Contract and Grant Manual

PURCHASING AND SUBAWARDS

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Table of Contents

16-100 PURCHASING/SUBAWARD AUTHORITY
16-101 DEFINITION
16-102 DISTINCTION FROM "EXPENDITURE" / "BUDGET" AUTHORITY
16-110 PURCHASING AUTHORITY--THE PRESIDENT
16-111 LIMITATIONS ON THE PRESIDENT'S PURCHASING AUTHORITY
16-120 PURCHASING AUTHORITY--CHANCELLORS/LABORATORY DIRECTORS/ADMINISTRATIVE OFFICERS
16-130 PURCHASING AUTHORITY--MATERIEL MANAGERS/LIBRARIANS/OTHERS
16-140 LOW-VALUE PURCHASE AUTHORIZATION
16-150 UNAUTHORIZED PURCHASES
16-200 PURCHASING RESPONSIBILITIES
16-210 MATERIEL MANAGEMENT OFFICE, OFFICE OF THE PRESIDENT
16-220 CONTRACT AND GRANT OFFICERS
16-300 PURCHASING POLICIES
16-310 EXTERNAL PURCHASING POLICIES AND REQUIREMENTS
16-311 EXTERNAL "PRIOR APPROVAL" REQUIREMENTS
16-312 "FLOW-DOWN" OF EXTERNAL POLICIES AND REQUIREMENTS THROUGH PURCHASING TRANSACTIONS
16-320 PURCHASE CONTRACTS
16-321 SPECIAL DOCUMENTS
16-322 GENERAL COUNSEL APPROVAL
16-323 CONTRACT AND GRANT OFFICER COORDINATION
16-330 PLANNED PURCHASING PROGRAM
16-331 POLICY
16-332 RESPONSIBILITY
16-333 LABORATORY PARTICIPATION
16-340 COMPETITION
16-341 CONTRACT AND GRANT OFFICERS' RESPONSIBILITY
16-350 NEGOTIATION
16-360 CONFLICTS-OF-INTEREST
16-370 SOCIO-ECONOMIC REQUIREMENTS
16-400 SPECIAL PURCHASING SITUATIONS
16-410 EQUIPMENT AND EQUIPMENT INSTALLATION
16-420 SERVICE CONTRACTS
16-430 SUBAWARDS FOR RESEARCH
16-431 SUBRECIPIENT MONITORING
16-440 COMPUTER SERVICES
16-450 CONSULTING SERVICES
16-460 ALCOHOL, DRUGS, HAZARDOUS AND RADIOACTIVE MATERIALS
16-470 CONSTRUCTION
16-999 RELATED UNIVERSITY REFERENCES

EXTERNAL REQUIREMENTS--FEDERAL
16-F01 Sections_.40 through_.48 of OMB Circular No. A-110, Procurement Standards
16-F02 Public Law 95-507, Section 211, "Subcontracting Under Contracts"
16-F03 National Women's Business Enterprise Policy
16-F04 Fly America Act
16-F05 Buy American Act
16-F06 Indian Self-Determination and Education Assistance Act, Public Law 93-638
16-F07 Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations

EXTERNAL REQUIREMENTS--STATE
16-S01 State Public Contract Code


16-100 PURCHASING/SUBAWARD AUTHORITY

16-101 DEFINITION

Purchasing/subaward authority is the authority to make legally binding commitments on behalf of the University to purchase goods or services from external sources, including entering into subawards (i.e., subcontracts or subagreements) (see 16-320 through 16-323). The terms “purchasing authority” or “purchasing” as used in this Chapter encompasses subawards (subcontracts and subagreements). Purchasing authority is delegated from the President to the Chancellors/Laboratory Director who redelegate it to appropriate campus/Laboratory administrative staff. (See 16-110 through 16-130.) Authority for campus Contract and Grant Officers to enter into subawards is described in 16-220 below.

Authority to enter into independent consultant agreements with parties outside of the University is separate from purchasing authority and, as such, is conveyed though a separate delegation of authority. See 16-442 for coverage on independent consultant agreements.

Policy governing the purchase of goods or services from sources within the University (i.e., from other campuses or from the DOE Laboratory) is presented in 10-250 through 10-253. [http://www.ucop.edu/raohome/cgmanual/chap10.pdf#page=20]

16-102 DISTINGUISHING PURCHASING AUTHORITY FROM "EXPENDITURE" OR "BUDGET" AUTHORITY

Authority for purchasing transactions is distinct from authority to budget or expend funds. Budget or expenditure authority refers to the establishment of budgets and to the authorization of budget transaction requests and purchasing requests. Expenditure/Budget authorities and related responsibilities are discussed in Chapter 6. [http://www.ucop.edu/raohome/cgmanual/chap06.pdf]

16-110 PURCHASING AUTHORITY -- THE PRESIDENT

Pursuant to its powers as provided by the Constitution of the State of California and described in Chapter 13, [http://www.ucop.edu/raohome/cgmanual/chap13.pdf] The Regents of the University have granted authority to the President to execute on behalf of The Regents all contracts and other documents necessary in the exercise of the President's duties, including those for purchasing goods and services, within the restrictions of Standing Order 100.4(dd) [http://www.universityofcalifornia.edu/regents/bylaws/so1004.html] itemized in 16-111.

16-111 LIMITATIONS ON THE PRESIDENT'S PURCHASING AUTHORITY

The President must seek specific authorization The Regents (see 10-210 http://www.ucop.edu/raohome/cgmanual/chap10.html#page=14) for:

1. obligations on the part of the University which require the construction of facilities not previously approved;

2. exceptions to approved University programs and policies;

3. obligations on the part of the University to expenditures or costs for which there is no established fund source;

4. agreements for the provision of employee group insurance benefits, with the understanding that Board authorization shall not be required for periodic revisions to existing agreements when the revisions do not substantially change the authorized scope of the benefit plans;

5. agreements with associations composed of medical staff for collection of professional fees for services rendered to patients at University or affiliated teaching hospitals; and

6. agreements by which the University assumes liability for conduct of persons other than University officers, agency, employees, students, invitees, and guests. This restriction does not apply to agreements under which the University assumes responsibility for the condition of property in its custody.

However, the President is authorized to take all actions and to execute all documents necessary in the exercise of the President's duties when an emergency precludes prior submission to the Board of Regents (see 10-213(b) http://www.ucop.edu/raohome/cgmanual/chap10.pdf#page=15).

16-120 PURCHASING AUTHORITY - CHANCELLORS / LABORATORY DIRECTOR ; ADMINISTRATIVE OFFICERS

The President has delegated to Chancellors and Laboratory Director (DA 2100 http://www.ucop.edu/ucophome/coordrev/da/da2100.html) the “authority to execute purchase contracts, subcontracts, and standard purchase orders for goods and services" (but excluding independent consultant agreements) with the following additional provisos:

1. purchase contracts, subcontracts, or standard purchase orders are issued in accordance with University policy (refer to 16-300 and 16-370);

2. funds are available;

3. prior approval is secured as required pursuant to the provisions of a contract, grant, or other extramural sponsor agreement (refer to 16-311); iv) prior approval shall be obtained from the Treasurer of The Regents for any acquisition or lease/purchase which contemplates or will result in the issuance of Certificates of Participation, in order to provide funding for the transaction; and

4. approval as to form is secured from the General Counsel for any purchase contract other than that made on the standard purchase order form or for any changes in the standard terms and conditions (see 16-320);

5.Chancellors and Laboratory Directors are authorized to redelegate this authority to the administrative officers responsible for purchase of all goods and services.

16-130 PURCHASING AUTHORITY - MATERIEL MANAGERS/LIBRARIANS/CONTRACT AND GRANT OFFICERS/OTHERS

The administrative officers responsible for purchase of all goods and services may further redelegate their purchasing authority as described in 16-120 to the Librarian for the purchase of books and periodicals and to the Materiel Manager for all other goods and services or to other campus personnel. “Any redelegation of these authorities to other than the University Librarian or Materiel Manager shall have the prior approval of the Senior Vice President--Business and Finance, except that the University Librarian and Materiel Manager may redelegate this authority to individuals under their supervision without obtaining such approval or providing copies to the above University officials.” (DA2100) As such, for campuses where the Sponsored Projects Office has delegated authority to negotiate and sign subawards (i.e., subcontracts and subagreements) under awards accepted in that office, this authority is redelegated from the campus administrative officer with purchasing authority under DA 2100 to the Sponsored Projects Office Director. This redelegation must have the prior approval of the Executive Vice President – Business Operations, (formerly the Senior Vice President – Business and Finance).

16-140 LOW-VALUE PURCHASE AUTHORITY

Materiel Managers may delegate "Low-Value" purchasing authority to individuals in departments outside the purchasing department. Such a delegation of authority must be in writing and include written procedures adequate to ensure observance of good business practices and compliance with University purchasing policy.
The conditions under which such delegations may be made and the criteria attached thereto, are discussed in detail in Business and Finance Bulletin BUS-43, Part 3, Section IX, B., "Low-Value Purchase Authorization." [http://www.ucop.edu/ucophome/policies/bfb/bus43p3.pdf]. The amount an individual is authorized to expend shall not exceed $2500 per transaction in accordance with the criteria specified. Greater amounts may be authorized in an emergency situation.

16-150 UNAUTHORIZED PURCHASES

An individual who makes a purchase of goods or services without proper authority shall be responsible for payment of the charges incurred. The amount of payment and conditions under which such payment must be made by an individual are discussed in Business and Finance Bulletin BUS-43, Part 3, Section VIII, "Unauthorized Purchases." http://www.ucop.edu/ucophome/policies/bfb/bus43p3.pdf

16-200 PURCHASING RESPONSIBILITIES

It is the responsibility of each Materiel Manager and of others possessing purchasing authority as set forth in 16-100 through 16-150 to carry out their purchasing responsibilities in accordance with University purchasing policies as set forth in Business Finance Bulletin BUS-43 http://www.ucop.edu/ucophome/policies/bfb/bus43.html and 16-300 through 16-370. University personnel are expected to abide by the Principles and Standards of Purchasing Practice of the National Association of Purchasing Management and the Code of Ethics of the National Association of Education Buyers (Exhibit B, Business and Finance Bulletin BUS-43 http://www.ucop.edu/ucophome/policies/bfb/bus43exh-b.pdf).
In addition, the University must comply with all applicable external policies and requirements accepted by the University as a condition of extramural sponsor funding(16-310 through 16-312).

16-210 MATERIEL MANAGEMENT OFFICE, OFFICE OF THE PRESIDENT

The Office of the President Executive Director of Strategic Sourcing develops and recommends policies, monitors compliance, provides effective coordination and counsel in the purchasing area, consistent with the policies set forth in Business and Finance Bulletin BUS-43, Materiel Management, [http://www.ucop.edu/ucophome/policies/bfb/bus43.html] and in 16-300 through 16-370. This position administers the Planned Purchasing Program (see 16-330); represents the University with external agencies; assesses proposed and implements applicable State and federal regulations; formulates long-range planning; conducts special studies as needed; and staffs task forces and cross-functional work groups. Further detail is presented at Business and Finance Bulletin BUS-43, Part 2.I.B. [http://www.ucop.edu/ucophome/policies/bfb/bus43p2.pdf]

16-220 CONTRACT AND GRANT OFFICERS

It is the responsibility of University Contract and Grant Officers to be knowledgeable about the purchasing policies contained in this Chapter 16 and in Business and Finance Bulletins BUS-43 and BUS-34, Securing the Services of Independent Consultants, [http://www.ucop.edu/ucophome/policies/bfb/bus34.html] in order to effectively exercise their authority to solicit, approve, and accept or execute extramural funded awards and to carry out their related contract and grant administration responsibilities and duties pursuant to 10-300 through 10-320, as well as any redelegated purchasing authority to negotiate and sign subawards under the awards administered by their offices, as applicable for each specific campus, and redelegated to them under DA 2100. (See Section 16-130 above.)

16-300 PURCHASING POLICIES

Business and Finance Bulletin BUS-43 introduction sets forth guidelines for “appropriate implementation of the policies….” relating to purchasing activities. [http://www.ucop.edu/ucophome/policies/bfb/bus43intro.pdf] These include:

1. "recognition that the interests of the people of the State of California are paramount and that University Materiel Management policies and practices should be developed to best serve those interests,
2. recognition that the basic purpose of Materiel Management is to support the teaching, research, and public service missions of the University in the most cost effective manner,
3. continuing development and refinement of University purchasing policies in accordance with good business judgment and normal business practice as applicable to the University's total operations,
4. the firm belief that it is in the overall interest both of extramural sponsors and the University to limit as much as possible the effect of sponsor regulations on University policy and administration."

Specific purchasing policies are presented in 16-310 through 16-370 and in Business and Finance Bulletin BUS-43 and apply to all campus and Laboratory purchasing activities unless otherwise indicated.

16-310 EXTERNAL PURCHASING POLICIES AND REQUIREMENTS

Certain federal and State laws and regulations also govern University purchasing activities. Some obligations are required by a particular extramural sponsor award. In such cases, the Contract and Grant Officer must coordinate such requirements with the responsible purchasing personnel during the proposal, negotiation, acceptance/execution, and post-award administrative phases, as appropriate. Other extramural sponsors’ requirements fall under general obligations for the University, unrelated to any particular extramural award. Some of these are included in 16-F01 through 16-F07 and 16-S01.

