Service Purchase Contract (SPC) Procedures

Transcription

1 PROCUREMENT SERVICES OFFICE Service Purchase Contract (SPC) Procedures SECTION 1: OVERVIEW 1.1 What is a Service Purchase Contract? A Service Purchas Contract (SPC) is a written form of agreement between the University and a contractor. It commits both parties to the acceptance of providing a specific action on the part of the vendor for the payment of a specific amount by the University in return for said service. Any form of contractual agreement must be signed in advance of the service being given and received. Sufficient time should be allowed for the preparation, revision and signature of a contract prior to the anticipated commencement date. All contracts/agreements must be signed by an authorized contracting officer, or their designee, as indicated in the University President s Delegation of Authority memo. Any university personnel signing an agreement - who is not an authorized signatory - may be held personally liable for the cost of the service and may also experience some disciplinary action. 1.2 Types of Service Contracts: There are various types of contracts available for the purchase of a service. The most frequently used forms are as follows: SAP Generated Service Purchase Contracts (SPC) These types of contracts can be one time agreements, multiple year agreements, or blanket contracts where the full amount of the contract is encumbered for a fiscal year SAP Generated Outline Agreements (OA) These types of contracts are typically used for as needed requirements for maintenance or repairs by requesting departments. They are blanket contracts that do not encumber the full amount of the agreement upfront. Each time a service is requested a requisition is entered into SAP and cross references the contract number Blueback Contracts (BB) This type of agreement is typically for longer terms, contain more complex arrangements and required a more detailed scope of work. Page 1 of 7

2 1.2.4 Examples of Service Purchases can include but not limited to those indicated below: Consultants or External Reviewers Guest Speakers or Entertainers Outside Coaches & Officials for Athletic Camps Fine Arts Models Misc. Services/ Installations Equipment Maintenance/Repairs Or Annual Inspections IT/Technical Consultants- Design & Development Chartered Buses for University Sponsored Trips Workshops or Training on University Premises Equipment Rentals (including Tents) Photographers or Freelance Writers or Proof Reading/Editing Services Interpreters or Captioning Services Property Leases or Property Appraisals 1.3 Why is a Service Purchase Contract needed? The PA State Procurement Code, Act 57, requires that a fully signed contract document must be in place before a service has taken place This document needs to clearly define the scope of work and expectations of the contractor. It provides the University and the contractor: with legal recourse and protection if the work is not performed properly, property damages occur, or if someone is hurt in the process of executing the service An SPC document provides the framework and limits the University s liability for independent contractors on premises (individuals or corporate) The term contracts and agreements are used interchangeably and are to be considered the same. They provide the same degree of obligations, liability and legal enforcement Kutztown University requires that any honorarium for guest speakers with a fee in excess of $600 must be covered by a signed SPC. 1.4 What is the process for initiating a SPC at KU? The purchase of services follows the same rules, regulations and dollar limits imposed for bidding, request for quotes, sole sour requests, and the entering of requisitions that are used for the purchase of supplies & equipment. Purchase requisitions for services need to provide a greater level of detailed information than those for the purchase of a commodity A requesting department or individual identifies a need and enters a requisition into the SAP Financial System for approvals. Page 2 of 7

3 1.4.2 The requisition needs to provide a complete description of the services in the SAP TEXT field that includes the following information: a WHO: Vendors full name, address (not just a PO box), phone & fax numbers, address, point of contact, Federal ID number or Social Security Number, and KU assigned vendor number (VENLST) b WHAT: A detailed scope of work or description of the service required, an itemized cost breakdown (Time & Material or fixed) and any attachments from the vendor. This must c be explicit enough to be enforceable in the event of a dispute. WHERE: Location where the service is to take place and the name of the department needing the service. If the service is to support university-owned equipment, a complete description and location of the equipment is needed for this requirement (manufacturer, model, serial number, etc.) d WHEN: The start and end dates/times of the service needed. Will this Contract be renewed in the future? Vendor Provided Terms and Conditions: a If a contractor presents any terms and conditions (Ts & Cs) to the university person requesting the service, that person must attach a copy of the contractor s Ts & Cs to the requisition b Procurement Services will review these Ts & Cs to ensure they are in accordance with PA State rules and regulations. Terms may need to be modified and will be negotiated with the vendor c These items will be incorporated into any Service Purchase (SPC) and made a part of the contract where deemed appropriate by the contracting Officer Blanket SPCs: a Blanket contracts are created to provide users with on-going needed services b Requestors need to enter requisitions for a blanket contracts with a not to exceed dollar amount by putting the total dollars in quantity field and $1.00 in the unit cost field. This will allow the Accounts Payable Office to make multiple payments against one contract Travel expenses associated with a service contract: a If a contractor indicates that his/her travel expenses are to be paid for by the university, the cost should be included in the actual service contract which will eliminate the need for the department to initiate an additional requisition & purchase order b If a contractor indicates that the travel expenses are to be considered separate from their fee for service, the end user should include this fee on a separate line within the same requisition Contractors must submit invoices for any and all services provided. The appropriate contract number must appear on the invoice in order to expedite processing and accounts payable to render payment. All requests for payment for services provided must be approved by the requesting department. Page 3 of 7

