Restrictions on Conducting Business with
Consultants, Employees, Former Employees and Independent Contractors
California Public Contract Code (section 10515 through 10524) restricts the way UC does business with consultants, employees, former employees and independent contractors. The code primarily impacts the following three business practices:
- Successor Contracts:
A person or business entity awarded a consulting services agreement by UC shall not bid on or be awarded a successor contract to provide goods or services required, suggested, or otherwise deemed appropriate in the end product of the original consulting services agreement. In other words, consultants who have performed work for the university cannot participate in subsequent projects relating to the consultant's findings.
If a multi-phase project is contemplated, such as a pilot or prototype to be followed by full implementation, any agreement should cover all potential phases of the project with appropriate language reserving final cost figures and the university's discretion to proceed or not with full implementation.
- Employee Vendors:
The statute prohibits university employees from contracting as individuals (independent contractors) with any university department to provide goods or services as an independent contractor.
In addition, the statute prohibits employees from engaging in any employment, activity or enterprise from which the employee receives compensation, or in which he or she has a financial interest that is sponsored or funded, in whole or in part, through a contract with the university.
UC employees with teaching or research responsibilities are exempted from this provision of the statute but are still subject to university guidelines for employee-vendors. See UCD Policy & Procedure Manual, Section 350-90.
- Contractors who are Former UC Employees:
The statute contains two restrictions on contracting with former employees:
- A former university employee cannot enter into a contract for two years from the date of separation to perform work related to contracts that were planned, negotiated, or executed by that employee.
- A former university employee cannot enter into a contract for one year from the date of separation to perform work on a contract if he or she was employed by that department in a policymaking position in the same general subject area as that contract.
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