The Executive Vice President--Business Operations is responsible for providing information on all such requirements through the Executive Director, Strategic Sourcing, the Director--Research Administration Office, as applicable, and through other appropriate channels to Chancellors and Laboratory Directors who, in turn, shall establish appropriate procedures and controls to ensure compliance.

See 16-320 through 16-323 for information on purchase contracts under externally funded federal and State awards.

16-311 EXTERNAL "PRIOR APPROVAL" REQUIREMENTS

Both general and specific purchasing requirements imposed by external fund sources may require that the University to obtain prior approval from the sponsoring agency prior before a specific purchasing action.

16-312 "FLOW-DOWN" OF EXTERNAL POLICIES AND REQUIREMENTS THROUGH PURCHASING TRANSACTIONS

Sponsored agreements often require the University to include in its subcontracts sponsor-specific provisions or “flow-down” terms from the sponsored agreement which govern purchase contracts with vendors for the acquisition of goods or services. Such flow-down provisions must also be included in purchase contracts as well as in subawards, if required by the prime sponsored award , in accordance with 16-320 through 16-323.

16-320 PURCHASE CONTRACTS

Purchase contracts (e.g., purchase orders and subcontracts) are the legal documents which bind the University when purchasing goods and services from sources outside of the University. (Coverage on appropriate instruments for purchasing goods or services from sources within the University, i.e., from other campuses or DOE Laboratories, is presented in 10-240 through 10-253).

Policy coverage and details regarding purchase contract form and content, compliance enforcement, claims or disputes, and revisions to terms are contained in Business and Finance Bulletin BUS-43, Part 3“Purchase Transactions”,[http://www.ucop.edu/ucophome/policies/bfb/bus43p3.pdf].Generally, all purchase contracts should be in writing using standard purchase order forms and standard terms and conditions of purchase as approved for use by the Executive Director of Strategic Sourcing and included in Business and Finance Bulletin BUS-43, Exhibit C [http://www.ucop.edu/ucophome/policies/bfb/bus43exh-c.pdf]

16-321 SPECIALIZED PURCHASE DOCUMENTS

Purchase contracts may need to be specifically tailored for research and development services, for unusually complex or high-value items or services, or for purchases under extramural sponsor agreements which require flow-down provisions as discussed at 16-312. Such purchase contracts shall be entered into only when these documents have been approved and coordinated in accordance with 16-322 and 16-323. For further guidance research subagreements, see BUS-43, Exhibit E, “Cost Reimbursement Type Subagreements for Research: An Informal Guide” [http://www.ucop.edu/ucophome/policies/bfb/bus43exh-e.pdf], and related OP Research Administration (RAO) Operating Guidance Memos available on the OP RAO home page [http://www.ucop.edu/raohome/cgmemos/].

16-322 GENERAL COUNSEL APPROVAL

No changes, deletions, exceptions, or additions to the standard terms and conditions shall be made to purchase contract terms in BUS 43, Exhibit C, without written approval of the General Counsel. (See BUS-43 Part 3, Section III.G.2. [http://www.ucop.edu/ucophome/policies/bfb/bus43p3.pdf].

16-323 CAMPUS PURCHASING OFFICE COORDINATION WITH CONTRACT AND GRANT OFFICERS FOR TRANSACTIONS WITH THIRD PARTIES

For campuses where the campus Purchasing Office is responsible for any subawards for research and development work under awards accepted by the campus Contract and Grant Office, such subawards (subcontracts and subagreements) must be coordinated in advance with the respective campus Contract and Grant Officer to ensure flow-down of applicable requirements from the prime award. In addition, purchase contracts for unusually complex or high-value items or other services under an extramurally funded awards should be coordinated with the respective campus Contract and Grant Officer.

16-330 PLANNED PURCHASING PROGRAM

16-331 POLICY

University policy seeks to make purchases at the lowest possible overall cost through planned, quantity purchasing. To this end, regional and University-wide pool purchases, commodity agreements, and price schedules shall be utilized to the maximum practicable extent. These mechanisms comprise the University's Planned Purchasing Program which is discussed in Business and Finance Bulletin BUS-43. BUS-43, Part 4 provides definitions, guidelines, and coverage on program management, purchase transactions, and State supply schedules and contracts for the Planned Purchasing Program. [http://www.ucop.edu/ucophome/policies/bfb/bus43p4.pdf]

16-332 RESPONSIBILITY

The Executive Director, Strategic Sourcing, shall represent the University in its relations with the State Procurement Office, Department of General Services, to secure mutually beneficial supply agreements.

The Executive Director is also responsible for all other requirements described in BUS-43 including chairing the Planned Purchasing work group which advises on commodity assignments, development of systems for the Planned Purchasing Program, establishment of criteria for determining when consolidated purchasing should be undertaken, and review and recommendation of changes to the Program.

16-333 LABORATORY PARTICIPATION

The prime Department of Energy contract which governs the Lawrence Berkeley National Laboratory (LBNL) require the use of certain federal government sources not generally available to campuses. When they would be cost effective and there would be no conflict with federal requirements, LBNL may use University-wide pool purchases, commodity agreement, and price schedules.

16-340 COMPETITIVE BIDS

BUS-43, Part I, defines a competitive bid as “a minimum of three qualified suppliers submitted in accordance with a solicitation from the Materiel Manager.” University policy requires competitive bids for “any transaction expected to involve an expenditure of $50,000 or more for goods or services, other than personal or professional services, unless it is determined that a brand or trade name article, thing or product, or proprietary service is unique, available only from a sole source, or is designated to match others used in or furnished to a particular installation, facility, or location.” (BUS-4, Part 3. III. D.) For transactions for less than $50,000, the Materiel Manager (or designee) may negotiate orally or in writing with one or more vendors . In such exceptional circumstances, purchasing transactions shall occur in accordance with 16-350. Purchasing transactions and subawards shall not be artificially divided into separate transactions to avoid or change competitive bidding requirements.

Implementing policies and procedures for competition bidding are located in Business and Finance Bulletin BUS-43, Part 3, “Purchasing Transactions.” [http://www.ucop.edu/ucophome/policies/bfb/bus43p3.pdf] Competition bidding requirements for individual consultants are set forth in Business and Finance Bulletin BUS-34, “Securing the Services of Independent Consultants,” Part VI. [http://www.ucop.edu/ucophome/policies/bfb/bus34.html#GENERAL%20REQUIREMENTS]. (See 16-442.

16-341 CONTRACT AND GRANT OFFICERS' RESPONSIBILITY

Contract and Grant Officers shall not commit the University through submission of a legally binding offer to an extramural sponsor, to the purchase of a particular brand name product, or otherwise restrict competitive procurements under a subsequent award, unless such brand name product or other restriction meets the exception from competition criteria discussed in 16-340 and Business and Finance Bulletin, BUS-43.

16-350 NEGOTIATION

When purchasing transactions involve goods or services which meet the exception-from-competition criteria discussed in 16-340, such transactions may be conducted through negotiation in accordance with Business and Finance Bulletin BUS-43, Part 3.

16-360 CONFLICTS OF INTEREST

The University complies with federal and State laws concerning purchasing transactions made with or influenced by current or past employees of the University and the near-relatives of such employees, University policy coverage in this area is provided in BUS-43, Part 7, “Employee-Vendor Relationships,” [http://www.ucop.edu/ucophome/policies/bfb/bus43p7.pdf] and BUS-34 [http://www.ucop.edu/ucophome/policies/bfb/bus34.html].

16-370 SOCIO-ECONOMIC REQUIREMENTS

The University of California complies with federal and State law regarding equal employment opportunity and affirmative action. The University’s “Policy to Ensure Equal Opportunity in Business Contracting, January 1, 1996, is published at: http://www.ucop.edu/ucophome/coordrev/policy/rp6025.html.

“The University of California Administrative Guidelines to Ensure Equal Opportunity in Business Contracting” were issued to Materiel Managers and Contracting Officials by the President effective January 1, 1996. [http://www.ucop.edu/ucophome/coordrev/policy/PP010196guidelines.pdf] In the area of purchasing goods and services, these Guidelines provide that "the University will continue to set goals and timetables for small, disadvantaged, women-owned, and disabled veteran business enterprises where such goals and timetables are required as a condition of federal or state funded contracts or grants....In addition, the University will continue to utilize outreach programs to assure equality of opportunity." The guidelines recommend a number of different outreach activities to be employed, and require each University location to designate a knowledgeable official(s) to oversee outreach activities. Campuses are further required to maintain separate statistical records for purchases from small businesses, small disadvantaged businesses, women-owned businesses, and disabled veteran businesses, compared to total dollars expended to all businesses. This statistical information is to be submitted to the Office of the President not later than August 15 each year.

OP Strategic Sourcing provides guidance to campus Materiel Managers regarding federal- or State-wide contract or grant requirements under agreements for research, training, or public service, such as requirements incorporated in Federal Acquisition Regulation Subpart 19.7 (see 16-F02), OMB Circular A-110 Section __.44(b) (see 16-F01), and the State Public Contract Code (see 16-S01) as well as any University-wide programs regarding purchases from small, disadvantaged, women-owned, and disabled veteran businesses, in Business and Finance Bulletin BUS-43, Part 5, “Purchasing and Public Policy,” [http://www.ucop.edu/ucophome/policies/bfb/bus43.pdf]

The role of the campus Contract and Grant Office, as stated in the guidelines, is to advise campus purchasing offices when any contract or grant has transaction-specific requirements regarding purchases from disadvantaged or women-owned businesses under that award, such as a federal contract with subcontracting plan requirements. (See 16-F02.).

The OP Facilities Management Department provides guidance on implementing the University “Administrative Guidelines” cited above with respect to awarding and administering construction contracts. (See University Facilities Manual, 1.5 “Equal Opportunity Policy.” http://www.ucop.edu/facil/fmc/facilman/volume5/ch1.html).

16-400 SPECIAL PURCHASING SITUATIONS

The policies presented in this Chapter 16, Sections 16-100 through 16-370 and 16-F01 through 16-S01, generally apply to all purchases of goods or services from sources outside of the University except as specifically noted. Special purchasing situations are subject to additional policy coverage as presented in 16-410 through 16-460.

16-410 EQUIPMENT AND EQUIPMENT INSTALLATION

Policy coverage and guidance on the purchase of supplies and equipment and related installation or alterations is presented in Chapter 15 of this Manual.

16-420 SERVICE CONTRACTS

Purchase contracts for maintenance or services, including purchase contracts funded by extramural awards, are administered pursuant to Business and Finance Bulletin BUS-43, Part 3.

16-430 SUB-AWARDS FOR RESEARCH

In addition to BUS-43, Part 3, referenced above, BUS-43, Exhibits C., Supplement 5, “Special Terms and Conditions for Federal Government Contracts,” and E., “Cost-Reimbursement Type Subagreements for Research, an Informal Guide” provide guidance for the contents of subawards (subcontracts and subgrants) for research services.

16-431 SUBRECIPIENT MONITORING

OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires institutions to have a system for monitoring subrecipients. [http://www.whitehouse.gov/omb/circulars/a133/a133.html] (See 16-F07.) OMB Circular A-133 defines a “subrecipient” as a “non-Federal entity that expends Federal awards received from a pass-through entity to carry out a Federal program.” Assistance subawards to subrecipients require monitoring as described in A-133. Guidance on ”Classification and Monitoring of Transactions with Third Parties under Federal Grants and Cooperative Agreements” is issued by the OP Research Administration Office via Contract and Grant Operating Guidance Memo.

16-440 COMPUTER SERVICES

University policy and procedure for the purchase of computer services is contained in Business and Finance Bulletin IS-8, "Guidelines for Campus and Office of the President Acquisitions Involving Computing." http://www.ucop.edu/ucophome/policies/bfb/is8.html

16-450 CONSULTING SERVICES

Business and Finance Bulletin BUS-34, "Securing the Services of Independent Consultants," [http://www.ucop.edu/ucophome/policies/bfb/bus34.html] establishes policies and procedures to be followed for securing the services of independent consultants. Administrative responsibility for BUS-34 vests in the Chancellor, and the OP Vice Presidents. BUS-34 does not apply to the appointment of architects and engineers for approved projects covered by Standing Order 100.4(y) [http://www.universityofcalifornia.edu/regents/bylaws/so1004.html]or to the appointment of consultants for the DOE Laboratories. University faculty who serve internally as consultants are covered under Section 664 of the Academic Personnel Manual, "Additional Compensation/Services as Faculty Consultant." [http://www.ucop.edu/acadadv/acadpers/apm/apm-664.pdf]

BUS-34 outlines the conditions under which consultant agreements are appropriate, as opposed to those which should be handled as employment or purchase contracts. The agreement between the University and an independent consultant is executed on the standard agreement form promulgated in BUS-34. Consultant agreements are signed by the consultant and by the University "Responsible Administrative Official," and "Program Review Official." The "Responsible Administrative Official" is that official designated by a Chancellor or Vice President to be responsible for overall administration of independent consultant procedures and agreements. The "Program Review Official" is the Chancellor, Vice President, or person(s) designated by each to approve the purpose and content of an independent consultant agreement. The Responsible Administrative Official must send an annual report of all consultant agreements to the Senior Vice President--Business and Finance.

