- In which an immediate or emergency need exists for the item or service because of events and circumstances not reasonably foreseeable.
- Critical to sustaining patient care or human life, maintaining critical equipment or services, or similar.
- In which there is a need to protect the health, safety, or welfare of persons occupying or visiting a public property.
- In which the university must act to preserve critical services or programs.
- Purchases that are considered time sensitive and would result in increased costs due to delay or the inability to continue to provide necessary services to patients, students, public, etc.
- Compatibility with existing equipment. This justification may be used if the goods or services are being purchased to directly interface with or attach to equipment of the same manufacturer, and no other manufacturer's goods will correctly interface with existing equipment.
- Compatibility for instructional purposes. This justification may be used if the goods are being purchased to supplement existing equipment in a classroom. The goods must match the existing equipment and is being purchased to provide uniformity for instructional purposes.
- Compatibility for research. This justification may be used if the main purpose for acquiring equipment or supplies is to replicate specific experiments, using the exact goods that produced the original results. You may also use this justification if you are collaborating with another researcher and can show that identical goods are required to fulfill your part of the research grant or contract.
- Compatibility for medical services. This justification may be used if the main purpose of acquiring medical equipment or supplies is for the specific need of patient(s) at the discretion of the physician.
- Only one supplier can be identified to supply compliant goods or services. In limited cases, only one supplier may exist to provide particular goods or services. When providing a justification based on the availability of one supplier, the goods or services must be defined in generic terms. Specifying patented products or processes, when not necessary to meet functional requirements, is not acceptable as a sole source justification. Justifications can be accepted more readily by providing information regarding attempts to locate other suppliers, such as letters, informal quotations, or telephone contacts.
- Patent rights, copyrights, secret processes, or control of basic raw materials may preclude competition, although they do not in and of themselves always justify using noncompetitive procurement.
- Bids have been solicited and no responsive bid (conforming to the central requirements of the solicitation) has been received.
11.10 Purchases Requiring Regent Approval or Special Handling
(Amended 1/03; 10/11; 4/16; 11/16; 7/14/22)- Professional service contracts.
- Professional service agreements are contracts for unique, technical, and/or infrequent functions performed by an independent contractor qualified by education, experience, and/or technical ability to provide services. In most cases these services are of a specific project nature, and are not a continuing, ongoing responsibility of the institution. The services rendered are predominately intellectual in character even though the contractor may not be required to be licensed. Professional service agreements may be with partnerships, firms, or corporations, as well as with individuals.
- Selection of a provider. Professional service agreements for greater than $50,000 must be selected through a competitive Request for Proposal (RFP) or Request for Qualifications (RFQL) process unless the service is a sole source purchase that is appropriately documented and approved by the Executive Director, Board of Regents, State of Iowa. The $50,000 threshold is not based on a one-time cost, but rather on a cumulative cost for ongoing services under the terms of the project engagement. Professional service agreements, which are less than $50,000 over the course of service, may be entered into without using the required competitive bidding process. Total payment to a professional services provider for services provided to any one university department may not exceed $50,000 in a fiscal year, unless subject to competitive bidding or review and approval by the institutional purchasing department. Selection of a professional service provider shall be based on a variety of criteria including, but not limited to, demonstrated competence, knowledge, references, and unique qualifications to perform the services, in addition to offering a fair and reasonable price that is consistent with current market conditions. Additional criteria may be used as appropriate to the circumstances.
- Provider accountability. Work requirements should clearly define all performance objectives, work expectations, and project milestones, and hold the contractor accountable for successful completion of the resultant agreement. Requirements may include, but not be limited to, reports, training sessions, assessments, evaluations, or other tangible services.
- Provisions of professional service agreements. The following terms and conditions must be addressed:
- Performance requirements. Performance requirements should be precise and written in such a way that it can easily be determined if and when the contractor has successfully fulfilled their obligations under the agreement. Consequences for noncompliance such as non-payment and/or termination of the contract must also be defined. Scheduled due dates that specify milestone targets must be clearly identified and may include, but not be limited to, regular meetings scheduled to evaluate progress, identification of problem areas to determine actions to be taken to resolve any concerns, dates for formal written reports, required oral progress reports, and contract monitoring requirements.
