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CONTRACT ADMINISTRATION MANUAL NOVEMBER 2015
FY2016 Contract Handbook Institutional Compliance Page 2
“Integrity at Work”
INTRODUCTION
The offices of General Counsel, Institutional Compliance, and Procurement Services are
pleased to provide the TSU family with the FY2016 Contract Administration Guide – a
companion guide to University MAPP 08.04.01 – Contract Administration Policy . This
guide provides checklists, standard forms, and flowcharts to make the TSU contracting
process easier. This guide contains basic contracting information to assist you in the
processing and review of your contracts / agreements.
If you have any questions or comments about this manual, please contact the Office of
Institutional Compliance at x6823.
FY2016 Contract Handbook Institutional Compliance Page 3
“Integrity at Work”
TABLE OF CONTENTS
Introduction……………………………………………………………………......……….. 2
Table of Contents………………………………………………………….........………….. 3
Glossary………….....………………………………….……………………...……………… 4
Legal Review of Contracts and Agreements……………………………………………. 8
State Contracting Requirements ….……………………………......……………………... 9
TSU’s Process.……………….………………………..……………...……………………… 13
A. Contracts for Goods and Services
B. Affiliation Agreements and Memorandums of Understanding
C. Step-by-Step Flow Chart
D. Contract Management
Checklist………………………………………………..…………………….……………… 24
A. Contract Checklist
B. Consulting Contract Checklist
Appendix….…………………………………………………………………………………. 30
A. Forms / Standard Agreements
B. Professional / Consultant Services Information
C. Quick Reference Guide
Contract Administration Contacts……………………………………………..……..….. 44
FY2016 Contract Handbook Institutional Compliance Page 4
“Integrity at Work”
GLOSSARY
A. Affiliation Agreement. Defines the terms of service between the advertiser and the
affiliate, which defines and governs the affiliate relationship. The affiliation
agreement will specify the responsibilities of both parties, payout terms and
commission for conversions, if necessary.
B. Amendment. The process of formally altering or adding to a document or record.
C. Board. Texas Southern University’s Board of Regents.
D. Breach. A violation or infraction, as of a law, a legal obligation, or a promise.
E. Compliance Cover Sheet. A form containing details and acknowledgments of
responsibility related to a contract request submitted for review and approval. The
Compliance Cover Sheet can be obtained from the University’s website.
F. Consultant. A person that provides or proposes to provide a consulting service. The
term includes a political subdivision, but does not include the federal government, a
state agency or a state governmental entity (Texas Government Code §2254.021(3)).
G. Consulting Service. The service of studying or advising a state agency under a
contract that does not involve the traditional relationship of employer and employee
(Texas Government Code §2254.021(1)). To “study” means to consider some aspect
of the agency in detail, such as its financial status or its method of performing an
administrative function, and to present that information to the agency. To “advise”
means to provide a recommendation or identify options with respect to some course
of action. Generally, a “consultant” delivers information or provides assistance that
enables the state agency to take some course of action. When a contract involves both
Consulting Services and other services, it is considered a consulting contract if
Consulting Services are the primary objective of the contract (Texas Government
Code §2254.038). Questions about whether a particular contract involves Consulting
Services should be directed to the Purchasing Department or the Office of General
Counsel (“OGC”).
H. Contract or Agreement. An agreement between two or more parties that creates in
each party an obligation to do or refrain from doing something and a remedy for
such party’s failure to fulfill the obligation. References to “contracts” or
“agreements” include, but are not limited to, agreements, terms and conditions,
amendments, letters of agreement, letters of intent, statements of intent, memoranda
FY2016 Contract Handbook Institutional Compliance Page 5
“Integrity at Work”
of understanding, leases, inter-local agreements, interagency agreements and any
other contract-related documents.
I. Due Diligence. The degree of care that a prudent person would exercise prior to
entering into a transaction.
Here at Texas Southern University, the review process involves performing various
investigative searches including, but not limited to, reviewing:
The vendor’s organizational chart to identify any conflicts of interest for
TSU;
Dun and Bradstreet information for financial assessment;
Centralized master bidders listing for debarred vendors; Excluded party
listing to confirm vendor’s eligibility to receive federally funded
contracts;
Historically Underutilized Business (HUB) status; and
Texas Comptrollers of Public Accounts to verify vendor hold status and
to determine if the business is in good standing with the state of Texas.
J. Extension. An allowance of extra time.
K. Historically Underutilized Business (HUB). A corporation, sole proprietorship,
partnership, or joint venture, with a principal place of business in this state, which
at least is fifty-one (51%) percent owned, controlled, operated, and actively managed
by one or more persons who have been economically disadvantaged because of their
membership in a certain group, including Black American, Hispanic Americans,
women, Asian Pacific Americans, and Native Americans, and who have suffered the
effects of discriminatory practices or other similar insidious circumstances over
which the person has no control.( See Government Code §2161.001).
L. Initiating Department. The university department or representative that initiates a
contract request and/or otherwise has responsibility for such contract.
M. Interagency. Involving or representing two or more agencies, especially government
agencies.
FY2016 Contract Handbook Institutional Compliance Page 6
“Integrity at Work”
N. Late Payment. A payment that is distributed to a vendor after the due date.
O. Lease. A contract by which one conveys real estate, equipment, or facilities for a
specified term and for a specified rent
P. License. A legal document granted by competent authority giving official permission
to engage in a business, occupation, or activity.
Q. Master Agreements. Allow requisitioning departments to purchase commodities
without requesting competitive bids from other vendors. The “best value” process
has already occurred through the RFP process or group purchasing programs;
therefore, individual purchases may not require further bidding.
R. Memorandum of Agreement (MOA). A document written between parties to
cooperatively work together on an agreed upon project or meet an agreed objective.
The purpose of an MOA is to have a written understanding of the agreement
between parties.
S. Memorandum of Understanding (MOU). A document describing a bilateral or
multilateral agreement between parties. It expresses a convergence of will between
the parties, indicating an intended common line of action.
T. Modification. A small alteration, adjustment, or limitation.
U. OGC. Texas Southern University’s Office of General Counsel.
V. President’s Delegations of Authority. A summary of delegations of authority made
by President and available on the University’s website.
W. Professional Services. Services directly related to the professional licensed practices
such as accounting, architecture, landscape architecture, land surveying, medicine,
optometry, professional engineering, real estate appraising, or professional nursing
(Texas Government Code §2254.002(2)). Services provided by professionals outside
the scope of their profession, (e.g., management-consulting services provided by
accounting firms,) are not considered Professional Services for purposes of this
policy.
X. Purchase Order. Written authorization for a supplier to ship products at a specified
price, which becomes a legally binding contract once the supplier accepts it.
FY2016 Contract Handbook Institutional Compliance Page 7
“Integrity at Work”
Y. Sponsored Research. Includes research and development projects that usually
involve the preparation of specialized contracts such as grants, sub-recipient
agreements or sub-contract agreements with other entities.
Z. Standard Form Agreement. Contracts and other documents that have been
previously reviewed and approved by the Office of General Counsel for proper form
and legality, including compliance with applicable state laws, constitutional
requirements and Board and System policies.
AA. Substantive Change. A change that modifies the legal terms of a particular
document. Any substantive change to a standard form agreement will render it non-
standard. Examples of substantive changes include modifications to: party names,
description of goods or services, dollar amount to be paid or received, effective date
and term length. Questions about whether a particular modification constitutes a
substantive change should be directed to the Office of General Counsel.
BB. University. Texas Southern University.
