Personal Service Agreement Procedures

1. Definitions
• PSA versus Purchase Order
• PSA versus Employee
• Consultant versus Subgrantee
2. PSA Components
3. The PSA Process
4. State Code of Ethics
5. Completing a PSA 
   • Outline of a Legally Sufficient Contract
   • PSA Block by Block Instructions
6. The Corporate or Certified Resolution
7. Amending a PSA
8. Tracking a PSA
9. Assistance
10. Forms

Definitions

PSA versus Purchase Order

The Personal Service Agreement (PSA) is to be used to cover the acquisition of services that are infrequent and unique, primarily noncompetitive in nature, and where the employer/employee relationship does not exist. 

The PSA must always be used to issue subgrants.  It is also appropriate to use it for consultants who provide professional or technical services that fall under the above definition.

A Purchase Order is the correct instrument to pay for consulting services that are routine vendor-type services.  A Purchase Order needs to be used for all services that require competitive bids.

PSA versus Employee

Consultant versus Subgrantee

A subgrantee is usually an institution that collaborates with the UConn principal investigator (PI).  The subgrantee performs and has responsibility for part of a sponsored project.  Its services are of a specialized and specific nature and cannot be performed by UConn.  A subgrantee is normally reimbursed for expenses in accordance with a budget.  UConn has the responsibility to monitor subgrantee performance.

A consultant is usually an individual, but may be an organization.  The consultant assists the UConn PI. Consulting services are primarily advisory in nature and address a clearly delineated problem.  A consultant is normally paid based on an hourly or daily rate or based on a fixed price for deliverables. PSAs for individual consultants cannot have a term of more than one year. Such PSAs may be extended or renewed.

PSA Components

The PSA paperwork requirements are different depending on whether the contracting party is a subgrantee or a consultant. The following table lists the respective requirements.

The Late Submittal Form is required when the PSA draft is received by OSP less than thirty days before the start date of the PSA.

The PSA Process

All grant-funded PSAs must be forwarded to the Office for Sponsored Programs.  After review, the OSP will forward the PSA to the subgrantee or consultant for approval and signature.  After University approval and signature, the OSP will forward all PSAs over $3,000 to the Office of the Attorney General on campus for legal review, and they in turn will forward the agreement to the Hartford Attorney General's office for approval.   

It is in violation of State Policies and Procedures to split a contract for the purpose of avoiding the above process.

UConn shall assume no liability for payment of services until the contractor is notified that the PSA has been accepted by UConn and, if applicable, the Attorney General.

State Code of Ethics

The General Statutes of the State of Connecticut make provisions for preventing a State employee from using his/her public position or confidential information gained in State service for personal financial benefit. In accordance with C.G.S. 1-84(i), a State employee and his/her immediate family are prohibited from entering into contracts with the State with a value of $100 or more unless the contract has been awarded through an open and public process (bidding satisfies the requirement; compliance could take the form of placing an advertisement on the web site). PSAs are contracts covered by this statute.

State employees may not use PSAs for the purpose of contracting with a relative (father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, wife, husband, grandparent, father-in-law, mother-in-law, sister-in-law, brother-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister or domestic partner). Such action may be in violation of the State Code of Ethics and may be subject to an investigation.

PSAs may not be used to contract with any individual, corporation or other business entity in which the requester may have a financial interest.

Completing a PSA

Outline of a Legally Sufficient Contract

1. Outline format must be used consistently and correctly (no bullets please);
2. No unnecessary attachments. Every term and condition of the contract must be included on the PSA or on continuing pages that are sequentially numbered from Page 1 of the PSA;
3. A thorough, yet concise description of services explaining in detail - who, what, when, where, why and how services will be provided. Services should be listed in chronological order, avoiding any vague or technical language and/or undefined acronyms;
4. Payment section must indicate a maximum payable amount, itemizing per diem costs, travel expenses, equipment costs, etc; in the case of a subaward, a budget needs to be included in the PSA.
5. Amendments to a PSA must be completed prior to the existing contract end date, have the original and all prior amendments attached and clearly define the revisions. Once a contract has expired, a new contract must be initiated.

PSA Block by Block Instructions

(Please note: Each item number corresponds to the PSA Block #).

