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Ernette Leslie, UA Contracting Procurement & Contracting Services University Services Annex, 6 th Floor Tucson, AZ 85721 (520) 626-3919 or (520) 621-0779.

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Presentation on theme: "Ernette Leslie, UA Contracting Procurement & Contracting Services University Services Annex, 6 th Floor Tucson, AZ 85721 (520) 626-3919 or (520) 621-0779."— Presentation transcript:

1 Ernette Leslie, UA Contracting Procurement & Contracting Services University Services Annex, 6 th Floor Tucson, AZ (520) or (520) Contracting & The PCard

2 Overview Define a Contract “An ENFORCEABLE AGREEMENT” Enforceable meaning the courts can make you comply and the Agreement meaning both parties signify consent.

3 ABC’s of Contracting Not all people can contract-Must have parties with the capacity to bind (only those authorized by President Shelton or his designee can contract on behalf of the University); The objective, goal and agreement must be legal and not forbidden (various terms and conditions, we as a state institution cannot legally agree to); Contract may be in any form-no specific form required (i.e. shrink wrap license, order form).

4 Elements of a Contract Must be legal; Must have the capacity to bind; There must be an offer; There must be an acceptance (counteroffer); There must be consideration (can’t be illegal & must have legal value)

5 FORMS OF CONTRACTS Unilateral Bilateral Oral Written

6 Risks and Liability Involved When one of the requirements for contracting for the University isn’t met, what are the risks and who becomes responsible? What happens if an individual signs a contact without proper delegation? Can an individual assume this risk on behalf of the University?

7 Using the PCard with Contracts Internet Purchases with PCard that require ‘I agree’ or ‘I disagree’ Contracts must be reviewed by contracting BEFORE the PCard is used for payment Contracting Office requests a two week lead time on complex contracts (i.e. Large events) Cannot use State or Sponsored accounts with PCard Plus Maximum tip allowed for PCard purchase is 20%

8 What are the standard contract language requirements? Contracting Party - The Contracting party for the University is the Arizona Board of Regents on behalf of The University of Arizona; Interest Rate - 10% simple per annum is the maximum rate allowed by AZ law; Law to Govern - As a state agency, the University cannot agree to be bound by another state or country's law; Arizona law must govern; Indemnification - it is illegal for an Arizona state agency to indemnify or hold another party harmless from liability (Arizona Attorney General's Opinion No L);

9 Cont’d Insurance - As an Arizona state agency, the University participates in the Arizona State Risk Management self- insurance program as provided under A.R.S. § We do not additionally insure other parties. Confidentiality - The University can agree to hold confidential material provided by another party (provided such material is marked as confidential) for a period of 3 years following termination of the Agreement. All fully executed University Contracts are public record and cannot be held confidential. Penalty - The University cannot agree to pay penalties for early cancellation or for any other reasons (A.R.S. § );

10 Cont’d Attorneys' Fees - The Legislature does not allocate funding for payment of another party's attorneys' fees; we can agree to pay all "court-awarded" attorneys' fees; Unions - As a state agency, the University is not permitted to contract with or be bound by union rules, regulations or jurisdiction. Right to terminate - The University needs the option to cancel a contract prior to it's term - usually by giving the other party 30 days prior written notice;

11 Cont’d Limitation of Actions - The University as an Arizona state agency is exempt from the Statute of Limitations; Perpetuity - The University cannot enter into perpetual contracts; Non-refundable Deposits - The University cannot agree to pay a non-refundable deposit. A deposit can be used to fulfill payment obligations for which the University is owing for goods or services received. Software infringement - The University cannot agree to incur software infringement liability of software provided by another party;

12 Cont’d Audit - If the Contract is for the furnishing of goods or services, within the meaning of A.R.S. § , all books, accounts, reports and records relating to the Agreement shall be subject to inspection and audit by the University for five years after completion of the Agreement; The following clauses are to be incorporated into all contracts: a) Nondiscrimination b) Arbitration c) Conflict of Interest d) State Obligation e) Audit f) Sudan-Iran

13 Catering Policy & PCard Plus Procurement and Contracting Services has defined the term catering as a caterer who is responsible for all preparation, delivery, setup, serving, clean up and removal of food at any University event. PCard Plus users must comply with this policy in it’s entirety.

14 Catering & Food Services Policy Flowchart

15 QUESTIONS ?


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