Execution of Contracts Policy

Purpose: To outline the review and approval process for executing (signing) contracts on behalf of the university.

Applies to: All Pittsburg State University employees.

Policy:

The Kansas Board of Regents (Board) Policy has authorized state universities to enter into contracts, subject to policies of the Board, if the contract is related to the operation, function and mission of the university.

A. Authorized Signatories

Only the President of the university and those university officers designated by the President, as certified to the General Counsel for the Board of Regents, are authorized to execute contracts on behalf of the university and their areas of signatory authority. The President’s delegation letter for the current year is available in the Policy Library.

Any person who is not authorized by written delegation, and who signs a contract that purports to bind Pittsburg State University is acting without authority and may be held personally liable for the contract.

B. Contract Procedures

1. All university contracts must be in writing and must be in the name of Pittsburg State University. Colleges, individual schools, divisions and departments shall not enter into contracts.

2. Contracts must follow university policies and procedures.

3. When a contract will require the University President’s signature, the employee will seek pre-approval from the University President to enter into negotiations.

4. Any negotiated contract involving monetary exchange of funds must be reviewed by the appropriate offices (Human Resources, Budget, Purchasing, etc.) as well as reviewed by the head of the affected department(s) prior to submission to General Counsel

5. After contract negotiations have been reviewed by any necessary department(s), the General Counsel will review the following contracts prior to signature:

• all contracts equal to or in excess of two thousand five hundred dollars ($2,500.00);
• contracts lasting longer than one year or with automatic renewal clauses;
• memorandum of understandings/agreements;
• grant certifications (awards & subawards);
• income producing agreements;
• non-disclosure/confidentiality agreements;
• releases/hold harmless agreements;
• employment contracts with special terms;
• independent contractor agreements;
• contracts with other state or non-U.S. agencies; and
• any other contract with the university determined to be of high risk or of significant impact to the university.

• Federal and state grant awards (subawards, research agreements, material transfer agreements, etc.) shall be retained by the grant office with a copy in the department administering/receiving grant funds;
• Service and purchase contracts shall be retained by the Business or Purchasing office;
• Memorandum of Understandings/Agreements are maintained in the applicable department with a copy to the General Counsel’s office; and
• Employment contracts are maintained in Human Resources; and
• All other contracts involving the expenditure of funds in excess of $25,000 will be maintained in the applicable department with a copy to the General Counsel’s office (as requested).

EXCLUSIONS AND SPECIAL CIRCUMSTANCES

1. The Board requires additional procedures for certain types of contracts. The following will require additional review:

• All contracts or contract forms, excluding contracts directly related to capital improvement projects, involving an expenditure of funds or transfer of funds by the university in an amount of one million dollars ($1,000,000) or more requires written notice to the Board’s President and Chief Executive Officer for review;
• Capital improvement projects as defined in Board policy (Board Policy Manual II.E);
• The disposal, sale and purchase of real property (Board Policy Manual II.E.11); and
• Contracts with other state agencies for projects performed by university personnel (Board Policy Manual II.B.8.c).