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.