Office of Business Operations

Professional Service Agreement (PSA) Guidelines

Professional Service Agreement (PSA) Guidelines

BOR policy manual, Section 2.2.6.C.X defines professional service contracts and lists what should be provided in the contract or an agreement. Professional Service Agreements are contracts for unique, technical and/or infrequent functions performed by an independent contractor qualified by education, experience and/or technical ability to provide services. In most cases, these services are of a specific project nature and are not a continuing, on-going responsibility of the institution. The services rendered are predominantly intellectual in character even though the contractor may not be required to be licensed. Professional service engagements may involve partnerships, corporations, or individuals.

Examples of professional services typically utilized at UNI include, but are not limited to, consulting, graphic design services, market analysis, banking services, auditing, software development/design, speakers and entertainers. Expenses for services are to be coded to object codes 65010 – 65910.  Please contact the Payroll Department to determine if your vendor fits the requirements of an independent contractor.

Payments over $500 to independent contractors doing business with the University require some form of a written contract:

  • Departments can download the Professional Services Agreement form from the Office of Business Operation website.
  • A professional speaker, consultant, or entertainer can provide their own contract, but the document would need review by University Counsel (if more than $2000) and Procurement Services. The Office of Business Operations has created a Speaker/Presenter Agreement template for use. Departments can download the Speaker/Presenter Agreement form from the Office of Business Operation website.
  • Over $10,000 - The contract or agreement would need to be co-signed by Procurement Services.
  • Over $25,000 - Contact Procurement Services to make sure correct procedures are followed.
  • Over $50,000 - Any agreement that involves a cumulative expense over $50,000 would require a bid or documentation and approval of a sole source.

Once completed, including appropriate review by University Counsel, the PSA can be sent to the vendor for signature and returned back to the department to obtain all necessary University signatures. The fully executed agreement should be sent to the Vendor and stored by the department (an electronic version is acceptable). A copy of the agreement should also be forwarded to Procurement Services.

Key elements to include when completing the PSA:

  • Vendor Name and Address
  • Specified start and end dates for the project
  • Rate of Pay with a maximum contract amount (including allowable defined expenses including compensation, travel, lodging, etc.)
  • A complete statement of work which includes the details of the work to be completed
  • Terms and conditions including when payment is required (i.e. end of project, milestones, etc.)

PSA’s involving a conflict of interest vendor, regardless of the estimated total compensation, must involve Procurement Services. A conflict of interest occurs when the potential vendor is, or has been, a paid employee of the University of Northern Iowa (UNI), another Regent Institution, or state agency.  See https://obo.uni.edu/conflict-interest.  

BASIC PSA Information Required for Payment Process:

$0-499

$500-9,999

$10,000 and Up**

-No PSA Required

-Process via RFP

-Invoice required

-PSA/formal contract required

-Process via RFP with PSA attached

 

-PSA/formal contract required

-Process via RFP with PSA attached

-PSA/contract signed by Procurement Services and University Counsel

A PSA Amendment is required anytime the amount or rate of money/pay is changed, or the parties change the written terms or conditions of the PSA; if the amendment causes the project to move to the next tier the requirements of that tier will apply.

** If professional service payments made to an independent contractor are expected to exceed $25,000, at any point during the project, contact Procurement Services to determine if a competitive bid or other competitive procedures need to be implemented.

 

Professional Service Agreement (PSA) Guidelines Updated 9/25/17