GAP 200.370, Purchasing Services on Sponsored Funds

  1. General
  2. Purchasing Services Provided within the U.S. (Domestic)
  3. Purchasing Services Provided Outside the U.S. (International)
  4. Exclusions to the Above Procedures
  5. Operational Responsibilities when Purchasing Services on Sponsored Funds

I. GENERAL

When engaging and paying individuals or legal entities for a specified time period to give professional advice or to render professional services for a fee on sponsored projects, the instructions below provide the context and the process. Examples include technical specialists, photographers, and consultants.

Purchasing services on sponsored funds requires following certain procedures to ensure the University meets requirements imposed by sponsoring agencies. Federal sponsors, in particular, have strict and specific purchasing requirements based on the award mechanism Duke must follow. It is important to understand the requirements of each award prior to making purchases. This policy applies to purchasing services under the restricted WBSE codes: 20X-25X, 28X, 30X-35X, 38X and to all sponsored projects, unless superseded by guidelines from non-Federal sponsors.

Note that Duke, as provided in the Federal Register on May 17, 2017 (82 FR 22609) has delayed implementation of the Uniform Guidance Procurement Standards until July 1, 2018. Prior to that date, Duke continues to apply the Procurement Standards outlined in the OMB Circular A-110 to all purchasing on Federal grants and cooperative agreements.

Given the varying business practices for services being provided domestically and in foreign countries, the procedures for engaging and paying for services in both instances are described below. Additionally, regarding the purchase of services in foreign countries, please note that the Office of Export Controls provides assistance with activities in embargoed/sanctioned countries. Financial transactions may be restricted in these countries. Please contact the Office of Export Controls before engaging in any activities involving sanctioned countries at export at duke.edu or refer to the ORS website for more information.

II. PURCHASING SERVICES PROVIDED WITHIN THE U.S. (DOMESTIC)

Note that all purchased services greater than $10,000 require a Purchase Order. However, only purchases greater than $10,000 require a Domestic RSSA or an International RSSA.

A. Services costing less than $2,500

No Purchase Order or Agreement 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 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.

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

  1. Complete a Domestic Research Support Services Agreement (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. Select the appropriate terms and conditions for purchases on Federal Grants/Contracts.
  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.

D. Services costing greater than $100,000

  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. Select the appropriate terms and conditions for purchases on Federal Grants/Contracts.
  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.

III. PURCHASING SERVICES PROVIDED OUTSIDE THE U.S. (INTERNATIONAL)

For international service, follow the three procedures outlined below:

A. Services costing less than or equal to $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. This International RSSA ($10,001-$100,000) is a shorter version with fewer terms only relevant for services in this category. A Purchase Order should be initiated in advance of services being rendered. In certain instances, Riders may be required and flowdown clauses may be necessary for inclusion. Contact the applicable pre-award office for assistance.

C. Services costing greater than $100,000

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 at 681-5900 or the applicable pre-award office.

IV. EXCLUSIONS TO THE ABOVE PROCEDURES

Exclusions to the above procedures:

  • Services that include Protected Health Information or patient care (PHI)
  • Services that include Sensitive Electronic Information (SEI)
  • Facility repair and construction work
  • Collection of the ICC checklist is waived for DSMB members appointed by NHLBI/NIH

For assistance with completing the appropriate contracts and documents for these unique situations, contact the applicable pre-award office or the Director, Procurement Operations at, 681-5900.

V. OPERATIONAL RESPONSIBILITIES WHEN PURCHASING SERVICES ON SPONSORED FUNDS

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 work to begin, a contract should be executed by both parties and the compliance requirements confirmed except in the instances described above for services costing $10,000 or less. If the contractor begins work prior to contract signature, 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 – 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 restricted WBSE. Transfers from non-restricted WBSE’s are not allowed under any circumstances and are subject to voided terms. Split coding of expenses must be justified and allowable and/or allocable and/or reasonable per sponsor terms for audit purposes. These Agreements are not allowed on unassigned Purchaser Orders and are subject to voided terms.

  3. During and after the purchased services have been performed:
    1. Monitor performance, evaluate quality of the 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 contract and cannot exceed the project end date;
    3. Review and approve invoices, as necessary, ensuring 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;
  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).