While all Stanford Purchase Orders are a form of contract, there are cases where a more explicit and detailed written contract must be bi-laterally executed to clearly define:

  • The scope of services and deliverables
  • The use and ownership of data or design
  • Acceptance criteria
  • Special payment terms
  • Who specifically will provide the services
  • Performance Schedule
  • Guarantees/Warranties
  • Insurance Requirements
  • Terms and conditions from funding sponsor required to “flow-down” to a subcontract.

A Stanford Contract must be issued by the Contracts group for all construction-related projects (including architectural services) of any dollar amount, and for other projects performed by contractors, consultants and service providers that meet certain conditions. Refer to Topic Overview: Signature Versus Financial Approval Authority for more information.

Contracts are executed between the Stanford Purchasing and Contracts Department and the supplier, and in general, follow this process:

Process for New Requisitions Less Than $25,000

Information needed from supplier to form contract/purchase order:

  • Legal name and address
  • Contact information
    • Email
    • Project Manager
    • Mobile phone #
  • Insurance Information (refer to Supplier Insurance Guidelines for more information)
  • Scope of services or construction
  • Project schedule (if needed)

Learn more information regarding supplier requirements.

  • School/Department uses supplier information gathered to create appropriate requisition. Information needed: 
    • Supplier name and address (Supplier may be listed in supplier list)
    • Fund accounts for payment
    • Planned payment amounts and limits
    • Contact information for staff and project manager
    • Any proposals and/or bids
    • Signed Independent Contractor Checklist (for independent contractors only)
    • Data risk assessment (DRA) recommendations (for high risk data only)
  • Submission initiates processes to create contract or purchase order (If a contract is needed, select Yes for the question, Does your attachment(s) require Stanford Procurement signature?) 

Note: Providing complete information helps to speed up the process. Requisition is sent electronically to Procurement.

  • Departments have control over financial accounts and must approve expenditures
  • Requisition is automatically assigned purchase order number by Oracle Financial System
  • Oracle Financials automatically creates a Purchase Order and sends the Purchase Order to the supplier unless a contract has been requested
  • If a contract has been requested, Oracle Financials automatically creates an incomplete purchase order from the requisition. Incomplete purchase order is automatically routed to Contracts Team. The Contracts Team is responsible for ensuring contract adheres to Stanford's requirements
For new contracts less than $25,000
  • The Supplier receives an email that purchase order has been approved. Email contains a link to Stanford purchase order and to applicable Terms and Conditions.

Process For New Requisitions $25,000 and Greater

Information needed from supplier to form contract/purchase order:

  • Legal name and address
  • Contact information
    • Email
    • Project manager
    • Mobile phone #
  • Insurance Information (refer to Supplier Insurance Guidelines)
  • Scope of Work/Quote
  • Project schedule (if needed)

Learn more information regarding supplier requirements.

  • School/Department uses supplier information gathered to create appropriate requisition. Information needed for all submissions: 
    • Supplier name and address
    • Scope of Work/Quote required
    • Project schedule
    • Fund accounts for payment
    • Payment amounts and limits
    • Contact information for staff and project manager
    • Signed Independent Contractor Checklist (for independent contractors only)
    • Data Risk Assessment (DRA) recommendations (for high risk data)
    • Source and price justification form
    • Any proposals and/or bids
  • Submission initiates processes to create contract or purchase order.

    Providing complete information helps to speed up the process.

  • Purchasing reviews the requisition and may contact the staff person for additional information. Purchasing will:
    • Check for document presence, not content
    • Reject a requisition if a document is missing
    • Process each requisition within 24 hours after it is received
  • Reviewed requisitions are returned electronically to Department staff with financial approval authority over fund accounts designated in requisition.
  • Departments have control over financial accounts and must approve expenditures.
  • After financial approval, Oracle Financials automatically creates an incomplete purchase order from the requisition. Incomplete purchase order is automatically routed to Contracts Team.
  • Contract advisor reviews all information contained in and attached to the unapproved purchase order and may review the prior history of contracting with supplier.
  • Contract advisor will ensure that proper insurance, scope of work, source and price justification and other subject matter-specific documentation is sufficient.
  • Contract advisor drafts written contract. Draft contract may be sent to staff contact for review.
  • Draft contract sent to the supplier for review/signature and, if necessary, to procure any additional information.
  • Any negotiation of Terms and Conditions between Contracts Team and supplier would occur at this point prior to signature.
  • Upon receipt of supplier signature and any required additional information, contract advisor obtains appropriate Stanford signatures
  • Contract advisor attaches fully-executed contract to Oracle Purchase Order file and approves purchase order in Oracle Financial System
  • Contract advisor sends a copy of fully-executed contract with attachments to supplier, staff contact and/or project manager
     

If your requisition is for a service or construction, the Procurement Contracts Team ensures a turnaround time of no more than 21 business days from the time the requisition is fully approved ––and often less––if the information outlined below is included in the requisition.

