Written
Contract Standards
HOW
TO DETERMINE WHEN MCCCD NEEDS TO ENTER
INTO A STAND-ALONE, WRITTEN CONTRACT
SITUATIONS WHERE MCCCD IS SPENDING MONEY:
The description
of what you are buying on the purchase order, along with the terms and
conditions incorporated into it, don't provide enough detail for MCCCD
to be able to:
- Enforce
your expectations of what the contractor was supposed to do or provide,
if the contractor goofs up (like some types of equipment and installation
purchases)
OR
- Survive
an audit, such as one relating to the expenditure of grant funds, under
which you are expected to show precisely what the contractor did for
the monies paid (like professional services)
OR
- Ensure
that MCCCD is adequately protected, such as where the work that the
contractor is to perform is particularly risky, and there is a higher-than-normal
chance that someone could get hurt (like construction jobs, fireworks
or pest control services)
OR
- Describe
how the relationship between MCCCD and the contractor is to work where
the contractor is providing services or goods on an "as needed"
basis over a period of time (like videotaping football games)
This
situation is generally going to arise for small dollar purchases where
a vendor provides a quote. However, it may also arise in situations
where Purchasing has formally competed for the contract. The solicitation
that Purchasing issues, along with the vendor's response, may constitute
a sufficiently-detailed contract. On the other hand, MCCCD (that is, Purchasing,
Legal and the internal customer) may decide that it isn't sufficient.
| TIP:
The purchase order should always concisely summarize what is being
purchased, duration of contractor performance or delivery dates,
any special payment terms, and incorporate by reference any vendor
quote, or an IFB or RFP and the vendor's response to it. |
SITUATIONS
WHERE MCCCD MAY OR MAY NOT BE SPENDING MONEY:
- MCCCD
needs to ensure contractor accountability, compliance with applicable
laws and policies (like contracts with sponsors or instructors of
non-credit classes to ensure compliance with privacy laws, insurance
coverage)
- MCCCD
is required to do something for an outside party (like permit someone
to come onto our property or authorize someone to use our name and
logo)
- The
contractor demands protection such as hold harmless terms, indemnification,
confidentiality (like MCCCD's lease of commercial space, software
licenses)
- All
intergovernmental agreements
- MCCCD
is paid, or receives funding or other support from an outside party
to develop a program or a product (like agreement to develop MCCCD
digital television channel)
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