Contracting

The following are the primary procurement methods employed by Illinois Tech. Any method beyond those listed below requires Procurement Services’ prior approval. All purchases must comply with the

• K.1 Procurement Policy
• J.3 Travel Policy
• Q.1 Authority for Negotiation and Approval of Contracts Policy

and all other related University policies.

Any questions regarding the types of items and the method through which they should be purchased should be directed to Procurement Services.

The Procurement Method Guiding Matrix

The Procurement Method Matrix below can be used as a high-level guideline on what procurement method to use for the type of purchase and total amounts.

Buy It eMarketplace Requisition / Purchase Order (PO)

A purchase order (PO) is the preferred purchasing method for all purchases regardless of dollar amount. It is done through a requisition process in Buy It eMarketplace, the University’s eProcurement system, which encumbers funding and routes in the system for departmental, budgetary approvals, before it is converted into a PO (PE) by Procurement Services and dispatched to the vendor. A PO will reference the University’s terms and conditions, and states that payment will not be remitted to any invoice that does not reference an Illinois Tech PO number.

Procurement Services strongly encourage departments to go through the requisition process and have a PO in place prior to receipt of goods or services from a vendor. After the fact POs / check requests, otherwise called retrofit orders in Buy It eMarketplace, issued solely for the purpose of paying an invoice for goods and services already received/performed is not a leading practice, and is therefore generally not permitted. Exceptions to the use of a PO is listed in the table below.

Procurement Card (P-Card)

The Procurement Card (P-Card) is a credit card issued to authorized employees to make allowable purchases up to $2,499.99 on behalf of the University. The P-Card is also used for authorized University business travel expenses by University staff and faculty.

If a purchase need/order/requisition aggregates or will aggregate to $100,000 or more in any given fiscal year, University policy mandates that the contract related to such transaction MUST be reviewed by the Office of General Counsel prior to execution. The Office of General Counsel is available to review any contracts associated with transactions of lesser value, and review is strongly recommended when such contracts are for an extended duration, contain provisions that seek to impose potential liability on the University or significantly limit the vendor’s potential liability, relate to potentially sensitive subjects, are potentially high risk, or contain especially unusual terms and conditions.

Not everyone can sign a contract. An individual does not have authority to initiate or to enter into a contract or transaction, and should not represent that he or she has authority unless such authority is specifically provided for in the Q.1 Authority for Negotiation and Approval of Contracts. If authority is not clear, the Office of General Counsel should be consulted. Illinois Tech shall have no obligation to honor contracts or transactions entered into that are not in compliance with this policy. Anyone who acts in violation of this policy is subject to discipline in accordance with applicable procedures.

There are a number of ways for Illinois Tech to contract with vendors depending on the nature of the goods/services purchased and the contracting vehicle utilized.

Illinois Tech Purchase Order Terms and Conditions

If the purchase of goods/products are of a standard nature, for example, off the shelf products that are not custom designed/built, then the purchase should be made using Illinois Tech's Purchase Order Terms and Conditions, which are included with every PO that we issue. This is another reason why departments are encouraged to go through the requisition / PO process before engaging the vendor so that the department and the University are legally protected by our terms and conditions.

Illinois Tech Standard Agreements

For the purchase of services including construction, research, and professional services/consultants, Illinois Tech's standard construction, research, or consulting services agreement should be used. To be clear, the purchasing party should inform the vendor that the University has a form of agreement for the transaction and this form should be sent to the vendor as early in the process as practicable. If a University template is used and no changes are made to the contract, other than the inclusion of the business terms, then the Office of General Counsel does not need to review the agreement again as it has already authorized and approved the template. If a vendor requests changes to the template unrelated to business terms, then those requested changes require prior approval by the Office General Counsel.

For a list of Illinois Tech most frequently used standard contract templates, please see the table below.

Non-Standard or Vendor Contract Terms and Conditions

If the purchase of goods/products or services is made using non-university standard or vendor provided contract terms and conditions, the contract MUST be reviewed and approved by Illinois Tech's General Council, before the department can engage the vendor to provide the needed goods or services.

Please Note: If you are engaging consultants or professional services on sponsored research/grants related funds, please contact Office of Sponsored Research and Programs (OSRP) and they will assist you with the contracting process.

Illinois Tech Standard Contract Templates

As the P- Card is billed to and paid for by the University, P-Card holders are personally responsible for their assigned P-Cards, must not allow others to use their P- Cards, and should diligently secure the card at all times to guard against fraud and unauthorized use of the P-Card. P-Card holders must also complete the necessary receipt attachments, provide business expense description, and complete monthly reconciliation process in a timely fashion.

Request for Check

A check request for payment is only allowable for Illinois Tech student travel and expense reimbursements. All vendor invoice payments must go through the Buy It eMarketplace requisition process unless it is a special case and has received specific approval from the Director of Procurement Services.

Expense Reimbursements

Use of personal funds is allowed for the purchase of allowable goods when logistical or extenuating circumstances occur that preclude the use of a PO or P-Card. The purchase of allowable goods using personal funds in excess of $500 is prohibited unless it is the only viable alternative given the circumstances. Services may not be procured with personal funds, excluding travel-related services such as dining, ground transportation, etc.

Exceptions to the Buy It Requisition / PO Requirement

There are some specific exceptions when it comes to the requisition / PO process which are identified in the table below: