Procurement & Auxiliary Services Contracts

A “contract” is an agreement between DSU and one or more parties, creating obligations that are enforceable or otherwise recognizable law.  Examples of contracts include, but are not limited to, standard contracts, memorandums of understanding (MOUs), purchase agreements or purchase orders, service agreements, lease agreements, licenses, easements, revenue generating agreements, and software license agreements.  Contracts can also be no cost agreements.

Contracts also include documents that revise or affect a contract already in place, including but not limited to, amendments, addenda, change orders, order forms, and contract termination notices.

All DSU contracts must be in writing and signed by an authorized signatory to be valid and enforceable.

The DSU President has been empowered by the Board of Trustees for the Institutions of Higher Learning (“IHL”) to execute contracts on behalf of DSU.  The President may further delegate limited contractual authority to institutional officials.  This authority has been delegated to the Vice President for Finance & Administration.

IHL Policy 707.02 states that anyone signing a contract without authorization is subject to disciplinary action, up to and including termination.  For additional information about contracting authority, please see the DSU “Contracts Policy.”  Viewing Contracts Policy

University contract review depends on each department maintaining oversight and accountability for the contracts it submits, including compliance with contract terms and all applicable DSU policies and procedures. Each department should designate one or more employees to serve as the contract manager, meaning the person with the most knowledge of the department’s needs and the contract’s scope, timing, quality, and payment requirements. A contract manager may not participate in the submission or approval of a contract if a conflict of interest exists under DSU policy or Mississippi law.

The contract manager has primary responsibility for ensuring DSU receives the goods, services, or revenue promised under the contract and that payments are made in accordance with its terms. This responsibility includes confirming that any required procurement has been properly completed with the appropriate procurement or IT office, using DSU contract templates or required standard addenda when applicable, negotiating lawful and appropriate terms, reviewing contract length and termination provisions, confirming payment terms, and calculating the total contract cost. Once these steps are completed, the proposed contract must be submitted for review through the University’s contract management software.

All draft and final contracts, along with required supporting documents, must be submitted through the University’s contract management software, and all submission information must be complete and accurate to ensure proper processing. Contracts are routed through the required approval levels, including the Office of Procurement and Auxiliary Services, and no services may begin, and no commitments may be made, until the contract is fully approved and signed by the Vice President for Finance and Administration. Departments should plan ahead and allow sufficient time for review and approval. As a general guideline, allow at least thirty (30) days from submission for internal review and approval, and ninety (90) to one hundred twenty (120) days for contracts requiring IHL Board approval.

Before certain contracts may be submitted for approval and signature, the Office of Procurement and Auxiliary Services must first confirm that all applicable procurement requirements have been satisfied. Procurement preapproval is required for specific types of purchases, including sole source procurements, information technology purchases, equipment leases, goods or services between $5,000 and $75,000 that require two quotes, goods or services over $75,000 that require a formal bid or proposal process, and prepayments or deposits. Prepayments under $5,000 may be approved by the President or designee, while prepayments over $5,000 require approval from the IHL Commissioner for amounts under $250,000 or the IHL Board for amounts over $250,000, subject to limited exemptions under IHL Policy 707.03.

When procurement review is required, the department or contract manager must work with Procurement and obtain approval before uploading any contract into the University’s contract management software. Procurement will require all supporting documentation, such as draft contracts, quotes, bids, or related materials, to verify compliance with applicable procurement rules and approval thresholds.

1. Certain contracts require approval by the IHL Board, and the approval process can be lengthy. Departments and requesting individuals should plan well in advance, as IHL Board approval typically takes approximately ninety (90) to one hundred twenty (120) days to complete.All contracts requiring IHL approval must be submitted to the Office of Procurement and Auxiliary Services through the University’s contract management system far enough in advance to allow for full review and approval. While Procurement manages the submission process, the requesting department remains actively involved throughout the IHL approval process.

   The following types of contracts require IHL approval prior to execution:

   1. Contract for the sale of real property; (See IHL Policy 905(B) for all property contract requirements);
   2. Contract for land acquisitions that exceeds $100,000;
   3. Contract for the execution of an easement or lease that exceeds $100,000 (non-oil, gas and mineral leases or easement less than $100,000 is delegated to the IHL Commissioner);
   4. Contract for the sale of timber that exceeds $500,000 (contracts for less than $500,000 is delegated to the chair of the Real Estate Committee);
   5. Contract for oil, gas and mineral leases regardless of amount;
   6. Contract for bookstores, food services, or athletic concessions projected to generate aggregate total revenues exceeding $250,000 (IHL Commissioner may approval renewal revenue contracts where the contract results in additional revenues to the institution);
   7. Contract for all other land, personal property, and services that requires an aggregate total expenditure of $250,000 or more (IHL Commissioner may approve renewals of service expenditure contracts if the original contract was previously approved by the Board of Trustees, and if the contract amount does not exceed 110% of the current contract).

All contracts requiring review and approval must be submitted, routed, approved, and maintained through the University’s contract management system. The contract manager is responsible for uploading the proposed contract, whether a University-approved template or third-party form, together with all required supporting documentation, including any applicable addenda, procurement approvals, information technology approvals, or other required forms.

The Office of Procurement and Auxiliary Services will review the submission for compliance with procurement requirements and route the contract for legal review by the Office of General Counsel as appropriate.

The contract manager is responsible for working with the vendor or contracting party to obtain or develop the proposed agreement. Departments should utilize the Contract Review Checklist to identify required provisions and common contract issues. If procurement, legal, or business revisions are required, the contract will be returned through the contract management system to the requesting department for coordination with the contractor. Revised documents must be reuploaded and routed through any required reviews before approval and execution.

Once all required reviews and approvals are complete, the contract will be routed to the University official with delegated signature authority. Following execution, the requesting department is responsible for providing the fully executed contract to the contractor unless otherwise directed. The fully executed agreement and all supporting documentation will be maintained in the University’s contract management system as the official contract repository.

Review timelines may vary depending on the completeness of the submission, the complexity of negotiations, the need to resolve impermissible terms, and the inclusion of all required documentation. Departments anticipating complex negotiations, new contract drafting, or time-sensitive transactions are strongly encouraged to involve their University contract liaison as early as possible in the process.

The contract management system will track contract expiration dates and other key milestones to assist with renewals, amendments, and extensions.

Once a contract has been fully approved and executed, the department is responsible for managing both the financial and performance obligations under the agreement. Contract execution alone does not create a purchasing obligation in DSU’s financial system. Before any work begins and before the vendor submits an invoice, the department must submit a requisition in Banner for the total contract amount or, if applicable, the portion needed for the current fiscal year. After the requisition is approved, the Office of Procurement and Auxiliary Services will issue a Purchase Order. For contracts that generate revenue, the department must submit a Contract Revenue Form to Procurement, and for payments under a contract, a Contract Payment Form must be completed and submitted as required.

Throughout the contract term, the department is responsible for monitoring performance, ensuring all deliverables and obligations are met, and verifying that invoices align with the contract terms, the Purchase Order, and work actually performed. Contract milestones, audits, reports, payments, and key obligations may be tracked through the University’s contract management software, and users may monitor activity through the the University’s contract management software dashboard. At the conclusion of the contract, the department must complete and submit the required Post Contract Review Checklist to close out the agreement and ensure that all terms, conditions, and deliverables have been fully satisfied in accordance with DSU policy and applicable Mississippi law.