Materials Management

Policy Statement 41: Contractual Services

Definition

Contractual services shall mean work performed by an independent contractor requiring specialized knowledge, experience, expertise or similar capabilities wherein the service rendered does not consist primarily of acquisition of equipment or materials. The services may include (by way of illustration, not limitation) services such as maintenance of buildings or equipment, auditing, film production, employee training, food services (provided that the service is not primarily for review), analysis or advice in formulating or implementing improvement in programs, or services in which case consulting procedures would be applicable. For the purpose of clarification, equipment service contracts are contractual services and subject to the rules and regulations herein.

Exemptions

The following types of services shall be exempt from adherence to procedures for securing contractual services:

1. Services provided by individuals by direct employment contracts with the State.

2. Public utility services (gas, water, and electricity).

3. Telephone, telegraph and cable services furnished by those companies.

4. Services provided which are subject to published tariff rates as established by the Interstate Commerce Commission.

5. Services which are merely incidental to the purchase of supplies, materials or equipment.

6. Contracts for construction of and structural changes to public buildings.

7. Personal services provided by a professional individual on a temporary or occasional basis including (by way of illustration, not limitation) those provided by a doctor, dentist, attorney, architect, professional engineer, scientist, or performer of the fine arts if the individual is using his/her professional skills to perform a professional task.

8. Services provided directly by an agency of the State, Federal or local government, or their employees when performing the service as a part of their normal government function.

9. Any other service designated to be exempt by the State Purchasing Officer, or his authorized representative.

Competition

It is the general policy of the University to acquire contractual services by seeking competition. The final decision-making authority in regard to any phase of procurement or performance of any contractual service is the Department of Materials Management.

Determinations of Fact

Before a department of the University shall seek to obtain a contractual service, it shall make all of the following determinations: that funds are available to cover the total cost of the service; that the desired level of quality of the service is adequate and reasonable for the purpose intended; that all rules, regulations and procedures referred to herein have been or will be complied with; that obtaining the service is in the best interest of the University.

Forward to Purchasing

After all determinations listed above are made, they shall be incorporated into a letter of justification and forwarded to the Department of Materials Management. Once approved, the Department of Materials Management will take necessary action to secure the requested services, either by competitive bidding or negotiation.