• University as buyer
  Generally, if the University is the buyer, the buyer assigned to purchase the commodity of goods or services negotiates any special terms and conditions presented by the seller and will issue a High Value Purchase Order.
  
  
• University as seller
  If the University is the seller of goods or services to a person or entity outside UCSD, it is the preference of the University that the outside buyer sign a University service agreement in lieu of providing the University with a purchase order.

• Business Contract Service Agreement (Word)
• Business Contract Approval Checklist
• Statement of Economic Interests for Principal Investigators (Form 700-U) for all service agreements or incoming purchase orders with a cost of greater than $1,000

The Business Contracts Office does not negotiate or sign an agreement for:

• performance of academic, scholarly, or research tasks. For those agreements, please see the UCSD Office of Contract and Grant Administration.
• preparation or fabrication of deliverables typically associated with sponsored contracts and grants. For those agreements, please see the UCSD Office of Contract and Grant Administration.
• professional medical, patient care, or clinical services. For those agreements, please see the UCSD Health Care.
• Clinical trial Agreements or Clinical Services Agreements. For those agreements, please see the UCSD School of Medicine.

The primary purpose of most service agreements and incoming purchase orders is for a one-time or non-continuous business or commercial activity, for which it is shown conclusively that satisfactory facilities, goods, and/or services do not exist elsewhere. In order to accept a service agreement or incoming purchase order, the goods and/or services provided must comply with University Regulation No. 4 (PDF).

Once accepted on behalf of the University, the department providing the goods/services to the outside entity is responsible for performance, administration and compliance with all contractual requirements.

Direct and Overhead Costs

Direct costs and rates charged must be based on established uniform or unit prices, and if like services or products are sold to other customers, the same prices or pricing methodology must be used. While not subject to the same applicable indirect cost rate assessed on research and sponsored projects (PPM 150.44), service agreements/incoming purchase orders are subject to an overhead assessed on the funding received (PPM 300.40).

Sponsored Projects

Research contracts and grants are agreements with external sponsors for research, academic, scholarly, or educational purposes. Incoming funding which should be classified as a research contract or grant, even when received in the form of an incoming purchase order or service agreement, will not be processed by Purchasing/Business Contracts. They will be referred to the Office of Contracts and Grant Administration.

Authority to Accept Incoming Purchase Orders or Service Agreements

The Business Contracts Official in Central Purchasing/Business Contracts is the institutional official delegated with the authority to accept service agreements and incoming purchase orders on behalf of the University for the UCSD general campus.

The following areas at UCSD have the authority to execute certain incoming purchase orders:

• University Extension (UNEX)
• Associate Vice Chancellor, Extended Studies and Public Service (University Extension): for service agreements to implement approved programs and activities relating to Extended Studies and Public Service.
• Scripps Institution of Oceanography (SIO)
  The SIO Contracts and Grants Officer: for service agreements to implement approved programs and activities relating to SIO.
• School of Medicine (SOM):
  Dean, School of Medicine: for service agreements to implement approved programs and activities relating to the School of Medicine. SOM or the Medical center also coordinates agreements for professional medical, patient care activities or clinical services.

Processing Service Agreements and Incoming Purchase Orders through Purchasing Business/Contracts