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SAM 03.A.05 – Contract Administration - Revised December 4, 2015


 

Contracts are legally binding on the System and/or its component universities only upon execution of the contract by the System and/or component university official with delegated contractual signatory authority. (Reference paragraph 2.4.)

Please note the following legal and procedural changes that appear in System Administrative Memorandum 03.A.08 – Contract Administration revised December 4, 2015. The applicaable paragrah has been referenced for your convenience.​

 

Effective August 27, 2015​

Lease of Space by UHD – The Chancellor must approve all leases, regardless of the source of funding (Reference paragraph 7.2.)     

  • The originating unit must confirm the source of funds before submission of the lease.
  • The originating unit desiring to lease space should anticipate working with the System Office of Real Estate Services and the System Office of Contract Administration, after obtaining approval of the Chancellor.

    [Note: Use a "Facilities Use Agreement" when contracting for space with other state and local government entities.  Although interagency facilities use is not technically considered a "lease" or "rental" and these terms should not be used in any of the supporting contract package documents, the Agreement must still be processed through the System Office of Real Estate Services.]               

New Construction and/or Renovation Projects over $300,000 (Reference paragraph 6.7.)    

  • The System FP&C Department will manage any project over $300,000.
  • This includes the review of all plans, specifications and bidding documents for compliance with applicable state laws prior to being released for bidding.

Amendments, Changes, Extensions, or Renewals to the Original Contract – A copy of the original contract must be included with the amendment, change, extension, or renewal at the time the documents are processed for approval. (Reference paragraph 2.5.)

  • The Chancellor is authorized to execute the amendment, change, extension or renewal without further action by the Board if:
    • The original contract was approved by the Board, and
    • The aggregate revised contract amount does not exceed 25% of the original contract
  • The Board must approve the amendment, change, extension or renewal if:
    • The original contract was not approved by the Board, and
    • The aggregate revised contract amount will exceed $1,000,000
  • In all other cases, amendments, changes, extensions or renewals must be processed in the same manner as the original contract.

​Electronic State Business Daily (ESBD) (Reference paragraph 7.8.)   

  • $25,000 when any non-federal funds will be used to pay for the contract, and 
  • $150,000 when only federal funds will be used to pay for the contract  

​Consulting Services - Contracts Over $25,000 (Reference paragraph 7.3.c.2.) 

[Note: Reference Texas Government Code, Title 10, Subtitle F, Chapter2254

  • Each component is required to:
    • Provide written notice to the Texas Secretary of State for publication in the Texas Register of the university's intent to enter into a major consulting services contract (defined as a consulting service agreement exceeding $25,000 for an institution of higher education), and
    • Publish the request for consulting services in the Texas Register a minimum of 30 days prior to execution of the contract.
  • The notice must include:
    • A finding by the university President that consulting services are necessary,
    • An explanation of that finding, and
    • Information about how prospective consultants can submit offers for consulting services for this contract (see Government Code 2254.028 and 2254.029 for details).
  • In addition, not later than 20 days after entering into a major consulting services contract, the component university must publish specific information about the consulting contract in the Texas Register (see Government Code 2254.030 for details).

 

 

Effective September 1, 2015

Contract Management – All contracts executed on or after September 1, 2015 that exceed a $0.00 dollar value must be reported on the UHD website. (Reference paragraph 3.1.c.)   

  • Documented evidence of an approved purchase requisition must accompany each contract package processed through the UHD Office of Contract Administration. 

Procedures for Contracts Requiring Board Approval (Reference paragraph 5.5. and 5.6.)

  • For any contract over $5,000,000, the Purchasing Director:
    • Must verify in writing that the solicitation, procurement method, and contractor selection process are in accordance with state law and university policy, and
    • Will report any potential issues about the solicitation, procurement method, or contract selection process for these contracts to the Board of Board of Regents.
  • Any contract over $1,000,000:
    • Requires enhanced performance monitoring for compliance with terms during the terms of the contract, and
    • Shall provide reporting of such as required by the Division (Office) of Administration and Finance.
 


For Your Convenience 

The following items are not revisions to the prior SAM, but are included as a quick reference for your convenience.

Delegation of Authority for Contracts Not Requiring Board Approval (Reference paragraph 6.3 and 6.8.)   

  • The President or the President's designee, delegated the authority in writing, may execute the contracts when the total budget is not expected to exceed $300,000, with the exception of contracts involving real estate.
  • The Chancellor's approval and signature is required on contracts involving the purchase, gift, acquisition, sale or lease of real estate.

​Revenue-Generating Contracts (Reference paragraph 7.5.)   

  • UHD is authorized to arrange for contractual opportunities that generate revenue, if the transaction is directly related to furthering the component university's educational, research, extension, and public service or campus support functions.  

Agreements with Other State and Local Government Entities (Reference paragraph 7.10.)   

  • Use an Interagency Agreement to contract with another state agency for necessary and authorized services.
     
    [Note: Use a "Facilities Use Agreement" when contracting for space with other state and local government entities.  Although interagency facilities use is not technically considered a "lease" or "rental" and these terms should not be used in any of the supporting contract package documents, the Agreement must still be processed through the System Office of Real Estate Services.]                

Contracts Requiring Board Approval – Below is a partial listing of the items most likely to occur at UHD. (Reference paragraph 4.1.)

  • Any single procurement or revenue contract for construction, equipment, goods and/or services that is expected to exceed $1,000,000,
  • Any extension, modification, or renewal of an existing contract that would cause the revised aggregate contract amount to exceed $1,000,000, or that increases the value of a contract already approved by the Board by over 25%,
  • 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
  • Any other contract the Board might designate as having significant importance to require Board approval.

Procedures for Contracts Requiring Board Approval (Reference paragraph 5.3.)

  • All contracts requiring Board approval must be reviewed and approved by the Office of General Counsel before execution. 

Board Meetings (Reference paragraph 4.2.)

  • The Board holds four regularly scheduled meetings per year.
  • The current meetings schedule can be accessed at http://www.uhsystem.edu/board-of-regents/mtg-calendar/index.php​​.​
  • The contract, along with a completed Board of Regents' Agenda Cover Sheet must be forwarded to the Office of the Vice Chancellor for Administration and Finance. The template for the Board of Regents' Agenda Cover Sheet may be obtained from the Board of Regents' Office.

Last updated 2/25/2020 8:00 AM