FY2016 Contract Handbook Institutional Compliance Page 8
“Integrity at Work”
LEGAL REVIEW OF CONTRACTS AND AGREEMENTS
Texas Southern University is committed to executing contracts in compliance with applicable
federal and state laws, regulations, and agency advisory opinions, judicial and administrative
determinations. All contracts must be submitted to the OGC before execution for review and
approval as to legal form and sufficiency. If the vendor provides a contract form, attach the
University’s standard clause addendum form before submitting to the OGC.
For contracts for goods and services, prior to submitting the primary contract to the OGC for
review, the compliance coversheet must be signed by Procurement Services (to determine if the
proper bids were acquired, if necessary); the Office of Institutional Compliance (to perform due
diligence, if required); and the Chief Financial Officer (to confirm the availability of funds).
NOTE: For Academics, all contracts must first be submitted to the Provost’s Office of Business
Services prior to submitting to Procurement Services.
All applicable administrative and legal reviews must be completed prior to execution of a
contract and prior to commencement of any duties/actions by the parties pursuant to the
contract. Once the contract is fully-executed, a legible copy of the executed contract must be
submitted to the Office of General Counsel.
FY2016 Contract Handbook Institutional Compliance Page 9
“Integrity at Work”
STATE CONTRACTING REQUIREMENTS
Any Texas Southern University contract should always be governed by the laws of the State of
Texas. Texas law contains many provisions which protect the State and state institutions of
higher education.
1. Confidentiality Clauses: Texas Southern University is subject to the Texas Public
Information Act. Chapter 552 of the Texas Government Code. Texas Southern cannot
keep information confidential if it is subject to disclosure under the Texas Public
Information Act. Therefore, any clauses in contracts which require the University to
maintain information as confidential must either be deleted or qualified with “to the
extent permitted by the Texas Public Information Act” or similar language.
2. Indemnification: Indemnity and hold harmless provisions are very important and must
be reviewed carefully. A provision in a contract to indemnify or hold a party harmless is
a promise to pay for any expenses the indemnified party incurs, if a specified event
occurs, such as breaching the terms of the contract or negligently performing duties
under the contract. Article III, Section 49 of the Texas Constitution states that “no debt
shall be created by or on behalf of the State . . . .” The Attorney General has counseled
that a contractually imposed obligation of indemnity creates a “debt” in the
constitutional sense. Tex. Att’y Gen. Op. No. MW-475 (1982). Contract clauses which
require the System or the Institutions to indemnify must be deleted or qualified with “to
the extent permitted by the Constitution and laws of the State of Texas.” Liquidated
damages, attorney’s fees, waiver of vendor’s liability, and waiver of statutes of
limitations clauses should also be deleted or qualified with “to the extent permitted by
the Constitution and laws of State of Texas.”
3. Insurance: The University should carefully review any clauses in its contracts which
require it to maintain insurance and ensure that the clauses accurately reflect levels of
coverage. Below is a brief explanation of some common insurance requirements.
a. General Liability Insurance: It is the stated policy of the State of Texas not to
acquire commercial general liability insurance for torts committed by employees
of the State who are acting within the scope of their employment. Rather, third
parties must look to the Texas Tort Claims Act for relief with respect to property
damage, personal injury, and death proximately caused by the wrongful act or
omission or negligence of an employee acting within his scope of employment.
FY2016 Contract Handbook Institutional Compliance Page 10
“Integrity at Work”
b. One exception to the above stated policy of the state authorizes agencies and
state institutions of higher education to acquire commercial automobile
insurance for the use and benefit of their employees who operate state-owned
motorized vehicles and special equipment.
c. Workers’ Compensation Insurance: TSU employees are provided Workers’
Compensation coverage under the provisions of the Workers' Compensation Act
for Texas State employees.
4. Payment and Interest on Late Payments: Chapter 2251(Prompt Payment Law) of the
Texas Government Code provides for interest on late payments to vendors. Contracts
which require Texas Southern to pay interest on late payments should be modified so
that any interest payment will be in accordance with Chapter 2251.025(b) of the Texas
Government Code which states the rate in effect on September 1 is equal to the sum of:
(1) one percent; and (2) the prime rate as published in the Wall Street Journal on the first
day of July of the preceding fiscal year that does not fall on a Saturday or Sunday.
5. Breach of Contract Claims: Chapter 2260 of the Texas Government Code establishes a
dispute resolution process for contracts with entities of the State of Texas involving
goods, services and certain types of projects. This statute was intended to be of benefit to
parties contracting with an entity of the State of Texas. This statute requires that a state
entity must give vendors notification of the dispute resolution process and its
applicability to state contracts. Any arbitration or mediation provisions contained in
contracts should be deleted and replaced with the dispute resolution clause contained in
the Standard Addendum. Texas Southern should not enter into contracts which contain
an arbitration provision as it could waive protections provided by state law.
6. Non-Appropriations Clause: If Texas Southern is a party to a contract and the term of
the contract extends beyond the expiration of the current appropriations term that is in
effect when the contract is entered into, the contract must contain a provision that
specifically conditions the TSU’s financial obligations under the contract on the
availability of sufficient appropriations. This is necessary to avoid the creation of an
unconstitutional debt.
7. Franchise Tax Certification: Section 2107.008 of the Texas Government Code does not
permit Texas Southern to pay a vendor who is delinquent in paying State of Texas
franchise taxes. TSU must determine whether a vendor is delinquent, and the
certification in the standard addendum helps with compliance with Section 2107.008.
FY2016 Contract Handbook Institutional Compliance Page 11
“Integrity at Work”
8. Payment of Debts to State of Texas: Sections 2107.008 and 2252.903 of the Texas
Government Code only require state institutions to include this clause in contracts with
persons whom the state comptroller has determined are in debt to the state or
delinquent in the payment of taxes. The clause in the standard addendum requires
vendors to acknowledge that if they are in debt to the state, payments they are owed
under the contract will first be applied to pay off their debt.
Child Support Certification: Section 231.006 of the Texas Family Code requires
certain vendors who do business with the state to certify that they are not
delinquent in the payment of child support.
9. Certain Bids Prohibited: Section 2155.004 of the Texas Government Code states that a
state agency may not accept a bid or award a contract that includes proposed financial
participation by a person who received compensation from the agency to participate in
preparing the specifications or request for proposals on which the bid or contract is
based.
10. Limitation of Time in Which to Bring Legal Action or Claim: Section 16.070 of the
Texas Civil Practice & Remedies Code states that any stipulation or agreement that
attempts establish a limitations period shorter than two years is void.
11. Historically Underutilized Businesses (HUBS): A "Historically Underutilized
Business"...
...is at least 51% owned by an Asian Pacific American, Black American, Hispanic
American, Native American and/or American woman,
..is an entity with its principal place of business in Texas, and
...has an owner residing in Texas with a proportionate interest that actively
participates in the control, operations and management of the entity's affairs.
In accordance with Texas Administrative Code §20.13, each state agency shall make a
good faith effort to utilize HUBs in contracts for construction, services (including
professional and consulting services) and commodities purchases. It is the policy of the
commission to encourage the use of historically underutilized businesses (HUBs) by
state agencies and to assist agencies in the implementation of this policy through race,
ethnic, and gender-neutral means. The purpose of this program is to promote full and
equal business opportunities for all businesses in state contracting in accordance with
the goals specified in the State of Texas Disparity Study.
