Changes to Contractor Agreement Procedures for Services Performed Beginning July 1, 2017

In follow-up to the initial announcement regarding procurement policy changes, Sponsored Programs would like to provide some additional information regarding how the new procurement guidelines will impact Contractor Agreements for services performed on externally-sponsored projects. 

As noted previously, beginning July 1, 2017, the purchase of services on a sponsored project at a total cost of less than $3,500 may be paid through the direct pay process without requiring a formal contractor agreement.  Contractor agreements may be requested for lower amounts as needed (i.e., when having a clearly outlined scope of work and deliverables with fees would be beneficial to a project or when requested by a contractor).  Contractor agreements should always be used when there is an expectation that additional services may be added that would result in total compensation exceeding $3,500 at any point in the award period. 

A competitive procurement process is required for all services with a total cost of $3,500 or more during an award period, and a Quote Sheet or a formal bid or RFP process will be used to document the competitive process.  The following guidelines will apply:

  • For purchases costing less than $40,000, a project director or an administrative staff member assigned by the project director will obtain quotes and must sign the attestation on the Quote Sheet. 
  • At least two quotes will be required for services costing between $3,500 and $19,999.  These quotes may be obtained from potential vendors via telephone or in writing.  If the quotes are obtained via telephone, the selected vendor must submit a quote in writing, and that quote must be attached to the Quote Sheet.
  • At least three quotes will be required for services costing between $20,000 and $39,999.  These quotes must be obtained from potential vendors in writing, and copies must be attached to the Quote Sheet. 
  • If the required number of quotes cannot be secured, project directors should contact Purchasing to have a public Request for Quotes posted.  
  • The Quote Sheet is to be used only for contractor agreements requested on externally-sponsored projects.  A separate Quote Sheet will be made available from Purchasing for purchases of goods as well as for purchases of services that are not funded by externally-sponsored projects.
  • Services contracted at a total cost of $40,000 or more will require a formal bid or RFP process.  Project directors will work with Purchasing through the bid or RFP process and should not complete the Quote Sheet. 
  • The bid or RFP process may also be used for services costing less than $40,000 when the required number of quotes cannot be obtained or when obtaining them would be an exceptional burden to project staff. 
  • A scanned copy of the signed Quote Sheet or documentation of the completed bid or RFP process must be uploaded to the Contractor Agreement Request in our online InfoReady Review system.  When a Quote Sheet is used, Sponsored Programs will route the submission to Purchasing for approval.   

Through the end of the fiscal year, there will be two options for requesting contractor agreements in our online InfoReady Review system.  If you are requesting a contractor agreement for services that will be performed beginning on or after July 1, 2017, please be sure to use the option entitled “Contractor Agreement Request for Services Beginning in FY 2018.” 

Thank you for your patience and cooperation as we implement new regulations and procedures. 

If you have questions regarding changes to the Contractor Agreement Request process, please contact Sponsored Programs. 

If you have questions regarding the implementation of procurement policy changes beyond the impact on contractor agreements on externally-sponsored projects, please contact Purchasing.  

Published on May 08, 2017

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