This procedure is
issued to establish effective guidelines for the contract processing
procedures and applicable laws and regulations.
Definitions
“Agreement or
Contract” – These two terms are used equally throughout this whole
section indistinctly and they are referenced as any kind of terms or
conditions that a contractor requires for the University to be bound to.
“BPM” – Business
Process Memorandum
“OGC” – Office of
General Counsel at UT System
“Board of Regents”
- The government of the University System is vested in a board of nine
regents appointed by the governor with the advice and consent of the
Senate. The board may provide for the administration, organization, and
names of the institutions and entities in The University of Texas System
in such a way as will achieve the maximum operating efficiency of such
institutions and entities.
(See Texas Education Code Sections 65.11 et seq.) They are also
called “Board”.
“Docketing” - The
docket for The University of Texas System is a list of items in a
consistent summary format. These items require reporting to the Board
based on recommendations following their administrative approval by the
appropriate System Administration Official. Dockets become a part of the
official minutes of The University of Texas System Board of Regents’
Meetings.
Overview.
In determining the
need for a formal contract, several issues must be reviewed. In general,
the Contract process is much less efficient than the procedures used
when issuing Purchase Orders. Purchase Orders however, may not protect
the University from potential risks in the same manner as a formal
contract. In determining the need for a formal contract as opposed to a
purchase order, buyers must weight several factors such as risk,
complexity, dollar amount and efficiency.
The proper
procurement method must first be determined. Most contracts are
established as the result of an RFP, RFQ, or RFO process (which allows
for negotiation), rather than from a bid. A primary rationale for
establishing any contract is to finalize the actual scope of work (SOW),
terms and conditions that the contractor and the University have agreed
to be mutually acceptable. The bid process assumes all terms, scope,
and/or specifications are extremely clear in the procurement stage.
Acceptance of the services or commodities resulting from a bid, as
opposed to an RFP for instance, should simply be a matter of “awarding”
to a vendor precisely what was stated in the bid documents. Considering
this factors, a complete understanding of the contractual process is not
possible without a thorough knowledge of the RFP procedures. Buyers must
therefore, familiarize themselves with the details of the RFP process. A
sample contract should always be included with the RFP solicitation if a
contract will be implemented.
Financial Risks:
All procurements must follow the delegation authorities listed in
http://www.utsystem.edu/purchas/UTPANAM.pdf and UT Business
Procedure Memoranda 48,
http://www.utsystem.edu/bpm/48.htm Note: When establishing the
monetary value, the full estimated amount of the contract must be
considered rather than merely the financial commitment per fiscal year.
Examples/Guidelines necessitating possible contracts.
If the
complexity of the procurement is such that a purchase order will not
sufficiently protect the University from the potential risks
involved.
Procurements
involving extensive and prolonged use of campus facilities by the
contractor (i.e. temporary services contracts).
Procurements
exceeding the delegated authority of the Purchasing Office and/or
the President’s delegation.
Revenue –
Generating contracts
Auxiliary
Services
Space Leases
If it is deemed that a purchase order or
Notice to Proceed is sufficient and a contract is not necessary, the
award must reference the terms and SOW in the RFP solicitation.