FY2016 Contract Handbook Institutional Compliance Page 12
“Integrity at Work”
Each state agency shall make a good faith effort to assist HUBs in receiving a portion of
the total contract value of all contracts that the agency expects to award in a fiscal year in
accordance with the following percentages:
11.2% for heavy construction other than building contracts;
21.1% for all building construction, including general contractors and
operative builders contracts;
32.9% for all special trade construction contracts;
23.7% for professional services contracts;
26% for all other services contracts; and
21.1% for commodities contracts.
12. Conflict of Interest. In accordance with Texas Government Code, Subchapter C,
Standards of Conduct and Conflicts of Interest (Section 572), a State employee should
not accept other employment or compensation that could reasonably be expected to
impair the employee’s independence of judgment in the performance of the employee’s
official duties.
In regards to gifts, any item(s) received valued at $250 or more shall be disclosed to the
employees’ respective supervisors. The President shall make such disclosures to the
Board of Regents. Employees may accept benefits from personal friends, relatives, or
business associates with whom they have a relationship independent of their official
status, so long as the benefit is not offered in exchange for official action or decision.
If a concern related to conflict of interest exists, notify the Office of Compliance or the
Office of Internal Audit for appropriate guidance. (See MAPP 02.05.05)
13. Contracts with Other Institutions: The Board may make proper arrangements by
contract with other educational institutions, hospitals, and clinics in Houston for the use
of any facilities and services it considers necessary and expedient for the proper training
and education of students in professional courses.
14. Interagency Contracts for Networks: Any institution of higher education may enter into
an interagency contract with one or more other institutions of higher education for the
establishment and operation of a telecommunications network for the transmission of
audio or video signals or electronic data, but only to the extent that the
telecommunications services are not available through a system of telecommunications
services established for state agencies generally. Each of those interagency contracts
shall be reviewed by the Texas Higher Education Coordinating Board.
FY2016 Contract Handbook Institutional Compliance Page 13
“Integrity at Work”
TSU’s PROCESS CONTRACTS FOR GOODS AND SERVICES
A. After the completion of the solicitation process with the Office of Procurement Services (if
required), the Contract Originator / Initiating Department should begin drafting the
contract or use a University standard contract form. If you need assistance with drafting
your contract / agreement, please contact the Office of General Counsel. Note: TSU
requires a contract for all consulting, professional or other services, regardless of the
contract amount.
B. Upon completion of the contract, the Initiating Department / Contract Originator shall
obtain the vendor’s signature on the contract document. Note: If the vendor refuses to
sign, please note this on the Compliance Coversheet.
C. For all contracts / agreements for goods and services, the Initiating Department / Contract
Originator must complete the Compliance Coversheet in its entirety, attaching supporting
documentation, if necessary (e.g., OIT signoff, Board Agenda Item Checklist (if over $100K),
etc.). Any incomplete forms will be returned to the Initiating Department / Contract
Originator.
D. Upon completion of the Compliance Coversheet, the Initiating Department / Contract
Originator should forward the contract (signed by the vendor), the Compliance Coversheet,
and supporting documentation to their Senior Vice President or Official with Delegated
Authority for their respective area for signature approval. NOTE: For Academics, all
contracts should be sent to the Provost’s Business Service Office.
E. Upon obtaining the signature of the Senior Vice President / Official with Delegated
Authority for the respective area, the Initiating Department / Contract Originator shall
forward the contract / agreement (signed by the vendor), the Compliance Coversheet and
the appropriate attachments to Procurement Services.
F. Procurement Services will review all documents to ensure that the vendor’s signature is
present as well as to determine if we are in compliance with state bidding requirements.
After its review, Procurement Services will forward the contract / agreement and supporting
documents to the Office of Institutional Compliance for a “due diligence review.”
G. The Office of Institutional Compliance will then forward the contract / agreement, results of
its due diligence review (if necessary), and any other supporting documents to the Division
of Finance.
FY2016 Contract Handbook Institutional Compliance Page 14
“Integrity at Work”
H. The Division of Finance determines if the appropriate funding is available for the
purchase. If the Division of Finance determines that the funding source is from a grant
or other sponsored program, they will forward the contract / agreement and supporting
documents to Research Financial Services to determine the availability of funds. If it is
determined that funds are not available, Finance / Research Financial Services will
contact the Initiating Department / Contract Originator and return all documents. If
adequate funds are available, Finance / Research Financial Services will submit the
contract/agreement and supporting documentation to the Office of General Counsel.
I. General Counsel assigns a contract number and reviews the contract / agreement for
legal form and sufficiency. If the contract is legally sufficient, the OGC will forward the
contract / agreement with an “execution letter” to the appropriate Senior Official with
signature authority (Please see the President’s Delegation of Authority). If any updates
or changes are needed, the OGC will contact the Initiating Department / Contract
Originator so that he/she can make the appropriate changes/updates. Upon final
approval by the Office of General Counsel, the agreement and execution letter is
forwarded to the Senior Official with signature authority. NOTE: Any changes /
additions / deletions after General Counsel’s review must be resubmitted to the Office of
General Counsel for final approval.
J. Pursuant to the University’s Contract Administration Policy, the Office of General
Counsel must maintain a record of all University Contracts. Therefore, upon execution
of the agreement / contract (when both parties have signed the agreement), the
respective Senior Vice President signing the agreement shall forward a copy (preferably
electronically) of the executed agreement to the Office of General Counsel and the
original contract should be forward to the Initiating Department / Contract Originator
The original contract should be retained according to the University’s Record
Management Policy.
K. The Initiating Department / Contract Originator must execute the signed contract within
90 days from the completion of the review. If execution is not completed within 90 days,
the Initiating Department must resubmit the document for review.
L. Upon the completion of the vendor performance (within 10 days), the Initiating
Department / Contract Originator is responsible for completing the Vendor Performance
Form. Reporting of vendor performance is mandated by the Texas Government Code
Sec. 20.108 and is required for purchases over $25,000 (with certain exemptions). The
Office of Institutional Compliance will submit a copy of the required form to you during
the contracting process (and the form may also be found on TSU Forms). This form is
FY2016 Contract Handbook Institutional Compliance Page 15
“Integrity at Work”
important so that TSU and other state entities can evaluate vendor performance to
reduce risk in the contract award process.
Please note: The Initiating Department will be contacted directly during the review, if any
questions or issues arise. This process should take approximately 5-10 business days.
FY2016 Contract Handbook Institutional Compliance Page 16
“Integrity at Work”
AFFILIATION AGREEMENTS & MEMORANDUMS OF UNDERSTANDING /
AGREEMENTS WITH NO MONETARY VALUE
A. For all affiliation agreements or memorandums of understanding / agreements with no
monetary value, the Initiating Department / Contract Originator completes the Compliance
Coversheet in its entirety, attaching all applicable justification forms. Any incomplete forms
will be returned.
B. The Initiating Department / Contract Originator then forwards the signed (signed by the
vendor) agreement / memorandum, the Compliance Coversheet and the appropriate
attachments to the Office of General Counsel. NOTE: For Academics, all contracts must be
submitted to the Provost’s Business Services Office for approval.
C. General Counsel assigns a contract number, reviews the contract / agreement for legal form
and sufficiency. If the contract is sufficient, OGC will forward the contract / agreement with
an “execution letter” to the appropriate Senior Official with signature authority (Please see
the President’s Delegation of Authority). If any updates or changes are needed, OGC will
contact the Initiating Department / Contract Originator so that he or she can make the
appropriate changes/updates. Upon final approval by the Office of General Counsel, the
agreement and execution letter is forwarded to the Senior Official with signature authority.
NOTE: Any changes/additions/deletions after General Counsel’s review must be
resubmitted to the Office of General Counsel for final approval.
