Procedure III.3007.B.a, Contract Authority

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Associated Policy 

Policy III.3007.B, Contract Authority

Purpose

This procedure will establish contract authority for purposes of approval and execution of purchase orders, contracts, contract modifications, memoranda of understanding, letters of intent, leases agreements, and rental agreements.

Delegation of Authority

Subject to the Board Policy Contract Authority and review of contracts by the Contracts and Purchasing Services or outside counsel (as applicable), the Chancellor delegates authority for purposes of approval and execution of purchase orders, contracts, contract modifications, memoranda of understanding, letters of intent, lease agreements, rental agreements, and grant awards as follows:

1. The Vice-Chancellor, Fiscal Affairs may execute:
   1. Any contract, contract modification, memoranda of understanding, letters of intent, lease agreements, rental agreements, and grant awards less than $100,000; and
   2. After appropriate approval by the Board of Trustees, contracts, contract modifications, and purchase orders of any amount.

2. Chief Procurement Officer may execute:
   1. All purchase orders issued in accordance with Board policy, state law, and the College budget.
   2. Applications to establish a credit account with suppliers for purchases made in accordance with College policy and procedures.

Additional Delegations

The Chancellor or Vice Chancellor, Fiscal Affairs may issue additional delegations of authority in writing for a defined duration, for the approval and execution of purchase orders, contracts, contract modifications, memoranda of understanding, letters of intent, lease agreements, rental agreements, and grant awards from time to time as necessary.

Dollar Threshold

The dollar thresholds for approval shall be based upon the total length of the proposed contract and any automatic renewal periods but excludes any optional renewal periods.

Contract Review

All contracts and contract modifications shall be reviewed and approved for legal form and sufficiency by the Contracts and Purchasing Services office or outside counsel, unless notified otherwise in writing by the Chancellor or designee.

Contract modifications that increase the contract value shall be approved by the corresponding delegation of authority for the revised total contract amount, including obtaining Board approval in accordance with Board policy, if necessary.

Definitions

Contract:   An agreement between two or more parties that is intended to have legal effect to create a financial commitment or obligation of the College. A contract may include, but is not limited to, goods and service agreements, memoranda of understanding, letters of intent, lease agreements, rental agreements, grant awards, purchase orders, sole source contracts, cooperative contracts, interlocal contracts, and job order contracts.