Agreements for Personal, Professional, and Consultant Services

THE UNIVERSITY OF MEMPHIS OPERATING PROCEDURES

SUBJECT: Agreements for Personal, Professional, and Consultant Services

PROCEDURE NO.: 2D:03:07B DATE: July 1, 1998

SUPERSEDES PROCEDURE NO.: 2D:03:07B DATED: October 1, 1994

APPROVED:_______________________________________________,Vice President for
Business and Finance

I. INTRODUCTION

The University will comply with Tennessee Board of Regents (TBR) Policy No. 1:03:02:10, "Approval
of Agreements," and TBR Guideline G-030, "Contracts and Agreements." The complete text may be
found in the TBR Web Site gopher://www.tbr.state.tn.us/. Copies are also on file in the Library, the
President's Office, the Legal Counsel Office, the Provost's Office and all Vice Presidents' offices. All
contracts that do not comply with TBR Guideline G-030 must be approved by the President and the TBR
Associate Vice Chancellor for Administration. The Purchasing Department will be responsible for
securing these approvals when required.

II. LIMITATIONS ON HIRING CONTRACTORS

Departments may not hire a contractor if the services can be satisfactorily and economically provided by
an agency of the State of Tennessee government (including another University department).

1. Departments may not hire a contractor by these procedures in
lieu of proper employment of an employee through Human
Resources.

2. Departments may not hire as a contractor a current State or
University employee or a State or University employee who
has been terminated within the last six (6) months. For
purposes of this procedure, "employee" includes full or
part-time faculty, staff, student employees, and graduate
assistants.

3. With limited exceptions, contract terms may not exceed one
(1) fiscal year.

4. Departments may not pay contractors in advance. Payment may
be made only after completion of the contractor's services.

III. RESPONSIBILITIES OF INITIATING DEPARTMENT

1. The department desiring services is responsible for
obtaining the appropriate contract forms and preparing the
contract.

2. The contract must be approved (including funds availability)
prior to services being rendered. Departments should allow
two (2) to three (3) weeks if the contract requires only
University approval, and an additional four (4) weeks if TBR
approval is required.

IV. AGREEMENTS FOR MORE THAN $5,000

1. Except as otherwise specified, the Director of Purchasing
shall approve all agreements for personal, professional, and
consultant services.

2. Initially, the department may obtain copies of the standard
contract form from the Purchasing Department; thereafter,
the department is responsible for maintaining a form supply.

3. The department must prepare four (4) copies of the standard
contract form, making sure to complete all information on
the form, including the account number to be charged and the
fee amount to be obligated.

4. Before routing the contract forms for approvals the
department should obtain the contractor's signature. In
addition to signing the contract forms, the contractor must
indicate in the appropriate spaces (a) the contractor's
social security number and home mailing address, if the
contractor is an individual, (b) the contractor's federal
tax I.D. number and business address, if the contractor is
not an individual, (c) whether or not the contractor is a
small and/or a minority-owned business, and (d) the
contractor's type of business.

5. The department must route four (4) copies of the contract
for approvals by using the "Coordination/Routing Form for
Contractual Documents" (copies available from the Purchasing
Department). In all cases, the department must forward with
the contract and routing forms a memorandum of explanation
and justification detailing why and how the contractor was
selected and how the fee to be paid was calculated.

6. The Purchasing Department will secure the appropriate
University signature(s) on the contract and then distribute
the approved copies to the department and the Accounting
Office, with the original remaining in the Purchasing
Department.

7. In order to pay the contractor after services have been
rendered, the department must complete Part I of a "Request
for Payment to Individual or Contractor" form (copies
available from the Accounting Office), and submit the form
to the Accounting Office for payment.

V. AGREEMENTS FOR $5,000 OR LESS

1. When the fee is $5,000 or less, departments may contract
directly with a contractor by using Part II,
"Authorization to Contractor," of the "Request for Payment
to Individual or Contractor" form (copies available from the
Accounting Office). The form may be approved by the Provost
or the appropriate Vice President or equivalent University
official; however, if the fee is $2,500 or less, it may be
approved by the dean or comparable official, and if the fee
is $1,500 or less, the form may be approved by the
department chair/activity head. Departments may not use the
"Authorization to Contractor" form for continuing or
repetitive services or to fragment a contract where the
total cost will exceed $5,000.

2. The department must complete two (2) copies of Part II,
"Authorization to Contractor," of the "Request for payment
to Individual or Contractor" form and obtain the approval of
the appropriate University official(s).

3. The department must give both copies of the form to the
contractor, who must sign and return one (1) copy to the
department.

4. Upon the contractor's completion of services, the department
head must complete Part I of the "Request for Payment to
Individual or Contractor" form and submit the original and
one (1) copy of the form directly to the Accounting Office
for payment.

VI. AGREEMENTS WITH NONRESIDENT ALIEN INDIVIDUALS

Payments made to a nonresident alien individual (an individual
who is classified according to a type of visa and is neither a
U.S. citizen nor a resident alien) are subject to special I.R.S.
reporting requirements. In this regard, the department should
contact the General Accounting Section of the Accounting Office
for additional forms that are required to be completed before
payment may be made. In all cases, the individual contractor
must have a valid U.S. social security number before the
contractor may receive any payments from the University.

VII. AGREEMENTS WITH PERFORMING ARTISTS

Contracts for performing artist services, i.e. music, etc.,
require special terms and conditions. When securing performing
artist services, departments should attach a completed
"Performance Rider" form (copies available from the Purchasing
Department) to the contract. The "Performance Rider" form may be
utilized with both the standard contract form and with the
"Authorization to Contractor" form.

VIII. PAYMENTS TO CONTRACTORS

1. All payments to contractors will be made by the Accounting
Office. Checks normally will be issued within five (5)
working days following receipt of the request for payment or
invoice in the Accounting Office. An exception may be made
for contractors requiring payment on the day of services.

2. All travel reimbursements must be handled in accordance with
University Operating Procedure
No. 2D:01:01M, "General Travel Policies and Procedures."