Chapter 6 – Contracting

(Revised 12/96; 3/05; 7/10)

6.1 Contracting Authority

The President has delegated authority for signing agreements and contracts for the University as set forth below.

  1. Authority of Board. The University of Iowa is governed by the Board of Regents, State of Iowa, under Chapter 262 of the Iowa Code. Among the powers and duties of the Board are management and control of the properties, both real and personal, belonging to the University, directing the expenditure of all appropriations made to the University and of any other monies belonging thereto, and the performance of all other acts necessary and proper for the execution of the powers and duties conferred by law upon the Board. Particularly, these powers include not only management and control of property, but also the administration of trusts and the securing of letters of patent or copyright.
  2. Delegation to President. The Board is also empowered to make rules for the governance of the University and has delegated their authority to make contracts and agreements to the President of The University of Iowa pursuant to Chapter 681 of the Iowa Administrative Code. The President is empowered to approve agreements and contracts for all goods and services purchased by the institution except for those specifically requiring approval of the Board which include certain agreements for municipal services including fire protection, major capital improvements and related consulting contracts, contracts for the sale, lease for purchase of real property, lease purchase agreements for equipment, and contracts for professional services by outside counsel, architects, and engineers.
  3. Delegation by President. The President may further delegate this contracting authority to others. Pursuant to Rule 12.5 (262) of Chapter 681, Iowa Administrative Code, the President has delegated the authority to sign:
    1. Contracts relating to:
      1. Employment matters involving deans to the Executive Vice President and Provost;
      2. Employment matters involving departmental executive officers and directors of academic programs to the Executive Vice President and Provost or deans; and
      3. Employment matters involving faculty and agreements to form educational consortia for joint educational projects and for cooperative education to the Executive Vice President and Provost, deans, departmental executive officers, or directors of academic programs.
    2. Applications and agreements for grants for economic development and for research to the Vice President for Research and Economic Development or the Executive Director of the Division of Sponsored Programs;
    3. Nonfinancial agreements including Material Transfer Agreements, Confidentiality Agreements, and Non-disclosure Agreements relating to grants and contracts for economic development and for research to the Vice President for Research and Economic Development or the Executive Director of the Division of Sponsored Programs;
    4. All procurement contracts relating to the purchases of goods and services from sources outside of the University to the Assistant Vice President for Finance and Operations and Director of Purchasing and Business Services, the University's Business Manager, or the Senior Vice President for Finance and Operations;
    5. All contracts relating to the clinical operations of University of Iowa Health Care, including all educational affiliation agreements where University of Iowa Hospitals and Clinics is the site of training or its residents or trainees are receiving training elsewhere, all patient transfer agreements, all outreach agreements, lease agreements for University of Iowa Health Care staff to provide services, physician service agreements, third-party payor agreements, publishing agreements, affiliation agreements involving medical students or residents employed by the University, clinical trial hosting agreements, to the Vice President for Medical Affairs; and
    6. All other contracts and agreements which the President could sign, including specifically pharmaceutical service agreements and all leases of space and other facilities, to the Senior Vice President for Finance and Operations, University Business Manager, or the Assistant Vice President for Finance and Operations and Director of Purchasing and Business Services.
  4. Notwithstanding the foregoing, purchases for a department headed by the Director of Purchasing or the University Business Manager, shall be countersigned by a senior official of the University who will have an independent, objective position regarding the transaction when these transactions are $5,000 or greater.
  5. Other delegations of the President's contracting authority may be made by the President from time to time.
  6. Within the limits prescribed by the Board of Regents or The University of Iowa's Operations Manual, the President or any vice president may further delegate the authority that vice president has received to other employees of the University to sign contracts and agreements.
  7. The CEO of the University of Iowa Hospitals and Clinics may subdelegate any authority delegated to the CEO to an individual designated to act in the absence of the CEO pursuant to Article II, Section 2(B)(7) of the Bylaws, Rules and Regulations of the University of Iowa Hospitals and Clinics and Its Clinical Staff.
  8. No other subdelegate of a vice president or a subdelegate of the President has the authority to further subdelegate the authority granted to that subdelegate.
  9. Any delegation or subdelegation made by the President or any other person authorized to make a subdelegation shall be evidenced in writing that is signed by hand or electronically and dated.
  10. Those to whom contracting authority has been delegated or subdelegated are responsible for ensuring that contracts have been reviewed and are being entered into for the best interests of the University and in accord with all applicable laws and rules. Those signing contracts must consult with the University Offices of the General Counsel and Risk Management when major and/or non-standard contracts are pursued to minimize exposure to the University. Likewise, those signing contracts shall consult with the Office of Finance and Operations should they have any question regarding the University's financial capacity to perform pursuant to the contract. 

6.2 Consultant and Independent Contractor on Grants and Contracts

(President 4/30/76; amended 7/93; amended 9/93)
  1. Policy. When necessary to accomplish the goals of externally funded grants and contracts the University contracts for limited services from consultants and independent contractors. These guidelines and procedures have been established to assist the project director, and his or her department and dean in determining the need for, selection of, and payment for such services.
    1. External Consultants or Contractors. Generally, to undertake such service arrangements, the University satisfies itself that the following factors are present. However, no single factor is necessarily controlling. The contractor:
      1. is subject to the control of the University only as to the results to be accomplished by the work and the University Patent Policy, but not as to the means and methods of accomplishment;
      2. is not subject to discipline or discharge under University personnel policies;
      3. does not have a continuing relationship with the University;
      4. is not a staff member of any state agency or institution;
      5. is paid a fee or contracted amount for services;
      6. has an opportunity to realize a profit or loss in the usual business sense;
      7. follows an independent profession, trade, or business and offers services to the public;
      8. provides services that are not an integral part of the University;
      9. is not provided assistants to help on the job; and
      10. is not provided office space, tools, and materials.
         
      Examples of independent contractors, as defined above, include professional lecturers making a single appearance, short-term professional consultants, physicians, lawyers, and other persons or firms in business for themselves to offer services to the public.
    2. University Consultants. If the consultant is an employee of the grantee institution, the consultation should be across departmental lines and in addition to regular duties; or it must involve a separate or remote operation, and the work performed is in addition to the consultant's regular departmental workload. To determine compliance with the above as well as with other University rules and regulations, the following sections should be consulted: III-17.8 Summer and Winter Session Salaries; III-17.13 Extra Compensation for Participants in On-Campus University-Sponsored Short Courses and Conferences; III-17.6 Extra Compensation for University Faculty and Staff; III-17.17 Supplemental Activities and Extra Compensation; III-17.17(4) Employment on Grants and Contracts Administered by the University; III-17.17(5) Extension Activities; and III-17.15 Staff Remuneration for Materials: Gratuities.
    3. Payments. All payments for such services authorized under these policies and procedures are made directly to the individual providing the services, and not to a third party, except in the case of joint employment with other state agencies in which case the parent agency will be the payee. If payment is from a federal contract, approval must be received by the agency to use the named consultant. The fees for services generally separate transportation and subsistence, which are reimbursed on the basis of actual costs.
    4. Prior Approval. Commitments made without required approval are not University contracts, and the individual making such commitments is personally responsible for any charges that may result therefrom.

6.3 Selecting and Paying for Consultant and Independent Contractor Services and Obtaining Approval

To pay consultants on grants or contracts, approval is obtained from the department and dean on the University Voucher, or Travel Voucher. The Full-time Employee Extra Compensation Voucher must be used to pay University consultants. This is required in order to comply with existing University and federal regulations for disbursing funds for these purposes.