- Period of performance. The resultant agreement must specify a start date and a completion date. While there may be exceptions, in most circumstances an end date to the agreement will be required. If an end date cannot be determined, a maximum time limit or maximum number of hours must be stated. Agreements with organizations are typically written for a specific term of successive years. In some instances, these agreements are annually renewable. Other provisions of an agreement may include a renewal clause beyond the original term of the agreement. Extended term agreements for individuals are discouraged.
- Compensation and payment. Compensation and payment terms include elements relating to cost and payment, such as maximum cost (i.e., not to exceed cost), cost per deliverable, hourly rates for individuals providing services, number of hours required, allowable expenses and total authorized-for expenses, and payment and invoicing procedures. Compensation and payment terms should also include a statement as to whether the Regent institution will pay expenses incurred by the contractor and, if so, which ones. Such expenses may include, but not be limited to, airfare (economy or coach class), lodging and subsistence necessary during periods of required travel, expenses incurred during travel for telephone, copying and postage, and private vehicle mileage. If other types of expenses are allowed, they must be clearly defined.
- Performance monitoring. The institution shall monitor the compliance with the terms and conditions of the agreement and applicable laws and regulations.
- Provision of liability. The provider may be required to show proof of insurance coverage and Workers' Compensation in compliance with statutory requirements, in the form specified by the institution.
- Moveable and fixed equipment:
- Equipment with a unit cost of less than $1,000,000 will be purchased by the university’s Chief Procurement Officer;
- Equipment with a unit cost greater than $1,000,000 and less than $2,000,000 will be submitted to the Executive Director, Board of Regents, State of Iowa, for approval;
- Equipment costing more than $2,000,000 will be submitted to the Board of Regents COO for approval. At the discretion of the Board of Regents Executive Director, the equipment purchase may be submitted to the Board of Regents for approval.
- Iowa prison industries;
- Iowa products and labor;
- Targeted small business.
( For policy on moving expenses [formerly paragraph b above], see https://hr.uiowa.edu/dept-comp-class/relocation.)
11.11 Purchase of Insurance
(See also V-15 Risk Management and Insurance.)
11.12 Delegation of Purchasing Authority
The Chief Procurement Officer, with the approval of the Senior Vice President for Finance and Operations or the University Business Manager, may delegate purchasing authority to employees who have satisfactorily completed training and who have demonstrated competence and prior compliance with purchasing requirements. The degree and nature of such delegation will be specific for each such delegation and will be stated in writing by the Director of Purchasing. A delegation is subject to being rescinded at any time.
11.13 Master Lease
Purchases of equipment that are to be financed on a lease-purchase or similar basis shall be forwarded to the Chief Financial Officer for review and shall contain a summary setting forth the financing cost for comparison with the terms offered for equipment financing under the Regents' master lease agreement.
11.14 Conflict of Interest
(Amended Regents 3/30/11)It is the policy of the University of Iowa to comply with state and federal law regarding purchases from "conflict of interest vendors" or "employees." A conflict of interest exists when there is a divergence between an employee's personal interests and their professional obligations to the university as an employee. Employees conducting business on behalf of the university have a responsibility to do so in a manner that is objective and ethical. The goal of all such business dealings must be to benefit the university. The university is committed to complying with applicable procurement laws and regulations, including requirements that apply to conflicts of interest, as provided by the following:
- Iowa Code68B.3 and 68B.4
- Board of Regents Policy Manual2.1.4F
- Federal Office of Management and Budget (OMB) Circular A-110
11.15 Purchases from University Faculty or Staff
(Amended 5/02; Regents 3/30/11; 7/14/22)
- Definitions.
- "Employee":
- a paid employee of a Regent institution or the Board of Regents office;
- an employee of another state of Iowa agency (Iowa Department of Transportation, Department of Administrative Services, Department of Human Services, Iowa Department of Personnel, etc.)
- "Conflict of interest vendor":
- any firm of which any of the above referred persons is a partner or sole proprietor;
- any corporation in which any of the above referenced persons holds five percent or more stock either directly or indirectly.
- "Employee":
- General policy.
