Chapter 3361:20-23 Contracts

3361:20-23-02 Contracts: purchasing, competitive bidding.

(A) The university shall adhere to established guidelines for competitive bidding when purchasing goods or services for the university, except as is otherwise hereinafter permitted. This rule applies to purchases using any and all funds administered by the university.

(B) The university shall use contracts created by its central purchasing department when purchasing goods and services for the university, except as is otherwise hereinafter permitted.

(C) The bidding guidelines shall be as follows:

(1) For purchases in amount less than fifteen thousand dollars, the buyer shall obtain bids by telephone or electronic transmission as competition warrants.

(2) For purchases in an amount above fifteen thousand dollars but not in excess of six hundred sixty-five thousand five hundred dollars, the buyer shall obtain bids in writing, including electronic transmission as authorized by the director of purchasing and materiel management, in a number commensurate with the amount of the expenditure and the competition available in the traditional market.

(3) For purchases in an amount above six hundred sixty-five thousand five hundred dollars but not in excess of four million five hundred thousand dollars, approval of the president and compliance with the requirements of paragraph (B)(2) of this rule are required. The five million five hundred thousand dollar limit may be increased to five million dollars with the verbal or written consent of the chairperson of the finance and administration committee. Under normal conditions written approval is preferred.

(4) Public works projects of a kind and in the amounts specified in Chapter 153, of the Revised Code shall be competitively bid and award in accordance with all laws and regulations applicable thereto.

(D) Provided the bidding guidelines described in paragraph (B) of this rule are complied with, the director of purchasing and materiel management may:

(1) Exercise the president's entire approval and signature authority for purchase orders in amounts that do not exceed one million three hundred thirty-one thousand dollars when such purchase orders are made on standard forms that have been previously approved by the office of general counsel (OGC) and bear no attachments that could vary the terms of the purchase order; and

(2) Competitively bid, approve and execute purchase orders and term contracts for annual supplies and services in any amount during the interval between the June and September meetings of the board when such purchase orders and term contracts are made on standard forms that have been previously approved by the office of general counsel (OGC) and bear no attachments that could vary the terms of the order. A summary report of all purchase orders and term contracts executed with this authority shall be provided to the board for its fall meeting.

(3) Competitively bid, approve and execute purchase orders and term contracts for purchases in amounts above five million dollars, with the approval of the board of trustees and compliance with the requirements of paragraph (B)(2) of this rule unless the board of trustees specifically waves compliance.

(E) The authority granted and delegated to the director of purchasing and materiel management by this rule may not be further granted, delegated or assigned, either in whole or in part, to any other person.

(F) For the purchase of printed materiel, the requirements of section 3345.10 of the Revised Code shall be adhered to in addition to the requirements set forth above.

(G) Those bids to be advertised and the details of the bidding process shall be determined by policies established by the department of purchasing and materiel management.

(H) Contracts shall be awarded to the lowest and best bidder, except that the university reserves the right to accept or reject any or all bids or proposals in whole or in part.

(I) The director of purchasing and materiel management shall have authority, within the purchase dollar threshold authority of that office, to create and maintain a list of products determined to be non-competitive. These products may be purchased without competitive bidding or letters requesting a waiver from the competitive bidding policy as specified by paragraph (I) of this rule.

(J) Other waiver or modification of the bidding guidelines may be sought because of timing or unique product requirements, or where sufficient economic reasons exist. A written request for a waiver containing an explanation of the reasons for the request must be forwarded to the director of purchasing and materiel management with the requisition. Such waiver shall be effective on approval of the director of purchasing and materiel management for purchases within the dollar authority of that office, by the president for purchases within the purchase authority of that office and by the board of trustees thereafter.

(K) The director of purchasing and materiel management shall have authority to create and maintain a list of price agreements entered into by educational associations, state agencies and consortia through which goods and services may be procured without competitive bidding.

(L) Purchases made pursuant to sections 4115.31 to 4115.35 and 5147.07 of the Revised Code are exempt from the guidelines.

(M) Purchases of professional, non-competitive services for thirty thousand dollars or less as provided for in paragraph (M)(1) of this rule, and purchases of legal services from special counsel appointed by the Ohio attorney general in any amount, are exempt from these guidelines established in paragraph (B) of this rule.

(N) For the purchase of services which are professional and non-competitive in nature, the following shall apply:

(1) When the aggregate amount to be paid for such services will not exceed thirty thousand dollars in any calendar year, no bidding or express waiver thereof is required. An appropriate personal services contract purchase order or other form of agreement will be required under the applicable university contract policies and procedures.

