Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/1/2010
Revised: 1/10/2019


Procurement and Contracts will strive to be consistent in the naming and use of certain agreement types defined in these policies in order to maintain consistency and continuity within the university. The agreements will be written in a manner that clearly establishes the roles, responsibilities and obligations of the parties involved. Any financial obligations should be clearly detailed including amounts and terms. The following are some of the types of contracts and their intended use.



402-001: Interdepartmental Agreements

Interdepartmental agreements are intended to document agreements between OSU departments.  Interdepartmental agreements can be processed and signed by the departments.


402-002: Reserved


402-003: Intergovernmental Agreements (IGA)

Intergovernmental Agreements are intended to be used between OSU and other governmental agencies.  Intergovernmental Agreements require review, approval and signature by an authorized contracts officer.


402-004: Memorandums of Understanding (MOU)

A Memorandum of Understanding (a.k.a Memorandum of Agreement and Letter of Intent) is a document describing an intended common line of action.  These are informal and understood as precursors to a formal legally binding contract.  Memorandums of Understanding require review, approval and signature by an authorized contracts officer.


402-005: Purchase Orders (PO)

Purchase Orders are contracts and are issued for the purchase of goods or services.  Purchase orders are legally binding contracts.


402-006: Personal Services Contracts

Personal Services Contracts (PSC) are used to contract for infrequent, technical or unique services performed by contractors with specialized, technical or scientific expertise of a professional nature. Examples of professional services contractors include:

  • Accountants
  • Actuaries
  • Attorneys
  • Brokerage firms
  • Grant writers
  • Physicians
  • Public relations consultants
  • Recruiters

Personal Services Contracts must be issued when the dollar threshold will exceed $5000 cumulatively in one fiscal year for a department. However, Personal Services Contracts may be used at any dollar level, and are highly recommended when detailed expectations or obligations are necessary.

Contractors performing work on a PSC may not:

  • Supervise OSU personnel or other contractors;
  • Be listed as an instructor of record for an OSU course that awards academic credit toward a degree;
  • Represent themselves as OSU or make promises on behalf of OSU;
  • Drive OSU vehicles; or
  • Transport students, unless specifically authorized to do so in the contract. If authorized, contractor must meet OSU minimum driving standards in accordance with applicable OSU Standards, policies and procedures.


402-007: Locum Contracts

Locum Contracts may be issued using a Personal Services Contracts (PSC) or another form of Contract prescribed and developed by PCMM. Locums are issued Contracts to temporarily fulfill the duties of a regular doctor and will be governed by their respective regulatory bodies, despite the transient nature of the position. A locum, when they are being paid on a Personal Services Contract, is considered an Independent Contractor. In order to Contract with a Locum, all of the following criteria must be met:

  • Locum must provide proof of professional liability insurance before PCMM executes the contract.
  • Locum must make all travel arrangements and pay for the charges directly. The department cannot direct-bill lodging, airfare, or rental car costs.
  • The contract amount will be made in one lump sum payment that includes stipend and allotment for travel, lodging, rental car, per diem and any other associated costs.
  • The contract period for a locum cannot exceed a 4-week period of time. Locums may work a maximum of 12 weeks per year with at least a 4-week break between contract periods. Exceptions must be approved by PCMM.
  • Locums cannot be the instructor of record for educational courses.


402-008: Reserved


402-009: Reserved


402-010:  Sponsorship Agreements


Sponsorship agreements are intended to document a vendor’s support of a specific event or activity.  In return the vendor typically received acknowledgement of the sponsorship and other benefits at the event.  The value of the sponsorship should be equivalent to or greater than the acknowledgement or other benefits received.