “amendment” includes addendums, change orders, and supplemental agreements.

Conflict of Interest (Personal)

A situation in which a person has a private or personal interest sufficient to, or that appears to, influence the objective exercise of their official duties as a public official, employee, or professional.

Conflict of Interest (Organizational)

A situation in which a contractor has an unfair advantage, or the contractor is unable or potentially unable to render impartial advice or assistance to the state because of existing or planned activities or because of relationships with other persons.

Contracts Agreements Auditing Tracking System (CAATS)

The system of record for managing contracts, agreements and associated documents between MnDOT and other parties, not including highway construction contracts administered through the Office of Construction and Innovative Contracting.

Contract Types

The family or category of contracts to which a particular contract belongs. "Contract Type" is used to classify agreements into categories for reporting and tracking purposes. They are generally based on the purpose and subject matter of the contract, and not on the office responsible for the contract.

Contract types are established by MnDOT’s Contract Management Section and include Construction, Collaborative/Intergovernmental, Grant, Partnership, Professional/Technical Services, Property/Facility, and Other. Goods and General Services contracts procured under Minnesota Statutes Chapter 16C are not entered into CAATS.

Contractor/Customer

Generic reference to the other party (or parties) to a MnDOT contract.

"Contractor" generally refers to a construction contractor, however, it may also include any other party contracting with MnDOT such as consultants, local government bodies, Tribal Nations, other state agencies, grantees, utility owners, or railroad companies.

Delegated Authority

Established by a written order which describes the specified statutory powers or duties of the Commissioner that are delegated to be performed by a specified subordinate employee (see Minnesota Statutes §15.06, Subd. 6 and list of active MnDOT delegations(PDF)).

Solicitation

A process used to inform potential Contractors of an opportunity to compete for a MnDOT Contract and provide information about project and proposal or bid submission requirements.

SWIFT (Statewide Integrated Financial Tools)

The online financial, procurement, and reporting system used by the State of Minnesota.

Responsibilities

Offices and districts may use different titles for their employees than those listed below and have the discretion to assign responsibilities as they see fit. Each office and district is responsible for ensuring that the financial and technical deliverables for each contract it creates and administers are met.

The responsibilities listed below are intended to be high level. For specifics, please see the Contract Management Procedures.

Contract Administrator

Collaborate with the project manager to prepare and process documents such as the solicitation, scope of work, contract and related attachments, contractor invoices and progress reports, and contract amendments.
Collaborate with other MnDOT offices involved in the contracting process.
Support contract negotiations and amendments.
Ensure that contracts and amendments are prepared, routed for review and signature, and executed.
Serve as subject matter expert as it relates to the contract.
Handle day-to-day details of the contracting process.
Ensure that MnDOT contractors are held accountable for the agreed upon scope of work and are paid only the agreed upon amount.
Enter core contract data in CAATS as required by the Contract Management Section.

Project Manager

Collaborate with the contract administrator to prepare and process documents such as the solicitation, the scope of work, the contract and related attachments, contractor invoices and progress reports, and contract amendments.
Serve as subject matter expert as it relates to the scope of work.
Conduct contract negotiations, when applicable.
Monitor contract performance.
Ensure that MnDOT receives the appropriate work product and, when applicable, approve the amount to be paid.
Issue all review comments, corrections and additions in writing to contractor.
Contact the Contract Management Section to discuss any contract termination.

Grants Support Unit (MnDOT Office of Financial Management)

Coordinate the process for obtaining legislative spending authority for federal funds.
Set up and monitor federal funding appropriations in SWIFT.
Collaborate with the Contract Management Section on grant agreement templates and applicable policies and regulations.
Provide technical assistance, support, best practice guidance, and training to office and district staff on grants management.

Business Operations, Purchasing Unit (MnDOT Office of Administration)

Encumber the specialty office/central office funds that MnDOT uses to pay for non-P/T work completed by a contractor.
Complete encumbrance verification signature.
Provide Purchase Order number for payable contracts.

Contract Management Section (MnDOT Office of Chief Counsel)

Provide legal and technical assistance to MnDOT staff involved in contracting.
Provide oversight to ensure MnDOT contracts and its contracting processes comply with all applicable laws and policies and promote and further, to protect the public interest.
Provide support for various issues that may arise throughout the contacting process, from the initial solicitation and contract template selection to closeout or termination of services.
Review and approve solicitations, contracts, and administrative documents, when necessary.
Verify that contracts are signed by staff with proper delegated authority.
Sign documents when permitted by law or delegation or route to the Department of Administration, Office of State Procurement (OSP) for approval.
Serve as liaison between MnDOT, the Department of Administration, and the Attorney General’s Office for contract and procurement issues.
Define core contract data.
Manage CAATS system and ensure all core contract data is entered in CAATS. May direct other offices to enter data in CAATS.
Review and approve contract templates.
Create and modify contract types and subtypes as needed for reporting and other purposes.

Policy Owner (Deputy Chief Counsel – Contract Management)

Report suspected fraud to the Bureau of Criminal Apprehension in accordance with Executive Order 25-01.
Review the policy every two years, or sooner as necessary, to ensure the policy remains up to date.
Ensure procedures, forms and other documents associated with the policy remain current.
Monitor state, federal, enterprise, agency, or other requirements that apply to the policy or procedures.
Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
Work with the Policy Coordinator to revise policy and/or confirm its accuracy.
Communicate policy revisions, reviews, and/or retirements to stakeholders.

Resources and related information

History and updates

Adopted

May 27, 2015

Superseded

Policy #2.1 and Procedure #2.1-G-1, Amending Expired Contracts
- Effective: June 14, 2004
Policy #2.82-3, Contract Development and Execution
- Effective: October 6, 1982
- First Revision: April 12, 1989
- Second Revision: May 11, 1993
- Third Revision: August 28, 1995
Procedure #2.82-3-P-1, Uniform Procedures Contract
Procedure #2.82-3-P-2, Approval of T-Contracts
Guideline #2.82-3-G-2, Work Order T-Contracts

Revised

First Revision: March 11, 2021
Minor Edit: March 13, 2023 - Updated links and added policy owner responsibilities to match revised template.
Second Revision: August 6, 2025

Policy Review

This policy's next scheduled review is due August 2027.