16-460 ALCOHOL, DRUGS, HAZARDOUS AND RADIOACTIVE MATERIALS

Policies and procedures for the purchase and use of hazardous and radioactive materials are found in Chapter 3 of this Manual. Requirements for University alcohol and drugs purchases are set forth in Business and Finance Bulletins BUS-2, "Tax-Free Alcohol Permits, Records, and Operations," [http://www.ucop.edu/ucophome/policies/bfb/bus2.html] and BUS-50, "Materiel Management: Acquisition and Use of Narcotics and Dangerous Drugs." [http://www.ucop.edu/ucophome/policies/bfb/bus50.html]

16-470 CONSTRUCTION

University policy and procedures on purchasing contracts for construction-related services are presented in the University's Facilities Manual [http://www.ucop.edu/facil/fmc/facilman/].

16-999 RELATED UNIVERSITY REFERENCES

1. Academic Personnel Manual, Section 664 http://www.ucop.edu/acadadv/acadpers/apm/apm-664.pdf
2. Business and Finance Bulletin BUS-2, "Tax-Free Alcohol Permits, Records, and Operations" http://www.ucop.edu/ucophome/policies/bfb/bus2.html
3. Business and Finance Bulletin BUS-34, "Securing the Services of Independent Consultants" http://www.ucop.edu/ucophome/policies/bfb/bus34.html
4. Business and Finance Bulletin BUS-43, "Materiel Management" http://www.ucop.edu/ucophome/policies/bfb/bus43.html
5. Business and Finance Bulletin BUS-50, "Materiel Management: Acquisition and Use of Narcotics and Dangerous Drugs" http://www.ucop.edu/ucophome/policies/bfb/bus50.html
6. Business and Finance Bulletin IS-8, "Guidelines for Campus and Office of the President Acquisitions Involving Computing" http://www.ucop.edu/ucophome/policies/bfb/is8.html
7. Delegation of Authority 2100, June 11, 1998. http://www.ucop.edu/ucophome/coordrev/da/da2100.html)
8. Facilities Manual http://www.ucop.edu/facil/fmc/facilman
9. Administrative Guidelines to Ensure Equal Opportunity in University Business Contracting, effective 1/1/96 http://www.ucop.edu/ucophome/coordrev/policy/rp6025.html
10. The Standing Order of The Regents 100.4 http://www.universityofcalifornia.edu/regents/bylaws/so1004.html


EXTERNAL REQUIREMENTS--FEDERAL

16-F01 Sections __.40 through __.48 of OMB Circular No. A-110, Procurement Standards http://www.whitehouse.gov/OMB/circulars/a110/a110.html

PURPOSE

The procurement standards set forth in OMB Circular A-110 are intended to ensure that supplies, equipment, construction and other services purchased with Federal funds are obtained in an effective manner and in compliance with the provisions of applicable Federal law and executive orders.

APPLICABILITY

A-110's procurement standards apply to procurements (i.e., subcontracts, subagreements, purchase orders) made by the University under Federal grants or other Federal assistance agreements. A-110's standards do not apply to subgrants or other assistance subawards made by the University under Federal grants or cooperative agreements.

TEXT

The following is the full text of the procurement standards of A-110 is at: http://www.whitehouse.gov/omb/circulars/a110/a110.html#40

PRIMARY UNIVERSITY RESPONSIBILITY

The OP Office of Strategic Sourcing is responsible for issuing guidance on complying with the procurement standards of A-110. OP Research Administration issues Operating Guidance memos regarding administration of financial assistance subawards and purchase subagreements under federal prime grants and cooperative agreements.

UNIVERSITY POLICY IMPLEMENTATION

University guidance on implementing the procurement standards of A-110 are issued in Business and Finance Bulletin BUS-43.


EXTERNAL REQUIREMENTS--FEDERAL

16-F02 Public Law 95-507, Section 211

"Subcontracting Under Contracts"

PURPOSE

To establish and enforce as a policy of the United States, that

...small business concerns, and small business concerns owned and controlled by socially and economically disadvantaged individuals, shall have the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency.

LEAD AGENCY

Office of Federal Procurement Policy (OFPP), Office of Management and Budget (OMB).

IMPLEMENTING REGULATIONS

OFPP Policy Letter 80-2, "Regulatory Guidance on Section 211 of Public Law 95-507", April 29, 1980.

Federal Acquisition Regulation (FAR) 19.7, "Subcontracting With Small Business and Small Disadvantaged Business Concerns" and FAR 52.219-08, “Utilization of Small Business Concerns.” 52.219-09, “Small Business Subcontracting Plan”; and 52.219-16, “Liquidated Damages - Subcontracting Plan”.

SUBCONTRACTING--BEST EFFORTS

1. Applicability

a. Those requirements of P.L. 95-507 concerning Subcontracting - Best Efforts are applicable to all contracts from any Federal agency, except any contract that:

al. does not exceed $100,000;
a2. is performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, or the commonwealth of Puerto Rico,
a3. is for services which are personal in nature.

2. Summary of Provisions

a. Contractors are required to award subcontracts to the fullest extent consistent with the efficient performance of the contract in such a way that small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals shall have the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency.

b. Further, contractors are required to cooperate in any studies or surveys as may be conducted by the Small Business Administration or by the contracting agency which may be necessary to determine the extent of the contractor's compliance with these provisions.

SUBCONTRACTING PLANS

1. Applicability

a. Those requirements of P.L. 95-507 concerning Subcontracting Plans are applicable to any contract and any amendment or modification to a contract let by any Federal agency which:

a1. is to be awarded, or was let, pursuant to the negotiated method of procurement;
a2. meets the applicability conditions of SUBCONTRACTING--BEST EFFORTS, above;
a3. individually may exceed $500,000 ($1,000,000 for construction of a public facility);
a4. offers subcontracting possibilities; and
a5. is not a small business concern.

2. Summary of Provisions

a. Contractors have extensive planning, solicitation, subcontracting, and reporting obligations when conditions as set forth in Applicability, above, exist. These obligations are described in detail in OFPP Policy Letter 80-2, Part C., "Small Business and Small Disadvantaged Business Subcontracting (Negotiated)," in FAR 19.7, and in Business and Finance Bulletin BUS-43, Part 7, Section IV.

PRIMARY UNIVERSITY RESPONSIBILITY

1. The Contract and Grant Officer responsible for the campus award has primary responsibility for judging if and how P.L. 95-507, Section 211 and its implementing regulations apply to an individual contract action, and for negotiating with the extramural sponsor an acceptable Subcontracting Plan and reporting requirements, after consultation with the Principal Investigator and the campus Materiel Manager or designee (See 16-220).

2. The OP Executive Director -- Strategic Sourcing has primary responsibility for monitoring, reviewing, and implementing Federal policy developments surrounding P.L. 95-507, Section 211 and its implementing regulations and informing the campuses of changes or new requirements.