D. Pursuant to the University’s Contract Administration Policy, the Office of General Counsel
must maintain a record of all University Contracts. Therefore, upon execution of the
agreement / contract (when both parties have signed the agreement), the respective Senior
Vice President signing the agreement shall forward a copy (preferably electronically) of the
executed agreement to the Office of General Counsel and the original contract should be
forward to the Initiating Department / Contract Originator The original contract should be
retained according to the University’s Record Management Policy.
E. The Initiating Department / Contract Originator must execute the signed contract within 90
days from the completion of the review. If execution is not completed within 90 days, the
Initiating Department must resubmit the document for review.
F. Upon the completion of the vendor performance (within 10 days), the Initiating
Department/ / Contract Originator is responsible for completing the Vendor Performance
Form. Reporting of vendor performance is mandated by the Texas Government Code Sec.
20.108 and is required for purchases over $25,000 (with certain exemptions). The Office of
FY2016 Contract Handbook Institutional Compliance Page 17
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Institutional Compliance will submit a copy of the required form to you during the
contracting process (and the form may also be found on TSU Forms). This form is
important so that TSU and other state entities can evaluate vendor performance to reduce
risk in the contract award process.
Please note: The Initiating Department will be contacted directly during the review, if any
questions or issues arise. This process should take approximately 5 - 10 days.
FY2016 Contract Handbook Institutional Compliance Page 18
“Integrity at Work”
BID REQUIREMENTS Procurement of Goods
Dollar Range Procedure
$0.00 $5,000.00 Bids not required. Use a Historically Underutilized Business (HUB),
whenever possible.
$5,000.01 $25,000.00 Requires a minimum of three informal quotes, one of which must be HUB
(one ethnic minority and/or one woman-owned business).
$25,000.01 +
Purchasing Office solicits written bids from vendors on the
Centralized Master Bidders List. All bids may be posted to the State of Texas
Electronic Business Daily website http://www.tfc.state.tx.us/tools/esbd
and TSU’s website.
Procurement of Other Professional or Consultant Services
Professional Services are not advertised based on dollars, rather based on qualifications.
Dollar Range Procedure
$0.00 $25,000.00 Solicitations not required. Use a Historically Underutilized Business (HUB),
whenever possible.
$25,000.01 +
Purchasing Office solicits written Request for Qualifications for professional
services or Request for Proposals for Consultants from vendors on the
Centralized Master Bidders List. All bids may be posted to the State of Texas
Electronic Business Daily website http://www.tfc.state.tx.us/tools/esbd
and TSU’s website.
A LARGE PURCHASE MAY NOT BE DIVIDED INTO SMALL LOT PURCHASES TO
MEET THE BID LIMITS.
FY2016 Contract Handbook Institutional Compliance Page 19
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NOTE: In instances where no bid is required, every effort should be made to ensure the best
service or goods are obtained and “conflict of interest” and ethical violations are avoided or
controlled.
EXCEPTIONS TO THE BID PROCESS
A. UNIVERSITY PRINTSHOP
Requisitions for Printing Services, regardless of the dollar amount, must go
through the University Print Shop. Letters authorizing outside printing will NOT
be issued unless the University Print Shop has been given the opportunity to
perform the job. If bids are required, the Initiating Department should seek
assistance from the Purchasing Department. The Purchasing Department is
delegated the final authority for determining the ‘best value’ for the University
for goods, materials and supplies.
B. TEXAS MULTIPLE AWARD SCHEDULE (TXMAS) CONTRACTS
Purchases made from the TXMAS Program do not require the University to
competitively bid but does require “best value” quotes. The TXMAS Program
adapts competitively awarded government contracts to the procurement needs
of the State of Texas. The vast majority of TXMAS contracts are adapted from
GSA (General Services Administration) Federal Supply Service contracts. It is
common for a vendor’s TXMAS catalog to be nearly identical to those on the
GSA Schedule.
How to Purchase from Existing TXMAS Contracts
Search the TXMAS Contracts Web Page for the required product or
service: http://comptroller.texas.gov/procurement/prog/txmas/
It is recommended that the University obtain a price quote from as many
(minimum three providers) TXMAS vendors as necessary to provide best
value to the State (please document all price quotes). Attach quotes with
TXMAS contract number to requisition for processing.
C. TEXAS DEPARTMENT OF INFORMATION RESOURCES (DIR)
Save time and money on technology purchasing. DIR has done all the
procurement work for you, with more than 750 contracts in place - all
competitively bid per Texas state requirements.
FY2016 Contract Handbook Institutional Compliance Page 20
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How to Purchase from Existing DIR Contracts
Search the DIR Contracts Web Page for the required product or service:
http://dir.texas.gov/
It is recommended that the employee obtain a price quote from as many
DIR vendors as necessary to provide best value to the State (please
document all price quotes). Attach quotes with DIR contract number to
requisition for processing.
Approval by the Chief Information Officer is required prior to submitting
requests to Procurement Services.
DIR Quoting Thresholds
$50,000 or less, only one (1) quote is required
$50,000.01 - $150,000, three (3) quotes are required
$150,000.01 to $999,999.99, six (6) quotes are required
$1,000,000 and higher, quotes are prohibited and a solicitation must be
issued.
D. COOPERATIVE PURCHASES AND INTER-LOCAL AGREEMENTS
All local government entities are authorized by the Inter-local Cooperation Act,
Chapter 791 of the Texas Government Code to participate in Inter-local
Agreements. The university’s use of these agreements may expedite the process
of selecting qualified vendors to provide commodities, goods and services at
competitive prices. These agreements will provide contracts for commodities to
the University that has already fulfilled the procurement solicitations
requirements required by state statutes. Contact Procurement Services for
information regarding university approved cooperatives.
FY2016 Contract Handbook Institutional Compliance Page 21
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Yes
No
“TSYOU” PROCESS
Yes
No
No
Yes
Agreement
with no
monetary
value.
Purchase of
Goods/Svc or
Agreement?
Procurement of
Goods/Services?
OIT Good
or Svc?
Get OIT
Approval
Procurement
Services
Office of
Compliance
Division of
Finance or
Research
Financial
Services
Funds
Available
?
Initiating
Department
OGC
Initiating
Department
Signed Copy
OGC Email / Memo to
OGC
Funds
Obtained?
Process Ends.
Executed Not Executed
Upon execution of the agreement / contract (when both parties have signed the agreement), the respective Senior Vice President signing the agreement shall forward a copy (preferably electronically) of the executed agreement to the Office of General Counsel and the original contract should be forward to the Initiating Department / Contract Originator The original contract should be retained according to the University’s Record Management Policy.
Sr. Official
Original Contract
FY2016 Contract Handbook Institutional Compliance Page 22
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CONTRACT MANAGEMENT
Responsibilities of Contract Administrators:
Texas Southern University Contract Manager has the authority to:
• sign controlled correspondence;
• serve as the day-to-day point-of-contact;
• coordinate quality control reviews;
• approve invoices;
• coordinate meetings with respondent;
• investigate complaints;
• receive requests for substitutions or changes in goods or services awarded under the
contract;
• initiate contract amendments; and discuss pricing changes
The Respondent’s Contract Manager
Respondent must identify its Contract Administrator to Texas Southern University in writing
within 10 days of the issuance of the purchase order. Respondent should document all
subsequent changes of Respondent’s Contract Manager through controlled correspondence.
Respondent’s Contract Manager must be someone with the authority to:
• make decisions regarding the deliverables required by the contract;
• sign controlled correspondence;
• serve as the day-to-day point-of-contact;
• coordinate quality control reviews;
• coordinate meetings with the Texas Southern University and
• investigate complaints.
Records Retention
Respondent must retain all financial records, supporting documents, statistical records, and any
other records or books relating to the performances called for in the contract. Respondent must
retain these records for a period of seven years after the expiration of the contract, or until Texas
Southern University or the State Auditor’s Office (SAO) is satisfied that all audit and litigation
matters are resolved, whichever period is longer. Respondent will grant access to all books,
records, and documents pertinent to the Contract to Texas Southern University, SAO, and any
federal governmental entity that has authority to review records due to federal funds being
spent under the contract.
Vendor Performance Before and After Award
In accordance with Texas Government Code §§ 2155.074 and 2262.055, vendor performance
may be used as a disqualification factor in the award of any contract resulting from this
solicitation.
FY2016 Contract Handbook Institutional Compliance Page 23
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Texas Southern University may conduct reference checks with other entities regarding past
performance. In addition to evaluating performance through the Vendor Performance Tracking
System (VPTS) as authorized by 34 Texas Administrative Code § 20.108, Texas Southern
University may examine other sources of Respondent performance including notices of
termination, cure notices, assessments of liquidated damages, litigation, audit reports, and non-
renewals of contracts. These sources of respondent performance may include any governmental
entity, whether an agency or political subdivision of the State of Texas, another state, or the
federal government. Further, Texas Southern University may initiate these examinations of
respondent’s performance based upon media reports. Any investigations are at TSU’s sole
discretion, and any negative findings, as determined by Texas Southern University, may result
in a non-award to Respondent. Information pertaining to VPTS is located on CPA’s website at:
http://www.window.texas.gov/procurement/prog/vendor_performance/ .
Additionally, per Texas Government Code § 2155.089, Texas Southern University will review
successful
Respondent’s performance under a contract resulting from this solicitation after the contract is
completed or otherwise terminated. These reviews and any resulting classification grades will
be posted on the Vendor Performance Tracking System as noted in Texas Government Code §
2262.055.
State of Texas Debarment
In the event that respondent has repeated unfavorable VPTS performance reviews, repeated
unfavorable VPTS grading classifications, or has more than two contract terminations within
the preceding three years for unsatisfactory performance, the Texas Comptroller of Public
Accounts may bar a vendor from participating in state contracts for a period commensurate
with the seriousness of respondent’s action and the damage to the state’s interests.
FY2016 Contract Handbook Institutional Compliance Page 24
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CONTRACT CHECKLIST
Information which must be included in the contract: Affirmative
1 Legal names of the parties.
2 Term of the contract, including a specific beginning and end date.
3 Purpose of the contract.
4 What is expected of each party, including any time requirement for
performance?
5 Remuneration to be paid or consideration to be offered.
6 Both parties have provided something of value (i.e., cash payment for some
product/service).
7
Payment schedule and any requirements for payment, including some
manner for determining when payment is to be made (i.e., specific dates
when payment is to be made, payment to be made within thirty days of
receipt of invoice, etc.)
8 Signature lines for execution by appropriate parties.
Information which should be included, if applicable: Affirmative
1 Any other conditions considered essential in order for the contract to occur.
2 Additional rights and/or responsibilities of each party.
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3 Requirement of receipts if payment for expenses is being made, statement of
any requirements for reimbursement and a limitation on payment.
4
If one party is collecting money and paying a portion to the other party, the
amount or percentage should be clear and the contract should always
include the right to review and audit the records of the party collecting
money.
5 Clear identification of the party who will be responsible for any costs
associated with the contract.
6 Limitations of damages in case of TSU default, preferably cap damages at the
contract price.
7
If the University is making a payment, contract should state that amount to
be paid is contingent on being approved and money being allocated after
each legislative session.
8 Statement that payment cannot be made if the individual owes money as a
child support obligor, if the University is making payment to an individual.
9 University should be named as an insured if the other party is providing
insurance.
10 Clear statement of which party will be held responsible if there is loss or
damage under the contract.
11 Statement of what will happen to contract if another event or contract this
contract is contingent on does not occur.
12 Attachment of any underlying contract a party is required to follow the
terms or conditions of.
FY2016 Contract Handbook Institutional Compliance Page 26
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13 Statement of incorporation of any RFP and the other party's response to that
RFP that the contract is based on.
14 Clear specification of the rights of the parties to any intellectual property at
issue.
15
Specification of ownership of any equipment or asset after the contract is
ended when equipment or anything of value is to be developed or purchased
as part of the contract.
16 Statement of conditions which would result if contract is terminated early;
inclusion of cancellation clause (30 days written notice, etc.)
17 Specification of anything that must take place when the contract terminates
(i.e., return of equipment, etc.).
18 Funds approved for this contract are approved for the current fiscal year
only.
19
Contracts are not subject to automatic renewals, unless the terms are
specified and the Initiating Department has a reliable system in place that
will provide notice to the responsible TSU staff member that a decision has
to be made regarding contract termination prior to the expiration of the
specified option period.
Applicable legal provisions: Affirmative
1 Force Majeure (events out of the control of either party that would result in a
delay in the performance contract for which neither party would be liable).
2 Entirety clause (written contract includes all of the agreements between
parties).
FY2016 Contract Handbook Institutional Compliance Page 27
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3 Assignment provisions (parties do not have right to assign their rights and
responsibilities without the other party's approval).
4
Enforceability clause (if party does not enforce its rights under the contract at
a particular time, this will not constitute a waiver of its right to enforce the
terms and conditions of the contract at any later date).
5 Independent contractor clause (describes legal relationship between parties).
6 Notice clauses (specifies manner in which notice should be given under the
contract, including person and address where notice should be received).
7 Applicable state law (Texas should be designated for performance or
applicable law).
8 Venue (Harris County, TX) (Texas Education Code §106.38).
9. Non-Discrimination.
Language & Provisions to strike: Affirmative
1 Vague and/or indefinite terminology (e.g., party is supposed to do
something "promptly" or no end date).
2
Indemnity and hold harmless clauses (if vendor/contractor absolutely refuses
to delete provision, can leave clause in with the following added qualifying
language: "To the extent allowed by the laws of the State of Texas.").
3 Attorney's fees (can be left in the contract if necessary by adding "to the
extent allowed by the laws of the State of Texas.")
FY2016 Contract Handbook Institutional Compliance Page 28
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4 Arbitration clauses (only state approved ADR paragraph).
5 Confidentiality provisions or agreements.
6 Change "warrant" to "agrees".
7 Agreement for state entity to purchase or provide liability insurance.
8 Agreement for state entity to enter into a partnership or agree to be the agent
for another party, vice versa.
9 Statement of assumption of personal liability on the part of whoever signs
the contract.
10 Exclusivity clauses (unless exclusivity is desired, then keep term short).
FY2016 Contract Handbook Institutional Compliance Page 29
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PURCHASING/PROCUREMENT SERVICES
CONSULTING CONTRACT CHECKLIST
$14,
000
or
less
$14,
001
to $
24,9
99
$25,
000
to $
50,0
00
$100
,001
an
d
ab
ov
e
1 VENDOR MAINTENANCE (W-9),
ETC. √ √ √ √
2 CONTRACT (DRAFT) √ √ √ √
3 PROCUREMENT APPROVAL &
PROCESSING √ √
4 NOTIFICATION OF INTENT TO
LBB & GOVERNOR’S OFFICE √ √
5 SOLICITATION OF CONSULTING
CONTRACT IN TEXAS REGISTER √ √
6 NOTIFICATION OF AWARD TO
LBB AND GOVERNOR’S OFFICE √ √ √
7 TSU PRESIDENT OR DELEGATE’S
APPROVAL √
8 TSU BOARD OF REGENTS’
APPROVAL √
NOTE: The information contained in the chart above was provided by Procurement Services. All
inquiries should be directed to that department.
