Contracts

No. 5-4d    Rev.       Date:  03-14-06       

 

 

I.  REFERENCES

 

 

  • UCA 53B-2-101 - Institutions of Higher Education - Corporate bodies - Powers
  • UCA 53B-2-106 - Duties & Responsibilities of the President of Each Institution - approval by Board of Trustees.
  • UCA 63-56 - Utah Procurement Code
  • SBR Policy R-220 - Delegation of Responsibilities to the President and Board of Trustees
  • SBR Policy R-170 - Capital Facilities
  • PPM 5-4a - Contract and/or Disbursing Officers
  • PPM 5-4b - Authorized Signatures on Financial Documents
  • PPM 5-25 - University Procurement
  • PPM 5-25i - Purchasing Cards 

II.  DEFINITIONS

A.  Contract - For purposes of this policy, a "Contract" is defined as a written agreement between two or more parties which is intended to create an obligation, right, or liability on behalf of 91¶ÌÊÓƵ (hereafter 91¶ÌÊÓƵ or University).  Contracts as defined above include Letters and Memoranda of Understanding. 

III.  OVERVIEW

A.  All contracts entered into in the name of 91¶ÌÊÓƵ are subject to the policies and procedures of the Utah State Board of Regents.  In addition, many of 91¶ÌÊÓƵ's contracts are subject to the Utah Procurement Code, 91¶ÌÊÓƵ procurement policy, and applicable state or federal regulations (sponsored projects). 

IV.  POLICY

91¶ÌÊÓƵ has a centralized system of contracting authority.  State law and Regent policy delegate to the Trustees and President authority to contract on behalf of 91¶ÌÊÓƵ.  Subject to these limitations, this policy further delegates contract review and approval authority to other officers of the University.  No person is authorized to execute contracts on behalf of 91¶ÌÊÓƵ unless authority to do so has been granted by this policy or by formal written authorization of the President.

A.    General Review and Authorization

1.    Contracts which commit University funding of $50,000 or more require legal review.

2.    Contracts which commit University funding of $100,000 or more also require the signature of the President or responsible Vice President.

3.    Contracts which commit University funding of $300,000 or more also require Board of Trustee review and approval.

4.    All real estate contracts require Board of Trustee review and approval except:  (1) leases where the University is lessor; (2) leases where the University is lessee and the lease has a term of less than 5 years and financial consideration of less than $50,000 annually; and (3) easements.

B.    Review and Approval of Specific Contracts

Category:

 Athletic Contracts (not included elsewhere)

Description:

 Game guarantees, scheduling agreements, media contracts, etc.

Review:

 Day-to-day athletic contracts (e.g., scheduling agreements) do not require legal review.

Signature:

 President or Vice President for Administrative Services
   

Category:

 Benefit Contracts

Description:

 Dental, medical, group life, long term disability, etc.

Review:

 Require legal review

Signature:

 President or VP for Administrative Services
   

Category:

 Clinical Affiliation Agreements

Description:

 Agreements to place 91¶ÌÊÓƵ students in clinical settings (i.e. hospital/nursing department agreements)

Review:

 Require legal review.

Signature:

 Responsible Dean or Division Head
   

Category:

 Donor Agreements

Description:

 Gift agreements, property gifts

Review:

 Development Office should consult with the legal office and real estate office to ensure that appropriate legal provisions are included in the contract and that the gift is in the best interest of the University.

Signature:

 President, VP for University Relations or VP for Administrative Services
   

Category:

 Employment Contracts

Description:

 Personal service contracts (coaches), standard-form contracts for faculty, PARs, early retirement, etc.

Review:

 Day-to-day personal service contracts (PARs, standard-form contracts for faculty, etc.) do not require central legal review.  All non-standard form contracts require legal review and HR review.

Signature:

 Day-to-day personal service contracts - according to PPM 5-4a.
  All other personal service contracts - President or Responsible VP.
   