(2) When the aggregate amount to be paid for such services will exceed thirty thousand dollars in any calendar year, bidding is required unless expressly waived by the contracting officer or director of purchasing and materiel management. A written request for such waiver containing an explanation of the reasons for the request must be forwarded to the contracting officer when the services are proposed to be provided by an individual sole proprietor or by the director of purchasing and materiel management when the services are proposed to be provided by a corporation, partnership or other business entity or organization prior to processing an appropriate university personal services contract purchase order or other form of agreement under the applicable university contract policies and procedures.

(O) Even where the competitive bidding guidelines may be waived or do not apply, compliance with such guidelines is encouraged.

(P) In compliance with section 125.081 of the Revised Code, the university shall set aside a number of purchases each year for bidding by certified minority businesses only. The bidding procedures for such contracts shall be the same as for all other contracts except that:

(1) Only minority business enterprises certified by the state of Ohio equal employment opportunity coordinator shall be qualified to submit bids, and

(2) The cost of products and services may not exceed the estimated market price by more than approximately ten per cent.

(3) If bids are rejected because of this cost consideration, the purchase shall be awarded in accordance with standard bidding procedures.

(Q) This rule shall not apply to the employment or reemployment by the university of regular teaching or administrative personnel.

(R) The university will adhere to all other applicable laws and regulations with respect to purchasing and competitive bidding.

(S) This rule shall be amended every three years to increase signing authority pursuant to rule 3361:10-1-06 of the Administrative Code.

Effective: 8/8/2016
Promulgated Under: 111.15
Statutory Authority: 3361
Rule Amplifies: 3361
Prior Effective Dates: 11/01/1984, 12/18/1985, 05/29/1987, 02/13/1990, 10/15/1992, 05/02/1994, 02/12/1996, 04/21/1997, 12/18/1997, 09/25/1998, 07/02/2001, 10/17/2003, 07/01/2004, 01/01/2007, 12/11/2009

3361:20-23-13 Contracts: policy statement on equal employment opportunity covenant requirements for contractors.

As a recipient of federal, state and city funds, the university of Cincinnati is required to comply with "Federal Executive orders 11246 and 11375," "State of Ohio Executive Order 1972" and its own affirmative action plan banning employment discrimination. Specifically, those holding university contracts or orders or those seeking university employment opportunity practices as the university in respect to their own employees and subcontractors.

Those contractors and vendors engaged by the university, who are subject to the department of public works' rule and regulations on equal employment opportunity, will be required to adhere to the following obligations. Such contractors and vendors hereby agree to incorporate or cause to be incorporated into any contract or modification thereof, as such is defined in "section 202" of the director of the department of public works' rule and regulations on equal employment opportunity, and which is paid for in whole or in part with a grant, contract, loan, insurance policy or guaranty which is distributed, allocated, or approved by a department, authority, commission or agency of the state of Ohio subject to the terms of such regulations, the following equal employment opportunity clause: during the performance of the contract, the contractor agrees as follows:

(A) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, national origin, sex, sex orientation, handicap, status as disabled veteran or veteran of the Vietnam era, or age. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, national origin, sex, sex orientation, handicap, status as disabled veteran or veteran of the Vietnam era or age. Such action shall apply but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

(B) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, sex, sex orientation, handicap, status as disabled veteran or veteran of the Vietnam era or age.

(C) The contractor will send to each labor union or representative of workers, with which he has a collective bargaining agreement or other contract, a notice to be provided by the state administering agency or the office of contract compliance, university of Cincinnati, advising said labor union or workers' representatives of contractor's commitments under this covenant and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(D) The contractor will comply with all provisions of the department of public works regulation on equal employment opportunity, and with the implementing rules, regulations, and applicable orders of the state equal employment opportunity coordinator and the office of contract compliance, university of Cincinnati.

(E) The contractor agrees he will fully cooperate with the state administering agency, the state equal employment opportunity coordinator, the office of contract compliance, university of Cincinnati and with any other official or agency of the state or federal government which seeks to eliminate unlawful employment discrimination, and with all other state and federal efforts to assure equal employment practices under this contract, and said contractor shall comply promptly with all requests and directions from the state administering agency, the state equal employment opportunity coordinator, the office of contract compliance, university of Cincinnati and any of the state of Ohio's officials and agencies in this regard, both before and during the contract.

(F) Full cooperation as expressed in paragraph (E) of this rule, shall include, but not be limited to, being a witness and permitting employees to be witnesses and complainants in any proceeding involving questions of unlawful employment practices, furnishing all information and reports required by the department of public works regulation on equal employment opportunity and by the rules, regulations and orders of the state equal employment coordinator and the office of contract compliance, university of Cincinnati pursuant thereto, and permitting access to the contractor's books, records, and accounts by the state administering agency, the state equal employment opportunity coordinator and the office of contract compliance, university of Cincinnati for purposes of investigation to ascertain compliance with such rules, regulations and orders.

