Contractual and Consultant Services
REG 07.45.2
Purchasing Department
Authority: Vice Chancellor for Finance and Business
History: First Issued: July 1, 2002.
Additional References:
Contract Advisory Form
Contract Review Checklist
Contract Management Home Page
Hiring Employees or Independent Contractors
Checklist for Determination of Independent Contractor Status
Contact Info: Purchasing Director (919-515-2171)
1. Purpose
The purpose of this statement is to outline procedures whereby University
departments and offices may obtain needed contractual and/or consultant services.
As an additional guide, please refer to the Office of Legal Affairs "Contract
Review Checklist" and "Contract Advisory Form".
2. Applicable Policies
2.1. A contractual service is defined as 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. Agreements for medical/counseling
services and annual equipment maintenance are examples.
2.2. An administrative consulting service is
defined as work or task(s) of an advisory nature performed by state employees
or independent contractors possessing specialized knowledge, expertise,
experience, or professional qualifications needed to investigate assigned
problems or projects and to provide counsel, review analysis, or advice
in formulating or implementing improvements in programs or services. This
includes, but is not limited to, the organization, planning, directing,
control, evaluation, and operation of a program, agency or department.
2.3. An academic consulting service involves the use of individuals for
instructional services, curriculum development, and academically oriented
research, which are exempt from the otherwise prescribed procedures for
administrative consultants.
This means that academic consultants used for the above purposes are exempt
from the state's purchasing guidelines and review, which makes it possible for
the University to entertain reasonable requests to single-source purchases.
This gives the department much greater flexibility in choosing vendors and
services. The use of academic consultants for the above purposes, however,
must still be reviewed and approved, and this responsibility remains at the
department/college level. In addition, any terms specified in grants, awards,
etc. remain in effect. Whenever possible any contractual service should be
competitively bid as this continues to be the single best method for obtaining
contractual services at the lowest prices.
2.4. An administrative consultant service differs from a contractual service
in that a person or firm is hired to provide advice and counsel in lieu of
hiring them to actually perform work of a service nature.
3. Procedures**See Contract Management Home Page
3.1. Contractual Service
3.1.1. The department desiring the service must submit a purchase requisition
with supporting documentation to the Purchasing Department. The request
must include (at a minimum):
3.1.1a. A description of the service to be performed including
specifications for the type or level of work to be performed.
3.1.1b. The dates for which the service is required.
3.1.1c. What the contractor will furnish and what the University will
furnish.
3.1.1d. The method of and schedule for payments.
3.1.1e. An estimated cost.
3.1.1f. Potential sources (bidder list) for the contractual service that
the department has identified.
3.1.1g. Other methods of performing the task which the department
considered and why these methods were rejected.
3.1.1h. Any other facts, circumstances, or specifications deemed pertinent
to the request.
3.1.2. If the contractual service is estimated to cost less than $250,000,
for the initial annual cost of the contractual agreement for multi-year
agreements, the Purchasing Department will solicit bids and award the
contract.
3.1.3. If the contractual service is estimated to cost more than $250,000,
for the initial annual cost of the contractual agreement for multi-year
agreements, approval is required from the North Carolina Division of
Purchase and Contract (P&C).
3.2. Consultant Service (Administrative)
3.2.1. The department desiring the service must submit a request for a
consultant service in letter or memorandum form to the Purchasing
Department. This request must include:
3.2.1a. A detailed description of the project contemplated.
3.2.1b. A description of the consultant service required.
3.2.1c. Why the work to be performed by the consultant
cannot be reasonably accomplished by employees
of the requesting department
3.2.1d. Statement of why this service is reasonably necessary
to the proper function of the department/agency.
3.2.1e. What benefits the department expects to
receive from the consultant's services.
3.2.1f. An estimated cost of the service requested.
3.2.1g. An estimate of the period of time this service
is required.
3.2.1h. Potential sources for the consultant service, if any,
that the department has identified. (bidder's list)
3.2.1i. A list of State agencies capable of performing
the required service. (summarize all contact results)
3.2.1j. Any other facts or circumstances deemed
appropriate by the requesting department.
3.2.2. The departmental request must be approved by the
appropriate Dean or Vice Chancellor before being
submitted to the Purchasing Department.
3.2.3. The Purchasing Department will review the request,
and if approved, forward it to the State Purchase
and Contract Division for review and approval.
3.2.4. If approved, the request will be returned to the
Purchasing Department for the solicitation of
proposals from private contractors, state agencies,
or both, and the contract award.
3.2.5. Any administrative consultant contract awarded without
the approval of the appropriate University officials,
the State Division of Purchase and Contract, and
the approval of the Governor or his designee shall be
void and no State funds shall be expended pursuant
to any such contract.
3.2.6. Any University employee who executes a consultant
contract without these prescribed approvals shall
be liable to repay any amount expended pursuant to
such contract and be subject to legal liability and
possible disciplinary action.
3.3. Consultant Service (Academic)
See Section K, Statement 4, page 1, item B3 for a
description of academic consulting services.
3.4. In order to ensure that the University
properly classifies workers in compliance with IRS guidelines, all personal
service contracts must be accompanied by the "Checklist
for Determination of Independent Contractor Status." The checklist
must be forwarded to the Purchasing Department with the contract or agreement
for review. All instructions for completion are on the form.
3.5. Questions
concerning a contractual or consultant service contract should be directed
to the Purchasing Department, extension 5-2171.
