Personal Professional Services Contracts
Personal/Professional Services are those provided for a short duration by independent contractors or nonemployees who have specialized skills, knowledge, and resources to perform special or technical services unavailable from agency personnel. Examples include professional services, consulting services, or lecturing. A Personal/Professional Services Contract (PSC) may be considered when one or more of the following situations exist:
- The specialized skills, knowledge, and resources to be provided by an independent contract are not available within the university.
- The work cannot be done in a reasonable time with the institution's own work force.
- An independent, impartial evaluation of a situation is required by a consultant with recognized professional expertise and stature in a field.
- A grant requires work to be done under a subcontract.
- Click this link to get more detailed information about the definition of an Independent Contractor.
- All PSC forms must be signed by Business Services before services begin. Once the contract has been signed by all parties, a Banner invoice is created by Business Services and the check is mailed to the vendor upon the date of last service.
- If the independent contractor is a nonresident alien, please submit PSC to Business Services at least 30 days in advance to allow for compliance with IRS work visa and witholding requirements.
- If the value of the contract is less than $25,000, the short contract form should be used. When the value of the contract exceeds $25,000, the long form is required.
- For PSCs costing under $25,000, departments are not required to engage in a competitive selection process. The department will make reasonable efforts to select the most qualified contractor. The amount of the PSC should not be manipulated to avoid the need for competitive selection procedures.
- When the cost of services exceeds $25,000 and is for general consulting or a business service for which multiple vendors exist, a competitive selection process should be used by departments.
- When procuring the services of guest lecturers, artists, performers, musicians, and speakers, the department is not required to follow the competitive process and may claim sole source.
- The following classes of PSCs require the additional prior approval of the Attorney General:
- PSCs with public agencies of other states.
- PSCs with potential or stated costs over $75,000 (per HB 2321).
- PSCs with architects and engineers with costs over $75,000 (per HB 2321).
- PSCs with amendments making total costs now over $75,000 (per HB 2321).
- Questions about Personal / Professional Services Contracts or about the selection process should be directed to Steve Larvick, 552-6594.