University of Saskatchewan

Financial Services Division (FSD)

Contracting for Services Guideline

Preamble

University policy states that: “No person shall commit the university to agreements, licenses, contracts, leases, or other legally enforceable obligations related to procuring goods and services unless authorized to do so by the Board of Governors or by Purchasing Services (to whom such power has been delegated by the Board of Governors).”

Further: “All procurement from external suppliers must be made using established and approved university procurement procedures regarding: competitive bid limits, supplier selection – including preferred supplier contracts and/or single/sole source selection (which can only be approved by Purchasing Services), contracting for services … and must comply with funding agency guidelines and all applicable legislation and regulations.”

Contracts for services may be established between the university and different entities including incorporated businesses, non-incorporated businesses and individuals.

Purpose

To ensure that any contracts entered into by the university protect the integrity of the signing authority policy and manage the risks associated with contracting out for services, and to outline the different procedures to be followed by departments planning to enter into a contract for services arrangement.

Scope

These guidelines apply to all types of contract for services arrangements and all departments of the University of Saskatchewan, regardless of the source of funding including operating, research, trust and restricted accounts.  

Procedures

For departments that have frequent recurring arrangements for a particular type of service, they can arrange, via Purchasing Services, to have a contract template approved through Corporate Administration.  The template can be used to formalize recurring arrangements. 

For any contracted service up to $5,000, a standard agreement has been created to enable departments to fill-in-the-blanks and supply information related to the particular arrangement.  

Depending on the estimated dollar value of the contract for services arrangement, departments need to follow the applicable instructions in this section, points a) [>$50,000], or b) [>$5,000], or c) [up to $5,000] set forth below when contracting for services.

 

Incorporated Businesses / Limited Companies


Generally an incorporated business/limited company’s name ends in “LTD.” or “INC.” or “CORP.”

a)    For services valued at greater than $50,000

 The contract for services arrangement must be established under a formal competitive bid process managed by Purchasing Services. All other documentation and processes identified in point b) below also apply.

b)    For services valued at greater than $5,000

 Services over $5,000, but not exceeding $50,000 in value, may be purchased on the basis of written competitive quotations from no fewer than three (3) suppliers.

A written contract for services must be entered into between the university and the incorporated business.  The contract must be developed with the due diligence required by the Signing Authority Policy, including appropriate contract development and processing support from Purchasing Services and consultation with other relevant university departments/units (e.g. Risk Management and Insurance Services, Corporate Administration, etc.)

Once the above steps have been completed, a purchase requisition must be created so Purchasing Services can set up a purchase order

c)    For services valued up to $5,000

Services under $5,000.00 may be purchased based on the requisitioner's knowledge and experience with the service provider.

A written contract for services must be entered into between the university and the incorporated business for services valued above $1,000.00.  A standard University of Saskatchewan “Agreement for Services Valued up to Five Thousand Canadian Dollars ($5,000.00 CAD)” may be completed and signed by a representative of the incorporated business and filed in the department.  A copy of the standard University of Saskatchewan “Agreement for Services Valued up to Five Thousand Canadian Dollars ($5,000.00 CAD)” form and the related help document are available on the Forms page on FSD’s website (under Procurement-Related Forms).

“Where no changes have been made to the standard agreement, except by the addition of information in the spaces provided, deans and heads of administrative units/entities/institutions or their respective designates (appointed in writing) may sign on behalf of the chair and the secretary [of the Board of Governors].”

If a previously approved contract template cannot be used, contact Purchasing Services for assistance in developing a contract. 

Once the above steps have been completed, a purchase requisition must be created so Purchasing Services can set up a purchase order. 

Note: It is not necessary to complete an “Agreement for Services Valued Up To Five Thousand Canadian Dollars ($5,000.00 CAD)” for contracted services under $1,000 unless the activity poses a potential physical hazard to an individual or a university facility (e.g. use of chemicals, power tools/machinery, etc.) or involves professional services where the advice could impact the liability or reputation of the university.

Note: Only approved services can be purchased using a PCard such as courier services, vehicle rentals, etc.

 

Non-Incorporated Businesses and Individuals  

Before contracting with an individual or a non-incorporated business, departments need to complete the “Employment vs Contracted Services Questionnaire.” See the Employment vs Contracted Services guideline for more information.

The thresholds (e.g., greater than $50,000, greater than $5,000 and up to $5,000) and the contracting processes listed under incorporated businesses/limited companies also apply to non-incorporated businesses and individuals.

A purchase requisition must be created, when contracting with a non-incorporated business, so Purchasing Services can set up a purchase order.

Purchase requisitions/purchase orders are not issued when contracting with an individual.  Payments to individuals for contracted services require the submission of a completed Service Income Requisition form and supporting documentation to the Payroll department.

 

Contacts – for assistance in determining the relationship:

Contractual relationships – Purchasing Services – 966-6704