Contracts $14,000 or greater must be reported to the Legislative Budget Board and/or
the Governor’s Office per Government Code 2254.
FY2016 Contract Handbook Institutional Compliance Page 30
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A P P E N D I X
FY2016 Contract Handbook Institutional Compliance Page 31
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A. FORMS AND STANDARD AGREEMENTS
The following are standard contract forms and checklists here at TSU. Please note that
any modifications of these standard forms will require the approval of the Office of
General Counsel. For convenience, all forms can be found on the University’s website
under the TSU Forms Library.
CONTRACT USE REQUIRED SIGNATURES OWNERSHIP
AFFILIATION AGREEMENTS
Affiliation Agreement (Foreign
University)
Form # - TSUOGC-S-1210-001
Use when University is
establishing exchange programs
with a foreign university and
needs to establish an international
understanding.
President or Provost
Foreign University
Representative.
Form shall be
submitted to the
Office of General
Counsel.
Agreement of Cooperation
(Partner Institution)
Form # - TSUOGC-S-1210-002
Use to establish a program of
exchange and collaborations in
areas of interests and benefit with
partner institutions.
President or Provost
Partner University
Representative.
Form shall be
submitted to the
Office of General
Counsel.
College of Pharmacy Affiliation
Agreement
Form # - TSUOGC-S-1210-042
Used by the College of Pharmacy
and Health Sciences to provide
students with educational
experience by utilizing
appropriate facilities and
personnel of third parties
President or Provost
Dean College of Pharmacy
and Health Sciences
Facility Owner
Student
Form shall be
submitted to the
Office of General
Counsel.
Education Experience
Affiliation Agreement
Form # - TSUOGC-S-1210-003
Used to establish program to
provide students with educational
experience by utilizing
appropriate facilities and
personnel of third parties.
President or Provost
Facility Owner
Form shall be
submitted to the
Office of General
Counsel.
Education Experience Program
Agreement
Form TSUOGC-S-1210-043
Used to establish program to
provide students with educational
experience by utilizing
appropriate facilities and
personnel of third parties.
President or Provost
Facility Owner
Form shall be
submitted to the
Office of General
Counsel.
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Memorandum of
Understanding (Academic
Programs)
Form # - TSUOGC-S-1210-004
Used to establish a program
between Universities.
President or Provost
Dean of respective
school/college
Other University
Representative.
Form shall be
submitted to the
Office of General
Counsel.
ATHLETIC AGREEMENTS
Athletic Agreement
Form # - TSUOGC-S-1210-005
Used to establish particulars of
athletic sporting events such as
the number of complimentary
tickets, assignment of officials, etc.
CFO or President (TSU)
Athletics Director (TSU and
other team)
Coaches (TSU and other
team)
Form shall be
submitted to the
Office of General
Counsel.
Athletic Director Employment
Agreement
Form # - TSUOGC-S-1210-033
Used to establish the specific
duties related to the Athletic
Director position
President
Athletic Director
Form shall be
submitted to the
Office of General
Counsel.
Head Coach Employment
Agreement
Form TSUOGC-S-1210-034
Used to establish the specific
duties related to the Head
Coaching positions
President
Head Coach
Form shall be
submitted to the
Office of General
Counsel.
FACILITIES LICENSING & CONSTRUCTION
Facility License Agreement
Form # - TSUOGC-S-1210-006
Used when licensing TSU facility. Special Events Personnel.
University Official w/
delegated Authority
Licensee
Form shall be
submitted to the
Office of General
Counsel.
Job Order Contractor (Master
Agreement)
Form# -TSUOGC-S-0710-035
Use when contracting a large
number of repair, maintenance
and construction projects with a
single, competitively bid contract.
University Official
w/Delegated Authority
Contractor
Form shall be
submitted to the
Office of General
Counsel.
INTELLECTUAL PROPERTY
Authorization for Use of
Image, Voice, Performance,
Artwork or Likeness
Form # - TSUOGC-S-0910-007
Used to grant the university
authority to use an individual’s
image, voice, performance,
artwork or likeness.
Individual’s whose image,
voice, performance, artwork
or likeness we desire to use.
If individual is a minor,
parent or guardian signature
is required as well.
Form shall be
submitted to the
Office of General
Counsel.
FY2016 Contract Handbook Institutional Compliance Page 33
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Copyright Assignment/Release
Form
Form # TSUOGC-S-0910-036
Used to confirm an employee has
entire and exclusive copyrights to
certain articles/publications to
release use to TSU.
Author and/or Co-author Form shall be
submitted to the
Office of General
Counsel.
Intellectual Property Use
Permission Form
Form # - TSUOGC-S-1210-008
Used to grant authority to use our
logos, marks, and other
intellectual property.
Signature of Applicant
Signature of Office of
University Relations
Office of General Counsel
Form shall be
submitted to the
Office of General
Counsel.
INTERAGENCY COOPERATION AGREEMENTS
Interagency Agreement (TSU
Performing Svc).
Form # - TSUOGC-S-1210-009
Used when the university is
performing a service for another
State of Texas agency or
university.
President
Representative from other
Texas agency or university.
Form shall be
submitted to the
Office of General
Counsel.
Interagency Agreement (TSU
Receiving Services)
Form # - TSUOGC-S-1210-010
Used when the university is
performing a service for another
State of Texas agency or
university.
President
Representative from other
Texas agency or university.
Form shall be
submitted to the
Office of General
Counsel.
OTHER CONTRACT COMPLIANCE FORMS
Contract Closeout
Form # - TSUOGC-S-1210-012
Used to advise the Office of
General Counsel when a contract
is terminated or completed.
Initiating Department Form shall be
submitted to the
Office of General
Counsel.
HIPPA Business Associate
Agreement
Form # - TSUOGC-S-1210-014
Used when the contractor will be
provided access to private health
information.
University Official w/
Delegated Authority
Contractor / Provider
Form shall be
submitted to the
Office of General
Counsel.
Interlocal Cooperation Contract
Form # - TSUOGC-S-1210-039
Used to authorize local
governments to contract with one
another and with state agencies
President
Agency Representative
Form shall be
submitted to the
Office of General
Counsel.
OIT Approval Form for IT
Purchases
Form # - TSUOGC-S-1210-037
Used to authorize IT hardware,
software, license subscriptions,
and license renewals
Chief Information Officer
Contract Manager
Form shall be
submitted to the
Office of General
Counsel and
Procurement Svcs.
FY2016 Contract Handbook Institutional Compliance Page 34
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Volunteer Waiver
Form # TSUOGC-S-1210-031
Used to acknowledge volunteer
services rendered to the
University
Volunteer
Parent or Legal Guardian (if
volunteer is under the age of
18)
Form shall be
submitted to the
Office of General
Counsel
PERSONAL TRAINER (FITNESS AND WELLNESS CENTER)
Personal Training
Form # - TSUOGC-S-1210-030
Used when personal trainer is
provider at the Texas Southern
University Recreation Center
Applicant/Trainee Form shall be
submitted to the
University
Recreational
Center.
POLICE SERVICES
Police Services
Form # - TSUOGC-S-1210-016
Used to for the purpose of
retaining third-party police
security services for the
University.
Chief of Police
Third Party Officer
Recommender
Form shall be
submitted to the
University Police
Department.
