Service procurement is initiated by departments, and unlike goods procurement, always requires approval from a buyer in Procurement and Contracting Services.
- The Procurement Services team issues Purchase Orders for the provision of commercially available services.
- Business and Revenue Contracts issues Purchase Orders for other types of service agreements, including Performance Agreements, Consultant Agreements, Non-Disclosure Agreements, and Equipment Loan Agreements. Refer to the best practices for creating service agreement requests that are processed by Business and Revenue Contracts.
This page describes several areas for which a department requesting the procurement of a service should be aware.
Covered services are those that can be completed by a university employee or organization/department.
UC Davis is committed to bringing in-house all covered services as defined by Article 5 of the University Collective Bargaining Agreement and UC Regents Policy 5402: Regents Policy Generally Prohibiting Contracting for Services. As such, purchasing requests that include covered services will only be allowed sparingly.
If you believe that you have a need for an outside supplier to perform a service for which this policy applies, contact firstname.lastname@example.org BEFORE proceeding with the creation of a KFS Requisition.
Prevailing Wage Projects
Since August 2015, the university has required all private construction contractors to follow public works law and pay their workers prevailing wages when working on a project funded by a public entity. The university must report prevailing wage projects with the State of California, Department of Industrial Relations and obtain a project number before commencing work. The university is required to report and create project numbers for NEW Construction over $25K and Maintenance/Repairs over $15K.
When processing a purchasing request subject to prevailing wage, be sure to split out the labor/service from the materials component of your Requisition or Purchase Agreement document.
Prevailing wages are due, in most instances, if the project costs are more than $1,000, and involves new construction, alteration, demolition, installation, repair and maintenance. In addition, the project incorporates the installation of equipment that requires specialized trade skills, such as electrician, plumber, carpenter, etc. Other classifications include but not limited to, moving services, furniture assembly/installation, and wall attachment.
Additional information may be obtained on the UCOP website and on the State of California Department of Industrial Relations website.
In July 2015, the University of California announced a new minimum wage plan for UC employees:
Guaranteed that by October 2017 UC employees hired to work at least 20 hours a week be paid at least $15 per hour.
The plan also requires that contractors doing business with UC guarantee a $15 minimum hourly wage for their workers.
The plan includes several measures to ensure contractors comply with the new minimum wage, as well as all federal, state, and UC workplace law and policies, including a telephone hotline for contract workers to report issues, and annual and periodic audits: (855) WAGES-UC
More information is available on the UCOP website.
Transactions Between $10K and $250K
Purchases of goods and services from $10K to $250K are subject to the UC Small Business First Program, with specific purchasing instructions.