This procedure sets forth steps to be followed by the College in executing contracts/agreements. Under certain limited special circumstances, authority has been given to the Vice President of Administration to approve those types of contracts where immediate on-site approval is required or where situations dictate special processing and approval by the college. All other contracts require approval as provided in Fiscal Rules, Chapter 3, Section 1.00.

Definitions

1. A Contract - for the purpose of this procedure is a formal legally binding agreement between one principal department of the College and another party. Purchase orders are not included in this procedure because, although they represent procurement agreements, their formulation and execution are treated separately.
   
2. Personal Services - services performed by firms or individuals when the state does not have the right to direct the worker in the performance of duties for compensation. Unless specific exception is provided by the State Department of Personnel, such firms and/or individuals are independent contractors and are not employees of the state. An exception would be non-related services performed for the college.
   
3. Purchased Services - the acquisition of service to be performed in terms of a unit or per day basis or benefits for a specific individual.
   
4. Independent Contractor - Careful distinction must be made between work which should be accomplished by persons who are employees of the state and work which may be accomplished by individuals or firms on a personal services contract. The state has a third party liability for its own actions.

An independent contractor, for this purpose, is defined as a firm or individual who is responsible to the state for the results of certain work but is not subject to the state's control as to the means and methods of accomplishing those results.

5. Employee - Typically a relationship of employer and employee (rather than an independent contractor) exists when the person for whom services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means by which that result is accomplished.

Use of the Contract/Agreement/Lease

1. An acquisition which requires the approval of a party other than the college, e.g., the loaning of institutional property.
2. Personal Services Contracts include the following:

1. Contracts for personal services exempted from the Personnel System as determined by the Certification for Personal Services Classification, e.g., honorariums.
2. Contracts for personal services for a term of less than six months.
3. Contracts for personal services for a term of less than six months or longer where the aggregate work time does not exceed six months in any twelve-month period.

3. Purchased services covering a period in excess of thirty days.
4. Maintenance agreements, e.g., equipment repair.

Procedure

1. The originator, individual, Cost Center Director, etc., should submit all available data, criteria, and desired contract provisions to the appropriate dean.
   
2. After the appropriate dean reviews and approves the elements, the information should be submitted to the VP of Administration and Finance. A determination will then be made as to whether the contract must be a formal, State approved contract or whether it can be an internal contract. A draft document will be generated and returned to the originator, who will then review the draft for completeness, accuracy, and intent.
   
3. Once approved it will be sent to the contracting agency for review, confirmation, and signature.
   
4. If the contracting agency has problems or issues with contract provisions, they will be worked out through the VP of Administration and Finance with the originator, VP or other appropriate internal/external signatures.
   
5. Once the contracting agency has signed and returned the contract/agreement, it will be routed for appropriate internal/external signatures.
   
6. After the document has been totally executed, copies will be sent to the contracting agency, the originator, the accounting office (if appropriate) and an original to the College Contract file.
   
7. Once "placed in the mill" monitoring, at various steps, will be the responsibility of the originator. The originator will then send the release of payment to the Accounts Payable Office.

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