IMPORTANT NOTE: For individuals seeking to do business as an independent contractor, the Conflict of Interest Certification Form MUST be utilized, and all must complete Part A.  If required, Part B must be submitted to the Director of  Business Services.

See Consultant Agreements for the distinction between that activity and a PO for professional services. 

See also Independent Contractors for issues related to PO's issued to individuals.

Always use a BFS requisition through Procurement Services, so that a Campus Buyer can issue a PO. Whenever a transaction is going through Procurement Services it is a priori a business transaction, meaning that the supplier is a business providing goods or services and must provide a proposal/quotation. 

The risk of the work performance must be transferred to the supplier in all cases, and they must show evidence of business liability insurance naming the UC Regents as additional insured, as per the requirements set forth in UC’s Terms and Conditions of Purchase (Appendix A) and incorporated in all purchase orders for services.  More specific details about reccommended insurance coverage can be found on the website of the Office of the President for the University of California in Business and Finance Policy B63 (http://www.ucop.edu/ucophome/policies/bfb/bus63.pdf).

* Justification in writing - There should be a written justification explaining why this source for the service was selected and how it was determined that the price is reasonable. Were other businesses considered? If so, what are the details of the comparison? If not, why not? Was there any price comparison?

* Proposal in writing - As with all procurements of goods or services, the vendor/supplier needs to provide a written proposal and price quotation, dated, on supplier letterhead.

* Payment Schedule - An issue that is paramount is that fees charged must be clearly linked to scheduled deliverables. If there is a desire for periodic invoicing and payments (not a flat fee at the end) or progress milestone payments, then those progress milestones need to be identified along with their timetable and associated costs. They cannot be paid on an hourly basis that is paid monthly, for example.  Hourly rates should be used by the supplier only as a means of determining a fee; the contractor should charge the University fees for "product"(scheduled deliverables). Here is a chart that outlines a clear link between scope of work, deliverables, schedule and fees which should be helpful to use as a guide in establishing a breakdown of fees and payment schedule (see Attachment – “Four Elements” Chart).