Section: PROFESSIONAL SERVICES FOR CAMPUS DEVELOPMENT CONTENTS

Policy Number: 9210

Policy Title: Procedures for Execution of Agreements for Professional Services

Policy Effective Date: (Rev 1.07)

Last Revision Date:
(see revision history)

POLICY OBJECTIVE

To administer public works contracts under the authority given the Trustees in the Public Contract Code including those sections, referred to as The California State University (CSU) Contract Law.

POLICY STATEMENT

9210 PROCEDURES FOR EXECUTION OF AGREEMENTS FOR PROFESSIONAL
SERVICES

Reference: Public Contract Code, Section 6106; Government Code, Section 4528.

After providing notification to the successful proposer of its selection, the campus shall provide instructions to allow the negotiations to proceed in an orderly fashion. Negotiations shall begin within 14 days after the notification, unless proposer has been otherwise advised by the campus that additional time is required. In the
event that an impasse is reached in negotiations, the campus may terminate negotiations and enter into negotiations with the next higher ranked proposer. Upon completion of negotiations, the two parties shall proceed to execute an agreement within 45 days, unless campus notifies contractor that additional time is needed. The campus and professional consultant shall work together to ensure the agreement is fulfilled in a timely fashion.

9210.01 AGREEMENT REVIEW AND APPROVAL BY COUNSEL

Agreements for professional services are not in force or effect until approved by the CSU Office of General Counsel (PCC § 10820). The campus shall submit a minimum of five counterparts of the agreement documents,along with an Agreement Transmittal form. Four of the counterparts shall bear original signatures.

Service Order Authorizations do not require General Counsel approval.

Task Orders do not require General Counsel approval.

Extra Services to Agreements incidental and consistent with the original scope do not require approval by General Counsel. Consult CPDC and General Counsel where extra services in excess of twenty percent (20%) of the original agreement amount are contemplated. In such cases an amendment to the agreement may be
appropriate or required.

Amendments to Agreements require approval by Office of General Counsel.

9210.02 AUTHORIZATIONS BY PHASE FOR PROFESSIONAL AGREEMENTS

The CSU Project Architect/Engineer Agreements and Service Agreements and are intended to be executed as single documents with subsequent individual phases of work authorized by letter. It is generally not appropriate to amended agreements to authorize additional phases of work.

Agreements may be encumbered in full or by phase. Individual authorizations by phase to proceed shall be issued by letter only after funds are encumbered for that particular phase. Issuance of the initial agreement shall constitute authorization to proceed with initial work.

Phase Approval Authorization Letters:

Should be crafted in letter form and not as Amendments to the Agreement

Require the approval of the appropriate campus personnel, but do not require the review and approval of CSU general counsel

Do not require countersignature by the service provider.

Authorization letters shall identify within the letter:

The project name, contract, and agreement number

An explicit statement approving the previous phase and authorizing the service provider to proceed into the next phase.

The approved budget

The approved ENR Approval letters may be conditional with required corrections noted.

If there is a budget increase, the letter shall include a revised Exhibit B (Schedule of Lump Sum Fees) and clearly identify from what point the fee increase takes effect. In most cases this shall be concurrent with the start of the newly approved phase.

Sample approval letters are available in SUAM Appendix C and on the CPDC A/E Web page.

9210.03 EXTRA SERVICES CHANGES TO PROFESSIONAL AGREEMENTS

In agreements for professional services, extra services authorize additional work beyond that required under the base agreement. The Model CSU Project Architect/Engineer Agreements and Service Agreements utilize the mechanism of written Extra Service Authorization letters to facilitate additional services. Extra Services are often required to address special project requirements (i.e. special design consultants) and should be anticipated.

It is not appropriate to amended design or service agreements to authorize extra services.

Extra Service Authorization Letters:

Do not materially change the ‘Scope of Work’ in the Agreement

Should be crafted in letter form and not as Amendments to the Agreement

Require the approval of the appropriate campus personnel, but do not require the review and approval of CSU general counsel

Extra Service Authorization letters shall:

Identify the project name, contract, and agreement number

Define a scope of work

Define deliverables and time frame for completion of work

Define a fee amount or fee limit if based on time and materials

Require a countersignature by the service provider

Extra services shall be tracked separately and paid in addition to the base fee due to the service provider. Basic services shall continue to be provided and paid for under the terms and amounts specified in the base agreement.

Extra services shall be of a scale and nature to support the original scope of work. Where it is desired to undertake extensive additional work not originally contemplated, i.e., a new phase, a substantial extension to the work area, or work not closely related to the original scope, a new design agreement for the separate work should be drafted.

Sample Extra Service Authorization letters are available in SUAM Appendix C and on the CPDC A/E Web page.

APPLICABILITY AND AREAS OF RESPONSIBILITY

REVISION HISTORY

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

Related Principles:

Sound Business Practices:

Laws, State Codes, Regulations and Mandates:

COGNIZANT OFFICE(S)

CO Manager:

Nancy Freelander-Paice
Executive Program & Fiscal Manager, CPDC AVC Office
CSU Office of the Chancellor
nfreelander-paice@calstate.edu

Subject Expert: