Purchasing Types

Topics

Business Contracts & Consulting Agreements
Cellular and Other Portable Electronic Devices
Computer Software & Vendor Risk Assessment
Gifts: Non-Cash Awards & Other Gifts for Employees and Non-Employees
Memberships

Business Contracts & Consulting Agreements

Definitions

Business Contract: A formal contract between the University and an external company or individual to provide a service or product, i.e. lease of facilities and/or real property, services, and technical expertise.

Independent Consultant: An individual or organization outside the University of professional or technical competence that provides primarily professional or technical advice to the University, i.e. trainer, editor, web design.

Summary of Policy

Business Contracts are used for the following types of transactions:

• Lease or rental of real property.
• Use of non-University facilities, including entering non-University land for testing, collection of samples, or construction.
• Use of proprietary materials such as published works, films, and University-owned software.
• Use or acquisition for goods or services, except for those goods and services customarily provided through the Purchasing Department

Note: If the other party does not present its own purchase order form and there is no need to establish terms and conditions (reimbursement for use of departmental supplies or services), a Special Sales/Service Authorization may be used (see Cash Collections).

• Engagement of an independent consultant to render advice of a professional or technical nature.
• Engagement of performers or non-academic speakers for conferences or program events. (Academic speakers are generally paid an honorarium—see Honorarium section.)
• Agreements for educational and/or training services.
• All business transactions for which the University is asked to accept a non-University contract or purchase order, regardless of the type of work being performed.

Procedures for Processing Requests for Business Contracts or a Consultant Agreement

• Business Contract: Rewrite of this section is in process.  Contact your Regional Office for instructions in establishing a business contract.
• Independent Contract/Consultant Agreement: Complete the Purchase Requisition form. Attach a specific list or definition of what the consultant is going to do following the criteria identified in P&P 380-70. If a proposal has been submitted, attach it. Never sign this proposal. In general, be sure and give basics of Who, What, Where, When and Why.
• When requesting services from 'individuals' as Independent Contractors, please complete the entire Independent Contractor (Individual) Determination Pre-hire Worksheet. Complete all sections and a clear statement of the nature and purpose of the agreement. The County Director must sign as the Department Head. Attach this information to the Purchase Requisition form.

Note: This form is not needed if the contractor is a business.

• Send all completed forms and attachments to the Regional Office for processing.
• You will receive a copy of the signed agreement when complete.

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Tips

• NEVER sign a contract on behalf of the University. Forward all contracts to the Regional Office for processing.
   
• The UCD Business Contracts Office completes consultant agreements. UCD Purchasing or the Business Contracts Office will complete business contracts depending on the type of contract. Contracts are prepared and sent to the vendor/consultant and are not considered valid until signed and returned to their office. You should allow two months for the process to be complete. The contract or consultant agreement should always be signed and completed prior to beginning the service.
   
• If the County Director has signed a facility use agreement, the checking account can be used for payment. If an invoice will come forward for direct payment on your account, or when additional liability language is required and you are not using the local checking account for payment, a Business Contract is required.
   
• Services (i.e. logo design, layout, temporary employment services, cleaning, crop destruction, etc.), no matter the dollar value , require a formal Contract through a UC Purchase Requisition.
   
• An employee cannot be a contractor. The general rule of thumb to identify the difference: If the University has the right to supervise and control the performance and results of that performance, then an employer-employee relationship exists. If the University has neither the right to control the results nor the manner of performance, then an Independent Consultant relationship exists.
   
• If you expect to pay an independent consultant more than $15,000 in any 12-month period, you'll need to submit three or more proposals for review and a clear written explanation of why you are selecting the chosen consultant.

Reference/Website Links

UC Davis Policy & Procedure Manual, Section 330-05 Business Contracts:
Manuals /Policy and Procedure Manual (PPM) /330-05, Business & Revenue Contracts

UC Davis Policy & Procedure Manual, Section 380-70 Independent Consultants: UC Davis Manuals /Policy and Procedure Manual (PPM) / 380-70, Consultant Agreements

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Cellular & Other Portable Electronic Devices

Device Disposal & Data Security
Roles & Responsibilities
Tablets & MiFi Devices
UC ANR Policy & Procedure Manual (PPM) Section 294
Do's and Don'ts

Device Disposal & Data Security

E-Waste
All devices that store information, such as hard drives in laptops, desktops, servers, tablets, and phones, need to be securely shredded and destroyed before the device can be e-wasted. IT will take care of this process for any ANR units. Either:

• Store the device securely until IT can pick it up or
• Return it to IT for proper disposal

UC ANR IT Department's Resource on Security 
Click here for IT's regularly-updated best practices for data security and disposing of old, unused, and broken devices. 

