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Processing a Business Agreement

Business agreement requests are processed on a DaFIS Requisition document. Business Contracts uses the information on the PR to create the actual agreement to the vendor. The final agreement will only be as accurate as the information provided on the DaFIS Requisition document, so it is important to enter complete information, including detailed scope of work and grant or proposal details.

The Requisition will route through DaFIS for the required approvals before arriving in Business Contracts. Complete and accurate information will streamline the routing process.

Important considerations for all contracts include:

• Period of agreement. If you have a blanket request be as accurate as possible. Invoices for work occurring before the start date or after the termination date will not be payable. Agreement period is entered by clicking on the Contract Info button on the Requisition.
• Organizations that will use the agreement. When completing the Contract Info screen, enter the highest level organization code that will use the agreement. This will ensure that all subordinate organizations can also use the agreement once it has been established by Business Contracts.
• Expense/revenue/amount. Consider only the transaction between the university and the second party. If the university is paying them, it's an expense, and if they are paying the university, it's a Revenue Agreement. List the amount for the total agreement, and if you are not sure, enter a not-to-exceed amount. Independent consultants should be paid by the deliverable, not by the hour, if possible.
• Nature and purpose of the agreement. Detailed information will protect your department in the event you don't receive a satisfactory product or if your department provides good work but doesn't get paid on a Revenue Agreement. Copies of second-party agreements, drafts, emails, or anything else that will help us understand what the agreement is all about should be attached to the Cover Sheet for Requisition Attachments.
• Financial Disclosure. If processing a Revenue Agreement and the project is for the work of a particular Principal Investigator, complete and submit a Form 700-U, Statement of Economic Interests for Principal Investigators. This form is required for consistency with similar agreements processed by the Office of Research. The form and instructions are available on the Office of Research, Sponsored Programs Web site.
• Attach payment schedule if applicable. If processing a Revenue Agreement, specify the rate. Sometimes payment is made in increments, such as a monthly payment as services are received or if the overall project can be broken down into several deliverables, each of which has an independent price. If the university is receiving revenue, the revenue must be based on a rate pre-approved by the Office of Resource Management and Planning.
• Location of property/site of work. Be specific. Where will the work physically be done? Location affects several factors, including tax rates, liability issues, and indirect cost rates.
• Justification. Describe how this work will benefit the university or relates to the university's mission of teaching, research, public service or patient care.
• Other Considerations:
  • Does the initiating department require any additional space, personnel, or equipment to perform the work? In some cases you may need to arrange for use of space or equipment owned by another department or outside entity. Please attach any additional information so Business Contracts has a complete picture of the transaction.
  • Are any materials being used that are toxic, explosive, radioactive, narcotic, or pathogenic? If so, you must have approval of Environmental Health & Safety before a binding agreement can be completed.
  • Attach any additional information necessary for an agreement to be written. If you've already communicated with one of the Business Contracts staff about this agreement, note that person's name, and attach any other information that you think will help with a complete picture of the proposed transaction. This is a good place to note any unique features of the history of the transaction or relationship, or any other factors on either side that could help in negotiations. All additional information should be attached to the Cover Sheet for Requisition Attachments.

Note: University of California's Regulation 4 prohibits engaging in purely commercial activities. If the request is for an income agreement, it must document how the work relates to the university's mission of teaching, research, public service and/or patient care to prevent later claims of unfair competition from private industry.

The completed Requisition will route to Business Contracts for processing.