Contract Procedure Summary
A. Key Responsibilities
1. The department desiring services is responsible for preparation of the contract. All
updated contract forms are on-line under the Contract Office website.
2. The contract must be approved (including funds availability) prior to service
being rendered. Allow two (2) to three (3) weeks if the contract requires only University
approval, and allow an additional two (2) weeks if the contract requires Tennessee
Board of Regents (TBR) approval. If approval by the State of Tennessee Fiscal Review
Committee is required, all paperwork must be in the Contract Office ninety (90) days
before the contract start date.
3. The President or his designee shall approve all contracts conforming to contract
guidelines. Approval by the Chancellor shall be required for contracts exceeding
$250,000. Additionally, approval by the State of Tennessee Fiscal Review Committee is
required for sole source contracts exceeding $250,000.
B. Key Restraints
1. Consultants may not be hired if services can be satisfactorily and economically
provided by an agency of the State of Tennessee (including another University
department);
2. A services contract cannot be used in lieu of proper employment of an employee
through Human Resources. Generally, an individual is an employee when the University
has the right to control and direct the details and means by which the results of a job
are to be accomplished. This includes, but is not limited to the following criteria: the
right to determine when, where and how services are rendered; the right to discharge
the worker; furnishing tools; furnishing a place to work; settings hours of work;
expenses are paid by the University; the worker's services are integrated into the
University's business; and the worker has the right to terminate the relationship without
incurring a liability for failure to complete a job.
3. Services must be procured through the purchase order bid process where
appropriate. Please contact Procurement Services or the Contract Office, if needed, to
determine if the service is amenable to bidding.
4. A services contract cannot be used to secure the services of current State or
University employees or employees terminated within the last six (6) months.
"Employee" includes full or part-time faculty, staff, student employees and graduate
assistants.
5. Contract payments cannot be made in advance of service. Payment can only be
made after completion of services.
C. Procedure
1. All University Contract processing is now done electronically through MT $ource by
the use of a special form entitled Contract Office Form, located in the Showcased
Services section on the MT$ource home page. The Contract Office Form replaces the
paper approval process for all Contracts (new, renewals, and amendments) and
documents that require University signature(s). This form was rolled out campus-wide
in May 2012, and we are providing ongoing training and contract processing Q&A
sessions on a monthly basis. Training is essential for those who enter requisitions, and
the use of the Contract Office Form in MT$ource is mandatory for the execution of
Contracts, agreements or documents requiring an official University signature.
If you have questions on entering a Contract into MT$ource, please contact the
Contract Office (ext. 2088) or the MT $ource HELP DESK (ext. 5442).
If possible, the contract should be signed by the contractor before being
uploaded into MT$ource. In all cases, the taxpayer identification name on the
Substitute W-9 form must be the same as the name of the contracting party. (Note:
To protect personally identifiable information (PII), the department should NOT attach
the Substitute W-9 and Minority/Ethnicity Form to the contract when it is routed for
approval. These forms should be faxed directly to Procurement Logistic Services.
If the contract is with a nonresident alien (an individual who is classified
according to a type of visa and is neither a U.S. citizen nor a resident alien), the
department should contact Accounting Services for additional forms that are required to
be completed before the contract is routed. In all cases, these forms must be
completed and the individual contractor must have a valid U.S. Social Security number
before he/she may receive any payments from the University.
The Minority/Ethnicity Form and Substitute W-9 Form are not needed for dual
service contracts.
2. The Contract Office will secure the appropriate University signature(s) on the
contract and then distribute the approved copies to the Contractor with the original
remaining in the Contract Office.