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[Major revision – posted 7/6/16 (replaced 4/29/13 edition)]
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Operating Policy and Procedure

OP 72.02: Contracting Procedures

DATE: July 6, 2016

PURPOSE: The purpose of this Operating Policy/Procedure (OP) is to outline the policy/procedures to be followed in the development, negotiation, and approval of all contracts between Texas Tech University and other parties. This policy will apply to all contracts except for sponsored project proposals and related contracts, technology commercialization contracts, user agency contracts as described by the Department of Defense, contracts with an investment manager funded with assets owned or controlled by the TTU System, and construction contracts processed by the Office of Facilities Planning and Construction.

REVIEW: This OP will be reviewed in June of odd-numbered years by the Managing Director of Procurement Services with substantive revisions forwarded to the Vice President for Administration and Finance and Chief Financial Officer (VPAF&CFO).

POLICY/PROCEDURE

1.  Definitions

Contract: A legally binding written agreement executed between the System or TTU and a third party in which the parties agree to perform in accordance with the obligations therein. Contracts include, but are not limited to: letter agreements, co-operative agreements, memorandums of understanding (MOU), interagency contracts, Interlocal contracts, easements, licenses, leases, and Purchase Orders.

Contract Close-out: The process conducted at the completion of the Contract during which the Contract Administrator confirms and documents compliance with the terms and conditions of the Contract, final Deliverables are received, and outstanding payments are made.

Contractor: An individual or legal entity that has a Contract to provide Goods or Services to the System or TTU. A Contractor includes, but is not limited to federal, state, and local agencies, nonprofit organizations, private businesses, corporations, partnerships, and individuals.

Goods: Supplies, materials, or equipment as defined in Texas Government Code § 2155.001. Goods do not include Services or real property.

Procurement (Procure): Purchasing, renting, leasing, or otherwise acquiring any Goods or Services, including all functions that pertain to the acquisition through Contract Close-out.

Service(s): The furnishing of labor, time, and effort by a Contractor or Auxiliary Enterprise, including for a Construction Project, which may involve to a lesser degree, the delivery or supply of Goods.

2.  Approval and Execution of Contracts

No person has the authority to commit Texas Tech University (TTU) or the Texas Tech University System (TTUS) for any purpose (i.e., enter into contracts) except as authorized in Section 07.12, Regents' Rules.

This policy shall apply to all contracts for the initial periods, and for amendments, or extensions thereto. For the purpose of determining whether a contract requires approval of the board, any option(s) to extend or renew a contract shall be counted in the overall term of the contract.

3.  Procurement Services Office Responsibilities

The responsibilities of the Procurement Services office include:

a.   Verifying that all Contracts subject to this policy are in compliance with Texas state and federal laws and TTU Operating Policies and Procedures;

b.    Ensuring that all expenditure and revenue transactions comply with federal, state, and TTU Operating Policies and Procedures;

c.    Ensuring that Contracts subject to this policy are reviewed and signed by the appropriate personnel;

d.    Serving as the repository for TTU and TTUS Contracts, subject to this policy and TTU records retention policies (see OP 10.10 Records Retention);

e.    Verifying that the Contractor is eligible to contract with TTU and TTUS in accordance with federal and state laws.

f.     Verifying that bonds and insurance are provided, provide adequate risk management, and are compliant with the requirements of the Contract;

g.    Ensuring that departments encumber the funding for expense Contracts and that payments are made in compliance with the requirements of the Contract and OP 72.11 Payment of Purchase Orders;

h.    Providing oversight to departments ensuring that each Contract is performed in accordance with the terms and conditions of the Contract as required by OP 72.04 Contract Administration;

i.     Managing the Contract renewal and expiration process; and

j.     Providing oversight of the Contract Close-out process.

4.  Guidelines for Processing Contracts

a.    General Guidelines

Written Contracts shall be executed whenever the System or TTU enters into a binding agreement with another party that involves any material consideration.

b.    Procurement Guidelines

The department requesting the Goods or Services in consultation with the Procurement Services office shall first determine if a competitive solicitation is required. See OP 72.09 Purchase of Goods and Services.

For Contracts that require an expenditure, the department shall submit a requisition in TechBuy, and electronically attach the draft Contract and a signed Contract Routing Sheet demonstrating it has adequate funding and departmental approval. If the Contract does not require an expenditure of System or TTU funds, the Contract and signed Contract Routing Sheet shall be emailed to the Procurement Services office at purchasing.contracting@ttu.edu.

If required, Procurement Services will work with the department and the Contractor to develop a mutually satisfactory Contract.

Procurement Services will obtain review and approval from the appropriate System and TTU officials and the Contractor. A fully executed Contract will be retained on file in the Procurement Services office and distributed to both the department and the Contractor.

c.    Contract Management Handbook

All contracts are subject to the requirements detailed in the Contract Management Handbook adopted by the TTU System.

5.  Contract Renewals

The Procurement Services office is the office of record for all System and TTU Contracts subject to this policy. This responsibility requires that the managing director of Procurement Services maintain files of all Contracts that fall under the purview of Procurement Services. The managing director will maintain schedules that include a description of the Contract, the Contractor, the expiration dates of the Contract, the Contract value (if applicable), amendments, and renewals.

6.  Inquiries

Any questions concerning this OP should be directed to the Procurement Services office, 806.742.3844, or emailed to purchasing.contracting@ttu.edu.

Operating Policies & Procedures