Oregon State University

401: Contract Basics

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010
Revised: 4/17/2012


401-001: Contracts Outside PaCS Purview:

The purchase and contract responsibilities  under PaCS purview do not include authority for processes managed by Real Property and Leasing, Inventory Control, Human Resources, Risk Management, Research Office, Office of Sponsored Programs, Technology Transfer, University Advancement or authority not allowed under ORS or OAR 580-042-0010.


401-002: Contract Form           

In order to acquire goods or services, the parties should enter into some form of a written contract regardless of the dollar value.  Written contracts may be in a variety of forms including but not limited to: Purchase Orders, Personal Services Contracts, Use Agreements, and Rental Agreements.  Contracts do not need to be labeled as such to be legally binding as interpretation is typically based on the content.  There are different types of instruments used to formalize the obligations and expectations of the parties. 


401-003: Oral Contracts

Oral contracts are not an acceptable form of contract and are not binding on the University. 


401-004: Contracting in Good Faith

OSU contracts in good faith.  It is our obligation to ensure that OSU contracts are enforceable, legal, fair, and represent terms and conditions under which OSU can agree. ORS, OAR and the Oregon Constitution contain certain restrictions which can obstruct or limit our ability to enter into agreements.  A contract must accurately represent the obligations, expectations and the time in which the contract is valid.


401-005: Independent Contractor

Contracts may only be issued to individuals or businesses that qualify as Independent Contractors.  An evaluation of the relationship between an individual and the University must be examined before determining independent contractor status.  Facts that provide evidence of independent contractor status fall into three categories: Behavioral, Financial and the Relationship of the Parties.  The degree of importance of each category varies depending on the type of work and individual circumstances.  An Independent Contractor Determination form must be completed whenever the university is contracting with an individual whether by PSC or other form of contract.


401-006: OSU as a Contractor

OSU may perform work as a Contractor to other entities only under certain conditions; the work must be consistent with OSU’s mission; and the fee charged must be approved and published in the OSU fee book.  Office of Sponsored Programs and Procurement both execute contracts on behalf of the University where the University acts as the contractor.  To determine whether PaCS or the Office of Sponsored Programs would handle the contract, refer to the Contract Type Characteristics matrix at http://oregonstate.edu/research/osp/submission/TestingAgreements_000.htm


401-007: Non-Negotiable Public Contracts

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