3. Chancellors and Laboratory Directors are responsible for the development of written local programs to implement University policies in this area and the appointment of a "Responsible Officer" to ensure effective coordination in the achievement of such program objectives.

4. Campus/Laboratory personnel who have purchasing authority pursuant to 16-110 through 16-140 are responsible for effectively carry out the terms of subcontracting plans for individual contracts.

UNIVERSITY POLICY IMPLEMENTATION

Business and Finance Bulletin BUS-43, Part 7, "Purchasing and Public Policy" implements this external Federal requirement. In addition, OP Research Administration issues Contract and Grant Operating Guidance Memos issues on this subject as needed.


EXTERNAL REQUIREMENTS--FEDERAL

16-F03 National Women's Business Enterprise Policy

IDENTIFICATION

Executive Order 12138, May 18, 1979

PURPOSE

To create a National Women's Business Enterprise Policy and to prescribe arrangements for developing, coordinating, and implementing a national program for women's business enterprise, including encouraging the participation of women's business enterprise in the performance of contracts let by the Federal government.

LEAD AGENCY

1. The Interagency Committee on Women's Business Enterprise is the lead governmental unit for policy issues related to E.O. 12138.

2. The Office of Federal Procurement Policy (OFPP) is the lead governmental unit for implementing this Executive Order in the Federal procurement area.

IMPLEMENTING REGULATIONS

OFPP Policy Letter 80-4, "Women's Business Enterprise Program," April 29, 1980.

Federal Acquisition Regulation (FAR) 19.9, "Contracting Opportunities for Women-Owned Small Businesses."

SUBCONTRACTING--BEST EFFORTS

1. Applicability

a. Those requirements of OFPP Policy Letter 80-4 and FAR 19.9 concerning Subcontracting-Best Efforts are applicable to all contracts from any Federal agency except any contract that:

a1. does not exceed $10,000;
a2. including all subcontracts under such contract will be performed entirely outside of the United States, its possessions, Puerto Rico and the Trust Territory of the Pacific Islands; or
a3. is for services which are personal in nature.

2. Summary of Provisions

a. Contractors are required to award subcontracts to the fullest extent consistent with the efficient performance of the contract in such a way that women-owned businesses shall have the maximum practicable opportunity to participate in the performance of contracts awarded by any Federal agency.

SUBCONTRACTING PROGRAMS

1. Applicability

a. Those requirements of OFPP Policy Letter 80-4 concerning Subcontracting Programs are applicable to any contract and any amendment or modification to a contract made by any Federal agency which:

a1. meet the Applicability conditions of SUBCONTRACTING--BEST EFFORTS, above; and
a2. individually may exceed $500,000 ($1,000,000 for construction of any public facility).

[*NOTE: The Subcontracting Program elements of OFPP Policy Letter 80-4 have not been included in Federal Acquisition Regulation (FAR) 19.9 or any other section of the FAR or in any major agency supplement to the FAR. Therefore, these applicability criteria may be ignored by most agencies. This situation may also provide an opportunity to resist unnecessary burdensome Subcontracting Programs proposed by agencies to be included in their contracts.*]

2. Summary of Provisions

a. Contractors have extensive planning, outreach, and reporting obligations when conditions as set forth in Applicability, above, exist. Those Obligations are described in detail in OFPP Policy Letter 80-4, Part 2., "Women-Owned Business Concerns Subcontracting Program".

PRIMARY UNIVERSITY RESPONSIBILITY

1. The campus Contract and Grant Officer has primary responsibility for judging if and how E.O. 12138 and its implementing regulations apply to an individual contract action and for negotiating acceptable subcontracting clauses and reporting. (See 16-220.)

2. The Executive Director – OP Strategic Sourcing has primary responsibility for monitoring, reviewing, and implementing Federal policy developments surrounding E.O. 12138 and its implementing regulations.

3. Chancellors and Laboratory Directors are responsible for developing written programs to implement University policies in this and for appointing a "Responsible Officer" to ensure effective coordination in the achievement of such program objectives.

4. Campus/Laboratory personnel who have purchasing authority pursuant to 16-110 through 16-140 are responsible for carrying out the terms of subcontracting clauses and programs for individual contracts.

UNIVERSITY POLICY IMPLEMENTATION

Business and Finance Bulletin BUS-43, Part 7, "Purchasing and Public Policy" implements this external federal requirement.


EXTERNAL REQUIREMENTS--FEDERAL

16-F04 Fly America Act [International Air Transportation Fair Competitive Practices Act of 1974; Pub. L. 93-623; 49 USC 1517; Comp. Gen. Decision B-138942 (3/31/81)]

PURPOSE

To support U.S. air carriers through the encouragement of maximum feasible travel to and from the U.S. on U.S. carriers by Government-financed passengers.

APPLICABILITY

Applicable to all executive departments and agencies or instrumentalities of the U.S. which procure, contract for, or obtain (under payment by the Government) any transportation of persons (and their personal effects) or property, by air, between a place in the U.S. and a place outside the U.S., or between places outside the U.S.

IMPLEMENTING REGULATIONS

Federal Acquisition Regulation, FAR Part 47.4 and 52.247-63; various agency grant terms.

SUMMARY OF PROVISIONS

The following excerpt from Paragraph 17 of the Federal Demonstration Project General Terms and Conditions provide a concise restatement of the Comptroller General decision, and may be used as guidance in complying with the Fly America Act in all Federal awards unless the specific award terms are more restrictive:

Any air transportation to, from, between, or within a country other than the U.S., of persons or property, the expense of which will be assisted by this award, must be performed on a U.S.-flag air carrier if service provided by such carrier is "available."

The following rules apply unless the result would be use of a foreign air carrier ("foreign carrier") for the first or last leg of travel from or to the U.S.:

1. A U.S.-flag air carrier ("U.S. carrier") shall be used to destination or, in the absence of through service, to farthest interchange point.

2. If a U.S. carrier does not serve an origin or interchange point, a foreign carrier shall be used to the nearest interchange point to connect with a U.S. carrier.

3. If a U.S. carrier involuntarily reroutes the traveler via a foreign carrier, the foreign carrier may be used.

Exceptions. In the following situations, use of a foreign carrier is permissible:

a. Travel to and from the U.S. Use of a foreign carrier is permissible if:

a1. The airport abroad is the origin or destination airport, and use of a U.S. carrier would extend the total travel time 24 hours or more than would travel by foreign carrier; or

a2. The airport abroad is an interchange point, and use of a U.S. carrier would require the traveler to wait six (6) hours or more to make connection or would extend the total travel time six (6) hours or more than would travel by foreign carrier.

b. Travel Between Points Outside the U.S. Use of a foreign carrier is permissible if:

b1. Travel by foreign carrier would eliminate two (2) or more aircraft changes en route; or

b2. Travel by U.S. carrier would extend the total travel time six (6) hours or more than would travel by foreign carrier.

c. Short Distance Travel. For all short distance travel, regardless of origin and destination, use of a foreign carrier is permissible if the elapsed travel time on a scheduled flight from origin to destination airport by foreign carrier is three (3) hours or less and service by U.S. carrier would double the travel time.

