000 Introductory Material

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised: 09/22/11

001: Introduction

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised:  11/27/12


The Procurement and Contract Services (PaCS) Policies and Procedures Manual was created by integrating the former Procurement, Contracts and Construction Contracting Policies and Procedure Manual with newly created policies and procedures.  In 2008, new Oregon Administrative Rules were implemented by the Oregon University System (OUS), necessitating a major revision of the PaCS policies and procedures.

The PaCS Policies and Procedures Manual provides the formal guidance for procurements, construction contracts and other contracts with the exception of those contracts outside of PaCS purview such as contracts managed by Real Property, Human Resources, Risk Management, Research, and the Office of Sponsored Programs.  The PaCS Policies and Procedures Manual is managed by the Procurement and Contract Services Department.  PaCS provides OSU colleges and departments with efficient processing of procurement and contract documents.  The policies and procedures contained in this manual reflect the requirements of applicable state and federal statutes, Oregon Administrative Rules, guidance from OUS Internal Audit and good business practices.  The Director of Business Services is responsible for the interpretation and administration of PaCS policies and procedures.

Corrections, changes, or suggestions regarding the PaCS Policies and Procedures Manual should be communicated to the PaCS Manual Coordinator, (541) 737-2067.  If you encounter a situation not covered in this manual, contact the Chief Procurement Officer at (541) 737-2067.

In the event of an inconsistency or conflict, applicable law and the State Board of Higher Education policies supersede University policies and University policies supersede college, department or subordinate unit, policies, or guidelines.

The University reserves the right to add, amend, or revoke any of the contained rules, policies, regulations, and instructions or incorporate additional ones, with or without notice, as circumstances or the good of the University community may require.

This online manual replaces earlier printed versions, which are no longer provided nor distributed.  A printout of this manual and each change to this manual, created from the original text source for the online version, is retained permanently as an official record at University Archives and is available for inspection.  Printouts of all revisions to online manuals will be similarly available.

002: Definitions

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised:  11/27/12

  • Y
  • Z


Addendum or Addenda

An addition to, deletion from, a material change in, or general interest explanation of a Solicitation Document.


A document which changes a Contract except for a construction related Contract.  See Change Order below.


Procurement analyst working in the Procurement and Contract Services department within Business Services.

Architect/Engineer (A/E) (Construction Contract)

The person appointed by the Owner to make drawings, Specifications and, to provide Contract administration of the Work contemplated by the Contract.




An Offer submitted in response to an Invitation to Bid.


An Entity that submits a Bid in response to an Invitation to Bid.


The Oregon State Board of Higher Education.

Business Center

Implemented business centers, each within seven thematic areas of OSU which are centralized and delegated certain business functions.

Buyer Code

As utilized in the Banner Financial Information System (FIS) Buyer Codes are used on FIS POs to identify the billing contact and address of an OSU Department or administrative group



Capital Lease

A Lease of personal or real property which is non-cancelable, meets one or more of the four capitalization criteria in Section .200.A of Oregon University System Fiscal Policy Manual policy, and meets or exceeds the $5,000 capitalization threshold at the inception date of the Lease.

Certificate of Insurance (COI)

A document issued by an insurance company listing the effective dates of the insurance policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability.

Certified MWESB: 

An MWESB certified by the Oregon Business Development Department (OBDD).

Change Order (Construction Contract)

A written change to a construction Contract or Supplement required to document a change in the quantity or type of services or materials to be provided under the construction Contract.


The date and time specified in a Solicitation Document as the deadline for submitting Bids or Proposals.

Code of Ethics (OAR 580-061-0000)

Ethical guidelines implemented by the Oregon University System in OAR 580-061-0000.  The Code of Ethics applies to Oregon University System employees in relation to OAR Chapter 580, divisions 60, 61, 62, and 63.

Competitive Process

The process of procuring goods and services and construction-related services by fair and open competition, under varying market conditions, with the intent of minimizing opportunities for personal preferences and assuring that Contracts or Purchase Orders are awarded equitably and economically using various factors in determining such equitability and economy.

Construction Manager/General Contractor (CM/GC)

A method of construction contracting whereby the construction Contractor is selected based on qualifications early in the design process in order to provide construction management services as well as perform as the general Contractor for the project.  The CM/GC works with the design team to provide constructability review, construction estimates as the project is developed, and propose alternate materials or method options in order to maintain quality while reducing costs.