PROCUREMENT FORMS AND AGREEMENTS
Professional / Consulting
Services Agreement
Form # - TSUOGC-S-0511-045
Used to document consulting,
professional, and other services.
University Official w/
Delegated Authority
Contractor/Vendor
Form shall be
submitted to the
Office of
Procurement
Services along
with Contract
Coversheet.
Contract Amendment/Renewal
Form
Form # - TSUOGC-S-1210-017
Used to document substantive
revision or extension date of a
fully executed agreement.
University Official w/
Delegated Authority
Contractor/Vendor
Form shall be
submitted to the
Office of General
Counsel with any
amendments to
Standard
Purchasing
Agreements.
FY2016 Contract Handbook Institutional Compliance Page 35
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Contract Compliance
Coversheet
Form # - TSUOGC-S-1210-011
Used to summarize contract
information and facilitate the TSU
contract process.
Initiating Department
Administrator with Delegated
Authority
Procurement Services
Compliance
Fiscal Affairs
Form shall be
submitted to the
Office of
Procurement
Services along
with other contract
documents for all
contracts for good
/ services.
Recommendation for Award
Form
Form # - TSUOGC-S-0910-019
Used to document purchases
procurement method used to
obtain the award for contractor.
Initiating Department
University Official w/
Delegated Authority
Executive Director of
Procurement Services
Form shall be
submitted to the
Office of
Procurement
Services along
with Contract
Coversheet.
Sole Source
Form # - TSUOGC-S-0910-020
Used to document purchases that
provides for proprietary (sole
source) acquisition of goods or
services valued at a total amount
of $5,000or more from state or
local funds.
Initiating Department
University Official w/
Delegated Authority
Executive Director of
Procurement Services
Form shall be
submitted to the
Office of
Procurement
Services along
with Contract
Coversheet.
Standard Amendment for
Goods and Services over $5,000
Form # - TSUOGC-S-1210-0013
Used to document changes to
existing contracts for goods and
services over $5000. Standard
agreement will not need a review
by General Counsel.
University Official w/
Delegated Authority
Contractor/Vendor
Form shall be
submitted to the
Office of
Procurement
Services along
with Contract
Coversheet.
Standard Contract Addendum
Form # - TSUOGC-S-1210-015
Used to comply with State rules
and provisions
University Official
w/Delegated Authority
Contractor
Form shall be
submitted to the
Office of General
Counsel
Standard Purchasing
Agreement for Goods and
Services Under $5000
Form # - TSUOGC-S-1210-021
Used to document purchase
agreements / contracts for goods
and services under $5000.
Standard agreement will need no
review by General Counsel.
University Official w/
Delegated Authority
Contractor/Vendor
Form shall be
submitted to the
Office of
Procurement
Services along
with Contract
Coversheet
FY2016 Contract Handbook Institutional Compliance Page 36
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Vendor Agreement
Form # - TSUOGC-S-0611-044
Used when there is no other
existing form/contract or a
contract from the vendor when
projects are bid. Used to integrate
the bid documents into a contract.
University Official w/
Delegated Authority
Contractor/Vendor
Form shall be
submitted to the
Office of General
Counsel along
with Purchase
Order, all Bid
Documents and
Compliance
Coversheet
SPEAKERS/PERFORMERS/PROMOTERS
Performer Agreement
Form #TSUOGC-S-0910-0040
Used when contracting services of
a performer for an event at the
University
Performer or Designated
Representative
University Official w/
Delegated Authority
Form shall be
submitted to the
Office of General
Counsel
Promoter Agreement to Present
Event On Campus
Form # - TSUOGC-S-1210-038
Used when allowing promoter use
the University’s facilities
University Official w/
Delegated Authority
Promoter or Designate
Representative
Form shall be
submitted to the
Office of General
Counsel.
Speaker Agreement
Form # - TSUOGC-S-1210-0041
Used when contracting a speaker
for University events
University Official w/
Delegated Authority
Speaker or Designated
Representative
Form shall be
submitted to the
Office of General
Counsel.
SPONSORED PROGRAMS
Memorandum of Agreement
for Sponsored Programs
Form # - TSUOGC-S-1210-022
Used to document agreement
between sponsor and TSU that
will further the instructional and
research objects of TSU.
Provost
Principle Investigator
Sponsor
Form shall be
submitted to the
Office of Research.
STANDARD RELEASES AND HEALTH RELATED FORMS
Bacterial Meningitis
Immunization Record
Form# -TSUOGC-S-1210-032
Used to document that student
residing in University housing has
necessary immunization on
record.
Student (over 18 yrs)
Parent or Legal Guardian of
Minor Student (under 18 yrs)
University Health
Center
Confidential Authorization to
Release Medical Records
Form # - TSUOGC-S-1210-023
Used to obtain authorization to
release medical records.
Student Signature
Signature of Parent – If under
18.
Form shall be
submitted to the
Office of Student
Health Center.
Reference Request & FERPA Used to obtain authorization to
release personal information for
references.
Student’s Signature Form shall reside
with individual /
department that
FY2016 Contract Handbook Institutional Compliance Page 37
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Release
Form # - TSUOGC-S-1210-024
submitted
reference request.
Release & Indemnification
Agreement – Minor Students
Form # - TSUOGC-S-0910-025
Used to obtain authorization from
minor students for trips and
activities.
Parent’s / Guardian’s
Signature
Witness
Form shall reside
with individual /
department
sponsoring the
activity.
Release and Indemnification
Agreement - Adults (Faculty)
Form # - TSUOGC-S-0910-027
Used to obtain authorization from
adults (Faculty) for trips and
activities.
Adult’s Signature
Witness.
Form shall reside
with individual /
department
sponsoring the
activity.
Release and Indemnification
Agreement – Adult Students
Form # - TSUOGC-S-1210-026
Used to obtain authorization from
adult students for trips and
activities.
Student’s Signature
Witness.
Form shall reside
with individual /
department
sponsoring the
activity.
VISITING FACULTY
Visiting Faculty (TSU Faculty
Visits Elsewhere)
Form # - TSUOGC-S-1210-028
Used when TSU faculty are
visiting and teaching at another
university or college.
Provost or Dean
Other University
Representative.
Form shall reside
with the respective
Dean’s office and
the Provost’s
office.
Visiting Faculty (Visiting
Faculty comes to TSU)
Form # - TSUOGC-S-1210-029
Used when faculty from another
university or college are visiting
and teaching a course at Texas
Southern University.
Provost or Dean
Other University
Representative.
Form shall reside
with the respective
Dean’s office and
the Provost’s
office.
FY2016 Contract Handbook Institutional Compliance Page 38
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B. PROFESSIONAL / CONSULTING SERVICES CONTRACTS
PROCESS DESCRIPTIONS
Overview
Consulting Services is defined as the service of studying or advising an existing or
proposed Texas Southern University (TSU) operation, department or project under a
contract that does not involve the traditional relationship of employer and employee in
accordance with Texas Government Code 2254.021(1). Professional Services is defined as
those services considered as professional services in accordance with Texas
Government Code 2254.002, which include: Accounting, Architecture, Optometry,
Medicine, Land Surveying, and Professional Engineering Services. Based on the
guidelines that were published by the Governor’s Budget, Planning, and Policy
Division, these procedures are not applicable to certain professional services within the
previously mentioned professions listed above.
Services that are provided by professionals outside the scope of their profession are not
considered professional services and are not exempt from the required procedures.
Furthermore, if a contract involves both consulting and other services, the procedures
described below apply if the primary objective is the acquisition of consulting.
