CCE Contract Training

1. Program Related Contracts CCE Contract Training

2. Julie Tate Director, Contract Administration 325-1567 julietate@ou.edu Patty Elliott Assistant Contract Administrator 325-5437 pelliott@ou.edu Alicia Crawford Contracts Law Clerk 325-9370 ccecontracts@ou.edu

3. Routing Sheets • (for contracts to be signed by Dr. Pappas) • Routing for new proposals/programs: • Sponsored Programs – Pink • E&G - Yellow • ________________________________ • Routing for contracts and awards: • Sponsored Programs - Blue • E&G - Yellow

4. CONTRACTS WEBSITE: http://www.pcs.outreach.ou.edu/admin/outreachcontractpoliciesandsamples.html 4

5. CONTRACT CHECKLIST If the other party is writing the contract give them our contract checklist before they create the contract.

6. Signature Authority • No dollars involved (i.e. teaming agreements • and non-disclosure agreements) – Dr. Pappas • E&G • Over $50,000 – Dr. Pappas • $50,000 or less – Dr. Little, • Dr. Biscoe, • Cal Hobson

7. Sponsored Programs Original funding agreements (regardless of dollars) – Dr. Pappas Subcontracts and Vendor Agreements under a sponsored program $25,000 or more – Dr. Pappas under$25,000 – Dr. Little, Dr. Biscoe, Cal Hobson Signature Authority

8. Pre-Award Agreements • Normally done during the proposal process: • Funding Source wants proof that you are collaborating with other party • To outline the terms under which the parties will be working together on a proposal

9. Pre-Award Agreements • Teaming Agreement – formal agreement between the parties, sets out terms of the arrangement – who will be prime and sub or vendor • NDA- confidentiality/non-disclosure agreement • MOU- use a memorandum of understanding instead of teaming agreement if both parties are OU entities • Letter of Intent/Support – less formal, basically states parties are working together

10. Sponsored Program contracts require comprehensive record keeping and audit trails. E&G contracts do not require as high a degree of financial or record keeping responsibility. Contract/Award Types

11. The contract meets any one of the following 3 criteria: • Federal or federal flow-through dollars; or • Audit/record-keeping requirements; or • Sponsor’s language indicates that they perceive this to be a Sponsored Program (e.g. includes Indirect Cost, F&A, OMB Circular A-21, A-110, etc.) Sponsored Program Contracts

12. The requirements of the contract do not cause it to be a Sponsored Program. Direct costs and “administrative costs” are acceptable in E&G contracts, “indirect costs or “F&A” are not. E&G/Fee-for-Service Contracts

13. E&G/Fee-for-Service Contracts Usually: The funds are from a private company/non-profit; or The funds are from a state agency with no federal flow through and there are no audit requirements; or Program is self-funded (registration fees)

14. Federal Awards

15. FederalAwards Grants - to accomplish a public purpose and “no substantial involvement” is expected between the Federal Government and the recipient during performance of the contemplated activity.

16. FederalAwards Contracts - the principal purpose of the instrument is acquisition of property or services for the direct benefit or use of the Federal Government.

17. FederalAwards Cooperative Agreements - to accomplish a public purpose and “substantial involvement” is expected between the Federal Government and the recipient during performance of the contemplated activity.

18. Cost Reimbursable • Fixed Price (Fee) • Fixed Rate • Time and Materials Payment types forE&G & Sponsored Programs

19. Cost Reimbursable: Contractor is reimbursed for actual costs plus a pre-approved/negotiated indirect cost rate. • (Low financial risk, high documentation and audit requirements.) • Usually Sponsored Programs • 2. Actual costs plus negotiated indirect cost rate. • 3. Must have budget attached • 4. Must contain “not to exceed $____” • 5. Will normally have stringent audit requirements Payment types

20. Fixed Price (Fee): Stipulates the exact amount to be paid for the services or products being purchased. • (Higher financial risk because can make or lose money on the project, same fixed price regardless of actual cost. Lower documentation requirements, & low or no audit requirements) • Usually E&G contracts • Must have very specific scope of work • No budget may be attached (only internal) • No indirect costs listed in contract • Stays a firm fixed price regardless of actual cost. • Billing relates to deliverables, NOT to actual costs. (May be billed monthly, or by deliverable timeline ) Payment types

21. Fixed Rate: Stipulates the amount that will be paid per “unit” for the services or products being purchased. (Low to medium financial risk, medium documentation and audit requirements.) 1. Can be E&G or Sponsored Programs 2. Fixed amount for every “unit(s)” 3. Number of units can be known or unknown 4. Can have different types and amounts of units 5. “Not to exceed $____” 6. No budget attached, but can attach a rate sheet 7. Billing must be based on units used, not actual cost 8. Unit(s) can be time, course, students or other deliverables Payment types

22. Time and Materials: Provides for acquiring supplies or services on the basis of: (a) Direct labor hours at fixed hourly rates that include wages, overhead, general & administrative expenses… (loaded labor rates); and (b) Materials at cost, including, if appropriate, material handling costs as part of material costs. (Low financial risk, high documentation and audit requirements) 1. Usually Sponsored Programs 2. Time = loaded labor rate (labor + fringe + F&A) 3. Materials = at actual cost plus any IDC (or all IDC may be loaded into the labor rate) Payment types

23. Prime Agreements, OU Is Vendor If the other party is the prime, they will usually give you their contract. You will need to give them our contract checklist; OR If they ask you for a contract, use our “Prime Agreements, OU is Vendor” template.

