Authorizations for Goods and/or Services
Purchases Orders authorize the purchase of goods and services from $0 - $15,000.00. Purchase Orders guarantee payment upon receipt of goods and services.
Submit a Purchase Order Request with the following details:
description of goods/service(s) needed
vendor quote (if applicable)
vendor information and EID
total cost and payment breakdown (e.g. $cost/unit x #months)
date span or receive date
departmental account number
Submit your purchase order requests at least 2 weeks in advance of good/service need.
When procuring a good or service from an individual, you must always complete an Employee/Independent Contractor Classification Checklist (EICCC) to determine the most appropriate way to proceed with authorization. This form must be included with your Invoice Payment Request form when paying Independent Contractors.
For more specific transactional characteristics, please note the following:
Blanket Purchase Orders
Used for monthly, recurring expenses or expenses that span the entire year
All blanket orders must contain verbiage specifying the contract period or length of the purchase order. For example: “Contract period is from date of order through August 31, 20XX. There shall be no price increases during this contract period.” Schools and departments must inform the supplier of their intent to use a blanket purchase order when requesting a quote for goods/services and that the pricing will be held for the term of the blanket order. The blanket purchase order must list the maximum total value of the purchase order for the entire length of the purchase order.
The blanket order must contain verbiage about estimated usage (e.g. $cost/unit x #months) and include: “No minimum is guaranteed, and order value is not to exceed $15,000.00.”
Prepayments or Deposits
Completed Prepayment Form (unsigned) must be attached to your Purchase Order Request or Contract Request
Any goods or services requiring a prepayment or deposit must include the Refund of Deposit Clause on either the Purchase Order, Contract, or vendor invoice:
Refund of Deposit/Prepayment. In the event this Agreement is canceled by <vendor name> for reasons not attributable to The University of Texas at Austin (university) or if canceled by the university for default of performance by <vendor name> or Force Majeure, then within 30 days after termination, <vendor name> will reimburse the university for all advance payments paid by the university to <vendor name> that were (a) not earned by <vendor name> prior to termination, or (b) for goods or services that the university did not receive from <vendor name> prior to termination.
Independent Contractors or vendors classified as “Individuals”
Any vendors that your completed Employee/Independent Contractor Classification Checklist (EICCC) deems as “Independent Contractor” will notify University Tax Services to issue the appropriate tax documentation at the end of the year.
Employees
Any vendors that your completed Employee/Independent Contractor Classification Checklist (EICCC) deems as “Employee” must receive payment through Workday. Submit a HELP! Request to discuss those details.
If you need to procure merchandise or services that a) require acknowledgement of terms and conditions and/or b) exceed $15,000.00 in total, then the procurement justification or procurement award must be based on university guidelines regarding informal bids, formal solicitations, or exclusive acquisition justifications. Please review each tab below for specific guidelines based on your dollar amount.
We are never allowed to sign a vendor’s contract. Only Business Contracts is allowed to sign contracts for every unit within the university. For campus policy information, see the Handbook of Business Procedures, 7.4. Purchasing Process - General Information.
Contract policies vary depending on the total value and/or vendor requirements. For more information, please reference the following guidelines:
$0-$15,000
Generally, purchases in the range of $0-$15,000 may be authorized via Purchase Order; however, there are times when vendors request signature on their contract or they require specific terms to provide a good/service. Submit a Contract Request with the following information:
description of goods/service(s) needed
vendor contract needing signature*, reviewed for accuracy OR applicable contract template
vendor information and EID
total cost and payment breakdown (e.g. $cost/unit x #months)
date span or receive date
departmental account number
*If you are using a vendor-provided contract, you must include an Addendum to Agreement with your uploaded materials.
Processing timelines may vary due to the particular requirements of each agreement. We ask that you submit your contract requests at least 3 weeks in advance of good/service need.
When procuring a good or service from an individual, you must always complete an Employee/Independent Contractor Classification Checklist (EICCC) to determine the most appropriate way to proceed with authorization. This form must be included with your Invoice Payment Request form when paying Independent Contractors.
$15,000-$50,000
For purchases over $15,000.00, your department is required to obtain a minimum of three quotes* by mail, email, or fax and submit them via Contract Request with the following information:
description of goods/service(s) needed
vendor contract needing signature**, reviewed for accuracy OR applicable contract template
vendor information and EID
total cost and payment breakdown (e.g. $cost/unit x #months)
date span or receive date
departmental account number
*A good-faith effort should be made to include at least one quote from a minority-owned or woman-owned business.
**If you are using a vendor-provided contract, you must include an Addendum to Agreement with your uploaded materials.
Processing timelines may vary due to the particular requirements of each agreement. We ask that you submit your contract requests at least 4 weeks in advance of good/service need.
