Consultants who have performed work for the university cannot participate in subsequent projects relating to the consultant's findings.
When the Governor of California signed SB 1467, it made significant changes in state contracting laws as they apply standard California state agency conflict of interest and penalty provisions to procurements by the UC system.
Before the passage of SB 1467, UC was exempt from those provisions. The new language of the statute results in restrictions to the way UC does business with consultants, employees, former employees and independent contractors.
It primarily impacts the following business practices of Business & Revenue Contracts:
It prevents the awarding of successor contracts or follow- on agreements to entities providing consulting to the university.
The statute requires that any person or business entity awarded a consulting services agreement by UC shall not bid on or be awarded a successor contract after July 1, 2003 to provide goods or services required, suggested, or otherwise deemed appropriate in the end product of the original consulting services agreement. In simple terms, 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 sole discretion to proceed (or not) with full implementation.