TO CONTRACTS 101 & PURCHASING 102

1. TOCONTRACTS 101 &PURCHASING 102

5. Introduction • Shirley Hart-Executive Director of Operations • Mike Schurwon-Contracts • Jeanne Cumpian-Purchasing • Debbie Carpenter-Purchasing • Renee Ball-PowerPoint Presentation

6. OPERATIONS/PURCHASING PERSONNEL Purchasing • Debra Carpenter, CTPM Supervisor of Purchasing & HUB Activities • Renee Ball, CEOP Secretary • Jeanne Cumpian, CTPM Procurement Specialist III • Alicia Gookin Purchasing Clerk Operations • Shirley Hart, CTPM Executive Director of Operations • Mike Schurwon, CTPM,CPPB Contract Administration Specialist • Marsha Shaner, CEOP Senior Business Assistant

7. CONTRACT WORKSHOPUNIVERSITY OF HOUSTON – CLEAR LAKE (UHCL)

8. DO I NEED A CONTRACT OR A PURCHASE ORDER?

9. DO I NEED A CONTRACT ? A contract is required if the subject matter involves: • Human performance that renders a service to the University. • An off-campus event that requires facilities, catering or service to the University. Example: Speaker, consultant, performer, or professional service

10. DO I NEED A PURCHASE ORDER ? • A Purchase Order is used when the deliverable is a tangible product. Example: Office supplies, furniture, etc.

11. WHAT IS A CONTRACT? • A contract is an agreement between two or more persons that creates an obligation to do or not to do a particular thing.

12. TYPES OF CONTRACTS • Purchase Orders NOTE:A purchase order is a formal contract, however, if there is a separate agreement that the vendor requires UHCL to sign then the agreement has to be sent to the Office of the General Counsel for their review and approval to form. The review process takes approximately two weeks. • Affiliation Agreements (also known as Internships) - Require Legal Review) • Software/License Agreements - Require Legal Review)

13. UHCL CONTRACT AUTHORITY No person has the authority to bind the System/University contractually except in accordance with: • Board of Regents Policy 47.01 • System Administrative Memorandum 03.A.05 • Available on Operations Website

14. INDIVIDUAL LIABILITY • Employees may not approve the purchase of goods, services, or make other commitments in the absence of a properly authorized contract. • Contractors and employees proceed at their own risk if they initiate performance without the appropriate approvals from the Office of the General Counsel (OGC) and the appropriate University or System officials.

15. LEGAL REVIEW AND APPROVAL • All non-standard agreements or contracts between the UHCL and another party must be sent to the Office of the General Counsel for review and approval. • Software Licenses • Affiliation Agreements • Equipment Leases • NOTE: Even if the non-standard agreement or contract has no dollar amount involved, it must be submitted for legal review and Office of the General Counsel approval. Contract Administration will route all documents requiring legal review to the Office of the General Counsel.

16. EXCEPTION TO LEGAL REVIEW • Standard Form Agreements: A Standard Form Agreement is an agreement approved by the Office of the General Counsel after May 27, 1998. • These agreements contain the OGC form number and approved date in the footer of the contract form. Standard Agreements: • Performer Agreement Contract Form No. OGC-S-98-8-CL, Revised 01/25/06 • Speaker Agreement (Not-to-Exceed $500.00) Contract Form No. OGC-S-2002-3-CL, Revised 01/25/06 • Purchasing Agreement for Goods and Services – (Performed by Contractor)Contract Form No. OGC-S-98-5-CL, Revised 01/25/06

17. EXCEPTION TO LEGAL REVIEW cont… • Amendment to Purchasing Agreement for Goods and Services (Performed by Contractor) Contract Form No. OGC-S-2004-8-CL, Revised 01/25/06 • Contract Service Agreement (Performed by UHCL) Contract Form No. OGC-S-99-5, Approved 01/29/99 • Independent Contract Eligibility Questionnaire Contract Form No. OGC-S-99-6, Approved 01/29/99

18. EXCEPTION TO LEGAL REVIEW - cont… • Appendix A – Additional Description of Service to be Performed • Contract Form No. OGC-S-99-7, Approved 01/29/99 • NOTE: Other specialty agreements are available by contacting • Purchasing Department or Contract Administrator.

19. STANDARD FORM CONTRACT CHECKLIST NOTE: For a contract to be issued, all forms referenced below need to be completed and forwarded to the Contract Administration. • Performer Agreement Contract Form No. OGC-S-98-8-CL, Revised 01/25/06 • Speaker Agreement – (Not-to-Exceed $500.00)Contract Form No. OGC-S-2002-3-CL, Revised 01/25/06 • Purchasing Agreement for Goods and Services – (Performed by Contractor) Contract Form No. OGC-S-98-5-CL, Revised 01/25/06 • Independent Contractor Eligibility Questionnaire Form No. OGC-S-9-6, Approved 01/29/99

20. QUESTION: HOW CAN YOU TELL IF THE CONTRACT IS AN APPROVED FORM? These agreements contain the Office of the General Counsel contract number and approved date in the footer of the contract form.

