Departments may need to obtain services from individuals or external business entities that require contractual agreements. A formal contract is required when the cumulative cost is $10,000 or more. Competitive contracting must be used unless justification exists for noncompetitive methods or informal agreements.
All formal contracts must be processed through the University’s Contract System and executed by an officer of the university (as defined in the UT Bylaws). For delegated contracts, as defined in fiscal policy, a designated administrator at the campus or institute may approve such contracts. Contracts must include the university’s standard terms and conditions as listed on the back of the standard contract form.
Noncompetitive contracts for services, including amendments and renewals, with a total value of $250,000 or more and a term exceeding 1 year must be submitted to the state legislature’s Fiscal Review Committee at least 60 days before the contract’s effective date.
All contracts must comply with provisions found in Fiscal Policy FI0420.