04
No employee shall enter into discussion or participate directly or indirectly in a procurement in which the employee has a conflict of interest. Employees who breach an ethical standard of conduct will be subject to disciplinary action and may be subject to criminal prosecution for fraud. Fraud is a deliberate action intended to deceive another for personal gain. Potential conflict must be disclosed. Ethics in Procurement<br>
05
President’s Office Policy PRE-05
Provides review/approval path for various types of contracts/agreements
Signature authority delegation President’s Delegation of Signature Authority<br>
06
Pre-Procurement Steps:
IMPACT
Major Projects
Org Approval
Funding
IT Review
Cherwell ticket Contract Process - Initial Steps<br>
07
Procurement Planning
Determine appropriate Procurement Method
Sole Source (if approved)
Request for Proposal
Invitation for Bid
Existing Contract
Contracts awarded by other Universities
Co-Op Contracts
DIR Contracts Contract Process - Initial Steps (continued)<br>
08
Step 1. Contract Negotiation
Procurement begins negotiations with vendor.
Contract Terms Finalized.
Parties
Dollar value and payment terms
Duration (including potential extensions)
Scope
Required Texas clauses Contract Routing Process (1of 6)<br>
09
Step 2. Office of General Counsel Review
Contracts over $50,000.
Edited for form (required terms) and business decisions of concern.
Standard Review Timeframe is 10 business days.
Might take multiple rounds of negotiations between the vendor and OGC before agreeing to terms.
OGC returns contract to Procurement Contract Routing Process (2 of 6)<br>
10
Step 3. Vendor Review of Edits
Procurement returns edited contract to Vendor
If Vendor provides subsequent edits, Procurement returns contract to OGC for additional review (Step 2).
If Vendor has no further edits, Procurement "accepts" all changes, converts contract to PDF, and proceeds to Step 4. Contract Routing Process (3 of 6)<br>
11
Step 4. Vendor Signature
Procurement sends final contract draft (PDF) to Vendor for signature
Vendor returns contract to Procurement
Procurement verifies that the signed contract contains all of the required edits per OGC's recommendations. Contract Routing Process (4 of 6)<br>
12
Step 5. Authorized University Signature(s)
If the contract is a President- or VP-Level contract, Procurement routes contract to the appropriate signature authority. STOP
If the contract is a Chancellor-Level contract, Procurement forwards the contract to OGC for routing to the System Office.
If the contract is a Board-Level contract, Procurement forwards the contract and Board Motion to OGC for routing to the System Office. Contract Routing Process (5 of 6)<br>
13
Step 6. Board Approval/Chancellor Signature
VC&GC reviews/signs.
VC&CFO reviews/signs.
Chancellor reviews/signs.
VC&GC returns to the University after TSUS signatures completed.
University President signs. Contract Routing Process (6 of 6)<br>
14
Purchase Order with Contract
Information Technology
Consulting/Professional Services Types of Contracts<br>
15
Examples
Hotel Contracts
Services w/ Terms & Conditions
Step 1 - BearKatBuy Requisition
Contract Checkbox
Sole Source Checkbox (if applicable)
Co-op Checkbox (if applicable) Purchase Orders with Contracts/Agreements<br>
16
Step 2 - Contract review
Governing law
Indemnification
Force Majeure
Required Texas Clauses
Step 3 - Vendor review/signature
Step 4 - Purchase Order approval Purchase Orders with Contracts/Agreements (continued)<br>
17
Required Provisions<br>
18
Required Provisions (continued)<br>
19
Recommended Provisions<br>
20
Recommended Provisions (continued)<br>
21
Policy: IT-S03, Technology Acquisition Oversight Statement
SHSU mandates review and oversight of all information technology resource related acquisitions
Includes the following:
Computing Hardware
Software
Electronic/Online Subscriptions
Cloud Services
And more Information Technology Agreements (1 of 5)<br>
22
All information technology resource related acquisitions and gifts must be reviewed by the SHSU Information Technology Services Department and receive approval, prior to a formal submission of request for acquisition or acceptance of gift. Information Technology Agreements (2 of 5)<br>
23
Step 1 - Submit a Cherwell ticket
IT Security review
Accessibility review
DIR TX-RAMP review (cloud)
Step 2 - Submit a BearKatBuy requisition
Technology Acquisition Approval Form
Parallel Waiver
Cherwell Ticket # in comments
Contract Checkbox
Sole Source Checkbox and Form (if applicable)
Co-op Checkbox if DIR Information Technology Agreements (3 of 5)<br>
24
Step 3 – Procurement Review
Required Texas clauses
Information Security Standards Exhibit
Step 4 – Vendor Review
Vendor’s redlines Information Technology Agreements (4 of 5)<br>
25
Step 5 – IT Review
Any vendor changes to the Exhibit
Step 6 – OGC Review
Over $50k
Step 7 - Signature
Contract execution
BearKatBuy approval Information Technology Agreements (5 of 5)<br>
26
A consultant may be used only if there is a substantial need for the consulting services and only if the agency cannot adequately perform the services with its own personnel or obtain the consulting services through a contract with a state governmental entity. Consulting Agreements (1 of 3)<br>
27
Major Consulting – means a consulting services contract for which it is reasonably foreseeable that the value of the contract will exceed $25,000.
The $25,000 threshold is not a one-time cost, but rather a cumulative amount for on-going consulting services. Consulting Agreements (2 of 3)<br>
28
Consulting Contract Template
Authorization of Professional/Consulting Services Form Consulting Agreements (3 of 3)<br>
29
Contract Renewals IT Agreement – Submit a new Cherwell ticket for every renewal period.
Sole Source Approval – must submit new sole source approval form for the renewal period if the original procurement was sole source.
Original Contract – attach original contract and reference previous Purchase Order numbers.<br>
30
Contracts+ Contracts+ is a repository within BearKatBuy where Procurement uploads certain SHSU contract agreements.
Procurement plans on utilizing Contracts+ for the majority of the contract review, approval, and signature process.<br>
31
Contract Routing Form SHSU Procurement is working on an automated electronic contract routing form that will be integrated into BearKatBuy. More to come soon!<br>
32
Recap/Takeaway The contract review process is lengthy and does not begin with Procurement – plan accordingly!
Only certain individuals have the authority to sign contracts - President’s Office Policy PRE-05
Procurement is here for you!<br>
33
Contact: Steven Tilley, CTCM, CTPM
Telephone: (936) 294-4670
E-mail: steven.tilley@shsu.edu QUESTIONS OR CLARIFICATIONS?<br>
