MODEL BOARD OF GOVERNORS' SUBMISSION

CONTRACTS BETWEEN WAYNE STATE UNIVERSITY AND EXTERNAL ORGANIZATIONS IN WHICH UNIVERSITY EMPLOYEES PARTICIPATE

This model submission to the Board of Governors deals with a contract to purchase a software program to be used as a supplement to lectures.  One would use different but parallel language if the purpose of the contract was to purchase physical equipment for a laboratory, or to hire the University employee's corporation for a specific good or service.

Submitted By: __________________________ (Provost or VP Name and Title)

UNIVERSITY CONTRACT TO PURCHASE FROM __________________________ SCHOOL FACULTY

Recommendation

The Administration recommends that the Board of Governors authorize the President or his designee to contract with ___________________ Software, Inc. to purchase six copies of a computer software program entitled ___________________, for a total purchase price of $300,000, for use in the ______________________ Department.

Background:

The ________________ School has informed us as follows:

1. Professor _________ is an Associate Professor in the ____________ Department at the ________________ School, and is the Course Director for the __________________ Program.

2. The __________________ Department wishes to purchase a computer software program entitled ___________________ to supplement lectures given by Professor ______________ in _________________.  The software program provides animations which serve to clarify details and principles of ________________ in a way that cannot be done through static presentation, and includes quiz sections which enhance its pedagogical value.  The program would be installed on ________________ computers.

3. The software program is owned by __________________ Software, Inc.  Professor ______________ is the owner of _______________ Software, Inc.

4. The ________________ School wishes to purchase six copies of the computer program.  Each copy allows the program to be installed on two computers.  Although the retail price for the software is $95.00 per copy, __________________ Software, Inc. will sell the software to the _______________ School for $50.00 per copy.  The total cost to the university would be:

Six copies at $50.00 apiece: Total: $300.00

Michigan Conflict of interest law requires specific sunshine procedures in order for a University employee, or a company owned by a University employee, to contract directly or indirectly with the University:

1. The employee must disclose any pecuniary interest in the contract to the Board, and the disclosure must be made a matter of record in the Board's proceedings.

2. The contract must be approved by a vote of not less than two-thirds of the full membership of the Board in open session.

3. The Board's minutes must report:

   • The name of each party involved in the contract.

   • The terms of the contract, including duration, financial consideration between parties, facilities or services of the public entity included in the contract, and the nature and degree of assignment of employees of the public entity for fulfillment of the contract.

   • The nature of any pecuniary interest.

If the board approves this recommendation, the minutes will report as follows:

The Board of Governors authorizes the President or his designee to contract with ______________________ Software, Inc. to purchase six copies of a computer program entitled ____________________, for a total purchase price of $300.00, for use in the __________________ Department.

1. The parties involved in the contract are Wayne State University and _________________ Software, Inc.

2. The contract will provide that ______________ Software, Inc. will sell six copies of the computer software program to Wayne State University at the price of $50.00 each, for a total purchase price of $300.00.  The computer software program will be installed on university computers in the ________________.  No university facilities or services of the University are included in the contract, and no University employees are assigned in connection with the contract.

3. The pecuniary interest is that Professor ______________ is the owner of ________________ Software, Inc., and will therefore be indirectly compensated in the amount of $300.00 for the computer software.