Occasionally, certain contracts may require review by other departments (e.g., the Office of General Counsel, Global Business Services or Office of Technology Licensing) or pose unique circumstances/risks, which may affect processing time.

A Scope of Work and/or quote must be submitted with a requisition, regardless of the dollar amount. Important elements in this document(s) that must be included:

Summary of the project

  • Who is providing the service or doing the construction
  • What type of service or construction is being provided
  • When the service is being provided or the construction is being done
  • Where the service will be provided or the location of the construction
  • Why the service is being provided or the construction is being done
  • Cost breakdown (e.g., lump sum vs. unit price)

If the service or construction is being provided internationally, the Scope of Work should be reviewed by the Global Business Services group.
 

A current Certificate of Insurance (COI) meeting the university's minimum requirements must be on file with the Contracts Office. If it is not on file, best practice is to submit the current COI with the requisition, regardless of the dollar amount of the contract.

The COI must contain two attachments:

  • An endorsement that specifically identifies Stanford University and indicates that Stanford is additionally insured
  • A waiver of subrogation*


* "Subrogation" is a legal term referring to the ability of an insurer to recover its losses from a legally liable party. A "waiver of subrogation" is an agreement between two parties in which one party agrees to waive its subrogation rights in the event of a loss.

A signed Independent Contractor Checklist (IC Checklist) must be attached when submitting a requisition if the supplier is an independent contractor.

Contact information is required for (1. the supplier project manager, (2. the Stanford project manager and (3. the Stanford representative who will receive the supplier's invoice. The information below should be provided for all three: (etc.)

  • Name
  • Email
  • Phone
  • Physical Address

If the contract is equal to or greater than $25,000, was a competitive bid solicited?

If the requisition is for less than $25,000, bid sheets or sole source justifications should be completed and maintained by your department for audit purposes. They do not have to be submitted with the requisition to the Contracts Team.

The Data Risk Assessment (DRA) process was established to ensure that the appropriate safeguards are in place to protect the confidentiality, integrity and availability of Stanford systems and data, including data that are entrusted to Stanford. Complete the Data Risk Assessment pre-screening questionnaire.

Bonding, Letter of Credit or Bonding Waiver is required for construction projects greater than $50,000, unless waived by department leadership.

There are special considerations, government regulations and university policies that pertain to hiring services providers, contractors and consultants.

University policy (refer to Administrative Guide Policy 5.1.1) requires that acquisition of products or services be by competition between potential suppliers, to the maximum practical extent subject to the requirements of quality, price and performance. When a department needs to use a single or sole source in the acquisition of a product or service with a cost of $25,000 or more, a written source justification is required. ("Single source" means other sources are available but the requisitioner chooses to use only one particular source. "Sole source" means that no other sources, other than the one recommended are available). The source justification should include the following information:

  • A specific description of the supplies or services required to meet needs, and a statement of fact that shows the unique qualifications of the services or items selected to satisfy those needs.
  • A description of efforts made to locate other sources of supply.
  • Documentation that the anticipated cost is fair and reasonable. This can be a comparison of prices when the item is generally available or, when the item is to be specially fabricated, an analysis of the manufacturer's cost.

For assistance with the preparation of a Request for Proposal "RFP"* packet, or an Invitation for Bid "IFB"** packet, please contact your assigned Contract Specialist in the Contracts Group.

For Bid/Proposal solicitations managed by the department, without assistance from the Contracts Department, please know that there are special considerations, government regulations and university policies that pertain to hiring contractors and consultants. Please provide all bidders/proposers the following contract documents, as part of your Request for Proposal "RFP"* or Invitation for Bid "IFB"**, as applicable.