Roles & Responsibilities

Unit Director

• Purchase approvals
• Receive device upon employee separation from UC ANR

Employee

• Submit Cellular & Other Portable Electronic Devices Agreement Form
• Cellular & Other Portable Electronic Devices Eligibility Form
  • Submit if not Academic Staff nor in Community Education Specialist (CES) role
     
• Note: a BOC P-Card must be used to purchase cellular phones & other portable electronic devices
  • Reach out to the BOC Business Partner Team assigned to your county or unit and BOC will make the purchase on your behalf

Account Manager

• Review and monitor purchases
• Ensure appropriateness of transactions and availability of funds

Business Operations Center (BOC)

• Review and monitor transaction eligibility, appropriateness, and fund availability
• Maintain UC ANR Employee Agreement Forms 

Office of Contracts & Grants (OGC)

• Ensure budget and/or sponsor approval if purchase is made using extramural funds 

ANR Information Technology (IT)

• Serve as resource for employees inquiring about tablet purchases

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Tablets & MiFi Devices

Cell Phones: Only cell phones one model lower than the most recent version in the retail market can be purchased without a special justification. Purchasing the most recent version of smart phone is not allowed. Contact your assigned Business Partner Team for the purchase. 

Tablet: Mobile device with internet connect connectivity and other features similar to those on a smart phone. They are not tablet-like personal computers with full desktop operating systems. For ANR's purposes, tablets do not include telephone services (UC ANR PPM 294 Appendix III - pg. 2).

For tablet security, iPads and Android Tablets will just need the mobile version of Malwarebytes. However, other tablets, like a Surface, do need to be imaged by IT. 

Contact UC ANR IT through the ANR Portal to purchase laptops and desktops. 

MiFi: Devices that create local Wi-Fi networks with a carrier's wireless telephone network. BOC recommends that ANR units renting credit card machines have a MiFi device on hand in case of inadequate network connection at the sale location.

Contact IT through the ANR Portal to borrow a MiFi device. 

UC ANR Policy and Procedure Manual (PPM) Section 294

UC ANR PPM Section 294 covers policies, procedures, and best practices for purchasing cell phones and other portable electronic devices. It serves as UC ANR's implementation of the University of California Office of the President (UCOP)'s Policy G-46 on Cellular Phones and Other Portable Electronic Resources. 

Cell service providers, required forms, and best practices
See UC ANR PPM 294 Appendix III – Best Practices Supplement
 

- Approved cell service providers: Section C.
  UC ANR Verizon account or UC Davis system-wide AT&T account
- Forms required: Sections I. and J.
- Cellular & Other Portable Electronic Devices

Agreement (all employees)
Eligibility (all employees except Advisors, Academic Coordinators, and Community Education Specialists - see policy for more information)

Lost or Stolen Device (UC ANR PPM 294 Appendix III Sections D and M) Visit UC ANR's Privacy & Information Security webpage for steps to take in the case of a lost or stolen device.

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Computer Software & Vendor Risk Assessment

There are two important aspects of software purchasing:

1. Data security
2. Business terms

Both are required for any software purchase! Download the flowchart linked below to help you navigate the software purchasing process.

For questions regarding the purchase of computer software/apps please contact the Business Operations Center.

UC Office of the President (UCOP) Policy on Data Security

IS-3 -Information Security

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Gifts and Non-Cash Awards for Employees and Non-Employees

Topics

Gift Card Policies
Other Non-Cash Gifts

Gift Card Policies

For employees
For non-employees

Gift Cards Provided to Employees

What amounts are allowed for gift cards?
All gift cards must contain a value of $10.01 or higher. Value must not exceed $75 per person. 

How often can one employee receive an award (e.g., SPOT Award, STAR Award) within a calendar year?
No more than 3 times. 

Can gift cards be given as part of a Length of Service recognition? 
No

What kinds of gift cards qualify for non-cash awards?
Non-negotiable gift certificates (e.g., gift certificate or gift card for retail establishment or online store). Gift cards for services (e.g., yoga classes, blacksmith lessons, or spa treatments) are not allowed. 

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Can a unit or program purchase multiple gift cards to use as Spot Awards throughout the calendar year?
Yes. Ensure that the cards or certificates are stored in a secure location. Maintain a record of gift card/certificate distribution. Only purchase the number of gift certificates and cards expected to be awarded that calendar year. 

Can gift cards be provided as incentives to complete surveys or questionnaires?
Yes, as long as the gift cards amount to less than $75 per person and contain over $10.01.