(G) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract, or with any of the said rules, regulations or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further state contracts or state assisted contracts in accordance with procedures authorized in the department of public works regulation on equal employment opportunity, and such other sanctions may be instituted and remedies invoked as provided in said regulations or by rule, regulation or order of the state equal employment opportunity coordinator, the office of contract compliance, university of Cincinnati, or as otherwise provided by law.

(H) The contractor will include the portion of the sentence immediately preceding paragraph (A) and the provisions of paragraphs (A) to paragraph (H) in every subcontract or purchase order under this contract unless exempted by rules, regulations or orders of the state equal employment opportunity coordinator or the office of contract compliance, university of Cincinnati, issued pursuant to "section 204" of the department of public works regulation on equal employment opportunity so that such provisions will be binding upon any such subcontractor or vendor. The contractor will take such action with respect to any such subcontract or purchase order as the state administering agency or the office of contract compliance, university of Cincinnati may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with litigation by a subcontractor, vendor or other party as a result of such direction by the state administering agency or the office of contract compliance, university of Cincinnati, the contractor may request the state of Ohio to enter into such litigation to protect the interests of the state.

(I) The contractor further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices within the state of Ohio when it participates in a state assisted contract; provided that, if the contractor so participating is a political subdivision, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such political subdivision which does not participate in work on or under said contract.

(J) The contractor agrees that will assist and cooperate actively with the state administering agency, the state equal employment opportunity coordinator and the office of contract compliance, university of Cincinnati in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the state equal employment opportunity coordinator, and the office of contract compliance, university of Cincinnati, that it will furnish the state administering agency, the state equal employment opportunity coordinator and the office of contract compliance, university of Cincinnati, such information as they may require for the supervision of such compliance, and that it will otherwise assist the state administering agency and the office of contract compliance, university of cincinnati in the discharge of said agency's primary responsibility for securing compliance both before and during contract.

(K) The contractor further agrees that it will refrain from entering into any contract or contract modification subject to the department of public works' regulation on equal employment opportunity, with a contractor barred from, or who has not demonstrated eligibility for state contracts and state assisted contracts pursuant to said regulation and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon such contractors by the state administering agency, the state equal employment opportunity coordinator and the office of contract compliance, university of Cincinnati pursuant to "Part II, Subpart D" of said regulation.

(L) The contractor agrees that if it fails or refuses to comply with these undertakings, the state administering agency and the office of contract compliance, university of Cincinnati, may take any or all of the following actions: cancel, terminate, or suspend in whole or in part of this grant, contract, loan, insurance policy, or guaranty; refrain from extending any further assistance to the contractor under the program with respect to which the failure or refusal occurred until satisfaction or assurance of future compliance has been received from said contractor; or refer the case to the attorney general for appropriate legal proceedings.

Amends: Rule 3361:20-23-13 of the Administrative Code

Replaces: 3361:20-23-13

Effective: 3/16/1978
Promulgated Under: 111.15
Statutory Authority: 3361
Rule Amplifies: 3361
Prior Effective Dates: 3/16/1978

3361:20-23-14 Contracts: contract compliance review by the office of contract compliance university of Cincinnati.

(A) The office of contract Compliance, university of Cincinnati, will make initial and continuing reviews of contracts of commissions over the sum of ten thousand dollars and purchase orders over two thousand dollars.

(B) Federal and or state grants held by university departments, in whatever dollar amount, are subject to review by the office of contract compliance, university of Cincinnati, as part of the university's compliance with Public Law 95-507.

(C) Bids, purchase orders, or commissions let or assigned by the department of physical plant or purchasing, university of Cincinnati building committee, and grants held by university departments are subject to a compliance review by the office of contract compliance, university of Cincinnati.

(1) Upon notification from the appropriate university source, the office of contract compliance, university of Cincinnati, will provide forms necessary to determine work force compliance ("A-300 compliance profile and affirmative action plan").

(2) Copies of any reports, memoranda, forms or correspondence are public and available to interested parties upon request at reasonable cost.

(D) Compliance:

(1) In order to be considered "in compliance" by the office of contract compliance, university of Cincinnati, contractors are required to submit to and meet the stipulations presented in a compliance review.

(2) "In compliance" also requires the contractor to maintain approved employment practices and submit any requested compliance reports during the entire term of the contract.

(3) It also requires that prime or general contractors take responsibility that their subcontractors file workforce analyses, affirmative action plans, and any other necessary compliance reports in order to maintain their own status.

(E) A finding of noncompliance shall require a written notice from the office of contract compliance, university of Cincinnati, with reasons for such finding being clearly stipulated. Contractors will be provided with the time and opportunity to make corrections or objections. Any such corrections or objections shall also be in writing, or, if transmitted by telephone, followed by a written communication.

