Contracts & Agreements
District employees should never, under any circumstances, accept or sign a contract. The authority to sign contracts is limited to those included in the Authorized Signers List. See Administrative Regulation R-8315 for more information.
If a contractor or consultant begins work before a fully executed contract is in place, the District risks significant liability. Therefore, never, under any circumstances, should work for the District begin before a fully-executed contract is in place.
Contract Approval and Routing Form Procedures
All contracts, agreements and amendments that require a cash outflow or zero dollar must be routed using the Contract Approval Sheet and Routing Form UNLESS it qualifies as a Service Agreement ($15k, 1 year, not complex – see below for additional explanation). Refer to the “Contracts/Agreement Types” below for the major types that are included and excluded from this procedure.
- Before routing the Contract Approval Sheet and Routing Form, the Requestor completes the following:
- Ensure the vendor completes a Vendor Application (new vendors only) see Instructions New Vendor Packet. This should be submitted with the online requisition.
- Prepare the requisition (submitted online in PeopleSoft.) The purchase order will not be signed until the contract is fully executed.
- Requestor completes and saves the Contract Approval Sheet and Routing Form before attaching it to an email.
- Requestor also ATTACHES to the email the following supporting documents:
- Scope of Work (refer to page 48 in the Purchasing Handbook for the Scope of work general guidelines). At a minimum, ensure the Scope of Work contains the necessary information to complete the attached Professional Services Agreement (PSA.)
- Insurance documents. If insurance has been requested and not received yet, please note so on the routing form with contact email so Purchasing can follow up.
- If this is a professional service delivered by an independent contractor, complete the Independent Contractor vs. Employee Guidelines GS-79
- Contract/Agreement (if applicable). See “Contracts/Agreement Types” below.
- Requestor sends the email to the Area Manager/Supervisor for approval
- Area Manager/Supervisor APPROVES and FORWARDS the email to the VPA
- Make sure to include “APPROVED” in the body of the email as evidence of approval. Also, make sure to FORWARD (not reply) to keep the email string to maintain sufficient audit evidence and to ensure the attachments remain. Wet OR digital signature are not required on PDF. Email approval is deemed sufficient at this time.
- VPA APPROVES and FORWARDS the email to the Contract Administrator contracts@losrios.edu
- The Chancellor authorized the VPAs to approve contracts via the authorized signer list. VPA approval is required before an authorized signer can sign a college contract. Any requests that are not routed via the VPA will be rejected. The College President is also authorized to approve.
- Contract Administrator completes the process and routes the contracts for signature.
Professional Service Agreement (PSA)
Professional services delivered by an independent contractor (individual, entity or firm) that offers services to the public. These services are unique, specialized and/or technical and are of a specific nature. Such services are paid on a fee basis and are usually considered temporary or short-term. Professional services do not include routine services/activities necessary for the function of District programs. A PSA is required if one of the following is present:
- Term of services > 1 year,
- Amount is >$15k,
- More extensive/complex project requirement
User does not need to complete the PSA. The Contract Specialist will prepare the PSA using the routed information provided. Please ensure all necessary information to complete the PSA is included in the Scope of Work.
Modified PSA or 3rd party contract (not a district contract) Only under exceptional circumstances will District entertain modifications to its standard agreements. Modifications significantly slow down the process and may expose the District to additional liability. The expectation is that the colleges will start with the District standard template agreements. The service provider cannot change the terms of the District services or add additional terms unless approved by General Counsel. If the vendor declines to use the District standard PSA, the college should attach the proposed modifications to the District’s PSA or 3rd party contract (not a district contract). The VPA is to review, approve and send it with comments to the Contract Administrator to explain the modifications. Contract Administrator reviews with District General Counsel for approval.
Amendments Requestor does not need to complete the amendment. The Contract Administrator will prepare the amendment using the routed information provided. Please ensure all necessary information to complete the amendment is included in the additional/revised Scope of Work.
MOUs/Zero Dollar (understandings with other educational agencies to provide educational services). Please ensure all necessary information to complete the MOU is included in the Scope of Work. Zero-dollar contracts and agreements are presented separately to the board so they must be tracked diligently.
SaaS (Software as a Service) agreements ADDED APPROVALS: The Campus IT lead is the approver in the Area Manager/Supervisor section of the routing sheet. The VPA forwards to the DO-IT AVC for additional approval before it is forwarded to DO Contracts. Please connect with the IT Supervisor for more details.
Facilities Use Agreements. Used when the college rents off campus facilities. Goes through the same process as the PSA, with the added step of District Office ordering insurance as required by the agreement.
Services Agreement (SA) This is the short-form version of the PSA. The SA is ONLY used if all of the following are true: (1) short term (<1 year), (2) noncomplex, (3) easily identifiable services, (4) under $15k. The vendor must use District’s SA with no modifications. You can process a SA through the online purchasing method. It DOES NOT need to be submitted to the VPA for approval. See instructions on how to fill out the SA Packet.
Grants (cash inflow) Please follow the Grant Routing Process at the college.
Allied Health Agreements for Clinical Placement Please connect with the college Allied Health educational program for more details regarding how to route these agreements.
Other Notes
There are unique contracts/agreements that might not fit into the standard procedures. Please contact the VPA if you have such a situation. The VPA can work with the Contract Administrator to determine the best way to proceed.
This is only a summary of the processes. Please refer to the Purchasing Handbook for additional information.
Processing Timeline
If there are no modifications to the District standard agreement, agreements can typically be processed 5-10 business days from the date it is submitted to the District. If it is a modified PSA, 3rd party contract, or any other type of non-standard agreement, the timing can vary because those require legal review, research and negotiations.