GAP 200.370, Purchasing Services on Sponsored Funds

I.    Purpose

II.   Purchasing Professional Services

III.  Purchasing Services Provided within the U.S. (Domestic)

IV.  Purchasing Services Provided Outside the U.S. (International)

V.   Exclusions to the Above Procedures

VI.  Operational Responsibilities when Purchasing Services on Sponsored Projects

VII. Federal Regulations

 

I. Purpose

This procurement process describes the methods and operational procedures associated with engaging and paying individuals or legal entities for a specified time to give professional advice or to render professional services for a fee from funding sources external to Duke University. Examples include technical specialists, photographers, and consultants.

Given the unlike circumstances between domestic and international business environments and practices, Duke has developed documentation for each scenario. Grant Managers and Principal Investigators should select the appropriate forms and procedures based on the location and cost of services being rendered.

This procedure applies to reportable awards, which are projects where invoices and financial reports are submitted by an institutional office (Post-Award Financial Managment or Treasury Billing Services); and are represented by the 20x-28x, A03, and 30x-38x WBS element ranges.

This procedure relies upon knowledge of Duke’s Purchase Orders (POs) and the PO Approval Process. These use Buy@Duke, a web-based procurement system, which is fully-integrated into the SAP financial system portal (Duke@Work). In this system, initiators will create shopping carts, which then pass through funding source (project) and institutional approval points within the Duke@Work workflow.

By using established workflow approval paths in Duke@Work, academic units are able to establish internal protocols, spending limits and roles; therefore, this GAP refers to the roles of Shopper, Submitter, and Approvers who may or may not be Grant Managers or Principal Investigators. However, as noted in the Faculty Handbook, the PI bears primary responsibility for the financial management of a sponsored project. The Duke Procurement Services website contains forms and descriptions of how to procure and pay for goods and services at Duke University.

Note: The Office of Export Controls provides assistance with activities in embargoed or sanctioned countries, as financial transactions in these countries may be restricted. When engaging services in these countries, please consult the Office of Research Support (ORS) website or contact the OEC at export@duke.edu.

 

II. Purchasing Professional Services

Professional services by individual(s) or legal entities, who are not Duke employees, may be allowable. Examples include consultants, technical specialist, photographers, etc. Refer to guidance provided in 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance, or UG), specifically sections § 200.459 Professional service costs for guidance on the factors to consider when determining the allowability of these costs, including:

• Necessity of contracting for the service, considering Duke University's existing capabilities;
• Reviewing whether the service can be performed more economically by direct employment rather than contracting;
• The qualifications of the individual rendering the service and the customary fees charged;
• Adequacy of the contractual agreement for the service (e.g., description of the service, estimate of time required, rate of compensation, and termination provisions).

III. Purchasing Services Provided Within the U.S. (Domestic)

For most services purchased and rendered within the United States, follow the procedure and documentation standards dictated by the cost of the services. Services that require additional or exceptional procedure and documentation are noted in Section IV of this procedure and further explained in the Frequently Asked Questions. Please note, purchases exceeding $10,000, are subject to the requirements of GAP 200.101, Sole Source Justification/Price Quote Selection for Purchases on Sponsored Funds.

A. Services costing less than $2,500

No Purchase Order or Research Support Services Agreement (RSSA) is required. Invoices should be submitted via the Online Accounts Payable Check Request. Complete an Independent Contractor Checklist (ICC) as described in GAP 200.128, Guidance on the Independent Contractor Checklist (ICC). Follow GAP 200.136, Accounts Payable Check Request to submit the check request with the ICC.

B. Services costing $2,500 - $10,000

Create a Buy@Duke Shopping Cart that will follow the departmental workflow for approval; no RSSA is required. Upon departmental approval of the Buy@Duke Cart, Procurement Services will issue a Purchase Order to be sent to the vendor.

The following documents must appear in the Notes and Attachment Section of the Buy@Duke cart:

1. Completed Independent Contractor Checklist (ICC) as described in GAP 200.128, Guidance on the Independent Contractor Checklist (ICC);
2. Completed Scope of Work and Term Sheet available for download on the Financial Services, Procurement > Forms website.