* A Request for Proposal (RFP) is needed when the vendor selection will be based on important factors in addition to cost.
** An Invitation for Bid (IFB) is needed when the vendor selection will be based solely on the lowest Bid received.

Process for Service Providers, Contractors and Consultants 

Staff member creates requisition for services or construction in Oracle Financial System. Information should include:

  • Supplier name and address
  • Scope of services or construction required
  • Project schedule
  • Fund accounts for payment
  • Payment amounts and limits
  • Contact information for staff and project manager
  • Any proposals and/or bids

Providing complete information helps to speed up the process. Requisition is sent electronically to Procurement.

  • Contract advisor reviews requisition, may gather additional information and/or review history of contracting with the specified vendor. Review ensures requisition has proper insurance, sufficient scope of work
  • Contract advisor attaches Purchase Order Terms and Conditions and approves requisition
  • Requisition is returned electronically to Department staff with financial approval authority over fund accounts designated in requisition
  • Departments have control over financial accounts and must approve expenditures
  • Requisition is automatically assigned purchase order number by Oracle Financial System
  • Oracle Financials automatically creates a Purchase Order and send the Purchase Order to the supplier
  • Supplier receives an email that the purchase order has been approved. Email contains link to purchase order and to applicable Terms and Conditions. School/Department Requester also receives a copy of the approved Purchase Order.

The Stanford contract advisor may attach notes to the purchase order with additional or clarifying Terms and Conditions. The contract advisor approves the purchase order in the Oracle Financials System; updated purchase order is sent via email.

Additional Requirements and Considerations

Select options below and see information below the option menu.

Apply to All
Affirmative Action Special Conditions

The Affirmative Action Special Conditions flows down anti-discrimination provisions from the Federal Acquisition Regulations "FARs" to the contractors.

Minimum Insurance Requirements

Service providers to the university must carry insurance policies that meet or exceed the university's minimum insurance requirements.

Living Wage and Benefit Guidelines

For information about Stanford's current Living Wage and Benefit Guidelines please read Policy and Initiative Information for Suppliers.

Please inform all contractors and consultants under consideration by your department that the university performs random audits to ensure that Stanford's Living Wage and Benefit Guidelines are adhered to by "applicable" contractors and consultant, and that non-compliant contractors and consultants will be deemed in default of their agreement with the university and subject to immediate termination, unless the matter is fully rectified retroactively.

Specifics
IRS Qualification as Independent Contractor or Consultant

Apply to Individuals/Sole Owners

The IRS requires that independent contractors and consultants qualify as such. When an individual does not qualify, they must be treated as employees or hired through a temp agency. Please refer to the Independent Consultants and Contractors Checklist for more information.

An individual qualifies as an independent consultant or contractor when the individual:

  • Provides similar services to other clients and/or businesses outside of the university
  • Engages in entrepreneurial activities in an established business, at risk for profit or loss
  • Receives little or no training, supervision or instruction from the university, other than conveying the scope of services desired
  • Currently does not receive a paycheck from nor is an employee of Stanford University
  • Will be responsible to determine means and methods to use to perform services
  • Will provide his/her own supplies, equipment, forms, etc., necessary to perform services and cost for such will be included in rate or total fee
  • Will maintain sufficient insurance to protect against work related injuries and damage to university property
  • Will set his/her own priorities on time, amount of effort and hours of work to accomplish services within stated time frame
  • Services to be provided are not similar to those currently being provided by Stanford employee(s)
  • Time period, maximum fee, scope of services are not intended to be modified at a later date

For more information:

EH and S Notifications for Consultants

Apply to Consultants

In accordance with Proposition 65, please advise all consultants that provide consulting services to the university that they must read the Environmental Health and Safety Consultant Notifications and must present these Notifications to their employees that are providing consulting services on the Stanford University campus.

