Medical College of Georgia Administrative Policies
and Procedures
Office of Primary Responsibility: Materials Management,
Purchasing
No. 1.2.17
Professional Service Agreements
1.0 PURPOSE:
To establish the procedures used by
Budget Units to request authorization to use Service Agreements and to pay authorized expenses.
2.0 POLICY:
The Institution is permitted to
make direct payments for "Services, fees & expenses", without prior approval by the Department of
Administrative Services (DOAS). Examples of typical "Services", along with supporting
documentation requirements, are listed below. The Medical College of Georgia "Service Agreement
Request" (SAR) form with Attachment A will be used to request authorization for all contracting
services, to inform Accounts Payable and Purchasing of payment method and to certify that the
services were performed satisfactorily. The same documentation and expense limits, applicable to
MCG employees, (See
policy 1.2.07) apply to all individuals or companies supplying services. Budget Units are
required to obtain advance approval using the SAR form before services are contracted and any
payment authorized.
Note:
1. This procedure may not be used
for paying individuals for services that should be and are typically performed by classified
employees. Examples of ineligibility include: typing or other clerical duties, routine technical
or laboratory duties, custodial duties, etc. Services of this type should be performed by
individuals either recruited by Human Resources to fill vacant budgeted positions on a temporary
basis (See
Employment Procedures 1.4.01) or by Extra Duty Personnel who are currently employed in other
Institutional Budget Units (See Employment of Extra Duty Personnel -1.4.02). These individuals
would be paid through the normal payroll system.
2. Service Agreements may not be
used to pay individuals or companies for services that are offered by other Budget Units.
Examples of ineligibility include: medical illustrations, printing services, copying, security,
etc. Service of this type should be processed by Inter-Departmental Request (IDR
- 1.2.04). The following services listed in Section 3.0, Category may be provided using the
Service Agreement (SAR) form processed through Accounts Payable or Purchasing.
3. A SAR will be used for all
one-time services that meet the institutional requirements. These will be processed through
Accounts Payable with necessary backup documentation. All multiple payments, long term payments,
or payments of $5,000 or more for services, will be processed through Purchasing and issued a
formal service contract for the duration of the needed service, but not longer than one (1 )
year. The SAR will only be required one time, at the onset of the contract.
3.0 CATEGORY:
1. Guest Lectures:
Reasonable and necessary travel expenses and honoraria may be paid to guest lecturers. Use of the
Travel Expense Form is strongly encouraged. The honorarium portion may be available for
distribution at the time of lecture, reimbursable travel expenses will be paid upon receipt of
properly documented travel expense statement.
2. Continuing Education:
Guest Faculty reimbursable expense payments have the same requirements as Guest Lecturers.
Payment for conducting the course will be made through the payroll system within the limits
outlined in the Continuing Education Policy Manual.
3. Preceptors: A fee for
serving as Preceptor in the Family Practice Residency Program is payable by the Service Agreement
Request (SAR), one SAR form should be completed at the beginning of the fiscal year. Each
period's fee would be paid by sending a copy of the original SAR with line items 7-12 completed
to Accounts Payable, along with required documentation, a copy of the student progress report
signed by the Preceptor.
4. Professional Services:
Professional services are defined by state law as only those services rendered by a member of one
of the following professions while acting in their professional capacity: Certified Accountant,
Lawyer, Physician, Dentist, Architect, Engineer, Applied Psychologist, Land Surveyor,
Chiropractor, Optometrist, Veterinarian. Professional Services do not include support personnel
such as: clergy, paralegals, draftsmen, lab technicians, etc. All fees and reimbursable expenses
must be supported by an invoice.
5. Non-professional Services: These services will usually be processed through the Purchasing Department: a) individuals or
companies for: Interior Design, Computer Services (Programming, Coding), etc. b) individuals or
companies for consulting by providing or rendering advice only. c) individuals or companies for
contract of temporary labor personnel (e.g. Personnel or Trade companies). Provisions of the Fair
Labor Act will not apply to valid contractual agreements. Individuals under such contract may use
Agency's equipment or supplies while performing these services.