Architects, Engineers, planners, land surveyors, appraisers, managers and related Professional Consultants.


A written agreement for sale or other disposal, or a purchase, Lease, rental, or other acquisition, by an Institution of personal property, services, including personal services, Public Improvements, Public Works, minor alterations, or ordinary repair or maintenance necessary to preserve a Public Improvement. "Contract" does not include Grants. "Contract" may also mean a Purchase Order, Price Agreement, or other Contract document.

Contract Officer

The Vice President for Finance and Administration or those delegated by the Vice President for Finance and Administration as Contract Officers.  Contract Officers have the authority to negotiate and execute Contracts on behalf of OSU.  Institution Contract Officers are delegated officially in writing.


The Entity awarded the Contract to furnish goods, services or Work to OSU.




Calendar days, including weekdays, weekends, and holidays, unless otherwise specified.

Design/Build Contract

A form of construction Contract whereby both the design and construction is contracted through one legal Entity. 

Direct Costs

The cost of materials, labor, equipment, and machinery required for execution of the Work; and the additional costs of field personnel directly attributable to the Work.

Disadvantaged Business Enterprise (DBE)

A small business concern as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

Donation (non-construction related)

Financial or in-kind support to OSU that does not create an obligation or expectation on OSU.  No Contract or agreement is necessary for a Donation.  The Donation may require acknowledgment from OSU Foundation.




An unexpected, serious situation that creates a significant risk of loss, damage, interruption of service, or threat to the public health or safety that requires prompt action to remedy the condition.

Emerging Small Business (ESB)

Means an Emerging Small Business as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

Energy Savings Performance Contract

A form of Contract whereby a single Entity is contracted to perform studies of energy usage in a building; make recommendations as to improvements that could be made to improve energy efficiency, including estimated energy savings associated with each option; design and construct the options selected; and guarantee achievement of the projected savings or payment of the difference between actual energy costs and the projected savings over a pre-determined period of time.


A natural person capable of being legally bound, sole proprietorship, corporation, partnership, limited liability company or partnership, limited partnership, profit or nonprofit unincorporated association, business trust, two or more persons having a joint or common economic interest, or any other person with legal capacity to contract, or a government or governmental subdivision.



Final Completion

The final completion of all requirements under the Contract, including Contract Closeout and the final payment and all Retainage, if any, released.

Finance Lease

See Capital Lease

F.O.B. (Free on Board)

Delivery to and placing on board a carrier at a specified point; determines the point at which title for the shipment passes from Vendor to purchaser (Origin or Destination) and designates who pays freight charges (Freight Collect, Freight Prepaid and Allowed or Freight Prepaid and Added).



General Conditions

The document which sets out terms and conditions of the construction Contract or construction related Purchase Order. 


An agreement under which OSU receives or provides money, property or other assistance for the purpose of supporting or stimulating a program or activity and in which no substantial involvement by the grantor is anticipated in the program or activity other than monitoring and compliance with grant conditions.



Historically Underrepresented Business (HUB): 

Certified and self-identified MWESBs and firms certified federally or by another state or entity with substantially similar procedures to the State of Oregon.


Independent Contractor

A person who provides services for remuneration and who, in the provision of the services:

  1. Is free from direction and control over the means and manner of providing the services, subject only to the right of the person for whom the services are provided to specify the desired results;
  2. is customarily engaged in an independently established business;
  3. Is licensed under ORS chapter 671 or 701 if the person provides services for which a license is required under ORS chapter 671 or 701; and
  4. Is responsible for obtaining other licenses or certificates necessary to provide the services.

Institution or Institutional

An OUS university under the authority of the Board, including the Chancellor's Office.

Interagency Agreement

An agreement between two different agencies of the State of Oregon.

Interdepartmental Agreement

Interdepartmental agreements are agreements between two or more departments of OSU. 

Intergovernmental Agreement

An agreement between two different governmental agencies.

Invitation to Bid (ITB)

A Solicitation Document for the solicitation of competitive, written, signed, and sealed Bids in which Specifications, price, and delivery (or project completion) are the predominant award criteria.