Texas Southern University requires that all contracts for consulting services be awarded
in accordance with applicable laws, rules, regulations, and policies. Those involved in
the procurement process must also perform their responsibilities in a fiscally prudent
and ethical manner. The Executive Director for Procurement Services is responsible for
ensuring that all consulting services solicitations, contracts, renewals, amendments, and
extensions are processed through the Purchasing Department. The Office of
Institutional Compliance facilitates that all personnel who procure consulting services
contracts receive the required levels of training and certification.
Professional / Consulting Services Contracts
All proposals and contracts for consulting services are required to be submitted to the
Executive Director for Procurement Services via a Banner Requisition. Upon receipt of
the requisition(s), the Executive Director for Procurement Services determines if a
FY2016 Contract Handbook Institutional Compliance Page 39
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Consultant is necessary. Consultants are typically used by the University if: (1) There is
a substantial need for the consulting services; and (2) The services cannot be performed
with University personnel and consulting services cannot be obtained through a
contract with a state government entity. Once it is determined that a consultant is
needed, the Executive Director for Procurement Services determines what additional
documentation is needed such as the due diligence report, the fact finding posting, the
solicitation and contract documents.
The Executive Director of Procurement Services then determines if the individual
performing the consulting services has been employed by the University or other State
agency. A proposed Consultant who was previously employed by TSU or other State
agency during the preceding two (2) years is eligible for appropriated funding, but
must meet disclosure requirements.
No proposed Consultant may receive special consideration and/or favoritism. If a
Consultant is hired and paid to assist the University in developing the procurement
solicitation or the specifications for the procurement solicitation for a contract, then that
Consultant may not be awarded the contract for which the solicitation and the
specifications are being developed.
Major Professional / Consulting Services Contracts
Major Consulting Services Contracts is defined as a consulting services contract for
which it is reasonably foreseeable that the value of the contract will exceed $25,000 in
accordance with Texas Government Code 2254.021(2). In addition to all consulting
contracts, the following procedures are applicable to all major consulting services
contracts.
The requesting department or office must first obtain the “finding of fact” from the Vice
President (VP) of Finance/Chief Financial Officer (CFO), or Provost and must be
completed prior to the signing of the actual contract. The “finding of fact” is
information that provides the basis for determining that the consulting services being
procured are necessary and required. Failure to provide the requisite “finding of fact”
automatically makes the consulting contract void. If the finding of fact is issued by the
VP of Finance/CFO or Provost, the finding and an explanation of the finding must be
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included in the invitation that is required to be published in the Texas Registrar. The
University is required to submit to the Office of the Board of Regents all notices
required by applicable law, rule, or regulation to be filed with the Texas Secretary of
State for publication in the Texas Registrar.
To obtain approval of the major consulting services contract from the Vice President of
Finance / CFO or Provost, the requesting department must complete the appropriate
approval request forms (Form CC2-2010 and Consultant Contract Notification Form)
along with a copy of the finding of fact issued by the Vice President of Finance/CFO or
Provost. Once approved by the VP of Finance / CFO or Provost, the requesting
department or office submits the notice of intent and the finding of fact to Procurement
Services along with the proposed contract document. The Office of the Board of
Regents, through Procurement Services, will submit to the Legislative Budget Board
and the Governor’s Office of Budget and Planning the required documents along with
the solicitation. The solicitation is required to be published in the Texas Registrar. If a
consulting services contract is anticipated to have a value of $100,000 or greater,
compliance with the State of Texas Historically Underutilized Business (HUB) Program
is required.
Emergency Professional / Consulting Services
Emergency Consulting Services is defined as an unforeseen emergency situation that
suddenly and unexpectedly causes the University to require the services of a Consultant
(Ex., issuance of a court order, an actual of imminent natural disaster, new state or
federal legislation). An emergency is not considered to be unforeseen if the University
was negligent in the occurrence of the emergency. Procurement of consulting services to
address an unforeseen emergency is allowed with a limited waiver from the Governor’s
Office in accordance with the Governor’s rules as stated in Texas Government Code
2254.025.
Renewals, Amendments, & Extensions of Professional / Consulting Services Contracts
All proposed renewals, amendments, and extensions of all consulting services contracts
must be submitted to the Executive Director of Procurement Services via a Banner
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Requisition. Procedures described under the “Major Consulting Services Contracts”
section listed above should be followed if:
1. The University proposes to renew, amend, or extend a major consulting services
contract and the renewal, amendment, or extension has a reasonably foreseeable
value of more than $25,000, or
2. The original consulting services contract was not originally a major consulting
services contract but the proposed renewal, amendment, or extension together
have a reasonably foreseeable value of more than $25,000.
Board of Regents’ Approval
Board approval of a consulting services contract is required if the contract meets one (or
more) of the following criteria:
1. Has a cost or value of more than $100,000 in a fiscal year.
2. Is with a foreign government or agency thereof.
3. Is with the President, a former President, a Vice President, or the Counsel and
Secretary to the Board or Director of Audits.
4. Is identified by an Executive Officer or the TSU President as a contract of such
significance as to require Board approval.
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QUICK REFERENCE
1) Initiating Department (Contract Administrator):
Contact the Office of Institutional Compliance for answers regarding the
process.
Evaluate the solicitations and recommend an award(+25K).
Construct the contract document.
Prepare the Compliance Cover Sheet and forward it to Purchasing.
Negotiate with vendor.
Prepare the final contract document and forward to the OGC.
Prepare Agenda Item Checklist (+100K).
Obtain the signatures of the vendor and then the appropriate SVP.
Keep the original contract and forward a copy to the OGC.
Include the contract number in the requisition.
Complete the Vendor Performance Form for purchases over $25,000.
2) Procurement Services:
Notify the LBB and the Governor’s office of TSU’s intent to contract
(+25K).
Post RFP/RFQ in the Texas Register and the Electronic State Business
Daily (+25K).
Prepare the vendor responses for evaluation by the Initiating Department
(+25K).
Notify vendors of award (+25K).
Introduce standard contract document to Initiating Department.
Review the Compliance Cover Sheet/Contract and forward to the
Compliance Office.
3) The Office of Institutional Compliance:
Provide guidance to all users of the contract administration process.
Conduct the due diligence process for proposals and provide results to the
Purchasing Department/Initiating Department.
Review Compliance Cover Sheet/Contract and forward to CFO.
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After notification of executed contract, the OIC will notify LBB of
contracts (+14K) and record details of contract.
4) Chief Financial Officer
Review contract for sufficient funding and forward to the General
Counsel.
5) The Office of General Counsel:
Work with the Initiating Department to construct a viable contract.
Review the contract for legal form and sufficiency.
Assigns a contract number and forwards document to Initiating
Department for negotiation.
Review and approve finalized draft of the contract.
Forward to Initiating Dept. for execution by vendor and VP.
Record date contract sent to Initiating Department.
Contact Initiating Department for executed contract.
Maintain a copy of executed contract and forward a copy to the Office of
Institutional Compliance.
6) University Official with Delegated Authority
Review and sign the original contract after the vendor has signed.
Forward a copy of the executive contract to the OGC and the original to
the Initiating Department / Contract Originator.
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CONTRACT ADMINISTRATION CONTACTS
Mr. Charles Henry………………………………………...Executive Director – Academic Affairs
Mr. Andrew C. Hughey……………………………………………………………… General Counsel
Ms. Yolanda Nimmer-Williams………………………..………Director – Institutional Compliance
Ms. Ashlee McClelland....................................................................Director – A&F Business Services
Mr. Greg Williams……………………………………...Executive Director – Procurement Services