(1) Mark PSA as ORIGINAL .

(2) IDENTIFICATION NO. Leave Blank

(3) CONTRACTOR NAME, ADDRESS and FEIN/SSN. Enter the vendor's complete name and address as on file with the Internal Revenue Service (IRS); and Federal Employer Identification Number if the contractor is a corporation, or enter the vendor's Social Security Number if the contractor is an individual. The FEIN/SSN is to be repeated in Block 20.

(4) ARE YOU PRESENTLY A STATE OF CONNECTICUT EMPLOYEE? PSAs are not to be used for State of Connecticut employees or retirees.

(5) AGENCY NAME AND ADDRESS. OSP's address should be entered: 438 Whitney Road Extension, Unit 1133, Storrs, CT 06269-1133.

(6) AGENCY NO. 7301

(7) DATE (FROM) THROUGH (TO). List the full contract period. The month/day/year should be abbreviated to the numeric date (i.e. list June 24, 2003 as 06/24/04, etc.). Block (23) requires the contract period as well. If services are rendered on one day, repeat the date in both the FROM and TO on both blocks (7) and (23).

(8) INDICATE MASTER AGREEMENT, CONTRACT AWARD, NEITHER. If the document is the result of competitive negotiation via the bid process check "Contract Award". Otherwise, check "Neither"; the "Neither" block will be checked in most cases.

(9) CANCELLATION CLAUSE. Enter the number of days written notice is required for cancellation of the contract.

Generally, the notice for cancellation is 30 days. It should never say N/A.

(10) CONTRACTOR AGREES TO: Enter a complete description of the services that the contractor will provide. Please be certain the language used in describing the service is specific and that no acronyms or technical terms are used without first providing explanation. Remember to ask yourself "WHO, WHAT, WHEN, WHERE, WHY AND HOW" these services will be provided. You should be able to answer all of these questions in your Description of Services, keeping in mind that those reviewing your request may not be familiar with your program.

Start the description with the following: … collaborate with(for subgrantee)/provide consulting services to (for consultant) Dr. ___ of the University of Connecticut's Department of ________ on the project "________", which has been funded by a grant from the ___________.

If applicable, the contract must clearly identify who owns the developed product or service after completion of the PSA.

You may also reference attached and numbered pages, which may provide the description of services in greater detail. In the case of a subgrantee, this would be attached as "II. Scope of Work." In the case of a consultant, use the electronic PSA form, Sheet 3 (Continuation of Sec 10) is for this purpose.

Please use words that convey the concept concisely:

• Rather than: "is designed to"
• Say Instead: "will" or "shall"
• Rather than: "should include"
• Say Instead: "will include"
• Rather than: "are anticipated to"
• Say Instead: "will be"
• Rather than: "a variety of"
• Say Instead: list examples
• Rather than: using no limiting factors
• Say Instead: "up to" "not to exceed" "a maximum of"

(11) Include payment terms here,. The terms and conditions regarding the cost and schedule of payments to the contractor must be specific.

Example:
The maximum amount payable under this contract is $______. Consultant/Contractor will be reimbursed for services performed no more often than monthly, at a rate of $____ per day/hour/in accordance with the attached budget, upon receipt of itemized invoices.

Tip: Ask yourself this question: if the contract were terminated for any reason prior to completion, would a court be able to determine what portion of the services have been provided and how much the contractor is owed for those services?

MAXIMUM AMOUNT PAYABLE UNDER THIS CONTRACT IS $
The total dollar amount of the contract must be listed here. Without this amount the agreement will not be processed.

(12) Through (19) leave blank.

(20) Same as Block 3.

(21) Through (22) list amount of first year funding for subgrantee or total amount of funding for consultant.

(23) CONTRACT PERIOD (FROM/TO). List the full contract period. The month/day/year should be abbreviated to the numeric date (i.e. list June 24, 2000 as 06/24/00, etc.). Block (7) requires the contract period as well. If services are rendered on one day, repeat the date in both the FROM and TO on both blocks (7) and (23).

(24) Through (25) leave blank.

(26) List dollar amount to be paid to contractor.

(27) Leave as "7301"

(28) Through (29) complete with your department coding.

