4.3 Contract Types

4.3.1 Rutgers Contracts

Rutgers utilizes various contract types to bind two or more parties with specific terms such as:

• Purchase Orders (PO): Purchase orders (POs) represent the overwhelming majority of procurement contracts and are the standard form used to procure goods and/or services for Rutgers. Goods orders require a quote from the supplier and service orders require a Statement of Work that provides the detailed description of the services, deliverables, price, and the length of term, among other items. Rutgers form Statement of Work is available on the UPS website under Contracting Forms. The PO also incorporates the University Procurement Terms and Conditions that protect the University’s interests. Upon acceptance by a supplier, a PO becomes a contract binding both parties.

If the PO alone is insufficient, UPS may utilize one of the Rutgers standard contract templates for provision of goods and/or services which should be used whenever possible:

• Master Service Agreement (MSA):

Option 1: A universitywide engagement with a defined SOW including fees and expenses (e.g. copiers, office supplies, lab supplies, etc.) with one supplier. The University enters into this contract when there is a repetitive need to purchase the same type of good or service from a supplier at established prices.

Options 2: The Master Service Agreement is also used for an agreement with one supplier that allows units university-wide to purchase goods and/or services from the supplier. In this instance, there is no defined SOW or fees and expenses, however the terms and conditions of the agreement have been established. The unit must establish a defined SOW(s) including fees and expenses for all purchases (e.g. consulting firms), which will be governed by the MSA. It is optimal to utilize this type of contract when units repetitively purchase goods or services from the same supplier(s).

• Service Agreement (SA): A unit-specific purchase of services, with a defined Statement of Work (SOW), including Fees and Expenses (e.g. parking services, photography services, etc.). The Rutgers Service Agreement form is located under Contracting Forms on the UPS website.

• IP&O Agreement: IP&O is responsible for negotiating and executing all construction project contracts. These contracts are not managed by UPS.

4.3.2 Supplier Contracts

When a Rutgers standard contract is not acceptable, a supplier contract may be utilized on case-by-case basis. UPS must negotiate terms and conditions for these types of contracts. An unsigned copy of the supplier contract should be attached to the requisition when submitted.

There are two types of supplier contract situations:

a) A non-university contract is provided by the supplier that contains their terms and conditions. While this is not a preferred document to engage a supplier, Rutgers may authorize the use of this document upon UPS review, negotiation, and execution.

b) A supplier submits a quotation with their terms and conditions. These are carefully reviewed by UPS. If the quotation is accepted with the supplier terms and conditions, then Rutgers will sign the quote and Rutgers terms and conditions will not apply.

4.3.3 Group Purchasing Organization (GPO), Cooperative, University and State Contracts

Pursuant to Rutgers’ Procurement and Payment Policy 20.11.1, Rutgers may purchase goods and services through contracts competitively bid and/or negotiated by other entities that often leverage the purchasing power of a group of businesses or organizations to obtain better pricing and discounts from suppliers based on the collective buying power of that group. As a state institution, and as an institution of higher education, Rutgers may utilize GPO, cooperative and New Jersey state contracts, as well as contracts competitively bid by other colleges and universities for its purchasing needs. A unit desiring to purchase through any of these types of procurement contracts must submit a requisition, attaching a quote that references the contract name and number. The name of the cooperative and contract number should also be included in the internal notes field of the requisition.