A form used by Vendors to request payment for goods or services provided.  The invoice will state the description of the item(s) or service(s), price(s) charged, terms of payment, discounts (if any) allowed, freight charges (if any) included and preferably, reference the Purchase Order.








A legal Contract by which one party gives to another the use and possession of real or personal property for a specified time in exchange for periodic payments.

Lease Intake Form

Document required to be completed and submitted with Purchase Requisition when goods or services are being acquired through a Lease.


The party who Leases personal or real property from a Lessor.


The owner or owner's representative of the personal or real property that is Leased to a Lessee.


A person who temporarily fulfills the duties of or who works in the place of the regular doctor when that doctor is absent. These professionals are still governed by their respective regulatory bodies, despite the transient nature of their positions.



Management Plan

A plan to increase the diversity of a business’ workforce and to subcontract with or purchase from Historically Underrepresented Businesses. 


Requests by departments or individuals to join a specific organization as a representative of Oregon State University.

Memorandums of Understanding (MOU)

A memorandum that provides for a mutual undertaking between two or more parties without detailing the specifications of the undertaking.  All parties are mutually interested in the aims and benefits, even though there may be a difference in the scope of that interest.

Minority Business Enterprise (MBE)

Minority Business Enterprise as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.



Notice to Proceed

Official notice to begin Work given to the Contractor by PaCS when all required documents pertaining to a Contract have been received and approved, and the Contract has been executed.





A Bid, Proposal, or other Written response, binding on the Entity submitting it in response to a Solicitation Document


The date, time, and place announced in a Solicitation Document for public opening of Bids or Proposals.

Operating Lease

A Lease of personal or real property that does not meet the Oregon University System Fiscal Policy Manual policy 200.A criteria for a Capital Lease.

Oregon Administrative Rule (OAR)

Agency rules adopted under the Oregon Administrative Procedures Act.

Oregon Revised Statues (ORS)

Statues of the State of Oregon.

Oregon University System (OUS)

The Oregon public higher education system that oversees and provides services to Oregon’s seven state Institutions(Eastern Oregon University, Oregon Institute of Technology, Oregon State University, Portland State University, Southern Oregon University, University of Oregon and Western Oregon University). 


The State of Oregon acting by and through the Oregon State Board of Higher Education, in its own right or on behalf of one of it’s Institutions as identified in the Solicitation Document, also known as the Oregon University System (OUS).




Procurement and Contract Services

Payment and Performance Bonds

Legal documents issued by a Surety which guarantee payment for all Work, materials, and labor required to complete construction of a contracted project, should the Contractor become insolvent or for some other reason be unable to complete the Work or fail to pay suppliers and/or workers amounts required by the Contract. 

Personal Service

Service provided by an individual or company with specialized skills, knowledge, and resources in the application of technical or scientific expertise, or the exercise of professional, artistic, or management discretion or judgment.

Price Agreement

A nonexclusive agreement in which the Contractor agrees to provide specific items or services to an Institution at a set price during a specified period of time.

Professional Consultant

Architects, Engineers, planners, land surveyors, appraisers, construction managers and related Professional Consultants for the design, evaluation and management of construction projects or real property.


A binding competitive offer submitted in response to a Request for Proposals.


An Entity who submits a Proposal in response to a Request for Proposals

Public Improvement

A Contract for a Public Improvement. "Public Improvement Contract" does not include a Contract for Emergency Work, minor alterations, or ordinary repair or maintenance necessary to preserve a Public Improvement.

Public Work

Defined by the Bureau of Labor and Industries (BOLI) in ORS 279C.800(6).


The list of Work yet to be completed or deficiencies which need to be corrected in order to achieve Final Completion of the Contract.

Purchase Order (PO)

The Banner Financial Information System (FIS) Purchase Order or other written order that specifies goods or services ordered from a specific Vendor, and the price, terms, and conditions of that order.

Purchase Requisition

A term used to indicate a request for goods or services made by use of a purchase requisition form.



Qualified Pools (Procurement)

Established under the Alternative Processes in OAR 580-062-0010(6), Qualified Pools are Vendors that have been pre-qualified, through a Request for Qualification process, to provide Services.

Qualified Rehabilitation Facility (QRF)

A nonprofit activity center or rehabilitation facility authorized by the Oregon Department of Administrative Services to provide goods or services.