Can extramural funding be used to purchase gift cards?
If the awarded grant has established terms that include gift card purchases (for awards or survey incentives), then yes. If not, then appropriate addenda with proper approvals must be secured prior to purchase of gift cards for this purpose. 

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What are the rules on using State funds to purchase gift cards?
Expenditures for gifts may not be charged to State Funds except for a gift awarded to a student for an academic achievement. State funds have been identified by the system-wide budget office as encompassing all State General Funds and State Special Fund appropriations to a campus. This includes all of the 199XX funds except those that are classified as UC General Funds (i.e.; 199331, 19933, 19934, 19940, 19941, and 19942). 

In which cases are gift cards not allowed?
Gift cards are not allowed in the following situations:

• Gift cards for services
• Recreation memberships
• Negotiable gift certificates (i.e., can be redeemed for cash)
• Season tickets for theater, cultural events, or sports
• Gifts for relatives, friends, or romantic partners (i.e., where conflicts of interest exist)
• Personal gifts for birthdays, weddings, relationship anniversaries, graduations, and any other personal event for which a business purpose cannot be reasonably written
• Gifts to any elected official, candidate for public office, organization, or committee, when the gift is a contribution to a political campaign or referendum.
• Length of Service Awards

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Which UCOP Policy governs gift card purchases?
University of California - Policy G-41: Employee Non-Cash Awards and Other Gifts 

Which card should I use while purchasing gift cards to give away during an event raffle?
P-Card or T-Card. Because events qualify as an allowable expense for the Travel & Entertainment Card (T-Card), you can use your T-Card for this purchase. 

Gift card purchases must be made as described in Section 350-23. A Travel Visa card may be used for host gifts (see BFB G-28) and for prizes or gifts associated with an entertainment event (see BFB BUS-79).

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What do I need to include in the expense report for the gift cards?

• Recipient name(s)
• Paid receipt (or invoice if not yet paid)
• Business purpose for the gift

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Gift Cards Provided to Non-Employees

See UCOP Policy G-42: Gifts Presented to Non-Employees on
Behalf of the University. This policy's scope extends beyond but includes gift cards. 

What are the limits for providing gifts (including gift cards) to non-employees?
If the value of gifts provided to a non-employee throughout the calendar year exceed $600 in value, the department must report to the Tax Reporting and Compliance office using the appropriate tax form.

Can I provide an honorarium using a gift card?
No

Can I compensate an invited guest (e.g., third party lecturer or workshop host) using a gift card?
No

Can I use Community Education General Support (CEGS) accounts to pay for gift cards?
No

When can I provide a gift to a non-employee? 
Only when the business purpose for the gift furthers a University business purpose (e.g., public service or research). In this case, gift cards could be provided to students or volunteers involved in a study or University-sponsored activity. 

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Non-Cash Awards & Other Gifts

For Employees
For Non-Employees

Policy: The University’s policy aligns with IRS regulations. Therefore, the awards and gift limits are established so that the gift does not result in taxable income to the employee. 

https://policy.ucop.edu/doc/3420353/BFB-G-41

Employee Non-Cash Gifts & Awards

Sympathy Gifts:

Tangible Personal Property: $75 limit
 

Gifts of tangible personal property, such as flowers, may be presented as an expression of sympathy in the event of the death or major illness of an employee or employee's family member.

If the $75 limit is exceeded, it will be considered taxable income. 

Cash Contributions: $200 limit 

A cash contribution may be made to a charitable organization in lieu of a gift of tangible personal property. Such contributions must be accompanied by a transmittal letter on official University letterhead, which states that the donation was made on behalf of the University. Contributions may not be made to any political campaign, political party, committee, or group engaged in any attempt to influence the general public with respect to legislative matters, elections, or referendums.

Since a contribution made to a charity must be made in the name of the University, there is no tax consequence if the limit is exceeded.

Prizes and Other Gifts: $75 limit – Taxable if limit is exceeded

Departments will hold raffles for door prizes and other gifts to entice employee participation in an event. In addition, departments may provide gift cards and other tangible personal property to employees as an incentive to complete a survey or questionnaire. Departments should limit the value of such prizes and gifts purchased with University funds.  A list of “winners” need to be provided with expense reimbursements. 

Retirement: $400 limit - Taxable if limit is exceeded

If the cost (or value) of a length of a retirement award that is tangible personal property exceeds $400, only the amount more than $400 is taxable to the employee. Retirement gifts must be given as part of a meaningful ceremony and should not be determined by an employee's classification.  Gift cards can be given.