Category:

 Facility/Campus Use Agreements

Description:

 Outside use of 91¶ÌÊÓƵ Facilities and Campuses - concerts, performances, athletic events, television productions, temporary amusement venues (i.e., mechanical bulls), etc.  Note:  Facility/Campus Use Agreements are limited to 30 days in duration.  An agreement of a longer duration (or open-ended) should be considered a lease and reviewed and approved according to the Real Estate category below.

Review:

 Department should consult with the Office of University Legal counsel to ensure that appropriate legal provisions are included in the contract.

Signature:

 Responsible Dean or Division Head
   

Category:

 Financial Aid Agreements

Description:

 Participation agreements with federal or other sponsoring agency - excludes donor scholarship agreements.

Review:

 As needed

Signature:

 President or Provost
   

Category:

 Licensing Agreements

Description:

 Trademarks, music, royalty and production agreements, etc.

Review:

 Require legal review

Signature:

 President or Responsible VP
   

Category:

 Organizational Training Agreements (Other than sponsored projects governed by University Policy including those funded by state or federal tax dollars)

Description:

 Courses, programs or training provided by contract.  Note:  If the training agreement involves the use and substantial control of 91¶ÌÊÓƵ property by a third party, the agreement should be reviewed and approved according to the Facility/Campus Use Agreements category above.

Review:

 Training agreements over $25,000 require legal review.  Other training agreements are to be reviewed as needed.

Signature:

 Over $10,000 - Dean of Continuing Education
Under $10,000 - Responsible Dean or Division Head
   

Category:

 Partnership/Teaming Agreements (Other than sponsored projects governed by University Policy , including those by state or federal tax dollars.)  Includes letters and memoranda of understanding with domestic or international institutions.

Description:

 Program affiliation agreements, partnerships with local chapters and professional associations, sister institution agreements, teaming agreements.

Review:

 Domestic partnerships/teaming agreements over $25,000 require legal review.

International partnerships/teaming agreements require legal review in all cases.

Other partnerships/teaming agreements are to be reviewed as needed.

Signature:

 Responsible Dean or Division Head.
   

Category:

 Procurement Contracts

Description:

 Buying, purchasing, renting, leasing or otherwise acquiring any supplies, services, or construction.  Excludes purchases with University P-cards which are governed by University Policy .

Review:

 Require review and approval of the Purchasing Department in compliance with University Policy .  Also require coordinated department review and legal review as needed.

Signature:

 President, Responsible VP, or Director of Purchasing
   

Category:

 Real Estate Contracts

Description:

 Leases ( as lessee or lessor), purchases, sales, easements, etc. of real property.  (For purposes of this policy, leases [as lessee or lessor] are considered to be formal arrangements that extend longer than 30 days in duration and provide for the use and substantial control of non-owned space by the University or a third party.)

Review:

 Require legal review and 91¶ÌÊÓƵ real estate office review.

Signature:

 President or VP for Administrative Services.
   

Category:

 Sponsored Project Contracts

Description:

 Awards, non-gift grants, contracts or memoranda of understanding between the University and federal, state or local government entities.

Awards supported by state or federal tax dollars in whole or in part.

Awards made to the University for non-gift grants and contracts by non-governmental organizations or foundations.

Review:

 Require review of the Office of Sponsored Projects in compliance with University Policies 4-25 through 4-35.  Also require legal review as needed.

Signature:

 Responsible Dean and Department Chair or Division Head and Director of Sponsored Projects (Compliance)

C.    Responsibilities of University Counsel

1.    University Counsel shall periodically provide necessary materials and training to ensure University employees involved in the contracting process are qualified and understand the scope and limits of their contracting authority.

2.    University Counsel shall be a central repository for all contracts requiring legal review with the exception of: (1) real estate contracts which will be retained by the University real estate office; (2) sponsored projects contracts which will be retained by the Office of Sponsored Projects; and (3) procurement contracts which will be retained by the Purchasing Department.

3.    Periodically, University Counsel shall assess the effectiveness of the University's contracting processes.