Frequently Asked Questions (and Answers)
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What You Need To Know About Getting Started

		Do I Need a Contract?
		Is a Vendor Hold Status Verification Required?
		Is a Purchase Requisition Required?
		Is Competitive Bidding Required?
		Which Contract Should I Use?
		What If the Vendor Wants Us to Sign His Contract?
		Are There Special Requirements for the Contracting Process?

Do I Need a Contract?

A contract is required if the subject matter of the transaction involves:

• Human performance that renders a service on campus; or

• An off-campus event that requires facilities, catering or service specifically for the University.

UHS policy does not allow contracting with individuals who are current employees or with individuals who have been employed by any component of the System during the previous twelve month period.

University of Houston System Administrative Memorandum      02.A.24 Employees and Independent Contractors 3.2. Under provisions of State and federal law, an individual may not be hired as an independent contractor when currently on the payroll of any component university. Similarly, State law requires that an individual may not be hired as a consultant on an independent contractor basis if employed by any component of the System during the previous twelve month period.

A contract is not required if the purchase:

• Is for commonly available goods, such as office supplies;

• Is for a nominal service such as a typewriter repair;

• Can be made through Texas Building and Procurement Commission (TBPC) or DIRect (DIR)  [Note: Contact the Purchasing Department (713) 221-8607 to determine the availability of this option.];

• Is off-campus, not associated with a major UHD event and not specifically for UHD, i.e., is available to the general public at the same time. (This includes food ordered from a menu at an off-campus restaurant and taking a group to a public facility such as Astroworld, a museum, etc.);

• Is for travel arrangements made through UHD's Travel Office for a guest speaker or consultant, AND no additional monies will be paid or reimbursed to the individual.

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Is a Vendor Hold Status Verification Required?

Vendor Indebtedness

State law (Texas Government Code 403.055) requires state agencies and universities to verify that the prospective vendor is not "On Hold" with the State of Texas before and order is placed with the vendor.

You can determine if the vendor is "Open For Ordering" by running the following query in PeopleSoft:

UHS_AP_SEARCH_FOR_VENDORS

At the "Vendor Information" web page, under the "Identifying Information" tab, there should be a check mark in the box labeled "Open For Ordering".  If this box is not checked, the vendor has an outstanding debt with the State of Texas and UHD is unable to contract with this vendor.

Attach a "print shot" of this page to the Contract Cover Sheet and keep a copy for your file.  If you need assistance, contact Accounts Payable at (713) 221-8624 of (713) 221-8614.

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Is a Purchase Requisition Required?

Purchase Requisition

A purchase requisition is always required for Higher Education Assistance Funds (HEAF) transactions, software purchases and state contract items. 

Otherwise, a purchase requisition is required if the cost of the service is equal to or expected to exceed $5,000.

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Is Competitive Bidding Required?

Competitive Bidding

Purchasing is required to bid the service prior to execution of the contract if the value of the contract is expected to equal or exceed $5,000 in state or local funds.

Contact Purchasing at (713) 221-8062 for assistance in the bidding process.   

The Purchasing department is not required to obtain formal bids if:

• The cost is less than $5,000;

• The contract is for professional or consulting services[1] as defined by Texas law;

• The purchase is an emergency acquisition [2]; or

• The goods or services can only be obtained from one vendor (a "Proprietary/Sole Source (Brand)"). That is:

  • An equivalent product (brand) or service is not available elsewhere, or

  • The specification requirements limit consideration to one manufacturer, product or service provider (“Proprietary” or “One-of-a-kind”), or

• The service is exempted by the Texas Comptroller of Public Accounts (Window on State Govermnent), which include:

  • Advertising, including billboard advertising, or

  • Hotels for special events,

  • Internal repairs,

  • Direct publications (such as software, books, subscriptions available from only one source, magazines, journals, newspapers, electronic data, prepared videos, etc.),

  • Registration and membership fees,

  • Cooperative purchase agreements (such as Harris County Department of Education, Texas Consortium Agreement (i.e. IBM, Dell Compaq, Apple), or

  • Purchases from other State agencies.

  If bids are required but will not be obtained, departments must submit a Proprietary/Sole Source Justification form (Note: This is a PDF form) for processing with the purchasing documents.

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[1]  Texas law defines "Professional Services" as "services that are within the scope of practice of (i) accounting, (ii) architecture, (iii) land surveying, (iv) medicine, (v) optometry, (vi) professional engineering, (vii) real estate appraising, or (viii) nursing, or that are provided in connection with the professional employment or practice of an individual who is licensed or certified to render the listed services.

“Consulting Services” are defined by state law as “the service of studying and/or advising a state agency under a contract that does not involve the traditional relationship of employer-employee".

[2]The usual acquisition procedures cannot be followed without causing financial or operational damage to the University.  A Justification for Emergency Acquisition form (Note: This is a PDF form) is required. 

