Contracting Policy

POLICY STATEMENT

Authority to enter into any contract on behalf of Saint Joseph’s College is reserved to the President and to the Chief Financial Officer (CFO). Further delegation of authority to other College employees may be made, as provided in this policy, or by written authorization of the President or CFO.

College employees involved in the preparation, negotiation, and execution of contracts are responsible for understanding and compliance with the provisions of this policy. College employees or students who enter into agreements without the requisite authority may be personally liable for the obligations assumed under such agreements, and may be subject to disciplinary action, up to and including dismissal.

RATIONALE

A contract creates legally binding obligations, exposing the College, its employees and other members of the College community to certain statutory and legal risks. This policy is intended to reduce these exposures by ensuring that any commitment of College resources and all related agreements obligating the College are properly reviewed and approved.

DEFINITION

For purposes of this policy, a "contract" is defined as an agreement[1] between the College and one or more external parties (counterparty) which commits College resources (monetary, human, facilities, or tangible or intellectual property) and may be construed to be legally binding. A contract contains a common understanding among the parties as to the essential terms of agreement and the consideration to be exchanged in return for specified performance. A contract may be considered binding even though one party provides something of value to the other party at no charge.

Some examples of contracts contemplated in this policy include, but are not limited to:

  • agreements, including purchase orders, which bind the College to purchase lease, license, or rent goods or services from an outside party;
  • agreements for the sale, lease, use, or donation of College assets or services;
  • agreements that set terms for the acceptance of gifts;
  • licenses or agreements to conduct business on College property;
  • memoranda or letters of understanding or cooperation;
  • contracts with hotels, convention centers, or other facilities;
  • instructional agreements;
  • employment contracts and letters of appointment creating an employer-employee relationship;
  • student or faculty exchange agreements;
  • assignment of the right of a person, group, or agency to use the College’s name, logo, or resources
  • exclusivity agreements with vendors;
  • liability waivers;
  • dispute settlements;
  • nondisclosure agreements;
  • construction and architectural design contracts;
  • financing agreements

DELEGATIONS of AUTHORITY

Authority to execute contracts is granted to select administrators, by title, subject to certain thresholds defined in the table presented below.  In each case, the administrator is limited to contracts within his/her scope of functional responsibility.  Any employee who executes a contract implicitly attests that it has been properly reviewed for compliance with College policies, for insurance requirements, and that there is sufficient budget and/or human resource support to meet the College’s performance obligations.

Any employee who negotiates a contract subject to referral to another individual for execution is responsible for ensuring the contract meets all policy standards prior to its referral.

Authorized Deans or Directors may not execute any contract having a term exceeding one year, regardless of its total dollar value.

Administrator

Purpose

$ Limit[2]

President

Any

$1 million

 

Gift agreements having a naming requirement

all

Chief Financial Officer (CFO)

Any

$500,000

Chief Learning Officer (CLO)

Faculty Appointment Letters

none

 

Academic Memoranda of Understanding

none

 

Affiliation Agreements

none

 

Within scope of functional responsibility, in consultation with President or CFO; including sponsored research agreements

$250,000

 

Others within scope of functional responsibility

$25,000

Chief Advancement Officer (CAO)

Non-Standard Endowment Agreements or Life Income Agreements

$50,000

 

Others within scope of functional responsibility

$25,000

Dean of Campus Life

Events sponsored by student groups

$5,000

Director of Athletics

Standard agreements for single day or single event use of athletics facilities by external users

none

 

Athletics Agreements for athletic conference activities, in consultation with Dean of Campus Life or CLO

none

Director of Residential Life

Standard student housing contracts

none

Director of Events & Alfond Center

Standard contracts with external parties for the use of College facilities, including the Alfond Center and excluding other athletic facilities

$5,000

Deans and Directors

Within the scope of functional responsibility, purchase orders and contracts for to procure goods or services

$5,000

 

CONFLICTS OF INTEREST

A conflict of interest, whether real or perceived, poses risks to individuals and the College. Such risks include allegations of self-dealing, operational difficulties, financial losses, and reputational damage. A conflict of interest exists if the outcome of an agreement could create a benefit for a College employee, his/her relative, or personal friend.  An employee whose participation in a contract transaction exposes him/her to a conflict of interest, s/he must disclose the nature of the conflict to his/her supervisor and may not direct or participate in the negotiation, execution or management of the subject contract. 

POLICY ENFORCEMENT

The CFO has primary responsibility for enforcement of this policy.

POLICY REVIEW

This policy will be reviewed on or before March 31, 2014, and at least annually thereafter.




[1] The terms “contract” and “agreement” are used interchangeably throughout this document.

[2] Dollar amounts refer to the total value of consideration required over the term of agreement.