Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.2.7 Review and Process of Contracts

4.2.7 Review and Process of Contracts

A. Purpose

Outline contracting policies for the UT Tyler main and health science center campuses.

B. Authority

UT System Board of Regents - Rules and Regulations

UT System Office of General Counsel - Contract Processing Procedures

University of Texas System Policy UTS145 - Processing of Contracts

C. Persons Affected

This policy applies to all UT Tyler main campus and health science center campus staff.

D. Definitions 

Consideration -  The cause, motive, price or impelling influence which induces a party to enter into a contract.

Contract  - An agreement between two or more parties which creates an obligation to do or not do a particular thing. Most leases, letters, memoranda of understanding, licenses, forms and other agreements that require the signature of a third party and an institutional representative are contracts. Purchase orders issued by the University are contracts when accepted by the vendor. 

Legal - UT Tyler Office of Legal Affairs

OGC - UT System Office of General Counsel  

E. Policy

1. RESPONSIBILITIES OF USER DEPARTMENT
   1. Read, review and be familiar with all departmental contracts
   2. Monitor and enforce all contractual obligations of the contracting parties, including deadlines
   3. Follow UT Tyler contract procedures applicable to the specific campus
   4. Retain contracts in accordance with UT Tyler record retention policy (See HOP 4.10.1 Record Retention Policy)
2. CONTRACT APPROVALS REQUIRED
   1. All Contracts must be reviewed in accordance with OGC Contract Review Procedures and UTS145.
   2. All Contracts must be signed by a UT Tyler officer with delegated signature authority to execute and deliver Contracts on behalf of UT Tyler.
   3. All Contracts related to the purchase of goods and services must be awarded in accordance with UT Tyler Purchasing Procedures.
   4. Purchasing  Approval Required
      1.  All contracts for the purchase of goods and/or services
   5. OGC Approval Required
      1. All Special Procedure Contracts (see Special Procedure Contracts)
      2. All contracts meeting a certain value threshold as determined by the University of Texas Board of Regents and/or the UT System Office of General Counsel.  Changes in review thresholds are formally communicated to the President by the UT System Office of General Counsel.
      3. *Contract value is determined by adding the consideration paid or received during the entire initial term plus all renewal terms allowed under the contract.
   6. BOR Approval Required
      1. All contracts with a value of $5 million or more*, and all amendments, extensions or renewals for more than 25% of the value of the original contracts or which increase the value of the original contracts to more than $5 million. (See UTS 145 Processing of Contracts or contact Legal for any exceptions.)

(See UTS145 Processing of Contracts or contact Legal for any exceptions.) 

F. Review

This policy shall be reviewed by the University every year, or sooner if warranted by changes to applicable legislation, the Regents’ Rules, or UT System policy.