PUR 1.30 - Procurement of Contractual Services

A.    Purpose.

Explains policies and procedures for the procurement of contractual services, except as noted below.

Note: For personal services performed by an individual or for consulting services, see Procedure PUR 1.40.

B.    Scope.

- Applies to all university departments or activities.

- The types of contractual services covered by this procedure require specialized knowledge,
   experience, or expertise and may include, but are not limited to, the following:

• Maintenance of buildings or equipment
• Film production
• Food services
• Graphic design
• Services from a temporary personnel agency (such as Manpower, or Olsten)

Note: Personal services performed by a company and not an individual are purchased using this procedure. (See Procedure PUR 1.40 for personal services performed by an individual and for consulting services.)

C.    Policy.

1.    General Policy.
The final university decision-making authority regarding any phase of procurement or the performance of any contract for contractual services has been delegated to the Director of Purchasing Services. The Director of Purchasing Services is responsible for preparing and/or reviewing the contract according to published guidelines available in the Purchasing office. Purchasing Services will contact the department for assistance as necessary in preparing the contract. Any circumvention of these procedures may result in voiding of the contract.

2.    Conflict of Interest.
No public official or employee is to benefit from any contract with the university, and no current or prior personal/professional relationship shall exist with the service provider that would constitute a conflict of interest for the university.

D.    Procedures.

1.    Purchase Requisition.
To initiate a request for contractual services, a university department must prepare an electronic requisition in accordance with Administrative Procedure PUR 1.10 prior to making any commitment to the service provider. For instructions on preparing the requisition, see Purchasing Services' Electronic Requisition Reference Manual. The department should use the appropriate standard text code to indicate that an attachment will follow. (See Procedure statement 2.)

Purchasing will review the requisition and coordinate any additional approvals if required.

a.    Special Guidelines for Sole Source Requisitions.    Competition is the best means available to assure that the state and the university receive the best service at the lowest possible cost. Therefore, "sole source contracts" will be avoided whenever possible. When contracting with a sole source is unavoidable and a sole source contract is being requested, departments must also provide the following information:

• The vendor name and address must be provided on the requisition.
• For sole source contracts in excess of $2,500, a "Sole Source Contract" notation should be on the text line of the requisition, and the department must provide a justification to Purchasing explaining the necessity for sole source procurement. This may be included in the task description memorandum outlined in procedure statement 2.

2.    Task Description.
A memorandum providing the following information must be signed by the department head and forwarded to the Director of Purchasing Services as an attachment to the requisition:

• Related requisition number
• Date(s) of service. The contract may not be for more than three years.
• Detailed specifications or type and level of work required
• What the university will furnish
• What the contractor will furnish
• The method, schedule, and procedures for billing and payments
  Other terms and conditions, specifications, or procedures bearing on the conduct of the work.

3.    Contracts Exceeding $2,500.
Upon receipt of the memorandum providing the task description and desired results, Purchasing Services will solicit competition, where available, for expenditures over $2,500. This may be accomplished via telephone, facsimile, or a written Request for Proposal (RFP).

4.    Contracts Exceeding $5,000.
Purchasing Services will solicit competition for expenditures over $5,000. This will be accomplished by direct mail by issuing an RFP, which shall contain the task description and desired results, and specify or provide for all of the following:

• The laws of North Carolina will govern the contract.
• The contract shall be cancelable upon a specified written notice at any time by the state for unsatisfactory performance or for the convenience of the state.
• The university will have the option to require a performance bond or other suitable means of ensuring faithful performance when deemed by the state to be necessary.
• The contract must be in compliance with state and federal antitrust laws.
• The contractor shall furnish all workers' compensation, liability insurance, and other insurance as may be required to protect himself and the state from claims which may arise.
• A payment schedule will be provided.
• Provide for price adjustments provisions, if any.
• The university liaison personnel and any other resources that will be available to the contractor will be identified.
• The criteria for evaluation will be provided.
• A description of the offeror's qualifications and references will be requested.
• The cost of the service will be broken down by components.
• The offeror will identify the proposed methodology for accomplishing the work (if not furnished in the RFP).
• The university has the right to audit the records of the contractor pertaining to this contract, both during performance and after completion. The contractor will retain all such records for three years following completion of the contract.

5.    Contracts Over the Established Benchmark ($35,000).
In addition to the above, a copy of all offers received and the written recommendation for award must be sent by Purchasing to the State Purchase & Contract Division for approval before the award may be made.

6.    Pre-Proposal Conference.
A pre-proposal conference may be held as necessary to review the requirements with prospective contractors. Both the requesting department and Purchasing Services normally will attend any pre-proposal conference scheduled.