21. Standard Form Checklist • Is the agreement on a current form, which carries the Office of the General Counsel form number in the footer? • Is the Agreement complete? (a) Are all pages accounted for? (b) Are all exhibits or attachments referenced in the agreement provided?

22. More…… • Have you ensured that no changes have been made to this document? ( the name of parties, description of service, date, amount of consideration and term of the contract are the only changes that can be made to the standard agreement without Office of the General Counsel approval). • Are all blanks filled in? • Are all references to the parties accurate, complete and consistent?

23. HOW TO PAY A CONTRACT: YELLOW RECEIVING REPORTS ARE ISSUED FOR CONTRACTS • After a contract number has been assigned, three (3) yellow receiving reports are returned to the Business Coordinator with two (2) copies of the contract. • Business Coordinator forwards copies of the yellow receiving reports and contracts to the Department. • The Department is responsible for forwarding a copy of the signed contract to the Contractor.

24. HOW TO PAY A CONTRACT: CONT… • Department signs and returns one (1) copy of receiving report along with one (1) copy of the contract to Accounts Payable for payment once services have been complete. • Department signs and returns one (1) copy of the “Final” receiving report to Contract Administration. • Department keeps one (1) copy of signed contract with receiver(s) for the department file. NOTE: This procedure is also applicable for “Partial” payments. If partial payments are required, please specify when submitting the contract to purchasing for processing. Additional copies will be made and distributed to the Business Coordinator when contract has been issued.

25. UHCL Contract Decision Tree • Does • this • transaction • involve: • The purchase , sale • or conveyance (including • rights), of real property • A real estate lease • A banking/ investment agreement • New construction or major repair of a • building or facility valued at more • than $300,000 • Any contract, or series of contracts that • exceed $1,000,000 in a fiscal year • An extension, modification • or renewal of a • previous Board • modified • contract • ? Begin here Turn to page 2 No This transaction may require approval by the Texas Higher Education Coordinating Board. This transaction requires approval by the Board of Regents, Chief Financial Officer, and may require Executive Director of Facility Planning & Construction (FP&C). Yes Yes Page 1 of 3

26. Contract Decision Tree Continued from Page 1 Is this contract valued at more than $25,000 ? Does this contract involve Consulting Services > $25,000 or Professional Services > $25,000 ? Are any legal services involved in this transaction ? Can this transaction use a UH standard contract with no modifications or attachments from the vendor ? No No Yes No Select Appropriate Standard Contract Select the appropriate standard contract Yes Yes Yes No This transaction may require involvement of the Electronic State Business Daily for 14-21 day posting See Purchasing/Contract Administration This requires Legislative Budget Board reporting. See Contract Administration This transaction must be reviewed by the Office of General Counsel. See Contract Administration This transaction must be reviewed by the Office of General Counsel. See Contract Administration Turn to Page 3 If you have questions please call Contract Administration at (281) 283-2150.

27. Contract Decision Tree The final check list: • Does the contract: • Have three complete original contracts (1 original + 2 copies are acceptable) • Have all Board of Regents (BOR), Office of the General Counsel (OGC), Department and Division signatures and approvals • Have all forms, certifications, justifications, or proof of insurance attachments • Have all the blanks filled in (dates, compensation, and description) If yes… send to Contract Administration for processing and # assignment.

28. Reference: Contract Quick Guide If you have questions please call Contract Administration at (281)283-2150. Visit the Operations website for information & forms @ www.cl.uh.edu/operations/contract%20gen%20info2.htm

29. AUXILIARY SERVICES

30. AUXILIARY SERVICES • Vending Service Blue Bell Creameries (Ice Cream) Canteen Vending (Snacks) Houston Coca-Cola Bottling Company (Drinks) NOTE: For Refunds, please go to the Cashier’s Office in the Student Services/Classroom Building, 1st Floor. • Food Service ARAMARK – Patio Café •Coffee Bar – Student Services/Classroom Building Cappuccino Bono • University Bookstore Barnes & Noble Contact Contract Administration, x2150 for issues or concerns.

31. Listed below FY 2006 Auxiliary Service Advisory Committee Representatives. Contact your representative for suggestions or input. If there are immediate concerns, please contact Purchasing at ext. 2150.