C. Services costing $10,001 - $100,000

1. Complete a Domestic RSSA ($10,001-$100,000) available for download on the Financial Services, Procurement > Forms website. The Domestic RSSA ($10,001-$100,000) should include the applicable terms required for services purchased using sponsored funds. These terms and conditions should be selected in the RSSA.
2. Create a Buy@Duke Shopping Cart which will follow the departmental workflow for approval. Upon departmental approval of the Buy@Duke Cart, a Purchase Order will be created and sent to the vendor.

The following documents must appear in the Notes and Attachment Section of the Buy@Duke cart: 

D. Services costing $100,001 - $250,000

1. Complete the Domestic RSSA (>$100,000) available for download on the Financial Services, Procurement > Forms website. The Domestic RSSA (>$100,000) should include the applicable terms for services purchased using sponsored funds. These terms and conditions should be selected in the RSSA.
2. Create a Buy@Duke Shopping Cart that will follow the departmental workflow for approval. Upon departmental approval of the Buy@Duke Cart, a Purchase Order will be created and sent to the vendor.

The following documents must appear in the Notes and Attachment Section of the Buy@Duke cart: 

E. Services costing greater than $250,000

Purchases of more than the simplified acquisition threshold (SAT) (currently set at $250,000 per the FY2018 National Defense Authorization Act) require coordination with Procurement Services. Please contact the Director of Procurement Services for further information.

 

IV. Purchasing Services Provided Outside the U.S. (International)

As mentioned above, given the unlike circumstances of international business practices Duke has developed a separate RSSA for use in international settings. This RSSA contains the terms relevant to international environments. GMs should complete the appropriate purchasing procedures based on the applicable category described below:

A. Services costing less than $10,000 

No Purchase Order or International RSSA is required. Invoices should be submitted via the Online Accounts Payable Check Request. Follow GAP 200.136, Accounts Payable Check Request.

B. Services costing $10,001 - $100,000

Use the International RSSA ($10,001-$100,000) designated for this amount available for download on the Financial Services, Procurement > Forms website. Note that a Purchase Order should be initiated in advance of any services being rendered. In certain instances, riders (see forms in Related Materials) may be required and flowdown clauses may be necessary for inclusion. Contact the applicable pre-award office for assistance.

The following documents must appear in the Notes and Attachment Section of the Buy@Duke cart:

1. Completed Sole Source Justification / Price Quote Selection form as applicable and described in GAP 200.101, Sole Source Justification for Purchases on Sponsored Funds;
   • Competitive Bidding: Price or rate quotes from an adequate number of qualified sources is required when purchasing goods, services, or other materials at or above the micro-purchase threshold (as established by Federal regulations, currently at $10,000). Generally, a minimum of three price or rate quotes are required, or when allowable and reasonable a sole source justification/price quote selection form must be completed.
2. Completed International RSSA ($10,001-$100,000).

C. Services costing $100,001 - $250,000

Use the International RSSA (>$100,000) designated for this category along with all appropriate riders available for download on the Financial Services, Procurement > Forms website. For assistance with the use of this form and the associated documents, contact the Director of Procurement Operations or the applicable pre-award office.

The following documents must appear in the Notes and Attachment Section of the Buy@Duke cart:

1. Completed Sole Source Justification / Price Quote Selection form as applicable and described in GAP 200.101, Sole Source Justification for Purchases on Sponsored Funds;
   • Competitive Bidding: Price or rate quotes from an adequate number of qualified sources is required when purchasing goods, services, or other materials at or above the micro-purchase threshold (as established by Federal regulations, currently at $10,000). Generally, a minimum of three price or rate quotes are required, or when allowable and reasonable a sole source justification/price quote selection form must be completed.
2. Completed International RSSA (>$100,000).

D. Services costing greater than $250,000

Purchases of more than the simplified acquisition threshold (SAT) (currently set at $250,000 per the FY2018 National Defense Authorization Act) require coordination with Procurement Services. Please contact the Director of Procurement Services for further information.