(F) The office of contract compliance, university of Cincinnati will conduct three types of reviews:

(1) Pre-award reviews shall be considered part of the selection process for awards of university contracts. The three lowest bidders on university projects which have been competitively bid for fifty thousand dollarsor more will all be subject to a pre-award review, starting with the lowest bidder. Equal employment opportunity compliance is required, and the lowest bidder in dollar amount, if not in compliance as hereinafter provided at paragraph (G) of this rule, can be bypassed for the next lowest bidder judged in compliance.

(2) On-site reviews will consist of an investigation of on-the-job labor forces at the site, usually of a construction project. Particularly, but not exclusively, the review will be conducted where subcontractors enter into the project or the workforces vary with phases of project work.

(3) Post-award reviews include an in-house review of the reports and documentation requested by and received in the office of contract compliance, university of Cincinnati, and an on-site review. These reviews shall be made to determine continuing equal employment opportunity compliance on the part of contractors and subcontractors on contracts for ten thousand dollars or more.

(G) Noncompliance:

(1) In the event of a pre-award noncompliance determination and receipt of notice thereof, the contractor will be allowed up to seven days after receipt of such notice to respond. The office of contract compliance, university of Cincinnati, will provide such notice at the conclusion of the review or within seven days after the review.

(2) If noncompliance is determined while a contract is in force, the contractor will be given thirty days, or until such time as further monies are due, to respond.

(3) The effect of a notice of noncompliance and the failure to respond in the time provided shall be failure to be awarded the contract, commission or order, or termination or suspension of a contract in force.

(H) Construction contractors, subcontractors scheduled to begin work at the same time as the prime or general contractor, representatives of the initiating university department, the contract compliance officer and all other parties to be involved in the execution of a proposed construction contract will convene for a pre-construction meeting. This meeting is to complete the pre-award process. All parties concerned will at that time execute appropriate sign-offs, enabling the forwarding of the contract to the state of Ohio department of public works.

(I) Contractors with university contracts for terms in excess of one month shall be subject to compliance reporting. Nonconstruction contractors will be advised of reporting procedures upon receipt of notice of compliance ("Exp. B-700"). Construction contractors will be required to submit a monthly manpower utilization report ("Exp. C-100"), a payroll transmission form ("Exp. C-200"), and a payroll report ("Exp. C-300"). Reports will cover the previous calendar month and be submitted to the office of contract compliance, university of Cincinnati if the office of contract compliance, university of Cincinnati, does not find cause to make a new recommendation on equal employment opportunity compliance, the reports will be approved, and monies will be paid according to contract. If the office of contract compliance, university of Cincinnati, determines that compliance conditions have changed, a determination of the noncompliance will be issued pursuant to paragraph (G) of this rule. If it determines that prevailing wage rates were not paid, the data Vill be given to the state office of industrial relations prevailing wage rates division for investigation and resolution.

(1) Reports will be received and verified during the first working week of every month during the term of the contract. Prime contractors are responsible for collecting monthly manpower and payroll reports from their subcontractors as part of their own reporting. Each month contractors will submit one monthly manpower report for itself and for each suncontractor; one payroll transmission form for itself and for each subcontractor; and four weekly payroll reports for himself and for each subcontractor. Reports from the previous month not received during the first week of the month immediately following shall be considered overdue. If a contractor encounters any difficulty in completing reports, it is that contractor's responsibility to notify the office of contract compliance, university of Cincinnati, before the first week of the month has expired. Continuing compliance can only be determined through receipt of reports.

(2) Monthly compliance reports are to be signed by a responsible official of the contractor upon completion. The requirement of report filing begins with the commencement of contract work and proceeds as long as work continues under a state or state-assisted contract. There will be no verification by the office of contract compliance, university of Cincinnati, of approval of compliance reports for contracts in force. The contractor may assume approval if no payroll interruption occurs. It is the responsibility of each contractor to comply with Chapter 4115, of the Revised Code which is the authority for wages and hours on public works.

(J) Grant project review:

(1) Hiring of project staff under federal and state grants held by a university department must be in accordance with equal employment opportunity regulations and policies in regard to minorities and women. Each department must submit to the office of contract compliance a list of grants in force and notification of new grants awarded.

(2) The office of contract compliance, university of Cincinnati review of grant project staff shall be in-house only. Department heads will receive a project profile ("Exp. D-100") which may be answered by either the department head or the principal investigator of the grant under consideration. Attached to the project profile, in narrative form, will be a work description and evidence of processes used to ensure equal employment opportunity following the employment practices checklist ("Exp. D-200"). There will be no notification from the office of contract compliance, university of Cincinnati, unless a determination of non-compliance is made.

Replaces: 3361: 20-23-14

Effective: 11/1/1984
Promulgated Under: 111.15
Statutory Authority: 3361
Rule Amplifies: 3361
Prior Effective Dates: 3/16/1978