4.0 RESPONSIBILITY
1. Part-Time Employment: Part-time/temporary employment
of staff where services provided are expected to exceed one (1) year must be processed through
Human Resources.
2. Construction/Renovation:
Request for service provided by Engineers, Architects, Surveyors, Appraisers or General
Construction Contractors should be processed through Facilities Planning.
5.0 PROCEDURE:
5.1 Department
1. Determine need for Service
Agreement.
a) If $4,999 or less, contact
vendor desired and negotiate fee and expenses, competitive bidding is not required.
Forward Vendor Information Form
(Attachment A) to Vendor for completion and signature.
b) If $5,000 or more, complete the
Checklist form (Exhibit I) and if a sole vendor, complete the
Sole Source form (Exhibit II) and forward to
Purchasing along with the completed vendor Information Form (Attachment A). (See item 4).
2. If <$4,999, complete SAR form,
items 1-11, 13-18 and item 23, Make photocopy for your records. Attach the SAR form to the
above-required forms pending dollar amount and/or circumstances. The SAR form must be completed
properly to be processed. (See item 4)
3. Forward to Department Head or
Chairman to begin the approval process.
4. The Vendor Information Form was
designed as an evaluation tool that will allow Purchasing and other Departments to determine
whether a service provider meets the guidelines of a contractor or MCG employee. Depending on the
service provider's response, the department will submit the information requested in items 1 or 2
or contact Human Resources for employment processing procedures. The Purchasing Department will
be available to assist in reviewing the service provider's responses.
5.2 Department Head or
Chairman:
1. Review form to verify: a)
Services are not available on campus, b) Services should not be processed through Human
Resources, c) The vendor will fulfill all requirements, d) Fees and expenses are appropriate.
2. If request is not approved,
notify requester of service.
3. If request is approved, forward
to Dean or Division Director.
5.3 Dean or Division
Director:
1. Review form for necessity,
appropriateness and approvals.
2. If request is not approved,
notify requester of service
3. If request is approved, forward
to Sponsored Accounting if sponsored funds are utilized, Accounts Payable if $4,999 or less, or
Purchasing if over $5,000 or more.
5.4 Sponsored Accounting:
1. Review form to insure the
account is valid and activity is appropriate for payment by the grant.
2. If request is not approved,
notify the requester of service.
3. If request is approved, forward
to Accounts Payable if $4,999 or less or Purchasing Department if $5,000 or more.
5.5 Accounts Payable
1. Review form for completeness of
information and signatures and insure the agreement, activity and funding are within the state
laws and MCG guidelines.
2. If request is not approved,
notify requester of service. If a further review is needed, Accounting will forward the form to
Purchasing.
5.6 Human Resources
1. If a determination is made after
reviewing the service provider's response to the questions on Attachment A that the service
provider does not meet the guidelines of an independent contractor, the department requesting the
service will coordinate with Human Resources to hire the Service provider as a new employee.
5.7 Purchasing
1. Review SAR and Check List form
for completeness (and Sole Source form if appropriate).
2. If Sole Sourced, prepare a
Service Agreement, forward the contract form and the Vendor Information form (Attachment A), to
the vendor for completion and signatures. If the completed form has not already been obtained by
department, forward to vendor for completion and signatures.
3. If not a sole vendor, a Request for
Information (RFI) and/or an Invitation to Bid (ITB) will be processed to as many vendors as
required.
After the RFI and /or ITB process, the
vendor will be forwarded the Service Agreement Contract and Attachment A to be completed and signed.
4. If the returned Service Agreement
Contract and Attachment A are returned to Purchasing and not approved, they will be forwarded to the
Legal Office or the department will be notified that the service provider does not meet the
guidelines of an independent contractor and the department will be advised to contact Human
Resources for employment processing assistance.
If the agreement is not approved by
the Legal Office (after all efforts are made to resolve the legal differences) they will contact
Purchasing and the requester of the service.
5. If the agreements are approved, the
Legal Office and/or Human Resources will return to Purchasing for final processing and the issue of
the Notice to Proceed to the vendor and requester of service.
Date: 15 September 1980 | Rev. No.: 01-1 | Rev.
Date: 1 July 2001 | No. 1.2.17
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