 

V. Purchasing Services Requiring Exceptions to Procedure and Documentation

As noted above, the purchasing of some services requires documentation dictated by the nature of the services rather than the cost of services. For these scenarios, the appropriate contracts or documents will vary from the standard procedures described above and research projects should contact the applicable pre-award office or the Director of Procurement Operations.

More information may be found on the Frequently Asked Questions.

• Purchasing clinical services that include Protected Health Information (PHI). These procedures do not apply to Duke University Health System (DUHS).
• Purchasing services where PHI or human materials will be shared with the vendor. These purchases require the use of the Domestic or International, as applicable, RSSA(>$100,000) with a Rider C negotiated by the Office of Research Contracts (ORC) or the Office of Research Support (ORS). Contact ORC or ORS, as applicable, for further assistance.
• Services that include Sensitive Electronic Information (SEI)
• Facility repair and construction work
• Collection of the ICC checklist is waived for Data Safety Monitoring Board members appointed by National Heart Lung & Blood Institute/National Institutes of Health

 

VI. Operational Responsibilities When Purchasing Services on Sponsored Projects

This section provides a step-by-step summary of the considerations (by the responsible party) and the actions to be taken, based on the above guidelines, for the process of engaging and paying for services purchased using sponsored funds.

A. Department Responsibilities

1. Sponsor approvals - Determine if sponsor approval is required or a re-budget is necessary for purchasing services. If necessary, coordinate with your pre-award office to obtain such approval. For services costing more than $10,000, a contract must be executed by both parties and the compliance requirements confirmed before work begins. If the contractor begins work prior to contract execution, the department may be responsible for paying the contractor from a departmental code if the sponsor disallows the service or the vendor does not pass all compliance checks.

2. Completing the Buy@Duke Shopping Cart - Any and each RSSA should have a single Scope of Work (SOW) under a single sponsored project. The applicable Agreement should be set up on a single WBS element.

3. During and after the purchased services have been performed:
   1. Monitor performance, evaluate quality of work, and review progress made against the project time schedule;
   2. Ensure the work is being done according to the terms and conditions of the contract or applicable procedure and particular milestones. Periods of work must align with the sponsored agreement and cannot exceed the project end date;
   3. Review and approve invoices, as necessary, to ensure that billings are current and reasonable compared to deliverables and scope of work;
   4. Perform Goods Receipt in Buy@Duke once the services are completed.

B. Pre-Award Office Responsibilities

1. Compliance - Ensure intended purchase of services is in compliance with the provisions of the grant or contract before a Purchase Order is issued;
2. Sponsor approvals - Work with department to obtain agency/sponsor approval if necessary;
3. Buy@Duke Carts - Route Buy@Duke Shopping Cart to Procurement Services.

C. Procurement Services Responsibilities

1. Review documentation - (Bids/Sourcing, ICC, Domestic/International RSSA) for completeness, accuracy and for compliance with established policies and Federal regulations;
2. Execute Agreement - Provide final approval and signature on Domestic/International RSSA document on behalf of Duke. Send copy of Agreement to vendor and to department;
3. Modifications – Any revision or modification to the signed contract must be in writing and approved by the department, applicable Pre-Award Office, and Procurement Services. Upon signed modification, if a Purchase Order was issued, Procurement Services will issue a change order to document the contract revisions (if necessary).

 

VII. Federal Regulations

This GAP reflects the provisions of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, otherwise referred to as the Uniform Guidance. The UG became effective as of December 26, 2014, and revised as of November 12, 2020, and all awards issued on or after this date must be managed in accordance with its provisions. It is important to verify the applicable regulations for an individual award, which may be found in the Award Notice issued by the funding agency.

These guidelines pertain to federally sponsored projects and should be used as guidance for all sponsors unless specifically addressed in a non-federal sponsor’s policies and/or procedures.

This GAP supersedes previous GAP versions, Duke Policies, Guidelines, etc.