Policies & Procedures


 

Section: PUR
Part: POL
Statement No.: 22.0
Date: 05/20/2013
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Contractual Services

 

Types of Contractual Services:

 

Services contract is an agreement in which an independent contractor performs services requiring specialized knowledge, experience, expertise, or similar capabilities for UNC-GA for compensation from state funds. The services may include (by way of illustration, not limitation) services such as maintenance of buildings or equipment, auditing, film production, employee training and food services, provided that the service is not primarily for review, analysis, evaluation, or advice in formulating or implementing improvements in programs or services (in which case consultant services procedures apply). Contracts for rental of equipment, materials or supplies shall be deemed to be service contracts.

 

State funds shall mean any and all money appropriated by the General Assembly of North Carolina, or moneys collected by or for the State or any agency thereof, pursuant to the authority granted in any of its laws.

 

1.    Consultant service: is defined as work or task(s) performed by state employees or independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel,  review, analysis, evaluation or advice in formulating or implementing changes to 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.   Service Contract Procurement: Listed below are the steps that shall be followed when seeking to obtain a service contract. 

 

a.    Before UNC-GA shall seek to obtain a service, a letter or memo justifying the need for the service and confirmation that funds are available for such purpose shall be on file with the UNC-GA Purchasing Officer.

 

b.    The justification shall include an estimated cost for obtaining the service, as well as a cost comparison between the preferred method (or level) of service and any alternate means (or quality levels) that are available. Such justification will be in writing and will be placed in a permanent file at the UNC-GA Purchasing Office.

 

The following types of services shall be exempt from adherence to these procedures:

 

1.    services provided by individuals by direct employment contracts with the State

2.    public utility services (gas, water and electricity)

3.    telephone, telegraph and cable services furnished by those companies

4.    services provided which are subject to published tariff rates as established by the Interstate Commerce Commission

5.    services which are merely incidental to the purchase of supplies, materials, or equipment such as installation service

6.   contracts for construction of and structural changes to public buildings

7.   services provided directly by an agency of the State, federal, or local government, or its employees when performing the service as a part of its normal governmental function

8.   any other service designated to be exempt by the State Purchasing Officer. or his authorized representative

 

When justification for the service has been completed, the requesting department shall prepare a complete task description, outlining in detail the services required. The task description shall, as a minimum include the following: The date(s) of service; detailed specifications or type and level or work required, what UNC GA will furnish; what the contractor will furnish; the method and schedule of payments to the contractor; any other terms, conditions, specifications or procedures bearing on the conduct of the work. Specifications for all services expected to cost over $4,999.99 must be issued in written form via:

·         Request for Proposals (RFP)

·         Invitation for Bids (IFB)

·         Request for Quotations (RFQ).

 

c.    Before seeking services from the private sector, UNC-GA shall investigate sources within state government, the State University System, and the Department of Community Colleges which may be able to provide the services. If it is determined that such resources are not available, the requirements can then be publicized to the private sector.

 

d.    Certain categories of services (e.g., information processing, auditing) require review and approval of the state agency(ies) responsible for related services for the state. Such review serves two purposes: 1) To determine whether the resources to perform the service already exist within state government and need not be duplicated; and 2) To ensure that specifications are appropriate. 

 

e.    UNC-GA may then solicit proposals, bids, or quotations from as many sources as possible. Soliciations will always be posted on the State's Interactive Purchasing Site (IPS) https://www.ips.state.nc.us/ips/ and can also be mailed out to vendors that may have an interest in bidding on the soliciation.

 

f.      Depending on the nature of services required, a pre-proposal conference, site visit, or other provision for questions from potential offerers may be included in the specifications. Any changes or additions to the specifications shall be issued as a written addendum.

 

After all proposals are received, UNC-GA shall carefully analyze the proposals to ascertain compliance with the task description, qualifications, terms and conditions. Before an award is recommended, UNC-GA should make a determination through references, financial statements, etc., that the recommended contractor is capable of performing the work in a satisfactory manner. This evaluation shall be documented for the procurement file. For contracts under the amount delegated to the agencies by statute (currently $25,000), the UNC-GA Procurement Director shall make the award and prepare a contract incorporating the Request for Proposal specifications, the contractor's response, and the agency's standard terms and conditions. A requisition submitted by the department and a copy of the contract shall be on file in the Purchasing Department.

 

 

The following are General Contracting Requirements in accordance with State Policy:

 

1.    All contracts in excess of five thousand dollars ($4,999.99) shall be in writing. However, consulting contracts and contracts with State employees (dual compensation) must be in writing, irrespective of amount. For services less than $5,000, a Scope of Work document and Vendor Selection Recommendation Form may be requested by Purchasing Officer to justify rate of pay, etc.

 

2.   Contractual service contracts (or agreements) of any amount shall not be entered into for more than three years total.

