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FISCAL MANAGEMENT OPERATIONS GUIDE

Contracts

Authority and Routing:

UNIVERSITY AUTHORITY TO SIGN SERVICE AGREEMENTS AND PROPER ROUTING OF CONTRACTS

The Regent's Rules and Regulations require that all contracts be approved by the chief administrative officer or official delegated authority (refer to Part One, Chapter I, Section 9 and Part Two, Chapter XI, Section 1).

Only an individual with a written delegation of authority from the President of UTSA may execute and deliver contracts on behalf of the University. Therefore, a University contract without an authorized signature may be invalid and unenforceable.

All vendor service agreements must be forwarded through the Contracts Coordinator for final review and determination.

IMPORTANT NOTE: If it is suspected that a project may result in a contract, which obligates the University to the procurement of goods and services, the Purchasing Office will assist in ensuring the most efficient methods are completed and that the proper procurement procedures have been followed. Remember, Contracts for vendor goods and services are the final stage of a proper procurement and must never precede the purchasing procedures.

The UT Requirements on Contracts

Contracts requiring UT System Board of Regents Approval

Contracts requiring UT System Office of General Counsel prior approval
There are certain contracts that require review and approval by the Office of General Counsel prior to execution. If your contract falls into one of the categories noted below, the Contracts Coordinator will review the agreement locally and then forward to the Office of General Counsel for approval as to legal form. These categories include, but may not be limited to, the following:

• General Business Contracts exceeding $100,000.
  The only exceptions to this requirement are those contracts designated by UT System as Standard Contracts. To view a list of Standard Contracts, refer to http://www.utsystem.edu/ogc/contract/standard.htm
  

• Special Procedure Contracts
  

• Summary of Contracts Requiring Board Approval

UT System Office of General Counsel Contract Guidelines, including Model Agreements and Checklists.

Purchase Orders vs. Formal Contracts
Although a purchase order is in fact a contract, there are times when a purchase order is not sufficient, and a signed formal contract is needed to complete the procurement process.

In determining the need for a formal contract rather than a purchase order, several issues must be reviewed. In general, the Contract process is much less efficient than the procedures used when issuing Purchase Orders. Purchase Orders however, may not protect the University from potential risks in the same manner as a formal contract. Not only are terms and conditions of contracts much more specific than those found in purchase orders, a contract requires both parties to formally sign off that they agree and understand these terms and conditions. In determining the need for a formal contract as opposed to a purchase order, factors such as risk, complexity, dollar amount and efficiency are weighed. To view the guidelines practiced by the Purchasing Office on circumstances necessitating contracts, see Establishment: Circumstances Necessitating Formal Contracts Sections 3.1.

In all cases, it is important to keep in mind the procedures for routing of contracts and delegation of signature authority. Please refer to the Authority and Routing section of this website, and always notify the Purchasing Office if it is suspected procurement may necessitate a formal contract.

Guide for Department Administration of Contracts

Best Value Procurement
All personnel involved in the contract process, which may in any way be related to procurement regulations, are required to follow System and University Best Value Procurement procedures. For further information on these policies and procedures, refer to Best Value Procurement and Purchasing Ethics.

Contract Administration
Upon completion of the procurement process and contract negotiations, the subsequent phase of contracting is administration. Regardless of how well a contract is established, proper administration is critical. Departmental administrators are strongly encouraged therefore, to review the guidelines for Department Contract Administration found at Department Guide for Administration of Major Service Contracts.