3210 PR.01 Professional Services and Consulting Process

Revision Date: 
July 1, 2017

* This procedure has been updated to accommodate Workday Financials business processes and terminology.  Please note the effective revision date and changes below.

  • Revised Professional Services and Consulting business process flow (map)
  • New Form 3210 FR.05 PSCA Exhibit A: Scope of Work with clear deliverables, compensation, and payment schedule linked to the deliverables.
  • Updated the 3210 FR.03 Professional Services and Consulting Certification Form and 3205 FR.03 Explanation for Sole Source to contain attestation avoiding a conflict of interest.

Contents

1.     Purpose

2.     Accountable Official

3.     Applicability

4.     Business Process Map

5.     Professional Services Consulting Process

6.     Documentation Requirements

7.     Signature Authority

This procedure outlines the process for engaging external service providers at Yale University.  Topics covered include: when a Professional Services and Consulting Agreement (PSCA) is required, competitive bidding, determining if an individual is an independent contractor or an employee, the role of Purchasing Services, required documentation, and signature authority.

The Chief Procurement Officer has responsibility for the systems, processes, effectiveness, and efficiency of engaging external service providers at the University.

The procedure applies to all University officials, departments, and administrative offices.

The Professional Services and Consulting business process is illustrated below.  Each step is detailed in the lettered section (Section 5) following the process map.

The lettered sections below correspond to the steps illustrated above (highlighted in yellow) in the process map and assist in the completion of each step in the process.

  A.  Identify Business Need

Once a requester identifies a need for goods or services, he or she is responsible for documenting the business need and funding, and for determining that the costs are reasonable and allowable for the intended funding source.

Documentation of the business need for a purchase is an important part of the purchasing transaction record and must be attached to the Purchase Requisition for purchases.  In addition to supporting effective financial management, this documentation is required during bidding and when requesting quotes.

B.  Is the Individual a Current University Employee?

If the individual is a current employee, please refer to Human Resources Compensation and Classification.  If the individual is not a current employee, continue with step C below.

C.  Perform Employee vs. Independent Contractor Test

To determine if the individual or entity is an independent contractor or a University employee, follow procedure 3210 PR.02 Employee vs. Independent Contractor test.  If it is determined that the individual is an employee, Human Resources (for staff) or the Provost Office (for faculty) will approve the process in Workday.

D.  Complete the Professional Services and Consulting Certification Form

If it is determined that the individual or entity qualifies as an independent contractor, please complete Form 3210 FR.03 Processional Services and Consulting Certification Form.

E.  Determine if Office of Sponsored Projects (OSP) approval is required

        An OSP approval is required if:

  • The PSCA exceeds $10,000 (including all amendments); or
  • The independent contractor is identified as being responsible for the design, conduct or reporting of the research (regardless of the dollar threshold of the PSCA); or
  • The scope of work, covered by the PSCA, involves human or animal subject research (regardless of the dollar threshold of the PSCA).

Note: The initiator must obtain the signature from Office of Sponsored Projects on the 3210 FR.03 Professional Services and Consulting Certification Form for approval.

F.  If dollar amount > $10,000, a Professional Services and Consulting Agreement (PSCA) is required

A Professional Services and Consulting Agreement is required if:

  • Dollar amount is $10,000 or more per engagement.

A Professional Services and Consulting Agreement may be used if:

  • The dollar amount is under $10,000, but the complex nature of the work warrants the additional contract protection of the PSCA.

If no PSCA is required, prepare the Requisition:

  • Prepare the Requisition, and include Form 3210 FR.03 Professional Services and Consulting Certification Form.

Note: All agreements, regardless of dollar amount, must be requisitioned through Yale’s e-procurement solution and include Form  3210 FR.03 Professional Services and Consulting Certification Form.

G.  Complete Professional Services and Consulting Agreement (PSCA)

Complete Form 3210 FR.01 Standard Professional Services and Consulting Agreement and obtain supplier signatures.

  • Include detailed Form 3210 FR.05 PSCA Exhibit A: Scope of Work with clear deliverables, compensation and payment schedule linked to the deliverables.

Note: Any changes to the standard PSCA terms and conditions must be reviewed by Purchasing Services.

H.  Follow Competitive Bidding Guidelines

The University has compiled a Buying Guide, which contains a comprehensive list of suppliers and purchasing methods for the most commonly purchased goods or services.  Once the requester has identified the business need for the purchase, determined that the purchase is allowable and reasonable, and confirmed that the cost is below the University’s competitive bidding threshold, the initiator must review the University Buying Guide.

If the purchase cost is greater than the University’s competitive bidding threshold, the Initiator must follow the competitive bidding process described in 3210 PR.02 Competitive Bidding Process.  Departments should consult Purchasing Services for assistance with competitive bidding.

If the University Buying Guide does not identify any preferred suppliers that can supply the needed good or service, refer to Section 3201.4 of Policy 3201 General Purchasing Policy for guidance on supplier selection.  If necessary, contact Purchasing Services for assistance.

I.  Prepare Requisition

Prepare requisition and attach all necessary documentation as internal attachments:

  • Form 3210 FR.01 Professional Services and Consulting Agreement
  • Form 3210 FR.05 PSCA Exhibit A: Scope of Work
  • Insurance Certificate with Yale named as additional insured OR an Insurance Waiver
  • Form 3210 FR.03 Professional Services and Consulting Certification

J.  Purchasing Services Review and Approval

Purchasing Services will take the following required steps for review and approval:

  • Review any changes to Yale’s standard Professional Services and Consulting Agreement terms and conditions.
  • Negotiate on behalf of the University.
  • Ensure that all required documentation is present and included with the transaction.
  • Ensure that supplier signatures have been obtained.
  • Approve the Professional Services and Consulting Agreement on behalf of the University.
  • Approve the requisition and create the required purchase order.

Equal to or greater than $10 K

Less than $10 K

Supplier Setup

  • W-9
  • W-8 Ben
  • Insurance Certificate or Insurance Waiver

Supplier Setup

  • W-9
  • W-8 Ben
  • Insurance Certificate or Insurance Waiver

Complete Professional Services and Consulting Certification Form 3210 FR.03

  • Approvals

Complete Professional Services and Consulting Certification Form 3210 FR.03

  • Approvals

Complete Professional Services and Consulting Agreement Form 3210 FR.01

Professional Services and Consulting Agreement

  • Not required

Grant Approval

  • Refer to Policy 3210 for special requirements applicable to grants and contracts

Grant Approval

  • Refer to Policy 3210 for special requirements applicable to grants and contracts

Only those officers or employees who have been given signature authority by the By-Laws, or who have been delegated authority as prescribed by the By-Laws, can execute and deliver instruments, contracts, receipts, and other documents to which the University may be or become a party.  Unless delegated this authority, no others are authorized to sign University contracts and agreements.