PRIMARY UNIVERSITY RESPONSIBILITY

University official responsible for approval of travel and travel costs should not approve any travel or reimbursement of travel costs that violate the Fly America Act.

UNIVERSITY POLICY IMPLEMENTATION

This Manual chapter and Business and Finance Bulletin G-28, “Policy and Regulations Governing Travel, ” Section VI.B.1. [http://www.ucop.edu/ucophome/policies/bfb/g28.pdf]


EXTERNAL REQUIREMENTS--FEDERAL

16-F05 Buy American Act [41 U.S.C. 10; Executive Order 10582, December 17, 1954 (19 F.R. 8723); Executive Order 11051, September 27, 1962 (27 F.R. 9683)

PURPOSE

The Buy American Act is intended to protect Americans from foreign competition by requiring under circumstances described in "Applicability", below that the Federal government, its contractors and subcontractors buy manufactured and unmanufactured equipment and supplies from sources in the United States instead of from foreign sources. There are some exceptions as discussed in "Summary of Provisions", below.

APPLICABILITY

As implemented in the Federal Acquisition Regulation, the provisions of the Buy American Act apply

It is important to note that FAR 2.1 defines "supplies" very broadly to include equipment.

PROVISIONS OF THE ACT DO NOT APPLY TO GRANTS NOR TO RESEARCH OR OTHER CONTRACTS THAT DO NOT INVOLVE THE FURNISHING OF SUPPLIES TO THE FEDERAL GOVERNMENT.

IMPLEMENTING REGULATIONS

Federal Acquisition Regulation (FAR) Part 25; FAR clauses 52.225-01, “Buy American Act – Supplies” and 52.225-02, “Buy American Act Certificate”; individual agency FAR supplements and grant provisions.

SUMMARY OF PROVISIONS

1. The Act requires for contracts to which it is applicable (see "Applicability" above), that only domestic end products be acquired for public use. "Domestic end products" is defined by FAR to mean:

a. an unmanufactured end product mined or produced in the United States, or

b. an end product manufactured in the United States, if the cost of its components [articles, materials, and supplies incorporated directly into the end products] mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components...[see FAR 25.101 for further definition].

2. Only articles, materials, and supplies specified in the contract as deliverable to the Government are required to meet the domestic preference provision of the Act. Conversely, supplies and equipment purchased under a contract which are not specified in that contract to be delivered to the Government, but are simply used by the contractor in the course of producing the deliverable research or other product are not required to meet the domestic preference provisions of the Act.

3. For supplies and equipment which are specified in the contract to be delivered to the Government, there are exceptions to the domestic end products requirement for articles, materials, and supplies:

* (1) For use outside the U.S.;

* (2) For which the domestic cost would be unreasonable [Unreasonable means the price of the lowest acceptable domestic offer exceeds the lowest foreign offer, inclusive of duty by more than 6%, if the domestic offer is from a large business that is not a labor surplus area concern or, more than 12%, if the domestic offer is from a small business concern or any labor surplus area concern];

* (3) For which the agency head determines that domestic preference would be inconsistent with the public interest;

* (4) That one or more agencies have determined are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial 9uantities, of a satisfactory quality [restrictions on the use of this exception are set forth in FAR 25.102(b) and 25.108], or

* (5) Purchased specifically for commissary resale.

b. Provisions of the Act applicable to contracts for the construction, alteration, or repair of any public building or public work in the United States are outside the scope of this Manual and are not summarized here.

PRIMARY UNIVERSITY RESPONSIBILITY

1. Campus Contract and Grant Officers are responsible for :

a. completing and executing the solicitation provision entitled Buy American Certificate (FAR 52.225-1) where it appears in solicitations for the acquisition of supplies or for services involving the furnishing of supplies;
b . determining that the provisions of the Act are NOT incorporated into grants or into research or other service contracts which do not involve the furnishing of supplies; and
c . for those contracts which do contain language incorporating the provisions of the Act, identifying for purchasing personnel those end products (as defined by the Act), if any, which are specified in the contract for delivery to the Government and which, therefore, must be given domestic preference pursuant to the provisions of the Act.

2. Campus purchasing personnel are responsible for compliance with the domestic preference provisions of the Buy American Act for those contracts and for those end products identified by the Contract and Grant Officer as under the Act.

UNIVERSITY POLICY IMPLEMENTATION

The requirements established by the Buy American Act are implemented generally in Sections 16-300, 16-310 and 16-F05 of this Manual and in Business and Finance Bulletin BUS-43.


EXTERNAL REQUIREMENTS--FEDERAL

16-F06 Indian Self-Determination and Education Assistance Act, January 4, 1975

IDENTIFICATION

Public Law 93-638;

88 Stat. 2205

25 U.S.C. 450e(b)

PURPOSE

To ensure Indians are given preference to the greatest extent feasible for subcontracts let under Federal contracts, grants and cooperative agreements, including employment and training opportunities that are let for the benefit of Indians.

APPLICABILITY

Section 7(b) subcontracting requirements as described in "Summary of Provisions", below, apply to all Federal contracts and grants which benefit Indians on or near Indian reservations. It is unlikely the University would receive such awards.

LEAD AGENCY

Each Federal agency affected would issue regulations for Section 7(b) of P.L. 93-638. The Office of Federal Contract Compliance Programs (OFCCP) may routinely incorporate 7(b) into its ongoing compliance activities.

IMPLEMENTING REGULATIONS

25 CFR Parts 271, 273, 274, 276, and 277

41 CFR Part 14 H70

FAR clause 52.226-1, “Utilization of Indian Organizations and Indian-Owned Economic Enterprises.

SUMMARY OF PROVISIONS

Section 7(b) of P.L. 93-638 requires:

Any contract, subcontract, grant, or subgrant pursuant to this Act, the Act of April 16, 1934 (48 Stat. 596), as amended, or any other Act authorizing Federal contracts with or grants to Indian organizations or for the benefit of Indians, shall require that to the greatest extent feasible:

(1) Preferences and opportunities for training and employment in connection with the administration of such contracts or grants shall be given to Indians; and
(2) Preference in the award of subcontracts and subgrants in connection with the administration of such contracts or grants shall be given to Indian organizations and to Indian-owned economic enterprises as defined in section 3 of the Indian Financing Act of 1974 (88 Stat. 77).

PRIMARY UNIVERSITY RESPONSIBILITY

(1) The campus Contract and Grant Officer has primary responsibility for judging whether an extramural award falls within the provisions of P.L. 93-638 and for advising the Materiel Manager or designee when such a condition exists. b) If the University should receive an award subject to the provisions of P.L. 93-638, campus personnel offices have primary responsibility to ensure that the University complies with training and employment requirements of the Public Law (See chapter 14-300). Campus purchasing personnel have primary responsibility to ensure that the University complies with subcontracting and purchasing requirements of the Act. (See 16-310.)


EXTERNAL REQUIREMENTS—FEDERAL

16-F07 Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations - Subpart D - Federal Agencies and Pass-Through Entities http://www.whitehouse.gov/omb/circulars/a133/a133.html

PURPOSE

Sets forth standards for consistency and uniformity among federal agencies for the audit of states, local governments, and non-profit organizations expending federal funds under federal awards.

APPLICABILITY

Applies to non-federal entities, whether they are recipients expending federal awards received directly from federal awarding agencies, or are subrecipients expending federal awards received from a pass-through entity (a recipient or another subrecipient). It does not apply to non-U.S. based entities expending federal awards received either directly as a recipient or indirectly as a subrecipient.

SUMMARY OF PROVISIONS

§___.210 Subrecipient and vendor determinations sets forth the definitions of subrecipient and a vendor and the differences between them. Subpart D--Federal Agencies and Pass-Through Entities sets forth the subrecipient monitoring responsibilities for pass-through entities.

PRIMARY UNIVERSITY RESPONSIBILITY

When a campus is a “pass-through entity” under this Circular, it must implement the University’s subrecipient monitoring requirements provided in Contract and Grant Operating Guidance memos. The campus Purchasing Office or Contract and Grant Office responsible for the subaward is responsible for subrecipient monitoring compliance.

UNIVERSITY POLICY IMPLEMENTATION

The University’s implementation of OMB Circular A-133 subrecipient monitoring requirements is published by the OP Research Administration Office in Contract and Grant Operating Guidance memos.


EXTERNAL REQUIREMENTS--STATE

16-S01 State Public Contract Code, Sections 10500.5, and 10507 through 10510
[http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=pcc&codebody=10500.5&hits=20] .

PURPOSE

To legislatively mandate competitive bidding procedures for the purchase of materials, goods, and services by the University of California and encourage small, small disadvantaged, and women business enterprise participation in these purchases.

APPLICABILITY

This law applies to all contracts, $50,000 or more, issued by the University for the purchase of materials, goods and services (exceptions noted under "Summary of Provisions", 10508, below).

SUMMARY OF PROVISIONS

The following is a full text quote of the State Public Contract Code Sections 10500.5 and l0507 through l0510:

10500.5. It is the intent of the Legislature to facilitate the participation of small businesses, particularly small disadvantaged or minority business enterprises women business enterprises, and disabled veteran business enterprises in business contracting with the University of California. The Legislature intends that The Regents of the University of California adopt policies and procedures to ensure that a fair proportion of University contracts be placed with small business concerns, particularly small disadvantaged, women, and disabled veteran business enterprises, in areas of commodity purchases, services, and construction contracts. It is further the intent of the Legislature that The Regents adopt, by January 1, 1985, with respect to small business enterprises, particularly small disadvantaged and women business enterprises, and by January 1, 1992, with respect to disabled veteran business enterprises, policies and procedures that include, but are not limited to, all of the following:

(a) Annual targets for utilization of small businesses, particularly disadvantaged business enterprises, women business enterprises, and disabled veteran business enterprises, including subcontracts for construction.

(b) Annual statistical reports on the participation of small businesses, particularly disadvantaged business enterprises, women business enterprises, and disabled veteran business enterprises as general contractors and subcontractors in each project.

(c) Outreach programs.

(d) Directories of disadvantaged business enterprises, women business enterprises, and disabled veteran business enterprises.

(e) Monitoring by The Regents of progress with respect to the utilization of disadvantaged business enterprises, women business enterprises, and disabled veteran business enterprises..

It is also the intent of the Legislature that The Regents of the University of California report annually to the Legislature, on or before each July 1, on the participation of small disadvantaged business enterprises, women business enterprises, and disabled veteran business enterprises in University business contracting.

10507.7 Except as provided for in this article, The Regents of the University of California shall let all contracts involving an expenditure of more than fifty thousand dollars ($50,000) annually for goods and materials to be sold to the University of California to the lowest responsible bidder meeting specifications, or else reject all bids. Contracts for services to be performed, other than personal or professional services, involving an expenditure of fifty thousand dollars (50,000) or more annually shall be made or entered into with the lowest responsible bidder meeting specifications, or else all bids shall be rejected. If the Regents deem it to be for the best interest of the University, The Regents may, on the refusal or failure of the successful bidder for materials, goods, or services to execute a tendered contract, award it to the second lowest responsible bidder meeting specifications. If the second lowest responsible bidder fails or refuses to execute the contract, The Regents may likewise award it to the third lowest responsible bidder meeting specifications.

10508. The requirements of this article shall not be applicable when The Regents determine that a brand or trade name, article, thing or product, or proprietary service is the only one which will properly meet the needs of the University of California because the item or service is unique, available only from a sole source, or is designated to match others, used in, or furnished to, a particular installation, facility, or location. Contracts for unique products or service, or personal or professional services, shall not be made unless The Regents determine that the proposed price therefore is reasonable.

10509. The Regents of the University of California shall prescribe methods of procurement for goods, materials, and services to be purchased, including:

(a) Requirements for public advertisement where feasible and practicable for solicitation from at least three sources in other cases.
(b) Bidder prequalification and evaluation standards.
(c) Guidelines for negotiating contracts for unique products or proprietary services.
(d) Procedures for solicitation of vendor and service contractor interest.
(e) Dissemination of award information.
(f) Such other matters as may encourage the receipt of the most favorable price and conditions of purchase by the University.

10510. The requirement of this article shall not be applicable to the procurement of goods, materials, or services funded exclusively by federal agencies to the extent that the requirements of this article are in conflict with mandatory requirements of such federal agency.

PRIMARY UNIVERSITY RESPONSIBILITY

The OP Executive Director – Strategic Sourcing has primary responsibility for developing and implementing University policy in response to the above State Public Contract Code sections. Campus purchasing personnel have the responsibility to carry out purchasing transactions consistent with these requirements. Contract and Grant Officers have related responsibilities as discussed at 16-341.

UNIVERSITY POLICY IMPLEMENTATION

State Public Contract Code Section 10500.5 is implemented in this Manual Section 16-370 and Business and Finance Bulletin BUS-43, Part 5. Sections 10507.7 through 10510, as discussed above, are implemented in BUS-43, Part 2, "Responsibility and Authority" and Part 3, "Purchase Transactions," and in this Manual Sections 16-340 and 16-341.