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Frequently Asked Questions - Procurement General Accounting Procedures (GAP 200.370, 200.371)

  1. Does the Purchasing Services GAP 200.370 apply to DUHS?

    No.  Purchasing services for the clinical setting requires Agreements with a different set of terms and conditions to protect PHI and prevent risks that affect patient care.

  2. There are multiple agreements/forms available to use for purchased services under sponsored funds. How do I know which one to use?

    Choose the agreement/form applicable to your situation.  There are two sets of agreements: (1) those used for services provided in the US (Domestic) and (2) those for services provided outside the US (International).  There are also two agreements within the Domestic and International categories: (1) an agreement for services costing $10,001 - $100,000 and (2) an agreement for services costing greater than $100,000.   See GAP 200.370 for additional instructions.

  3. Why are there different agreements for purchased services under sponsored funds?

    There are different legal requirements for doing business within the United States and outside the United States.  In order to simplify and shorten the agreements where possible, a different set of terms and conditions is used for domestic versus international services.  Also, fewer requirements may be needed for vendors providing services below $100,000 and thus the agreement for a vendor providing services costing $10,001-$100,000 is a shorter agreement.  It is hoped the shorter agreement will streamline the vendor contract negotiation process.

  4. What contracts do I use when I am purchasing services using two different funding sources (i.e. Federal Contract, Commercial Grant)?

    You probably need to use two separate agreements to match the requirements for each grant.  Typically, Federal Contracts require specific SOW language to match the contract specific funding mechanism.  Unless you are managing a private grant with no specific funding mechanism requirements, it is not a good idea to use one SOW for two separate awards.

  5. When should I provide Sole Source Justification (SSJ) documentation for my choice of vendor?

    Competitive bids (3) are required when initiating a purchase request that totals $10,000 or more and is purchased against a restricted WBSE.  If purchasing a service or supplies covered by Duke University administrative funds, no competitive bids or SSJ is required.  Provide SSJ when three competitive bids cannot be obtained or a vendor is selected that is not the lowest price bidder.

  6. When purchasing goods used in a research project what kind of Agreement should be negotiated with the vendor?

    Contact Procurement to negotiate a Supply Agreement with the vendor that includes an Exhibit for the vendor’s product price list.

  7. Who is responsible for including the applicable grant flow down clauses in the Domestic RSSA or the International RSSA?

    The Departmental Grant Manager who initially fills out the applicable RSSA is responsible for including the applicable grant flow down clauses before sending the document to Procurement for review, negotiation with the vendor and execution.

  8. What type of Agreement is needed when purchasing services related to research and there will be PHI or human materials shared with the vendor?

    Use the Domestic or International, as applicable, RSSA (>$100,000) with a Rider C negotiated by the Office of Research Contracts (ORC).

  9. What type of Agreement should be used when a vendor is providing research support in the form of a device or equipment, but no money is paid to the vendor?

    Contact the Office of Research Contracts (ORC) to negotiate an Agreement with the vendor unless the device or equipment will be used on human subjects.  If human subjects are involved, then ORC should work with Procurement to negotiate the Agreement and Procurement will need to notify the Duke Office of Clinical Research (DOCR) and the PERT Committee about the incoming device once ORC signs the Agreement.

  10. What procedure should be followed when purchasing a license to boxed software (prepackaged, already developed and no further development) used in a research project?

    Contact Procurement to negotiate a License Agreement and expect Procurement to determine if a Duke Institutional Security Office (ISO) review is needed which may require that a Data Security Agreement be added to the License Agreement.

  11. What type of Agreement should be used when requesting that a vendor produce software/mobile app etc. for a Duke research project (likely contains Intellectual Property considerations)?

    Contact the Office of Research Contracts (ORC) to negotiate an Agreement with the vendor, due to their expertise in managing IP considerations.  Then the Agreement will be sent to Procurement for signature.

  12. What type of Agreement should be used when a vendor is manufacturing a drug for Duke on a research related project?

    Contact the Office of Research Contracts (ORC) to negotiate an Agreement with the vendor with input from Regulatory Affairs and Procurement.

  13. What G/L Code is necessary to use when purchasing a service and completing and attaching the applicable RSSA to a Buy@Duke cart?

    The G/L account used for payments to individuals classified as independent contractors and providing a professional perspective is generally 622029, Research Support Services Agreement (Individuals). Payments to Legal Entities (Corporations/Partnerships), except for health/medical payments, and attorney fees, are not reportable to the Internal Revenue Service. However, payments to partnerships are reportable. Thus, the payee's name, permanent address, and employer identification number (EIN) are required for payment to a partnership. The G/L account used for these types of specialized services is generally 691629, Research Support Services Agreement (Legal Entity).