- A conflict of interest arises when a faculty or staff member is or may be in the position to influence the university's business, research, or other decisions in ways that could lead to any form of personal gain for the faculty or staff member or others closely associated with that university employee.
- Except as part of official state duties, an official, a state employee, a member of the general assembly, or a legislative employee shall not sell, in any one occurrence, any goods or services having a value in excess of two thousand dollars to any state agency unless the sale is made pursuant to an award or contract let after public notice and competitive bidding. Employees with private sector employment who sells a good or service to a state agency in the excess of $2,000 after public notice and bid, is required to file a Iowa Ethics and Campaign Disclosure Form within twenty days of making the sale, the total amount of the sale, and the type of goods or services being sold. See Iowa Code68b.3 .
- Vendors must be reviewed and approved by the Chief Procurement Officer when there is a disclosure or indication of a conflict of interest.
- Services of faculty or staff other than those in established businesses providing such services as outside contractors, unless approved in the budget or in advance by the Senior Vice President for Finance and Operations, are approved only after the purchasing department has determined the services are either uniquely exclusive or otherwise beneficial to the university in comparison to other available sources of the required services.
- University faculty or staff members cannot be interested, directly or indirectly, in any contract to furnish material of any kind to or for the university. In addition, participation in direct sales (pyramiding) ventures is considered a direct or indirect interest in a contract and is encompassed by this policy. Based on special approvals, faculty or staff members may be reimbursed for out-of-pocket expenditures on presentation of approved vouchers with receipts or other acceptable evidence of actual amounts paid for items purchased for university use.
- Faculty or staff members who would benefit personally from the supplying of goods or services to the university by any prospective supplier may not participate in the decision process leading to the choice of supplier. Specifically, faculty or staff members who have or who reasonably anticipate having either an ownership interest in, a significant executive position in, or a consulting or other remunerative relationship with a prospective supplier may not participate in the recommendation of, drafting specifications for, or the decision to purchase the goods or services involved. Faculty or staff members who know that a member of their family (or any other person with whom they have a personal or financial relationship) has an ownership interest or significant executive position in a prospective supplier are also disqualified from participating in the purchasing of the goods and services. However, faculty or staff members whose sole ownership interest in a potential supplier is held by a fiduciary (such as TIAA-CREF, a blind trust, or a mutual fund) that has the power to acquire or dispose of the interest without consultation with the faculty or staff member are not disqualified from participation in the purchase decision.
11.16 (Reserved for future use)
11.17 Requisitions
(Amended 6/05; 8/14; 7/14/22)Departmental requests for equipment, goods, and services are made on the university purchase requisition form. When preparing a requisition for an outside vendor, sign in to Employee Self Service; under Business & Financial Systems > Financial Systems & Forms, click on E-Pro (Evouchers & PReqs). For step-by-step instructions for completing a requisition, see the online tutorial PReqs Receiving Guide. Complete instructions and procedures for preparation and submission are found in the Purchasing Policy and Procedure Guide.
- Workflow approvals.
- Two individuals must approve all requisitions. The first approval shall be that of the individual requesting/initiating a purchase, and the second approval shall be that of a departmental executive officer, designated subordinate, dean of the college, or other chief administrative officer.
- Requisitions for "advanced" and "expedited" orders, referred to as "confirming orders," enable staff members to make contingency and emergency purchases. Complete procedures are found in the Purchasing Policy and Procedure Guide.
11.18 Requisitions for On-Campus Supplies and Services
(Amended 12/04)Requisitions for supplies or services from campus sources are sent directly to the supplying departments, such as Printing Services, ITS, Medical Electronics, Medical Instrument Shop, Facilities Management, Facilities Management-Maintenance Stores, Chemistry Stores, Pharmacy Service, Photographic Service, Graphics Unit, and Audio Visual Center. All service requisitions initiated through Workflow require two signatures: an initiator and an approver. Contact each service department directly for further information.
11.19 Non-P.O. Vouchers and Procurement Cards
Departments hold responsibility for oversight of non-P.O. vouchers and invoice forms and procurement cards subject to compliance with the requirements of V-11.19 and V-11.20 and competitive bidding principles embodying a duty to secure goods and services of the best quality and price.
- Workflow approvals.