Procurement Services 212: Professional Service Contracts

Purpose

To provide a method of contracting for professional services with a complex scope of work.

Reference

University of Alaska Procurement Manual (not available online)

Definitions

Professional Services: A category of services requiring a high degree of knowledge and training. Frequently, the individual or organization providing the service is professionally licensed. It is a service where a specialized non-trade skill or knowledge is needed and where recognized professional expertise and stature in a field are required for completion of a project. Contracts for professional, technical, or consulting services that are predominantly intellectual in character, result in the production of a report or the completion of a task, and include analysis, evaluation, prediction, planning, or recommendation. Examples of professionals include accountants, architects, attorneys, engineers, planners, appraisers, managers, consultants.

Policy

Requirements
A professional services contract is more detailed and comprehensive in its terms because of the complexity of the work, the cost and the exposure of the university to liability. Accordingly, these contracts contain termination rights, insurance requirements and indemnification language not required in other contractual instruments.

For the services requested, departments are required to develop a scope of work which will be referenced as part of the contract. The scope of work should include such things as the services to be performed, milestones for completion of the project, term of the services and due date of any deliverables. The scope of work information should be submitted concurrently with the Banner requisition entry.

Professional services contracts are used primarily for services with a cost in excess of $5,000. If the cost is $5,000 or less, a Short Form Contract for Miscellaneous Services may be more appropriate procurement method, subject to risk and other factors inherent in the nature of the services (see Procurement Services 211: Short Form Contracts).

Contact a university procurement officer if you have any question about professional services contracts or need a professional services contract issued.

Effective: 10/25/2005