Purpose
To implement Policy 1221 and outline rules for consulting and professional services.
Definitions
For the purposes of this procedure, the following definitions apply:
- Consulting Services. “Consulting Services” means services that involve expert advice or analysis to study a specific problem, manage a change, or advise on a major decision. The end product of Consulting Services includes a report, recommendation, specialized analysis, or recommended training based on the consultant's expert opinion and research. Consulting Services are advisory in nature, non-routine (meaning that the service is for a specific and non-recuring project or problem), and generally focus on providing an assessment of strategy or evaluation of a university process. Consulting Services may be provided a single service provider in tandem with Professional Services (as defined herein).
- Professional Services. “Professional Services” means services requiring a license, certification, specialized education, or high skill set and are typically rendered by individuals or firms legally recognized to perform that specific work. Professional Services involve a direct, functional task rather than purely advisory work. Exemplary Professional Services include legal services provided by licensed attorneys, financial auditing services provided by certified public accountants, or medical services provided by licensed health care workers. Professional Services may be provided a single service provider in tandem with Consulting Services (as defined herein).
General
- Threshold. The threshold for an engagement under this procedure is $100,000.00. This threshold applies to the entire project with the service provider regardless of time duration. The $100K threshold applies to each engagement and not per service provider or fiscal year. Should the use of a service provider be sought multiple times under this procedure, a new confirmation must be completed and submitted.
- Competitive Process Encouraged. To support transparency and value during procurement, the University encourages purchasers to utilize a competitive bidding process for Consulting and Professional Service engagements whenever practicable.
- Limited Use. The acquisition of Consulting and Professional Services under this procedure is for limited use, primarily when there is an urgent need to address a clearly defined need or to obtain specialized expertise not otherwise available within the University. These engagements are typically short-term in nature and not designed for ongoing or continuously renewed services. For long-term, ongoing, or recurring needs, purchasers should consult Purchasing & Contract Services for appropriate guidance.
- Value Assessment and Selection. Selection of individuals or companies to perform Consulting and Professional Services under this procedure shall be made on the basis of qualifications, resources, experience, needs of the University and cost to the University. To assess value, the purchasing unit is encouraged to seek proposals and quotes from multiple service providers whenever possible. The selection of a service provider may be made by the Dean or Vice President of the engaging unit, with the advice, as applicable of any associated department head or director. The selection and value assessment shall be memorialized in the Consulting and Professional Services Confirmation Form provided by Purchasing and Contract Services. Upon receipt of the Confirmation Form, the Director of Purchasing & Contract Services or designee will review to ensure compliance with this procedure.
- University Employees. To avoid and appropriately manage potential and actual conflicts of interest, a business operated by an employee of the University may not be engaged for Consulting or Professional Services under this procedure. Such businesses may be engaged in keeping with procurement policy as set forth in University Policy 1221 and applicable procedures.
Contracting Requirements
- Contract Review. All contracts for Consulting and Professional Services under this procedure must be submitted for review and approved through Purchasing & Contract Services’ contract review process (ServiceNow).
- Signatures. All contracts for Consulting and Professional Services under this procedure must be signed in compliance with University Policy 1010: Contract Signature Authority and Delegation.
- University Contract Template. To accelerate the review and signature process, the purchasing unit is encouraged to use the University’s approved and current “General Services Agreement” template, a current copy of which may be obtained by contacting the unit’s financial officer or Purchasing & Contract Services.
- Purchase Orders. A purchase order shall not be used in lieu of a contract as a means of securing and paying compensation for Consulting and Professional Services under this procedure.
Additional Requirements When Contracting with Independent Contractors
- Independent Contractor Status. A determination of “independent contractor” status must be completed prior to any engagement for Consulting or Professional Services under this procedure. The University complies with federal and state laws and regulations on independent contractor classification and related requirements. If a University department engages an individual or company to perform services as an independent contractor, then the purchasing unit must supply the necessary evidence to support this classification over the presumption of employee classification. Note that employees may not be engaged for Consulting or Professional Services under this procedure.
- Resources. Human Resources provides this checklist to aid in determining independent contractor status. Human Resources is the final arbiter of classification status. The checklist may change from time to time based on changing Internal Revenue Service guidelines. The Checklist must be completed by an individual with firsthand knowledge of the nature of the services to be performed. Questions regarding interpretation of the Checklist should be directed to Human Resources.
- Classification Changes. If a determination is made that a person previously classified as an Independent Contractor should have been paid as an employee - through payroll, the department will be responsible for any employment taxes, penalties and interest, and appropriate administrative costs. Further, the department may be required to retroactively award certain benefits such as retirement contributions, workers compensation, or other employee benefits consistent with payment as an employee - through payroll.
- Role in Academic or Research Program. An independent contractor engaged under this procedure shall not be used to direct or carry out any major portion of an academic or research program. Only University employees may direct a continuing academic or research program.
- Benefits and Publications. Independent contractors engaged under this procedure are not employees, by definition, and are not entitled to employee benefits. They must be described or recognized as "Consultants or Independent Contractors" in published reports or other documents relating to the services covered by the agreement.
Special Rules for Sponsored Programs
- Review by Sponsored Programs. If the Consulting or Professional Services are provided in connection with a sponsored research agreement, then the Office of Research Sponsored Programs must review and approve any contract prior to signature to ensure compliance with any applicable sponsor requirements.
- No Federal Employee Service Providers. Federal employees may not be engaged to provide Consulting or Professional Services as an independent contractor in connection with a federal contract or grant without first obtaining the express written approval of the responsible federal contracting agency.