Wayne State University

Aim Higher

Policies-12

2.3.4. Contracts for Specialized Services with Organizations

DESCRIPTION

The university contracts with outside entities (companies, agencies, other universities, etc.) for the purchase of goods and services.  The contract / agreement is the governing document, and the Purchase Order serves as the payment mechanism.  A Personal Services Contract is used when contracting with individuals (see APPM section 2.5 Personal Service Contracts).

POLICY

The signature authority for contracts is detailed in University Policy 2004-6. The Director of Purchasing may approve contracts up to $150,000 and the Treasurer approves contracts above $150,000. There are other administrative officers with signature authority. For further information on signature authority see University Policy 2004-6.

Contracts for $25,000 or more are subject to the competitive bid process or the request for proposal process as described in APPM section 2.4.  Contracts for less than $25,000 are bid at the discretion of the Purchasing Department.  For all contracts that are to be signed by the Purchasing Director and/or Treasurer, the bid or RFP process is to be performed by the Purchasing Department.  For contracts signed by administrators other than the Purchasing Director and/or Treasurer, the responsible department, college or division must provide all supporting documents (i.e. quotations, contracts, etc.) to Purchasing.  In instances where a competitive bid may not be appropriate, the requestor must submit a request for a waiver of the bid process to the Director of Purchasing.  Submission of a request for a bid waiver is not a guarantee that a waiver will be granted.  No work is to commence until a PO has been issued.

PROCEDURE

I.  If contract to be awarded is less than $25,000 for the total anticipated project:

Responsibility

Action

Department

  1. Identify a vendor.

  2. Identify all services to be performed.

  3. Obtain the vendor contract (if appropriate, use a pre-approved university contract form).

  4. Prepare Banner Purchase Requisition (see APPM 2.2.2.).

  5. Send the contract and any other support documentation to Purchasing by fax  to 7-3360, e-mail at purchasingdocs@wayne.edu, campus mail at 4200 AAB, or upload support documentation into Banner via WebXtender. Include the Requisition number with all documentation.

Purchasing

  1. Review the request to determine the nature and propriety of the order.

  2. Determine if a competitive bid is appropriate.

  3. Check to see if an approved contract is already on file in Purchasing.

  4. Review the contract and any prior versions on file to determine if it should be reviewed and approved for legal form by the Office of General Counsel (OGC).

  5. Submit to OGC for review and approval as required.

  6. Initiate the Purchase Order and submit with the contract for approval by the Director of Purchasing.

Office of General Counsel

  1. Review and approve/reject, modify contract form.

  2. Return contract to Purchasing.

II. If the contract to be awarded is $25,000 or more, see APPM section 2.4 .

Responsibility

Responsibility

Department

  1. Review and approve/deny Purchase Requisition in the Banner System.

  2. If approved, forward to Purchasing.

Purchasing Department

  1. If this was a competitive bid, select Vendor and process a Contract Purchase order.

  2. If this was not a competitive bid, review request for bid waiver.  If approved, process a Contract Purchase Order.  If denied, return to the Requestor.

  3. Send completed purchase order with the executed contract to the vendor.

Department

  1. If the request is denied, contact Purchasing to discuss options.