24. Company Profile Required for any company (for profit or non-profit), and Individual Independent Contractors $50,000 or over with whom we are going to have any type of business agreement (other than the exceptions listed)

25. Company Profile You DO NOT have to fill out the Company Profile information if you are contracting with the following: * Any governmental agencies i.e. federal, state, city/municipality* Any individual independent contractors less than $50,000 * Any conference service providers i.e. hotels, charter bus companies, AV companies, exhibitors... * Any public service providers from whom we are merely making a purchase i.e. cable company, equipment maintenance, parties from whom we are leasing space....* Any company with whom you have done business for at least one year and who currently has an active contract.

26. Company Profile • The Company Profile can be found online and e-mailed to Patty Elliott, pelliott@ou.edu or you can submit it hardcopy. To ensure the accuracy of the information please contact the company when filling out the profile.

27. SECONDARY CONTRACTS FOR WORK UNDER A GRANT Sub-award/Sub-recipient -OR- Vendor

28. DO NOT SUBMIT SECONDARY CONTRACTS UNTIL YOUR PRIME IS FULLY EXECUTED

29. For grants, use OSP decision flow-chart and explanation to determine whether your secondary contractor related to a grant should be a vendor or sub-recipient.

30. Characteristics of the Sub-award/Sub-recipient Agreement Sub-award/Sub-recipient: The legal entity to which a sub-contract is made and which is accountable to the GRANT recipient/prime for the use of the funds provided. Characteristics of Sub-recipients 1. Provides services that are directly involved in meeting the objectives of the Prime award/project. 2. Performance is measured against meeting objectives of the prime award.  3. Some responsibility for programmatic decision making. 4. Cannot be an individual

31. Characteristics of the Sub-award/Sub-recipient Agreement • Must flow down the appropriate federal clauses as listed in the prime agreement. • Our standard sub-recipient agreement must be modified to meet prime agreement requirements. • Prime has stringent responsibility for monitoring Sub-recipient (High documentation, monitoring and reporting requirements)

32. Vendor: A vendor is an entity responsible for providing generally required goods or services related to the administrative support of the prime award. Characteristics of a vendor include items such as: • Providing the goods and services within normal business operations • Providing similar goods or services to many different purchasers • Acting as a consultant • Operating in a competitive environment • Program compliance requirements do not pertain to the goods or services provided • (Lower documentation, reporting requirements)

33. For contracts, no decision is required. Everyone is a subcontractor. Flow-down clauses apply to everyone.

34. When you are going to have a sub-contract under a prime, you must attach a copy of the prime agreement when you submit the sub-contract.

35. Oklahoma Taxpayer and Citizens Protection Act & Executive Order 12989 • Public Benefits (SAVE) • Prime Contracts (Only if in Contract) • Subrecipient or Service Agreement (State under Injunction & Federal if in Contract) • Independent Contractors (State under Injunction & Federal if in Contract) E-Verify & SAVE

36. PUBLIC BENEFIT • The University is required to ensure that no public benefits are provided to individuals 14 years or older unless they have verified their lawful presence in the United States in accordance with Okla. Stat. Ann. title 56, §71. House Bill 1804 36

37. PUBLIC BENEFIT • If your program gives a public benefit, “money without work in return,” you must get an affidavit as to the legal status of the recipient and if they are not a citizen verify their status through the Systematic Alien Verification for Entitlements (SAVE) Program. House Bill 1804 37

38. House Bill 1804 PUBLIC BENEFIT Services such as training, food and call center information do not require verification. Monetary benefit, such as scholarship, stipend and tuition waiver does require verification. A memo must be included in the file for exceptions. For incentive cards, call Julie.

39. House Bill 1804 PUBLIC BENEFITVERIFICATION Notarized Public Benefit Affidavit of Lawful Presence; and Verification through the Systematic Alien Verification for Entitlements (SAVE) Program.

40. PUBLIC BENEFIT University of Oklahoma, College of Continuing Education AFFIDAVIT VERIFYING LAWFUL PRESENCE IN THE UNITED STATES FOR PUBLIC BENEFITS Effective 11/1/2007 any person fourteen (14) years of age or older who receives public benefits under the provisions of Title 56 O.S. Supp Section 71 must execute an affidavit under penalty of law stating that they are a U.S. citizen or a qualified alien. Last Name:_______________First Name________________ Middle Name______ [Print or type applicants full name above] I, __________________, upon oath and under penalty of perjury, do swear as follows: Initial one option below and fill in required information. ________ Option 1 – Verification of Citizenship: I am a United States Citizen ________ Option 2 – Affidavit Verifying Qualified Alien Status: I am a qualified alien under the federal Immigration and Naturalization Act, and I am lawfully present in the United States. For verification purposes, I am including my Alien Number. Alien Number: ________________________   ___________________________ (Signature of Applicant)

41. Julie Tate Patty Elliott Director, Contract Assistant Contract Administration Administrator 325-1567 325-5437 julietate@ou.edupelliott@ou.edu Alicia Crawford Law Clerk 325-9370 CCEContracts@ou.edu CONTRACTS WEBSITE: http://www.pcs.outreach.ou.edu/admin/outreach contractpoliciesandsamples.html