Overview
The University of Texas System Administration enters into a wide variety of contracts. The focus of the procedures in the section specifically address contracts for the purchase of goods and services. A purchase order is a type of contract that is generally limited to a transaction that will take place within a specific fiscal year and can be governed by a standard set of terms and conditions. The Office of Contracts and Procurement (CNP) is responsible for determining whether a purchase order of a contract will be issued. In all cases, the purchase must be approved prior to issuance of a purchase order or a contract as defined in CNP Procedure 1.4 “Purchasing Process”.
Governance
There are a variety of legislative, University of Texas, and University of Texas System Administration guidelines to govern how contracts are processed and monitored. The following is a recap of the primary sources of guidance:
Texas Education Code 51.9337 requires that institutions of higher education establish:
- a code of ethics for those individuals authorized to execute contracts and those individuals exercising discretion in awarding contracts
- a system-wide compliance program designed to promote ethical behavior
- publication of a Contract Management Handbook that provide consistent policies and procedures for processing contracts, including a risk analysis procedure
- clear delegation of authority guidelines for contracts that do not require Board of Regents approval
- training for individuals authorized to execute contracts or to exercise discretion in awarding contracts
- policies governing conflict of interest, conflicts of commitment, and outside activities
- establishment of contract review procedures and a checklist of items that describes each process that must be completed before contract execution
UTS 145 - Processing of Contracts
- establishes specific procedures for processing contracts for all UT institutions
- provides guidance on the type of contract to be used
- establishes dollar thresholds for each institution that triggers mandatory review by the Office of General Counsel
- establishes procedures for submitting contracts for approval by the Board of Regents
Contract Management Handbook
- each UT institution is required to publish a Contract Management Handbook and provide a copy to the State of Texas Comptroller of Public Accounts for publication on their website
- the handbook includes:
- steps required in planning for a procurement
- preparation of the solicitation
- publication of the solicitation
- evaluation of proposals and contract award
- contract formation
- contract administration
Regents' Rule 10501 – Delegation to Act on Behalf of the Board
- identification of significant contracts or documents
- assurance of authority to act
- delegation process
- delegate’s responsibilities
- power to establish policies
- compliance with special instructions
- contracts not requiring board approval
- matters not delegated
- exceptions
Regents' Rule 20901 – Procurement of Goods and Services; Contract Management Handbook
- code of ethics
- internal investigations and audit protocols
- contract management handbook
- contract and performance monitoring
- notice to the board
- required training
UTS 180 – Conflicts of Interest, Conflicts of Commitment, and Outside Activities
- establishes procedures and guidelines for requesting and reporting
- establishes an electronic database for management of employee requests and disclosures
Office of Contracts and Procurement Procedures
- provides specific written procedures that govern procurement and contracting transactions
- General Purchasing Procedures
- Special Handling/General Information
- Contracting Procedures