Request for Information (RFI)

A Solicitation Document seeking information regarding products or services that an Institution is interested in procuring.

Request for Qualifications (RFQ) (Construction)

A document which provides a general description of a proposed project; indicates the type of Consultant or Contracting services needed; and requests each prospective respondent to provide a written response setting forth the respondent's specific experience and qualifications of performing the type of services required.

Request for Qualifications (RFQu) (Procurement)

A Solicitation Document utilized to establish a list of Contractors who have certain qualifications such as experience, licensing or certification.  Typically issued in order to pre-qualify potential Contractors from which to solicit Bids or Proposals. 

Request for Quotes (RFQ) (Procurement)

An informal Solicitation Document whereby quotes are submitted.

Request for Proposals (RFP) (Construction)

A document calling for qualifications and/or Proposals for specific services, and may be used for both professional and construction services.

Request for Proposal (RFP) (Procurement)

A solicitation of written, competitive Proposals or Offers, to be used as a basis for making an acquisition, or entering into a Contract when Specification and price will not necessarily be the predominant award criteria.

Responsible Bidder or Proposer

An Entity that demonstrates their ability to perform satisfactorily under a Contract by meeting the applicable standards of responsibility outlined in OAR 580-061-0130.

Responsive Bid or Proposal

A Bid or Proposal that substantially complied in all material respects with the criteria outlined in a Solicitation Document.


A sum, not to exceed 5% of the total value of Work completed in the pay period, withheld from a construction Contractor’s monthly pay request.

Retainer Contracts (Construction Contracting)

A Contract by which, pursuant to a Request for Proposals or Invitation to Bid, multiple Contractors are authorized to provide specific supplies or equipment to or perform specific services for an Institution(s). Contractors on a Retainer Contract may provide goods or services on a non-exclusive and as-needed basis.



Ship-To Code

As utilized in the Banner Financial Information System (FIS) Ship-To codes are used on FIS POs to identify the shipping address of an OSU Department or administrative group.  

Solicitation Document

An Invitation to Bid, Request for Proposals, Request for Quote, Request for Qualifications, Request for Information, or other written document issued by OSU, including all documents incorporated by reference.

Sole Source

The only vendor reasonably available to provide a particular product or service.


Any description of the physical or functional characteristics, or of the nature of a supply, service or construction item, including any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery and the quantities or qualities of materials to be furnished under the Contract. Specifications generally will state the result to be obtained and may, on occasion, describe the method and manner of doing the Work to be performed. 


A person having a direct Contract with the Contractor, or another Subcontractor, to perform one or more items required under the Contract.

Substantial Completion (Construction)

The date when the Owner accepts in writing the construction as having reached that state of completion when it may be used or occupied for its intended purpose.  Substantial Completion of facilities with operating systems occurs only after thirty (30) continuous Days of successful, trouble-free operation of the operating systems.

Supplement (Construction)

An Amendment to a consulting Contract, adding specific services for an agreed-upon fee.



Tax ID Number

A number assigned by the Internal Revenue Service identifying an individual or company or agency and its tax status.

Total Contracted Project Value

All purchased/contracted costs specifically applicable to a project.  If a piece of equipment (fume hood, furniture, carpet, etc.) is purchased specifically for the project, and a Contractor is hired to do the electrical Work, those costs are applied to the “total contracted project value”.  OSU staff labor to do painting or carpentry would not apply to the “total contracted project value”.

Trade Services

Service provided by an individual or company with skills, knowledge, and resources in the application of a manual or mechanical trade labor, including but not limited to, services such as janitorial, food service, farm labor, lumberman, electricians or building system maintenance.



Unit Administrator

Department head, division head, director, dean, manager, vice provost, provost, vice president or president authorized to determine and assign duties to University employees within a certain unit.

Used Property

Property or equipment used by a previous owner or user for a period of time and recognized in the relevant trade or industry at “used” at the time of University purchase.




Defines a business or individual as a seller of goods or services to Oregon State University.  



Woman Business Enterprise (WBE)

A business that meets the eligibility standards set out in OAR 445-050-0030 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.


The furnishing of all materials, equipment, labor and incidentals necessary to successfully complete any individual item or the entire Contract and the timely carrying out and completion of all duties and obligations imposed by a Contract.

004: Frequently Asked Questions

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised: 09/22/11

Currently Under Development