|Note:||At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.|
PUR 402–01: Personal/Professional Services
To assist in defining personal/professional services and in selecting the appropriate contracting mechanism
Arizona Revised Statutes § 38–503
Arizona Board of Regents Policy Manual - 3-802; 3-803
When specialized skills, knowledge, resources, and experience are needed that cannot be provided reasonably by existing staff or university service departments, such services may be obtained from firms or individuals outside the university on a fee-for-service or personal/professional services contract basis.
Under no circumstances should a Personal/Professional Services Contract be used to bypass university employment procedures or to accomplish a job that could be accomplished by resources within the university. Employees of the university may not provide personal/professional services to the university except as a result of a formal solicitation, per Arizona Revised Statutes § 38–503.
The contract should require the performance of a task, project, or study to be completed within a given time frame. The relationship with the university is that of an independent contractor, and the university has no right to supervise or control how the work required by the contract is done. The independent contractor is solely responsible for the results specified by the contract.
Examples of Personal/Professional Services Contracts
Architectural and engineering services
Auditing, accounting, and financial services
Medical and health services
Surveys and studies
To determine whether an employer-employee relationship or an independent contractor relationship exists, the requisitioner should refer to the Staff Personnel Policies and Procedures Manual—SPP 210, “Consultants/Independent Contractors.” The procedure for procurement of personal/professional services is also outlined there.
If it is determined that an employer-employee relationship does not exist, personal/professional services may be procured as follows, based on the cost of the services:
The following procedures will ensure that required personal/professional services are properly performed, and that the consultant or independent contractor is promptly paid.
Personal/Professional Services Costing Less than $10,000
If the proposed contractor is an individual doing business under a Social Security number and will be paid more than $100, send a completed Arizona State University (ASU) Employee/Independent Contractor Determination Checklist to ASU at Tempe campus Financial Services tax unit, USB (mail code 5812), or to ASU at West campus Human Resources Compensation, FAB S150 (mail code 2051). This form is used to determine that the prospective contractor is not a university employee, is not related to any university employee who has any connection to the service to be performed, and cannot be considered an employee for tax purposes (for more information, see the Staff Personnel Policies and Procedures Manual—SPP 210, “Consultants/Independent Contractors”).
|Note:||This form is not required for lecturers, entertainers, and athletic officials; for individuals doing business under an Employer’s Identification Number; or for companies.|
For a copy of the Arizona State University (ASU) Employee/Independent Contractor Determination Checklist, contact ASU at Tempe campus Financial Services tax unit at 480/965–8479 or ASU at West campus Human Resources at 602/543–8400, or download it from the Financial Services or Human Resources Web site.
ASU Substitute W-9 and Supplier Authorization (see the Financial Services Policies and Procedures Manual—FIN 421–01, “Guest Lecturers, Consultants, and Other Independent Contractors”) is required from all firms and individuals being paid more than $100 for services, rentals, royalties, copyright fees, participant stipends, and participant subsistence payments. This form is required only one time. To determine if the form has been previously submitted, inquire whether or not the potential contractor is listed in the VEN2 or VEN3 table of Advantage. If an entry appears in the Tax Ctry field, then a certification form is on file and a new one need not be submitted. If there is no entry in the Tax Ctry field, then an ASU Substitute W-9 and Supplier Authorization must be completed and sent to Purchasing and Business Services, USB (mail code 5212), before a payment can be made. For information on independent contractor payments made to nonresident aliens or foreign partnerships/corporations, see the Financial Services Policies and Procedures Manual—FIN 425–04, “Nonresident Alien Independent Contractors and Other Foreign Entities.”
With the exception of construction-related services, the expected dollar amount to be paid to the contractor determines whether or not a contract may be executed by the department. If the amount, not including expenses, is less than $10,000, the department may select the firm or individual to perform the services. The selection for services must be made on the basis of the best qualified contractor at a fair and reasonable price. The department and the proposed contractor complete a Departmental Professional Services Order. Payment is made by completing a Payment Voucher (PV), submitting it with the Departmental Professional Services Order, and by completing the Arizona State University (ASU) Employee/Independent Contractor Determination Checklist, if necessary, and submitting it to Payables and Reimbursements. For information on payment for professional services rendered to the university by individuals not associated with ASU, see the Financial Services Policies and Procedures Manual—FIN 421–01, “Guest Lecturers, Consultants, and Other Independent Contractors.”
If the personal/professional services fee will be charged to a sponsored projects agency/org, the department first must contact the sponsored projects officer. The officer should verify sponsor and award conditions concerning consultants and professional services before the department makes a commitment to the firm or individual furnishing the services. For information on the use of and payment to consultants, lecturers, and other professionals on sponsored projects, see the Research and Sponsored Projects Policies and Procedures Manual—RSP 503–03, “Consultants, Lecturers, and Other Professional Services for Sponsored Projects.”
Personal/Professional Services Costing More than $10,000 but Less than $100,000
If the expected dollar amount to be paid for services is more than $10,000 but less than $100,000, submit a Purchase Request (RX) to Purchasing and Business Services, along with a completed Arizona State University (ASU) Employee/Independent Contractor Determination Checklist, if necessary. The RX should contain at least the following information:
Purchasing and Business Services will determine the level of competition required and the contract forms to be used. This determination usually is made after consulting with the requisitioning department. In this case, the contract could be one of the following documents:
Personal/Professional Services Costing $100,000 or More
If the expected dollar amount to be paid is $100,000 or more, Purchasing and Business Services must conduct a sealed, competitive bid and execute a formal written contract. Purchasing and Business Services is also required to advertise the solicitation (see PUR 501–02, “Advertising for Bids”). Submit a Purchase Request (RX) to Purchasing and Business Services.
For all contracts let by Purchasing and Business Services, the criteria to be used in determining the award of a contract will be developed jointly between the requisitioning department and Purchasing and Business Services.
Design and construction services are procured in accordance with PUR 402–02, “Professional Design Services Costing $250,000 or Less” and PUR 402–03, “Professional Design Services Costing More than $250,000 and Construction Services.” Architect or engineer services that will result in a construction project must use the standard contract forms listed in PUR 504–02, “Contract Forms.”
For information on procurement of design and construction consultants, see:
For information on newspaper advertising required for procurement of personal/professional services costing more than $100,000, see PUR 501–02, “Advertising for Bids.”
For information on contract forms for professional services, see PUR 504–02, “Contract Forms.”
For additional information on the procurement of services, see: