Section 1720-01-04-.02 - GENERAL POLICIES(1) These policies apply to contracts for personal, professional, and consultant services except the following: (i) purchasing contracts for biddable services; (ii) contracts that must be approved by the State Building Commission; (iii) contracts for legal services; (iv) agreements with Tennessee Board of Regents' institutions and other State agencies. (a) Each contract should contain the University's standard terms and conditions as listed on the back of the standard contract form (see Appendix B). Standard contract forms are available from campus/unit Business Offices.(b) Contracts shall be made on a competitive basis whenever possible (see 1720-1-4-.05).(c) It shall be determined that the services are necessary and cannot be satisfactorily and economically performed or rendered by internal University sources.(d) Contracts shall only be entered into with independent contractors. Independent contractors are individuals or firms that (1) are engaged to perform specific services for a stated fee or contracted amount, (2) provide services to the public, and (3) are subject to University control only as to the end results, and not the methods of obtaining them. Individuals who are not independent contractors should be placed on the University's payroll. If necessary, departments may contact the Treasurer's Office for assistance. (See Appendix C for guidelines.)(e) Under ordinary circumstances, contracts shall not be executed for longer than one year; however, longer-term contracts of five years or less may be executed when substantial savings can result or when a special project requires continuing a particular contractor's services for a longer term. In addition, contracts exceeding five years may be executed if the contract is with an agency of the State of Tennessee or other governmental unit, if the contract requires no expenditure of funds by the University, or if any statutes or regulations specifically authorize a longer term contract in a particular case.(f) Employees or State officials may not receive, directly or indirectly, any amount of the contract as wages, compensation, or gifts in exchange for acting as an officer, agent, employee, subcontractor, or consultant relative to the contract.(g) Contracts with current University of Tennessee, Board of Regents, or other State of Tennessee employees are prohibited. Contracts with former employees are also prohibited for six months after termination. For the purposes of applying this policy, individuals will be considered employees until all salary, termination pay, and payments representing annual leave have been made. However, this restriction does not apply to individuals who have an active honorary, volunteer, clinical, non-clinical, affiliated, or special appointment on the University's payroll system and who have not been paid in the last six months.(h) Contracts with a company or corporation in which employee(s) of the University, Board of Regents or other agency of the State of Tennessee holds a controlling interest are prohibited during such employment and for six months beyond termination. (An individual with controlling interest owns or controls the largest number of outstanding shares owned by a single individual or corporation, TCA 12-4-101.)(i) Contracts are prohibited with a firm, company, or corporation in which a University employee, his or her spouse, or dependent children has more than a five percent financial interest (excluding stocks or bonds in a publicly held corporation) and when the employee may directly or indirectly influence vendor selection.(j) The University department that receives services from a contract executed under these provisions must adequately review the services being rendered and maintain adequate records of these services. After determining that services have been satisfactorily performed, the authorized departmental official will approve and forward a request for payment through normal channels to the Treasurer's Office. Final payment will not be authorized until the contractor has fulfilled his or her contractual obligations.(k) A request for payment should be made by submitting the contractor's invoice(s) or Form T-27, Request for Special Payment (see Appendix C). The following information should be included on Form T-27 or the invoice:1. Date and amount of request.2. Contractor's name, professional title, and home address.3. Name and address of contractor's present employer.4. Contractor's social security number or federal employer ID number.5. Description and dates of services performed.6. Unit of time and rate of pay on which the requested compensation is based.7. Name and number of account to be charged.8. Signatures showing the required campus/unit approvals.9. University contract tracking number.(l) All contracts must require that periodic (monthly or quarterly) progress reports be submitted to the University, except that contracts in which the term is three months or less need not require such reports. When required, progress reports shall be examined by the University and the work found adequate before the next payment is authorized.(m) The University may require the contractor to furnish a performance bond or other proof of insurance coverage.(n) For contracts with corporations, the University may require either or both of the following documentation before approval of the contract: 1. Proper authorization to conduct business as a corporation, including a copy of the corporate charter.2. Appropriate evidence that the individual signing on behalf of the corporation has authority to bind the corporation.(o) Unless otherwise indicated, contracts that provide for reimbursement for travel, meals, or lodging will be authorized and reimbursement paid in accordance with University travel policy, unless payment is to be made from grant or contract funds to which other travel regulations apply.(p) Any verbal negotiations which may take place shall be conducted in a manner so as not to disclose any information from a competitor's proposed terms that would unfairly enable another proposer to improve his proposal as a result. No other information shall be given to a proposer that would provide an unfair advantage over others.Tenn. Comp. R. & Regs. 1720-01-04-.02
Original rule filed March 29, 1978; effective June 14, 1978. Repeal and new rule filed May 27, 1986; effective August 12, 1986. Amendment filed September 20, 1999; effective January 28, 2000.Authority: T.C.A. 49-9-209, "Public Acts of Tennessee, 1839-1840", Chapter 98, Section 5 and "Public Acts of Tennessee, 1807", Chapter 64.