Contract for Services Procedure
Effective date January 1, 2016
Contracts for services may be established between the university and different entities including
incorporated businesses, non-incorporated businesses and individuals. Generally, an incorporated
business/limited company name ends in LTD., INC., or CORP. For tax purposes, the service
providers are considered to be independent contractors, and are not employees of the university.
Similar to other types of contracts entered into by the university, the intent of a contract for services
is to outline all agreed upon terms and conditions and manage the risks associated with the
procurement, while protecting the integrity of the procurement policy and signing authority policy.
These procedures apply to all types of contract for services arrangements and all departments of
the University of Saskatchewan, regardless of the source of funding including operating, research,
trust and restricted accounts.
Incorporated Business / Limited Company
Procedure – Contract for Services under $5,000
1
Complete an approved template or initiate request for assistance in developing a
contract
A standard Agreement for Services Valued up to Five Thousand Canadian Dollars template with fillin-the-blanks can be completed, if the service provider agrees to all terms and conditions. Signature
requirements are contained in the document and the executed agreement must be kept on file in the
department/unit. Purchasing Services will also assist in developing an approved template for
recurring engagements.
NOTE: A written agreement is not a requirement for contracted services under $1,000 unless the
activity poses a potential physical hazard to an individual or a university facility (e.g. use of chemicals,
power tools/machinery, etc.), or involves professional services where the advice could impact the
liability or reputation of the university.
If the service provider will not agree to all the contractual conditions stipulated in the approved
Agreement for Services up to Five Thousand Dollars or the service provider insists on using their own
contract, contact Purchasing Services for assistance in developing and/or negotiating the contract
and obtaining university signatures.
2
Complete a purchase requisition in UniFi (university financial system) or use the
Procurement Card (PCard) for approved services only.
Include a description of the service to be purchased, name of service provider and include reference
to the date of the contract for services.
Procedure – Contract for Services between $5,000 and $75,000
1
Complete a purchase requisition in UniFi (university financial system) or contact
Purchasing Services to initiate the request
If your department/unit has obtained the quotations, include a description of the service to be
purchased, cost, applicable terms and conditions, and name of selected service provider. Forward all
quotations received to Purchasing Services.
If your department/unit wants assistance with obtaining quotations, provide a description of the
service required, budget and potential service providers (if known).
2
Review and Clarification
Purchasing Services may require more information from your department/unit or service provider after
review of quotations received, or will consult with your department/unit upon receipt of quotations
resulting from a process managed by Purchasing Services.
3
Contract for services development
Purchasing Services will ensure that all agreed to terms and conditions are included in the contract
for services.
4
Purchase order issued to service provider, or complete a purchase requisition in
UniFi (university financial system)
If a purchase requisition has not already been completed, set up the purchase requisition and include
a description of the services to be purchased, name of awarded service provider and include
reference to the contract for services number. Purchasing Services will ensure that the contract for
services is referenced in the purchase order.
Procedure – Contract for Services over $75,000
1
Initiation of a request
Contact Purchasing Services as soon as your requirement or project is identified.
2
Information gathering
Your project team will meet with Purchasing Services to discuss the requirement/project, timelines,
determine competitive procurement strategy, and roles and responsibilities.
3
Developing requirements
Along with assistance from your team, Purchasing Services will complete the requirements,
evaluation criteria, background information and any applicable appendices.
4
Finalizing the bid document
Purchasing Services will incorporate the requirements into the bid document, which will also contain
all relevant university business and legal requirements. Purchasing Services will also consult with
other experts, as required. For example, legal, risk management, etc.
5
Posting and closing
Purchasing Services will publicly post your requirement/project for a minimum two week period of
time. After the closing date, Purchasing Services will compile a bid package for distribution to the
team or evaluation committee.
6
Evaluation
All bid submissions will be rated by the team or evaluation committee according to the evaluation
criteria established by the team, and published in the bid document.
7
Clarification and/or Negotiation
Purchasing Services, in consultation with the team or other experts, may further clarify and/or
negotiate non-mandatory requirements with the service provider.
8
Contract for services award
Purchasing Services will support your department/unit with the contract for services award and
development of any contract for services documents. A letter of intent may be issued if lengthy
negotiations are anticipated.
9
Complete a purchase requisition in UniFi (university financial system)
Include a description of the services to be purchased, name of awarded service provider and include
reference to the contract for services number.
Non-Incorporated Business and Individual
Procedure – General
1
Complete the Employment versus Contracted Services questionnaire
Before contracting with an individual or a non-incorporated business, read the Employment vs
Contracted Services Guideline for more information, then complete the Employment vs Contracted
Services Questionnaire.
2
Follow the relevant competitive bid process and contract for services procedures for
incorporated business described above
Competitive bid procurement thresholds (limits) apply (see Competitive Bid Procedure).
3
a) For a non-incorporated business, complete a purchase requisition in UniFi
(university financial system)
Include a description of the services to be purchased, name of awarded service provider and
include reference to the contract for services number.
b) For an individual, complete a service income requisition form
Submit a completed Service Income Requisition form and supporting documentation to the
Payroll department. A purchase requisition is not required and a purchase order is not issued.
Related Links/Forms
Competitive Bid Procedure
Procurement Contract Procedure
Single Source Procurement Procedure
Employment vs. Contracted Service Policy
Signing Authority Policy
Use of the University Seal Policy
Conflict of Interest Policy
Agreement on Internal Trade (AIT) – Annex 502.4
New West Partnership Trade Agreement (NWPTA)
CFI Best Practices
Versions
Document Name
Help
Employment vs. Contracted Services Guideline
Employment vs Contracted Services Questionnaire
Agreement for Services Valued up to $5,000 CAD - Template V.B.2.11.09
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Recurring Engagement / Approved Contract Template - Certification Page
Signing Delegation Memorandum - Template V.B.2.11.09
Service Income Requisition
Contact Information
Contact:
Phone:
Website:
Purchasing Services, Financial Services
306-966-6704
www.usask.ca/fsd
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