Environmental Health and Safety Document (Long Form)

Applied to all construction-related work and services involving pollutants, hazardous materials, contaminants, chemicals, toxins and all other "harmful-to-the-environment" materials

All construction-related work and services involving pollutants, hazardous materials, contaminants, chemicals, toxins and all other "harmful-to-the-environment" materials

The multi-page Environmental Health and Safety document intended for construction contractors must be included in all RFP's and IFBs for construction-related projects. This document should also be presented to contractors involved in projects where any of the following might be used, disposed of or cause a disturbance or risk to the environment or the Stanford community:

  • Asbestos, or asbestos-containing materials
  • Lead-containing paints and other surface coatings
  • Urea-Formaldehyde products
  • Volatile Organic Compound (VOC) used indoors
  • Potentially toxic or odor producing products with Material Safety Data Sheets (MSDS)
  • Excessive noise, vibration and dust
  • Pest control
  • Hazardous and flammable materials
  • Hazardous material spills
  • Explosives
  • Mercury-containing devices
  • Batteries
  • Electronic devices
  • Treated wood waste
  • PCBs (fluorescent light ballasts, insulating oils)
  • Lead metal (plumbing components, lead bricks, counterweights, drain pans)
  • Mechanical system fluids
  • Refrigerants
  • Radioactive materials
  • Mold
California State Requirements for Contractors (for Construction Trades)

Apply to Construction/Janitorial/Security

In addition to IRS requirements, the state of California has further requirements for contractors. Contractors must:

  • be licensed by the Contractors State License Board (CSLB).
  • be bonded.
  • carry Workers Comp insurance if they have one or more employees.

For more information, go to the Contractors State License Board website and select "Hire a contractor" under the Consumer tab.

For contractors providing construction, janitorial or security guard services, the following additional state requirement applies:

Tree and Shrub Protection

Apply to Construction/Trade Work

Section 01532 of the Facilities Design Guidelines - Tree and Shrub Protection must be included in all RFPs and IFBs for construction-related projects, and other projects, where there might be danger of injury to trees and shrubs nearby.

General Conditions for Construction Projects

Apply to Construction/Trade Work

The General Conditions for Construction Projects apply, and should be included in all RFPs and IFBs for construction projects on campus.

Storm Water Special Conditions

Apply to Construction/Trade work/Landscape Work/When Solvents or Detergents Used

To keep pollution out of storm drains, it is important to include the Storm Water Special Conditions document in all RFPs, IFBs and contracts where a contractor might be in charge of a project (whether construction, trade work or other) where pollutants might end up in surface water runoff.

Stanford Truck Routes Map

Applied to All Services

The Stanford Truck – Routes Map should be included in all RFPs and IFBs for contracted work/services.

EH&S Notifications for Non-Construction Contractors

Apply to Non-Construction Services

In accordance with Proposition 65, please advise all contractors that supply the university with non-construction related services that they must read the Environmental Health and Safety Contractor Notifications and must present these Notifications to their employees that are performing work on the Stanford University campus.

Payment and Performance Bonds

Apply to As Required; refer to below

Even though Stanford's current policy (per Risk Management) is that Stanford departments must request Payment and Performance Bonds for construction-related Projects that cost $50,000 or more, a department may request a waiver of those requirements provided that such waivers are authorized by that department's Executive Director, and the authorization is based on the fact that the contractor selected for the Project is well known to the university, has an excellent track record with the university and is in good financial standing.

Notwithstanding a department's request to waive the P and P Bonds, the Contracts Group may determine that P and P Bonds be required from any contractor.
 

LBRE Facilities Project Initiation Policy (Form 1)

Apply to Facilities and Infrastructure Projects

All requests for Stanford University campus and off-campus academic facilities and infrastructure projects are required to be submitted electronically on a Form 1 prior to the project's commencement.

Investment, Hospital and Stanford Linear Accelerator Center projects typically do not require a Form 1 unless university funding or facilities are involved.

Facility Design Guidelines (FDG)

Apply to Architectural and Landscape Design Services

The university's Facility Design Guidelines shall apply to any project that includes Design Services.

The Facility Design Guidelines (FDG) is a set of guideline design documents, technical specifications and detail drawings to be used by architects, consultants and contractors in the design and construction of new buildings, infrastructure and remodeling projects on the Stanford campus. Stanford University's intent is to build cost-effectively without restricting the consultant's latitude for innovation.

Review the Campus Guidelines.

Data Risk Assessment (DRA)

Apply to: Software/Services Potentially Involving High Risk Data

This is an important step in the contracting process for software/services that may access, transmit, store or process high risk data. It is relevant to campus data security efforts and needs to be completed prior to submitting an iProcurement requisition (REQ) for such services.

Learn How to Request and Complete a Data Risk Assessment (DRA).

Web Accessibility

Apply to Software and Web Services

This is relevant to any purchase of software/web services (including web design). Learn more about Stanford's Web Accessibility.

Questions?

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