 

3.    All contractual agreements will be governed by the laws of North Carolina unless prior approval otherwise has been received from the Attorney General's Office.

 

4.    All contracts shall be cancelable upon a specified reasonable written notice at any time by the State for unsatisfactory performance or for the convenience of the State.

 

5.    All contracts shall provide for an option to require a performance bond. Performance bonds, will be required when deemed necessary by the State.

 

6.    No public official is to benefit from any contract with the State or any agency thereof.

 

7.    All contracts will stipulate that the contract is entered into in compliance with State and federal antitrust laws.

 

8.    The contractor shall furnish all worker's compensation, liability insurance, and other insurance as may be required to protect the contractor and the State from claims which may result from the performance of the contract.

 

9.    A payment schedule will be specified in the contract. No payment shall normally be made for any portion of the work unless that portion of the work has been satisfactorily completed.

 

10.  No contract (or any interest therein) with the State shall be assignable.

 

11.  No contract will be used for any advertising by the contractor without prior approval of the Purchase and Contract Division.

 

12.   No price adjustments will be made unless the procedure therefore is set out in the original contract.

 

13. The contract must specify that it is subject to the availability of State funds.

 

  1. For contracts over $24,999.99 (or the amount delegated by statute), the UNC-GA purchasing office shall submit to the Division of Purchase and Contract a complete package documenting the procurement activity. This shall contain, at a minimum, the justification memorandum, the RFP/IFB/RFQ as issued, a copy of the mailing list, any addenda, copies of all proposals received, the proposal evaluation, and a recommendation for award. Please note that the threshold requiring review by Purchase and Contract is determined by the total potential contract cost, including any renewal options, not just the first year's cost.

 

  1. UNC-GA shall make every effort to eliminate "sole source contracts" whenever possible. UNC-GA shall contact the Division of Purchase and Contract before initiating a sole source contract to ascertain whether other prospective contractors may be available. If a sole source contract is then judged to be the only feasible source of the services, a memorandum of justification and recommendation shall be submitted to the Division for review and approval prior to pursuing a contract. 
  1. After the contract is signed and/or a purchase order is issued, the complete procurement file (with the exception of proprietary or confidential information) is available for public inspection. A copy of any contract shall be sent to purchasing for retention.

 

 

3. Consultant Services Procurement:

 

  1. Services of a consultant or of an advisory nature shall mean work or tasks performed by State employees or independent contractors possessing specialized knowledge, experience, expertise, and professional qualifications 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 operations of a program or department.
  1. It is the policy of the University that all UNC System Campuses and Affiliates shall acquire consultant services only after it is determined that the function for which the consultant is to be retained cannot be reasonably accomplished by employees of the agency needing such services; that the use of a consultant is reasonably necessary to the proper operation of the UNC campus; that the estimated cost of funds are available for such a contract; that the contract is in the best interest of the State, and that all rules and regulations as laid out by the Board of Governors in G.S. 600.5.4 shall be followed. In acquiring such service, competition shall be sought whenever practical. 

 

  1. Whenever possible, consultant services shall be obtained from other State agencies when the services available from other State agencies.

 

  1. Before receiving authorization to seek consultant services, the UNC Campus or Affiliate must take the following steps: 

      -Authorized pre-bid approval of consulting contracts by the Chancellor or the 

      Chancellors' designees if a consulting contract is less than or equal to a campus' 

      delegated purchasing authority.

      

      -Authorized pre-bid approval of consulting contracts by the University of North 

      Carolina General Administration's (UNC GA), Chief Operating Office (COO) if a 

      consulting contract is above a campus' delegated purchasing authority.  In order

      to obtain approval, a campus or affiliate must submit an email to the COO with 

      the following information: 

 

      a. What services the campus desires to secure

      b. What benefits the campus/department expects to receive from the consultant 

      service

      c. What the campus estimates the cost of the service(s) to be

      d. What sources the campus has identified

 

      -When the consulting service has been approved by the COO, an approval will be

      emailed to the appropriate campus contact and the campus can then prepare and

      issue the solicitation document for the needed consulting service.

 

UNC campus contracts for consulting services must still be consistent with all procurement policies and procedures adopted by a campus including policies and procedures for personal and professional services, competitive bidding and sole source justifications.

All professional consulting contracts for the fiscal year, whether above or below a UNC Campus' delegated purchasing authority, must be reported to the UNC GA Procurement Director by August 31st of the following fiscal year.  A consultant log has been created for each campus to fill in their consulting services contracts for each fiscal year.

Once the UNC GA Procurement Director has received each campus' consultant log, she will forward to the UNC GA COO for final review and record keeping purposes.  

Consulting contracts for instructional services, curriculum development and conducting academically-oriented research will remain exempt from the State Consulting Act and are exempt from the above procedures outlined for professional services consulting contracts in G.S. 600.5.4.