Unallowable Awards and Gifts 

• Gifts of cash, except donations to a charity as an expression of sympathy,

• Negotiable gift certificates and cards,

• Gift certificates and cards for services,

• Recreation memberships,

• Season tickets to sporting or cultural events,

• Gifts provided to employees in connection with birthdays, weddings, anniversaries, holidays, farewells, graduations and other occasions of a personal nature.

Funding Restrictions

State Funds can be used for retirement awards. 

State Funds cannot be used for:

• Sympathy gifts and cash contributions, 

• Raffle prizes, 

• Door prizes, 

• Incentive gifts to complete surveys and questionnaires.
   

Non-State Funds can be used for: (endowments, gifts, income, etc)

• Sympathy

• Prizes

•        Retirement

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Non-Employee Gifts 

Policy: The University’s policy aligns with IRS regulations. Therefore, the gift’s purpose must further a University business purpose, and gift limits must be in line with IRS regulations.

https://policy.ucop.edu/doc/3420354/BFB-G-42

Basis for Allowed Gifts

Moderately-priced gifts made on behalf of the University to non-employees, students, or outside organizations are allowed when the gift:

• Benefits the University,
• Is in furtherance of a University business purpose, and
• Is clearly necessary to the University's fulfillment of its role as a good community citizen. 

The business purpose for making the gift, or the business benefit the University derives or expects to derive, must be documented in writing. In most cases, the promotion of goodwill in the University community is an acceptable business purpose. The cost of such gifts must be reasonable in relation to the actual or expected benefits.

To avoid any appearance of favoritism or a conflict of interest, no officer or employee should present a gift on behalf of the University if it appears that the gift is being offered because of the position held by the recipient.

Other than a donation to a charitable organization in memory of or in support of an individual or cause, this policy does not permit cash gifts.

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Gift Value and Frequency

Promotional Item: $75 per individual

Examples: 

• T-shirt

• Cap

• Pennant

• Mug

• Pen

• Item that bears the logo of the University or a campus

Appreciation, Recognition, or Incentive: less than $600 per individual ($600 or more a 1099 will be issued and reported to the IRS)

Items of more than minimal value. (e.g., a plaque, watch, logo item, book, non-negotiable gift certificate, tickets to a sporting, theatrical, or musical event, or a meal provided to an individual in appreciation or recognition).

Gifts to students / volunteers for survey or questionnaire participation

Door prizes and other gifts provided to non-employees to encourage participation a University-sponsored event are also included in this category.

Sympathy Gifts: less than or = $200 per individual

Flowers, candy, or a book, presented as an expression of sympathy in the event of the death or major illness of an individual associated with the University or a member of the individual's family or household.

Alternatively, this policy allows for cash contribution to a charity in lieu of a gift of tangible personal property. Such contributions must be accompanied by a transmittal letter on official University letterhead which states that the donation was made on behalf of the University.

Funding Restrictions

State Funds 

May only be used to award a gift to a student for an academic achievement.

Contract and Grant Funds 

Federal, local government, and private contract and grant funds may not be used to purchase gifts, unless such expenses are specifically authorized in the contract or grant and only to the extent and for the purpose(s) so authorized.

Non-State Funds (endowments, gifts, income, etc.)

May be used to purchase gifts, in accordance with this policy and subject to any restrictions on those funds. In the event of a conflict between the terms of the funding source and University policy, the more restrictive policy shall apply.

Memberships

Definition

• It is the policy of the University to consider institutional membership in organizations that would promote the advancement of education and research, enhance the professional standing of its administrative personnel and facilitate favorable campus-community relations.
• Individual memberships in scholarly societies are considered to be personal responsibilities to be paid by the individual.

Summary of Policy

• Membership fees shall not be paid to organizations that are primarily social.
• Membership fees shall not be paid to support any political action or activity.
• Memberships and employee participation in community organizations shall be held to the number necessary to achieve effective campus-community relations within a reasonable expenditure of funds.
• Departments may purchase an institutional membership in an organization to secure its periodicals if the periodicals cannot otherwise be secured. Such periodicals will become the property of the University rather than of an individual, and must be made available to all department faculty, staff and students.
• All institutional memberships require prior approval of the Regional Director and must be paid by Direct Charge.

Procedures

• The invoice or completed institutional membership form should be attached to a completed Direct Charge form, approved by the County Director and forwarded to your Business Partner Team.
• Specific benefits to the local office, local programs or clientele must be typed in the description section of the form.

Reference

https://hr.ucdavis.edu/departments/elr/policies/ppm

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