Transcript Contracting & The PCard Ernette Leslie, UA Contracting Procurement & Contracting Services University Services Annex, 6th Floor Tucson, AZ 85721 (520) 626-3919 or (520) 621-0779

Contracting
&
The PCard
Ernette Leslie, UA Contracting
Procurement & Contracting Services
University Services Annex, 6th Floor
Tucson, AZ 85721
(520) 626-3919 or (520) 621-0779
Overview
 Define a Contract
“An ENFORCEABLE AGREEMENT”
 Enforceable meaning the courts can make you comply and the
Agreement meaning both parties signify consent.
ABC’s of Contracting
 Not all people can contract-Must have parties with the
capacity to bind (only those authorized by President Shelton or his
designee can contract on behalf of the University);
 The objective, goal and agreement must be legal and not
forbidden (various terms and conditions, we as a state institution
cannot legally agree to);
 Contract may be in any form-no specific form required (i.e.
shrink wrap license, order form).
Elements of a Contract
 Must be legal;
 Must have the capacity to bind;
 There must be an offer;
 There must be an acceptance (counteroffer);
 There must be consideration (can’t be illegal & must have
legal value)
FORMS OF CONTRACTS
 Unilateral
 Bilateral
 Oral
 Written
Risks and Liability Involved
 When one of the requirements for contracting for the
University isn’t met, what are the risks and who becomes
responsible?
 What happens if an individual signs a contact without proper
delegation?
 Can an individual assume this risk on behalf of the
University?
Using the PCard with Contracts
 Internet Purchases with PCard that require ‘I agree’ or ‘I
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disagree’
Contracts must be reviewed by contracting BEFORE the
PCard is used for payment
Contracting Office requests a two week lead time on
complex contracts (i.e. Large events)
Cannot use State or Sponsored accounts with PCard Plus
Maximum tip allowed for PCard purchase is 20%
What are the standard contract
language requirements?
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Contracting Party - The Contracting party for the
University is the Arizona Board of Regents on behalf of
The University of Arizona;
Interest Rate - 10% simple per annum is the maximum
rate allowed by AZ law;
Law to Govern - As a state agency, the University cannot
agree to be bound by another state or country's law;
Arizona law must govern;
Indemnification - it is illegal for an Arizona state agency to
indemnify or hold another party harmless from liability
(Arizona Attorney General's Opinion No. 67-36-L);
Cont’d
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Insurance - As an Arizona state agency, the University
participates in the Arizona State Risk Management selfinsurance program as provided under A.R.S. § 41-621. We
do not additionally insure other parties.
Confidentiality - The University can agree to hold
confidential material provided by another party (provided
such material is marked as confidential) for a period of 3
years following termination of the Agreement. All fully
executed University Contracts are public record and
cannot be held confidential.
Penalty - The University cannot agree to pay penalties for
early cancellation or for any other reasons (A.R.S. § 35154);
Cont’d
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Attorneys' Fees - The Legislature does not allocate funding
for payment of another party's attorneys' fees; we can
agree to pay all "court-awarded" attorneys' fees;
Unions - As a state agency, the University is not permitted
to contract with or be bound by union rules, regulations
or jurisdiction.
Right to terminate - The University needs the option to
cancel a contract prior to it's term - usually by giving the
other party 30 days prior written notice;
Cont’d
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Limitation of Actions - The University as an Arizona state
agency is exempt from the Statute of Limitations;
Perpetuity - The University cannot enter into perpetual
contracts;
Non-refundable Deposits - The University cannot agree to
pay a non-refundable deposit. A deposit can be used to
fulfill payment obligations for which the University is
owing for goods or services received.
Software infringement - The University cannot agree to
incur software infringement liability of software provided
by another party;
Cont’d
 Audit - If the Contract is for the furnishing of goods or
services, within the meaning of A.R.S. § 35-214, all books,
accounts, reports and records relating to the Agreement shall
be subject to inspection and audit by the University for five
years after completion of the Agreement;
 The following clauses are to be incorporated into all
contracts: a) Nondiscrimination b) Arbitration c) Conflict of
Interest d) State Obligation e) Audit f) Sudan-Iran
Catering Policy & PCard Plus
 Procurement and Contracting Services has defined the term
catering as a caterer who is responsible for all preparation,
delivery, setup, serving, clean up and removal of food at any
University event.
 PCard Plus users must comply with this policy in it’s
entirety.
Catering & Food Services Policy
Flowchart
QUESTIONS ?