Mar 29, 2024  
Policies and Procedures Manual 
    
Policies and Procedures Manual

05:13:00 Outside Contracting


Revision Responsibility: Assistant Vice President for Institutional Effectiveness and Compliance
Responsible Executive Officer: Vice President for Business and Finance

Purpose

To provide guidance for contracting with entities/individuals external to the institution. All contracts will conform to the requirements of applicable TBR policies and guidelines.


Policy

I. Contract Provisions

A contract may be required for Walters State units or employees to engage the services of outside individuals or agencies, or to use a facility other than a Walters State campus. Contracts may also be required by outside vendors for certain purchases, clinical training, licensing activities, equipment maintenance, or other services. Whether the document is called an agreement, contract, memorandum of agreement, memorandum of understanding, terms and conditions, end users’ license agreement or other similar name, it is subject to the requirements of this policy. The purpose of a written contract is to embody the complete agreement in writing. No relevant terms should be left to an unwritten understanding or verbal agreement. The document should be explicit and clearly state the rights and duties of each party and clearly identify all parties.

Only the president is authorized to enter into contracts on behalf of Walters State. No other employee may legally bind the college by signing an agreement except in limited circumstances, where the president has designated contract authority to an individual. Delegation of contract authority must be approved in writing by the president.

Agreements shall not be made for the procurement of any merchandise, equipment or material with an individual who is, or within the past six months has been, a State employee; with a company or corporation in which a controlling interest is held by any State employee or the employee’s spouse; or with any person in violation of Federal or State law.

Activities that require a contract should not begin until the initiator has received a signed copy of the agreement. Initiators will be required to document any exceptions or requests for contracts after the activity begins.

The Office of Institutional Effectiveness and Compliance (IEC) maintains a written contracts manual, setting forth procedures to comply with the TBR policies and guidelines and Tennessee law. IEC is responsible for developing, routing and execution of agreements and securing approvals from the Tennessee Board of Regents when required. IEC will, upon request, advise whether an activity requires a contract; however, the Purchasing Office makes the final determination regarding the need for an agreement involving the expenditure of college funds.

Following are the procedures for requesting and processing of contracts. Contract requests that are incomplete may be returned to the initiator for corrections.

  1. Individuals or departments needing a contract that does not require expenditure of college funds must send a written request or e-mail to the Office of Institutional Effectiveness and Compliance substantially prior to the proposed starting date of the agreement.

    The request must include the following:
  • legal name of the individual or business
  • address and phone number of contractor
  • contact person’s name, title, and Banner Identification Number
  • description of service to be provided
  • dates of the service
  • amount to be received by the college, if applicable
  • any special conditions or processing requests
     
  1. Individuals or departments needing a contract that requires expenditure of college funds must complete an online purchase requisition through Banner substantially prior to the proposed starting date of the agreement.

    The requisition must include the following:
  • legal name of the individual or business
  • address and phone number of contractor
  • contact person’s name, title, and Banner Identification Number
  • description of service to be provided
  • dates of the service
  • amount to be paid by the college
  • any special conditions or processing requests
     

Contract requests lacking this information will be returned to the initiator for completion and resubmission. In certain instances, a vendor will submit an externally developed contract for college approval. Such contracts should be forwarded to the Office of Institutional Effectiveness and Compliance attached to a contract request.

The Purchasing Office will review the requisition. If a contract is required, the Purchasing Office will forward a copy of the requisition to IEC. IEC will assign a contract number, record the contract number on the requisition, and initiate an agreement. Accounts payable will not make payment on a requisition with a contract number unless a copy of the signed contract is on file.

In certain instances, a vendor will submit an externally developed contract for college approval. These contracts should follow the submission procedures outlined in Step 1 or Step 2, as applicable, concerning the disbursement of college funds.

  1. During contract negotiations, IEC may require assistance from the initiating individual or department to provide additional information or facilitate negotiations. In the event a contract cannot be completed, the agreement may be recorded as unexecuted or void.

    After services have been fully rendered, the contract initiator is responsible for monitoring the contractor’s performance, following-up with the contractor, and ensuring appropriate documentation including an approved invoice has been submitted to Accounts Payable in a timely manner. The initiator is also responsible for contacting IEC if there is a need to cancel or modify the contract after it has been approved. Expired contracts cannot be modified or extended.

    Contracts for Workforce Training, the Great Smoky Mountain Expo Center, and WIOA have special processing requirements in addition to this policy. These special processing requirements are addressed through direct consultation with IEC.

06/08; 05/16; 08/22