5.14.1.1 Consultant, Professional or Technical Services, and Income Contracts Procedures
PROCEDURES
Colleges have authority to enter into individual contracts with a value of up to and including $100,000 without vice chancellor-chief financial officer approval.
Contracts over $100,000 require approval from the vice chancellor-chief financial officer. The college shall submit a memorandum explaining the need for the contract, the proposed process to be used in selecting a contractor, and estimated cost, and shall verify that funds are available for paying the contractor. The vice chancellor-chief financial officer will review the memorandum and respond in writing to the college or university.
Contracts requiring vice chancellor-chief financial officer approval include consecutive single- year contracts with the same entity and contracts with amendments which, when added together, exceed $100,000.
Contracts of any value with a term in excess of five years require approval by the vice chancellor-chief financial officer.
Contract Preparation
Contracts must be prepared on forms approved by the system office to assure that they include all state-required contract language. Any modification of forms approved by the system office or the use of a non-system office form requires the review by system legal counsel and approval of the vice chancellor-chief financial officer. System legal counsel includes either the Minnesota State General Counsel or the Minnesota Attorney General’s Office. This process is done through the Marketplace Contract Module.
Consultant, Professional, or Technical Services Contract Definition
A consultant, professional, or technical contract means any agreement entered into for consultant, professional, or technical services usually on a short-term basis for a finite period of time and for one or more specific purpose. They are predominantly intellectual in character, which could include consultation analysis, evaluation, prediction, planning, or recommendation; do not involve the provisions of supplies or materials; and result in the production of a report or the completion of a task.
Contracts shall generally not exceed five years
Contracts must show any renewal information including the amount previously paid. Any contract or amendments to original contracts that a campus or the system office proposes to continue beyond five years shall be reviewed and approved by the vice chancellor-chief financial officer.
Public solicitation
Contracts anticipated to exceed $50,000 in total, sealed bids must be solicited by public notice through publishing a minimum two week notice on a State of Minnesota website or in one or more official newspaper. The official newspaper may be the State Register. In addition to the public notice, requests for proposals may be solicited by directly notifying prospective bidders not less than seven (7) days before the final date of submitting bids. For proposed single-source contracts over $50,000, the request form for a single-source exception must be completed.
Contracts in Excess of $100,000
Contracts over $100,000 require system office approval from the vice chancellor-chief financial officer. The college shall submit a memorandum explaining the need for the contractor, the proposed process to be used in selecting a contractor, and estimated cost, and shall verify that funds are available for paying the contractor. The vice chancellor-chief financial officer will review the memorandum and respond in writing to the college or university.
Contracts requiring vice chancellor-chief financial officer approval include consecutive single-year contracts with the same entity and contracts with amendments which, when added together, exceed $100,000.
Contracts with a term in excess of five (5) years require approval by the vice chancellor-chief financial officer.
Income Contracts including Customized Training and Grants
Income contracts, including grant agreements other than federal grants or grants from Minnesota state agencies, contracts to provide customized training instruction, or otherwise generate income without additional authorization from the board if such contracts or agreements do not exceed $3,000,000.
Colleges shall consult with the vice chancellor-chief financial officer prior to executing an income contract exceeding $1,000,000 or five years. Consultation shall also occur prior to execution of any income contract that concerns uses in general obligation or revenue fund bond financed property. Federal grants or grants from Minnesota state agencies do not require prior approval by the board or consultation with the vice chancellor-chief financial officer.
Intra-Agency and Inter-Agency Agreements, Joint Powers Agreements, and Master Contracts
Colleges may enter into intra-agency, inter-agency, joint powers agreements that do not create a joint powers board, Minnesota Department of Administration master contracts, MN.IT Services master contracts, or Minnesota State master contracts without additional authorization from the board if such contracts or agreements do not exceed $3,000,000.
Contracts in this category with a total value in excess of $1,000,000 or with a term in excess of five years require approval by the vice chancellor-chief financial officer.
Approved by: ATCC Leadership Council
Effective Date: 9/9/19
Last Date Revised: 9/9/19