Once purchasing reviews your initial contract packet, they may determine additional documentation is needed to satisfy the contracting requirements.
In some instances, competition does not exist, or it is in the university’s best interest to use a particular product or service. If your purchase meets these conditions, attach the most appropriate non-competitive supplemental form (completed and unsigned) listed below to your Contract Request. Bidding may be bypassed at the determination of Central Procurement. Business Office Support Services will coordinate with Central Procurement to determine the best next steps and communicate via your request throughout the process. For more information about exclusive acquisition justifications, see the Handbook of Business Procedures 7.5.3. Exclusive Acquisitions.
Supplemental Documentation for Non-Competitive Contract Process
Proprietary (as defined in Texas Education Code 51.9335 b)
Justification for a proprietary purchase is used when the goods or services are only available through a single source. The Purchasing Office establishes that the selection meets best value criteria. Some examples include:
Equipment maintenance or repair parts from the original equipment manufacturer (OEM)
Pharmaceuticals or chemical reagents that are only available through one supplier
Software or software maintenance that is only available through one software supplier.
Best Value (as defined in Texas Education Code 51.9335 b)
Justification for a best-value purchase is used when it is in the best interest of the university to use the particular product or service, but there is actually more than one source available. The Purchasing Office establishes that the selection meets best-value criteria. Some examples include:
Utilization of an add-on program to an existing contract that leads to overall efficiency and cost savings
Specific reagents used in long-term experiments. For continuity of research, a lab would need to continue using the same products for the duration of the experiment.
Compatibility with existing equipment. A laboratory is purchasing a new component from a supplier to add to an existing piece of equipment to enhance its quality/performance.
A contract or grant specifically names a supplier, product, or service that is required for the university to use.
Justification for an emergency purchase occurs as the result of an unforeseen circumstance that requires an immediate response to prevent financial or operational damage to the university. If a situation arises in which routine compliance with procurement practice is impractical and not in the university’s best interest, an emergency purchase may be warranted to prevent a hazard to life, health, safety, welfare, or property, or to avoid undue additional cost to the university. Emergency purchases of goods or services are performed to restore a system to its original intended functionality and must not exceed the scope or duration of the emergency. The Purchasing Office will establish that the selection meets best value criteria. Note: In cases where Purchasing Office management is not available to provide the second approval signature on the exclusive acquisition form, the Purchasing Office Buyer may proceed with approval and issuance of the PO. The manager’s signature must be obtained afterward.
Professional Services (as defined in Texas Government Code 2254.002)
Professional service providers must normally be pre-qualified based upon a Request for Qualifications (RFQ). The contract award is based on negotiation with the most qualified provider. When a professional service is required and no pre-qualification has been established, a contract award must be justified as an exclusive acquisition to establish that the selection meets best-value criteria.
A provider of professional services may not be selected on the basis of competitive bids, but rather on basis of demonstrated competence and qualifications to perform the service and for a fair and reasonable price.
Professional service providers are normally licensed or certified and the scope of their services include:
accounting
architecture
landscape architecture
land surveying
medicine
optometry
professional engineering
real estate appraising
professional nursing
$50,000+
When executing a high value contract, there are many factors that must be taken into consideration and require additional analysis from the business office. Please submit a Contract Request with the following information, and a member of our team will offer consultation on the contracting process:
description of goods/service(s) needed
vendor contract needing signature*, reviewed for accuracy OR applicable contract template
vendor information and EID
total cost and payment breakdown (e.g. $cost/unit x #months)
date span or receive date
departmental account number
*If you are using a vendor-provided contract, you must include an Addendum to Agreement with your uploaded materials.
Because this process requires multiple units offering review and approval, please begin this process a minimum of 8 weeks in advance of service/merchandise need.
Determining if a Speaker Agreement is needed:
A Speaker Agreement is only needed if there will be compensation and one of the following is true:
The speaker and its agent does not have a U.S. Tax ID (this includes virtual engagements)
The speaker will be performing in person and one of the following is true:
The speech will be recorded
There will be merchandise sold at the event
A Purchase Order may be used for all other speaker engagements where the speaker (or their agent) will be paid. If the speaking engagement will occur virtually and recorded for later replay, please include one of the following in the Description of the Purchase Order:
Option 1: Recording for purposes of internal replay only: Speaker is giving permission for University to audiotape and/or videotape this presentation. The Speaker hereby grants University a limited, free, perpetual, non-exclusive license to use the text and recordings only for internal University use and replay.
Option 2: Recording for any future purpose: Speaker is giving permission for University to audiotape and/or videotape this presentation. The Speaker hereby grants University a limited, free, perpetual, non-exclusive license to use and commercialize the text and recordings of the presentation in any medium as University desires.
