Maintenance Agreement (LL)
The Assistant Vice Chancellor for Contracts and Compliance is the only individual authorized to sign Maintenance Agreements on behalf of the University for a period of one year.
Maintenance agreements over one year must be signed by the Treasurer. The Procurement Department will be responsible for obtaining all signatures.
All purchase orders for maintenance contract must be accompanied by the terms and conditions set forth by the company being contracted. Requisition must state the terms of the agreement and the payment terms.
Following is the policy and procedures that shall be followed to contract with an outside vendor for the maintenance/repair of University-owned equipment; e.g., office machines, computers, research equipment. Also covered is the policy and procedures for software maintenance and licensing.
MAINTENANCE AGREEMENTS
One year Maintenance Agreement: The only individual authorized to sign on behalf of the University, regardless of the source of funds is the Assistant Vice Chancellor for Contracts and Compliance. All purchase orders for maintenance services must have an agreement forwarded to the Procurement Department. A bill is not considered an agreement.
1. Maintenance/repair service/parts for equipment: When there is labor involved, charge LL. If the purchase covers only replacement parts without labor, charge to the appropriate account code.
a. Two types of equipment repair service are usually available from those vendors that offer it:
(1) Per Call Service: Equipment is serviced only when requested. Fees are usually based on an hourly rate plus replacement parts and the requesting department is billed for each call.
(2) If the total value of the maintenance service contract is greater than $5,000 for the entire term of the agreement and the service is available from more that one vendor, and if the agreement is not covered by State, MHEC, University or Campus contract, the department shall submit their requirement to Purchasing in requisition form, or written justification for sole source, or sole acceptable source, shall be provided on the Documentation Form – Sole Source, Sole Acceptable Source/Brand. The Purchasing Department will send out requests for bids for competitive requirements and will issue a Purchase Order to cover the resulting agreement. The requesting department will be responsible for issuing requisitions to cover any subsequent years of the agreement, if applicable.
In all instances, the vendor shall provide the University with an itemized bill, including the rate per hour, the number of hours worked, and an itemized list of parts (if applicable). Lump sum bills are unacceptable.
(3) Service Contract (usually issued annually): Equipment may receive regularly scheduled preventive maintenance inspections and is repaired, as needed, between inspections for a flat annual rate. Some service contracts include replacement parts; other, only cover labor. The requesting department should check the terms of the vendor’s service contract prior to contracting for maintenance to determine exactly what is covered.
(4) A requisition must cover any agreement for the maintenance/repair of equipment.
(5) All maintenance service contracts must be covered by a written agreement, which shall be signed by the vendor and the Assistant Vice Chancellor for Contracts and Compliance. Any such agreement that spans more than twelve months also may be subject to legal review by the University’s Staff Attorney and the Treasurer must sign this agreement.
(6) If the total value of the maintenance service contract is not greater that $5,000 for the entire term of the agreement, or if the agreement is covered by State, MHEC, University, or Campus contract, the department may prepare a requisition and submit it to Purchasing for review, together with the vendor’s contractual agreement. No Purchase Order covering a maintenance service contract will be processed unless and until it has the appropriate, properly executed contract attached to it.
(7) If the total value of the maintenance service contract is greater than $5,000 for the entire term of the agreement and the service is available from more that one vendor, and if the agreement is not covered by State, MHEC, University or Campus contract, the department shall submit their requirement to Purchasing in requisition form, or written the Documentation Form
– Sole Source, Sole Acceptable Source/Brand. The Purchasing Department will send out requests for bids for competitive requirements and will issue a Purchase Order to cover the resulting agreement. The requesting department will be responsible for issuing purchase requisitions to cover any subsequent years of the agreement, if applicable.
(8) All maintenance service agreements are subject to the review and approval of the Purchasing Department, and all the necessary procedures shall be followed, and approvals and signature obtained, prior to making any commitment to the vendor.