6850P Services Contracts (Procedures)

Original Date: 1/9/1996 * Last Revision Effective: 3/12/2025
Policy Contact: Vice President, Administrative Services

Purpose

The following procedures are established to meet the requirements for implementing policy #6850 – Services Contracts.

Procedures

Services

Under RCW 39.26 and Department of Enterprise Services regulations, services means labor, work, analysis, or similar activities provided by a contractor to accomplish a specific scope of work. Contractors may provide professional or technical expertise to accomplish a specific study, project, task, or other work statement. These services can serve the college in various ways; offering professional opinions, judgments, or recommendations based on specialized knowledge or technical training; conducting studies and analyzing and evaluating the results; assisting in policy development; providing training to improve managerial processes and college operations. Service contracts may be awarded to individuals, joint ventures, partnerships, corporations, or nonprofit liaisons.

A state agency may procure services only if the services are critical to agency operations; if the agency does not itself has sufficient staffing, expertise, or capacity to perform the service; and if other qualified public resources are not available to perform the service. All service contracts require a signed Contract Signature Approval (CSA) form and may require additional justification in certain circumstances (e.g., sole sources contracts typically require additional written justification).

Although service contracts vary widely, they have some features in common. Such services are, in general;

  • Infrequent;
  • Of a set, temporary, and usually brief duration;
  • Procured to resolve a particular problem or address a specific issue;
  • Performed by independent contractors whose occupation is the rendering of such services;
  • Performed off-site at the contractor’s place of business whenever possible;
  • Performed by contractors who do not have authority to decide, command, or control college affairs;
  • Performed by contractors who are not under the college’s supervisory or managerial control;
  • Governed by a contract which specifies results rather than method of performance.

Exemptions

Exemptions to open and competitive contracting include emergency contracts, sole-source contracts, amendments to existing contracts, and contracts under $10,000. The application of any exemptions requires formal documentation that must be approved by the vice president of administrative services prior to the award of a contract.

Requirements for competitive processes

Contracts between $10,000 and $99,999 require documented evidence of competition. To gather proof of competition, a minimum of three additional quotes must be obtained (Request for Quotation or RFQ). One of these quotes should be from a business that is certified as an Office of Minority and Women’s Business Enterprises (OMWBE) or a Veteran-Owned Business (VOB). If no OMWBE or VOB business is able to offer the necessary services, it is important to provide documentation that demonstrates an attempt was made to obtain a quote from such a business.

Contracts more than $100,000 require a formal solicitation (Request for Propsal or RFP) process to be conducted prior to contract award, that is not procured through the utilization of a Department of Enterprise Service (DES) master agreement or an approved cooperative purchasing consortium.

Contract management

College employees responsible for executing or managing service contracts and client service contracts must complete required DES training course(s). No employee may execute or manage service contracts or client service contracts unless and until the employee has completed the training course(s).

To ensure accountability and performance, each services contract will include clearly defined deliverables and performance review mechanisms. These reviews may include regular progress reports, performance evaluations, and final assessments to confirm the contractor has met the contract’s objectives. Contract performance will be reviewed by the appropriate department before final payments are approved.

Definitions

Agency: Any state office or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, and commissions, institutions of higher education as defined by RCW 28B.10.016 and correctional and other types of institutions.

Contractor: An individual or entity awarded a contract with an agency to perform services or provide goods.

Emergency: A set of unforeseen circumstances beyond the control of the agency that either 1) presents a real, immediate threat to the proper performance of essential agency functions or 2) may result in material loss of damage to property, bodily injury, or loss of life if immediate action is not taken.

Evidence of Competition: A documented informal competitive process for award of service contracts of $10,000 to $99,999 that demonstrates the agency has solicited responses from a minimum of three firms, unless otherwise documented, evaluated responses in selecting a contractor, and awarded a contract.

Purchased Services: Services provided by a vendor to accomplish routine, continuing, and necessary functions. Generally, these services meet more ongoing needs of an agency for general support activities. This term includes, but is not limited to, services acquired under the Department of Enterprise Services and RCW 39.26 Procurement of Goods and Services.

Services: Labor, work, analysis, or similar activities provided by a contractor to accomplish a specific scope of work. This term does not include purchased services.

Services Contract: An agreement, or any amendment to that amendment, with a contractor for the rendering of services.

Sole Source: A contractor providing goods or services of such a unique nature that the contractor is clearly and justifiably the only practical source to provide the goods or services.

Examples

The examples below demonstrate possible scenarios of purchased services, procurements, leases, and rentals. They do not necessarily represent current procurements.

Examples of Purchases Services

Examples of General Administration purchased services include delivery/courier services, equipment rental, janitorial services, standard laboratory tests, laundry services, and towing services.

Examples of Department of Information Services purchased services include contract programming, technology support, computer hardware and software maintenance, software installation, data entry, operation of a physical plant, and standard IT training related to hardware or software in use by an agency.

Procurement of Goods

Example: A college acquires laboratory equipment for its science department, including microscopes, spectrometers, and other essential tools. Procurement involves issuing a Request for Proposal (RFP), evaluating bids, and selecting a vendor.

Example: A college procures classroom furniture, such as desks and chairs, for a newly constructed lecture hall. The procurement process involves soliciting quotes from multiple suppliers to ensure cost-effectiveness.

Procurement of Services

Example: The college engages a tutoring service provider to offer academic support for students in math and writing. This contract allows the institution to enhance student success through additional tutoring resources.

Example: A collegeengages a marketing firm to develop a strategic enrollment management plan. Over a year, the firm conducts market research, creates promotional materials, and provides consulting services, enhancing the institution’s recruitment efforts.

Leasing of Goods

Example: A college leases computers for its computer lab. The lease agreement spans four years, allowing the institution to maintain up-to-date technology while managing budget constraints.

Example: A college enters a three-year lease agreement for 20 electric vehicles for campus transportation services. This enables the university to offer sustainable transportation without the upfront vehicle acquisition cost.

Equipment Rental

Example: A college rents lighting and sound equipment for a theater production class for the term. This equipment rental allows students to gain hands-on experience without the college purchasing expensive equipment.

Example: For a major academic conference, a college rents audio-visual equipment, including projectors and sound systems, from a rental company. The rental period covers the duration of the conference, ensuring all technical requirements are met.

Revision History

Original 1/9/1996
Revisions 5/10/2005; 5/21/2009; 10/19/2015; 3/12/2025

Approved By

President’s Cabinet

Last Updated March 19, 2025