[Note: To get Adobe for PDF forms, link to http://www.uhd.edu/contact.htm]

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Which Contract Should I Use?

The Office of General Counsel (OGC) has pre-approved a variety of contracts for your use.  The following contract forms can address most of your contractual needs:

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[3] “Consulting Services” are defined by state law as “the service of studying and/or advising a state agency under a contract that does not involve the traditional relationship of employer-employee".

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What If the Vendor Wants Us to Sign His Contract?

We prefer contracts that have been approved by our Office of General Counsel (OGC) to govern the scope of work.  The University of Houston Office of General Counsel must review any contractual document originating from the contractor.  This includes:

• All contractual documents originating from the vendor, i.e. contracts, service agreements, purchase agreements, licensing, etc.,

• Any vendor change in the contractual language, and

• Any vendor attachment to an OGC approved contract that contains terms and conditions governing the transaction (this excludes documents that merely contain price quotes associated with a specified scope of work.)

Forward a set of the complete contract package to the UHD Director of Contracts for submission to the Office of General Counsel.   The review can be expedited in special situations; however, in general, you should allow a minimum of 20 business days for review by the OGC.  OGC will:

• Make the necessary changes;

• Stamp each change with an “INITIAL” circle with an “X” inside; and

• Stamp and sign the contract package:

 “APPROVED AS TO FORM BY:

_________________________________
OFFICE OF THE GENERAL COUNSEL
UNIVERSITY OF HOUSTON SYSTEM

The Contractor must initial and date the top portion or each “X” to indicate agreement with the change.  The UHD person authorized to sign the contract must initial and date the lower half of each “X” to indicate agreement with the change.

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Are There Special Requirements for the Contracting Process?

Legal Services

You do not have the authority to initiate a contract for legal services.  The Office of General Counsel is the only entity that can initiate a contract for legal services.

Texas Electronic Marketplace

UHD is mandated to post notification of procurements of $25,000 or more on the Texas Electronic Marketplace, regardless of the funding source.  Notification must be posted for:

• 14 days if the entire bid or proposal solicitation package is posted; or

• 21 days if the entire bid or proposal solicitation package is not posted.

Expect the process to take a minimum of 30 calendar days prior to the start date of services.  For more detail regarding the information required in the solicitation package see http://www.window.state.tx.us/procurement/ .  

Contact Purchasing at (713) 221-8062 for assistance in the bidding process. 

Consulting Services[4] Contracts Over $25,000

The Legislative Budget Board (LBB) and the Governor’s Office of Budget and Planning (OGBP) must be notified before entering into a consulting contract that exceeds $25,000.  OGBP must provide a “finding of fact” that indicates the consulting service is necessary.

The request for consulting services must be published in the Texas Register a minimum of 30 days prior to execution of the contract.  The published information must include:

• The Request For Proposal, which seeks information via a sealed response from qualified consultants regarding the procurement;

• The name of the person to be contacted by a consultant who intends to make an offer;

• The closing date for the receipt of offers; and

• The procedure by which the contract will be rewarded.

The LBB must be notified in writing of consulting contracts greater than $14,000 no later than 10 days after entering into the contract, renewal, amendment or extension.

Contact the Director of Contracts at (713) 222-5340 for assistance in this process.

Contracts Requiring Board of Regents Approval

Board of Regents approval must be obtained in an open meeting for the following contracts:

• The purchase, gift or acquisition of real property;

• The sale of real property or conveyance of any rights in real property, if the value of the property is more than $300,000;

• Real estate leases, lease renewal and extensions, whether as lessor or lessee, if the obligation of the lease is equal to or greater than the submittal threshold  (at least 3,000 square feet of educational and general space) requiring Texas Higher Education Coordinating Board action;

• Banking and investment agreements;

• The single procurement for any equipment, goods, and services, not specified above, that is expected to exceed $1,000,000 in a fiscal year;

• Any extension, modification, or renewal of an existing contract that is expected to exceed $1,000,000 in a fiscal year;

• Any series of contracts that are initiated in the same department for the same goods or services with the same party within a fiscal year, that if combined in one contract, would require Board approval or reporting; or.

• Any other contract the Board might designate as having significant importance to require Board approval.

The Board of Regents holds four regularly scheduled meetings per year.  The meeting schedule can be accessed at http://www.uhsa.uh.edu/BRMTGS.HTM.

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[4] “Consulting Services” are defined by state law as “the service of studying and/or advising a state agency under a contract that does not involve the traditional relationship of employer-employee.

Texas law defines "Professional Services" as "services that are within the scope of practice of (i) accounting, (ii) architecture, (iii) land surveying, (iv) medicine, (v) optometry, (vi) professional engineering, (vii) real estate appraising, or (viii) nursing, or that are provided in connection with the professional employment or practice of an individual who is licensed or certified to render the listed services.

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