4 1.4.7 NOTE: If payment for a service is required on the day it is provided, the individual or department must submit an approved invoice, and make arrangements with Accounts Payable to pick up the check prior to the date of the event. SECTION 2: ROLES AND RESPONSIBILITIES 2.1 Requisitioner: Roles and Responsibilities Contract Preparation: a identification of need b identification of funding source c obtain the necessary vendor information to provide service d composing a complete, clear, and concise statement of the service to be provided e providing any additional T/C provided by the vendor f submitting a requisition to purchase the service through the SAP system g requisition arrives in Procurement Services for contract processing h administering/managing the contract after it has been issued Contract Administration Responsibilities: a The initiating department or individual responsible for requesting a services is typically given the responsibility of managing the contract b Contract management begins after a contract has been fully signed and approved and does not end until the service has been provided and the final acceptance of the work has been given. At that point the contract will be closed when the final payment has been issued to the contractor c The obligations of the contractor are stated in the contract, however, contractors may not always perform to the University s expectations. It is essential that the designated contact person monitors the contractor s performance to assure that the University is provided exactly what it has contracted for in terms of quality, timeliness and costs d Duties and responsibilities of a contact person include, but are not limited to the following: Ensure the contractor is performing work as required by contract. Immediately contact Procurement Services Office if contractor is not performing satisfactorily, or if terms are being violated. Accept and evaluate quality of service provided; if performance does not meet contract requirements, advise Procurement of identified deficiencies, so remedial action can be taken before final payment is made. Approve invoices (with signature) and submit to Accounts Payable for payment. Page 4 of 7

5 2.2 Procurement: Roles and Responsibilities Procurement Services (PS) is responsible for reviewing all requisitions to purchase services to ensure that the requests contains complete information PS will work with the requesting department/individual to identify and clarify the scope of the service to be performed PS will review any contractor provided terms and conditions for compliance with PA State guidelines and negotiate with the contractor any conflicting terms not in compliance PS will develop the actual SPC and process the contracts for signatures in a timely manner PS will send copies of the fully executed contract to vendor and requesting department. 2.3 Vendor/Contractor: Roles and Responsibilities Contractor will provide a clear, concise description of the service to be provided Contractor will also need to provide any additional terms and conditions required by their company Contractor should also prepare and submit a completed W9 form if they are new to doing business with Kutztown University Contractors are responsible for the timely review, signing, and return of the SPC Contractors need to provide the requested service in timely manner in accordance with the terms of the agreement Contractors are required to submit invoices in accordance with the terms of the contracts. SECTION 3: CONTRACTING AUTHORIZATION 3.1 A contract is not fully approved until all signatures required by the PA State Procurement Code have been acquired. 3.2 No contract shall be implemented, nor shall any supplies, services or construction be accepted, or work begun on any contract not processed, approved and executed in accordance within established policy and procedures. 3.3 Only those persons indicated as Contracting Officers in the University President s Delegation of Signature Authority memo, are authorized to enter into contracts, agreements, leases and licenses for the University. 3.4 Any University employee not listed in the President s memo is not authorized to sign or execute contract or enter into agreements of any kind. Page 5 of 7

6 3.5 Any person accepting supplies, services or construction before a contract is fully approved is in violation of commonwealth law, and may be held personally and financially responsible. (See Act 57 memo) SECTION 4: TIME REQUIREMENTS 4.1 For a complete list of the timelines required for the processing of requests to purchase both commodities and services please refer to the Procurement Planning Guide found on the Procurement Services web page: Amount of Service Time Required to Process < $600 Approximately 7 days $601 to $5,000 Approximately 14 to 21 days $5001 to $20,000 * Approximately 21 to 40 days $20,001 to $500,000 ** Approximately 45 to 60 days >$500,000 *** Approximately 45 to 90 days 4.2 Additional review and signatures are required at the certain dollar thresholds indicated above and described below: * requires University Legal Counsel Approval ** requires University Legal Counsel and the Office of Attorney General *** requires University Legal Counsel, Office of Attorney General, and Office of General Counsel NOTE: The above timeframes given above are general guidelines only. Occasionally contract terms & conditions must be negotiated, which may dramatically increase the time required to process the SPC. Please consider the above guidelines as minimum time-periods. SECTION 5: CITIZENSHIP Please indicate on the requisition if an individual is a U.S. citizen or a non-u.s. citizen. If the person is a non- U.S. citizen, the department must provide a copy of the individual s visa and/or employment card or a permanent resident card to Procurement Services via an or The purchasing agent will confirm the proposed consultant/speaker/entertainer is not on the Specially Designated Nationals List by checking the federal consolidated list available at the US Treasury SDN List. Proposed consultant/speakers/entertainers whose names appear on this list cannot be awarded a contract by the university. Please note that all non-u.s. citizens will have the mandatory 30 percent withholding taxes applied to their fee. Page 6 of 7

7 SERVICE CONTRACT FLOW CHART START PROCUREMENT SVCS SPC SENT TO VENDOR UPON RETURN OF SPC, PROCUREMENT OFFICE COUNTERSIGNS SPC SPC IS SPC OVER $ ? Page 7 of 7