When procuring a service from an individual, you must always complete an Employee/Independent Contractor Classification Checklist (EICCC) to determine the most appropriate way to proceed with authorization. This form must be included with your Invoice Payment Request form when paying Independent Contractors. Employees must be paid through payroll and payroll taxes will be deducted form their stipend.
A contract is required when we secure a block of hotel rooms. A contract or simple banquet order is required when we secure room rental/AV services/catering with a venue for an event. Allow 4 weeks in advance of the program to provide sufficient time for full execution of contracts.
Contracts for the AT&T Hotel and Executive Education Conference Center may be signed by the College Business Officer. All other hotel agreements follow these guidelines:
Standard Hotel Agreement
The Standard Hotel Agreement found here is the preferred template for contracting with a hotel.
The Standard Hotel Agreement contains clauses that:
are standard clauses found in most Hotel Agreements;
protect the university from unmanageable risk or unforeseen liability; and
comply with the Board of Regents’ Rules and Regulation and State of Texas law.
Only an individual with a written delegation of authority from the President of the University may execute and deliver contracts on behalf of the university. Therefore, a university contract without an authorized signature may be invalid and unenforceable and may create individual liability for the unauthorized signer.
Standard hotel agreements can be created when needed.
Simple Catering/Banquet/Hotel Agreements
Simple room, banquet, or catering agreements can be used as long as they are for amounts under $15,000 and certain items are not included, or are marked out and initialed by both parties.
Non-standard Hotel Contracts
The hotel’s contract will be forwarded to Contracts and Grants for signature. Please note that this process can take up to 4 weeks.
They will need to sign via DocuSign. If vendor has DocuSign issues, please submit a HELP! Request immediately. A fully signed contract must be in place before vendor can be paid.
Under rare circumstances, the following types of purchases may be necessary and require special handling. Please submit the below paperwork, plus any other requirements based on the total contract value.
Purchase From Employee (or Relative of Employee) – NEW form to be used in those limited instances where due to the unique nature of the good or service it is deemed in the best interests of the University to make the purchase from the employee. Any such purchases shall be made only if the cost is less than from any other known source.
Purchase of Used Equipment – NEW form to be used in those limited instances when the procurement of previously used equipment is found to be necessary or advantageous to the University. Equipment that is used may include refurbished, demonstration or “demo” units, or used equipment supplied with the same warranty as new equipment.
Any time a fully executed contract must undergo a change, a contract amendment must be processed with the appropriate revision documentation.
Submit a Contract Request with the following information:
list of specific changes made to existing agreement
vendor contract needing signature*, reviewed for accuracy OR applicable contract template
vendor information and EID
total cost and payment breakdown (e.g. $cost/unit x #months)
date span or receive date
departmental account number
*If you are using a vendor-provided contract, you must include an Addendum to Agreement with your uploaded materials.
To request a Purchase Order or Contract that includes a deposit or prepayment, please note:
Completed Prepayment Form (unsigned) must be attached to your Purchase Order Request or Contract Request
Any goods or services requiring a prepayment or deposit must include the Refund of Deposit Clause on either the Purchase Order, Contract, or vendor invoice:
Refund of Deposit/Prepayment. In the event this Agreement is canceled by <vendor name> for reasons not attributable to The University of Texas at Austin (university) or if canceled by the university for default of performance by <vendor name> or Force Majeure, then within 30 days after termination, <vendor name> will reimburse the university for all advance payments paid by the university to <vendor name> that were (a) not earned by <vendor name> prior to termination, or (b) for goods or services that the university did not receive from <vendor name> prior to termination.
All purchases made by funds of the University of Texas at Austin are governed by general purchasing terms and conditions available here: https://utexas.app.box.com/v/order-terms-1
The university prefers not to agree to:
Non-refundable deposit
Conduct at event
Example: You assume full responsibility for the conduct of all persons in attendance at your event and for any damage done to any part of our premises during the time of your event.
The university will not agree to any of the following:
Indemnification
Example: To the extent permitted by law, you agree to protect, indemnify, defend and hold harmless the vendor, owner and their respective employees and agents against all claims, losses or damages to persons or property including reasonable attorney’s fees arising out of or connected with your function, except those claims arising out of the sole negligence or willful misconduct of the vendor.
Collection of attorney’s fees
Example: The parties agree that in the event that any dispute arises in any way relating to or arising out of this contract, the prevailing party in any arbitration or court proceeding will be entitled to recover an award of its reasonable attorney’s fees and costs.
Arbitration
Example: The parties agree that any dispute in any way arising out of or relating to this contract will be resolved by arbitration before JAMS/ENDISTUTE or the American Arbitration Association.
Insurance
Example: You agree, if requested by us, to obtain and keep in force, during the term of its occupancy and use of our premises for your event, policies of our general liability insurance.