(29) Enter 2230 for consultants, 2231 for the first $25,000 of a subaward, and 2232 for the rest of the subaward.

(30) Through (31) leave blank

(32) List the FRS account to be charged (ensure that there are adequate funds in the account to be encumbered).

(33) F.Y. Enter the current fiscal year

(34) STATUTORY AUTHORITY. C.G.S. 10a-104 and 10a-108 are the Connecticut General Statutes that pertain to UConn's purchasing authority. This reference is printed on the University's Electronic Form Rev. 10/2003.

(35) CONTRACTOR (OWNER OR AUTHORIZED SIGNATURE), TITLE, DATE - The signature of the individual authorized to enter contracts on behalf of the subgrantee or consultant is required. The contractor must also date his/her acceptance of the contract. The title of the contractor, if an individual, is always "CONTRACTOR". If the contractor is an organization, the title will be the signatory's organizational title (i.e. President, Director, etc.). The capacity in which the contractor has signed the contract must be correctly stated:
e.g.: if an individual (even if a d/b/a) - contractor;
if on behalf of a corporation - office held (president, etc.);
if on behalf of an LLC - member or manager;
if on behalf of a partnership - general or limited partner.

(36) AGENCY (AUTHORIZED OFFICIAL), TITLE, DATE -Leave Blank.

Agency approval of PSAs is limited to officers of the University designated by the Board of Trustees as having contract signing authority. The Office of Sponsored Programs will obtain the appropriate signature for Block 36.

(37) OFFICE OF POLICY & MGMT /DEPT OF ADMIN. SERV., TITLE, DATE - Leave blank
.
Public Acts 91-256, 92-154, 93-201, and 99-285 authorize Connecticut higher education to purchase commodities and/or services without having to obtain the consent of the State of Connecticut, Department of Administrative Services (DAS).

(38) ATTORNEY GENERAL (APPROVED AS TO FORM), DATE: - Leave blank.

Contracts exceeding $3,000 require the review and approval of the Attorney General's Office. Please note: No contracted services over $3,000 may commence prior to the Attorney General's signature of approval.  The Office for Sponsored Programs will obtain the appropriate signature for Block 38.

The Corporate or Certified Resolution

If the contractor is an organization, a resolution from the Board of Trustees of the organization, indicating authorization for this individual to sign contracts on behalf of the organization is required.  A certified copy of the resolution must accompany each PSA with an organization, as the Attorney General's Office will not approve such a contract without evidence of the validity of the contractor's signature. (If processing two PSAs with the same contractor, two original corporate resolutions must be provided - one for each contract.)  OSP will work with the subgrantee organization to obtain a certification that meets the requirements. For detailed instructions on how to prepare the Certified Resolution, refer to the Guidelines (link).

Amending a PSA

A PSA must be amended for any of the following reasons:

• The scope of the project has changed;
• The terms and conditions of the contract have changed;
• The contract dates have changed;
• The costs involving the contract have changed;
• The payment schedule has changed; or
• The contract's end date requires extension; or

Please contact Gianfranco Barbato at 486-4336 or gianfranco.barbato@uconn.edu if an amendment needs to be issued.  Amendments must be submitted to the Office for Sponsored Programs a minimum of 30 days prior to the termination date of the original contract.  An amendment to a PSA CANNOT be processed if the original contract has expired. A new original PSA will need to be initiated.

Tracking a PSA

Personal Service Agreement approval process can now be tracked in Info Ed through the related proposal screen. All relevant contracts are tracked under the agreements tab, a more detailed explanation can be found here .

Assistance

Grant-funded PSAs have to be submitted to the Contracts Specialist in the Office for Sponsored Programs, Gianfranco Barbato. He can be contacted by phone, (860) 486-4336, or email.

If you have any questions concerning this process, or need assistance in completing any of the forms, please contact the Office for Sponsored Programs. In addition, you may seek online advice on the web page of the Office of the Attorney General at UConn.

Forms

• PSA Form CO-802A
  • For Conultants
  • For Subgrantees
• Subgrant Agreement Template
• Hiring of a Consultant Form
• Sample Hiring of a Consultant Form
• Late Submittal Form
• PSA Process Flow Chart