32. PURCHASING DEPARTMENTHOURS OF OPERATION HOURS 7:00 A.M. – 5:30 P.M MONDAY – THURSDAY 8:00 A.M. – 5:00 P.M. FRIDAY

33. PURCHASING DEPARTMENTIS LOCATED IN BAYOU BUILDING ROOM 2123EXTENSION 2150http://www.cl.uh.edu/operations

34. If your Business Coordinator is:Judy Chapmon Susanne Clark Sonja Fairbanks Ed Altemus Mike MacDonald Rennel Kirkendall Lydia Sonier Tammie Parker Margaret Thomas Colleen Zlomke Contact: Contact:Jeanne CumpianDebra Carpenter

35. WHAT DOES THE PURCHASING/CONTRACTS OFFICE DO? • Approximately 4,000 purchase orders a year • Approximately 250 Contracts • Approximately 280 Change Orders • Serve as legal liaison for purchasing/contracts • Attend 24 hours professional development classes to maintain certification • Follow up purchase orders • Sponsor Historically Underutilized Business (HUB) Fair • Place 5,100 long distance telephone calls a year • Process 5,200 receiving reports • Vending service calls

36. Question:How many purchase orders are issued a year ? Approximately 4,000

37. Question:How many change orders a year? Approximately 280

38. UTILIZE ON-CAMPUS VENDORS: If an item or service is available from: • Printing Services • Central Stores • Facilities Management & Construction (FMC) • University Computing & Telecommunications (UCT) • Food Service the item must be obtained from the on-campus vendor.

39. FACILITIES MANAGEMENT & CONSTRUCTION (FMC) FMC Work Order System – www.uhcl.edu/fmc • Need one week’s notice • Moves need to be scheduled to take place before 3:00 PM • Contact UCT to disconnect any computers before asking FMC to move items • If in doubt whether FMC will do work, send in work order

40. Moving of Furniture Submit work order to get item moved • FMC will determine if there is a charge for your request • If there is a charge (example: contract mover needs to do work) an IDT will be sent to department for approval • Moves between buildings and all modular furniture moves will require contract mover Once item is considered surplus it can’t be returned to the department

41. CENTRAL STORES

42. CENTRAL STORES Here are the steps to access the catalog. • Open Internet Explorer • Select TOOLS from the menu • Select INTERNET OPTIONS, the GENERAL tab is displayed • Under Temporary Internet Files, select DELETE FILES • Under Delete All Files in the Temporary Internet Files, Click OK • Click OK (to exit this option) • Exit Internet Explorer • Open Internet Explorer again and go to the Central Stores catalog

43. STATE TERM CONTRACTS,TIBH • State term contracts should be utilized when possible. • TIBH is a set-aside contract and must always be given first consideration. • TIBH information is available online or in the Purchasing Department in hardcopy or CD.

44. ALL FUND CODESPURCHASING REQUIREMENTS$ 0 - $ 500 Departments are encouraged to order directly from vendor and submit a voucher directly to Accounts Payable. Contact Accounts Payable for voucher processing information.EXCEPTIONS: PrintingOffice SuppliesBottled water deliveryTIBHAdvertisementsAll computer-related items

45. $ 0 - $10,000 Departments will recommend a vendor. Purchasing has the option of issuing bids or placing order directly to the suggested vendor. $ 10,000 - $24,999 Departments will recommend a vendor. Purchasing will solicit telephone or fax bids. A minimum of two (2) HUBs will be solicited. $ 25,000 > Departments will recommend a vendor. Purchasing will solicit formal written bids. A minimum of two (2) HUBs will be solicited. The purchase may be posted to the Electronic State Business Daily for a minimum of 14 days. Emergency purchases may be posted for less than 14 days.

46. PURCHASING GUIDELINES-Ledger 5 The basic purchasing university policies involving expenditure of Research Administration Funds (RAF) (Ledger 5) are as follow: • To abide by the general procurement standards of the Office of Management and Budget (OMB) Circular A-110. • To provide free and open competition when and wherever possible. • To provide for sole source procurement (see Purchasing Manual). • Approval of Office of Research Administration is required. • Follow University local fund guidelines.

47. IF YOU NEED TO MAKE A PURCHASE PLAN AHEAD THE TIME REQUIRED TO ISSUE A PURCHASE ORDER VARIES Plan your time wisely

48. Average Purchase Orders Less than $10,000 (Call and Place Order) 3 days $10,001 - $24,999 (Telephone or Faxed Bids) 5-10 days Greater than $25,000 (Formal Written Bids) and posted to Electronic State Business Daily 15+ days Contracts Standard Contracts 3-5 days Non Standard Contracts minimum 2 weeks HOW LONG DOES IT TAKE FOR PURCHASING TO PROCESS A PURCHASE ORDER OR CONTRACT ?

49. NEED DEFINE DISPOSAL THE PURCHASING CYCLE SHOP USE PAY SUPPLIER RECEIPT ORDER

50. ELECTRONIC STATE BUSINESS DAILY