OSU PaCS 304-11: Retainer Agreement

Purpose

To provide information on how Procurement and Contract Services (PaCS) personnel utilize the Oregon University System (OUS) Retainer Agreement process.

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Background Information

In 1996 OUS, on behalf of its seven universities, first solicited and entered into contracts with qualified contractors to provide construction contracting services to OUS institutions.  The successful contractors are to furnish all necessary labor, materials, and equipment, necessary to provide construction services for future, undetermined renovation and/or improvement projects in the areas of carpentry, masonry, painting, electrical, plumbing, HVAC, roofing, paving/concrete, fire protection, and other trades generally associated with minor construction and renovation.

Successful contractors sign two year (with a one year renewal option) Retainer Agreements that contain general terms and conditions between OUS and the contractor.  Entering into a Retainer Agreement does not assure selection to provide services.  It enables OUS institutions to select contractors on retainer to perform projects with direct construction costs under $500,000 for construction.  A Supplemental Project Contract contains a description of services to be provided and the monetary consideration for each project.  Contractors are selected for projects based on factors the institutions deem appropriate, including price, experience, past performance, personnel assigned to the project, and timeline requirements.

Similar agreements are also in place for OUS retained consultants to provide professional services up to $200,000 for design and engineering, soil studies, surveys, geotechnical or traffic study projects.

The major advantages of the Retainer Agreement Program over regular advertised projects are the savings in advertising costs, printing and mailing costs, and time.  Institutions do not have to advertise the projects.  At OSU, PaCS contacts at least two qualified contractors on the Retainer Agreement list and invites them to participate in the bidding process.  The bidding period is also shortened, thereby getting the project underway more quickly.

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Policy

Only PaCS Staff members are authorized to solicit and process contracts utilizing the OUS Retainer Agreement Program.

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Procedure

To utilize the OUS Retainer Agreement Program for construction contracting services, contact Facilities Services (541) 737-2969 for assistance with scope, specifications, and document development.  Facilities Services will work directly with PaCS to solicit at least two contractors on the Retainer Agreement list to participate in the bidding process.  A construction contract will be issued by PaCS to the lowest responsive and responsible bidder.

To utilize the OUS Retainer program for professional consultants, departments must also work through Facilities Services, who will contact a consultant on the Retainer Agreement list and obtain a written proposal for services.  PaCS will then issue a supplemental contract for these services.

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