Under the statutes of the State of Illinois, the Board of Trustees has certain specific powers, among which is the power “to enter into contracts,” Illinois Revised Statutes, chapter 144, section 307. Pursuant to this authority, the Board has promulgated the Governing Policy for Northern Illinois University, adopted purchasing regulations, entitled Procurement Rules of the Chief Procurement Officer for Public Institutions of Higher Education and promulgated, as part of the Board regulations, a section entitled Obligation of Financial Resources. These policies and regulations govern all contracts and agreements entered into and executed for the use of Northern Illinois University and afford the primary guide in the preparation and execution of University contracts and agreements. These procedures are developed within the context of the Board actions.

The Obligation of Financial Resources provides that certain contracts and agreements must be approved and executed at the Board level and that other contracts and agreements may be approved and executed at the University level. This regulation classifies contracts and agreements into three categories: purchases, personal services, and performance, which are defined as follows:

Purchases. Purchases consist of contracts and other agreements involving the acquisition of personal or real property, or services other than personal services as defined in Board regulations. (Examples of purchase transactions, among others, include: purchase orders for commodities and equipment; service contracts for utilities or maintenance; contracts for professional services with architects, engineers, consultants, attorneys and the like; contracts with visiting performers or lecturers; and contracts with other agencies, such as for fire protection.)

Personal Services. Contracts for personal services are those that involve the Board in an employer-employee relationship and would include contracts with faculty, administrative personnel, civil service employees and student employees. Also included in this category are collective bargaining agreements.

Performance. Performance agreements include contracts and agreements with outside agencies that commit the Board to undertake or participate in the performance or supply of a specific task, service, or product, including grants and contracts with governmental or private agencies for specific programs of research, instruction, and public service.

Contracts to be Approved and to be Executed at Board Level

Contracts involved in a capital project with a budget totaling $250,000 or more, including, for example, erection of a building, addition or other structure, utilities, remodeling and rehabilitation, site improvement and contracts for architectural, engineering, and consulting services in the construction process, must be approved by the Board of Trustees and executed by the President’s office or assigned designee.

Any transaction involving an obligation of $250,000 or more, regardless of source of funds, except contracts for utilities services, library books and periodicals, textbooks, food products, approved generic commodities bid through the Illinois Public Higher Education Cooperative, and items authorized for resale to individuals and non-university organizations, requires specific Board approval. Contracts herein described requiring Board approval, specifically including those defined above as “Purchases,” but excluding contracts involved in a capital project, may be executed at the University level in the name of the Board Chair and the Secretary of the Board by any University officers designated by the President.

Any transaction involving the acquisition of land and related costs, regardless of the source of funds or the dollar amount, must be approved by the Board, ordinarily by express resolution which specifies the appropriate execution of necessary documents.

Contracts Approved and Executed at University Level

Transactions involving an obligation of less than $25,000 or any contract for utility services, library books and periodicals, textbooks, food products, and items authorized for resale to individuals and non-university organizations, and visiting performers paid from gate receipts and student activity fees do not require specific Board approval and may be executed at the University level.

Contracts involving an obligation greater than $25,000 but less than $250,000 require Presidential approval and may be executed at the University level.

Contracts involving an obligation of less than $25,000 do not require Board or Presidential approval and may be executed at the University level.

Delegation to Execute Contracts

The President has been authorized by the Board to delegate to responsible members of the staff the authority to sign their name to contracts. This responsibility has been delegated as follows:

1. Contracts involving the business operations of the University or otherwise not delegated are approved by:
   
   

   Executive Vice President, Business and Finance, Chief of Operations
   
   

2. Purchase orders, regardless of the dollar amount are approved by:
   
   

   Director of Procurement Services
   Assistant Director of Procurement Services
   

   
   
3. Purchase orders of $5,000 or less may be approved by:
   
   

   Purchasing Officers reporting to the Director of Procurement Services

   
   
4. Contracts involving entertainment or with visiting performers may be approved by:
   
   

   Director, University Programming and Activities

   
   
5. Contracts issued by Northern Illinois University involving Intercollegiate Athletic events under $2,500 may be approved by:
   
   

   Director of Intercollegiate Athletics

Drafting, Executing and Filing University Contracts

All contracts must be fully executed prior to performance. No work on any contract may begin until all authorized parties to the contract have signed a formal written document.

All leases of real property must be reduced to signed, two-party agreements and these documents must be filed with the State Comptroller within fifteen days of their execution.

Other leases, professional and artistic contracts, and vendor or university generated contracts exceeding $5,000 must be reduced to signed, two-party agreements and these documents must also be filed with the State Comptroller within fifteen days of their execution.

Procedures

In order to comply with the requirement of State law and the Regulations of the Board of Trustees relating to executing and filing University contracts, all leases and other written purchasing agreements will be undertaken in accordance with the following procedures:

1. Contracts will be drafted in tentative form by the University department that is responsible for the work and is best acquainted with the subject matter. Departments are urged to contact the University Counsel with any questions they may have.
   
   
2. A draft of the contract will be sent to the Accounting Office attached to a Purchase Requisition form for the contract amount.
   
   
3. The Accounting Office will verify the account coding is correct and departmental approvals are valid and will then send the Purchase Requisition form to the Office of Procurement Services.
   
   
4. If prior approval of the President or the Board of Trustees is required, Procurement Services will be responsible for notifying the Assoicate Vice President, Enterprise Planning and Human Resources that such a contract is pending. The Associate Vice President will obtain the appropriate approval.
   
   
5. Procurement Services will send a copy of the Purchase Requisition with the attached draft contract and any other attachments to the University Counsel for review as to legal form and validity.
   
   
6. The University Counsel will be responsible for obtaining the signatures of the parties and dating the contract. All contracts must be executed at least in duplicate.
   
   
7. One original counterpart of the contract will be retained in the Office of Legal Services. The University Counsel will transmit any other copies of the contract to Procurement Services.
   
   
8. Procurement Services will prepare a purchase order, transmitting copies of the contract and the purchase order to the contractor.
   
   
9. All contracts exceeding $5,000 for Professional and Artistic Services and $10,000 for other purchases are required to be filed with the State Comptroller within fifteen calendar days from the date of execution. The Accounting Office will file a copy of the contract along with the purchase order or a COD (Contract Obligation Document) form with the State Comptroller within fifteen calendar days from the date of execution of the contract.
   

All contracts will be entered into within the limitations imposed by federal and state law, including, but not limited to, equal opportunity legislation, the Illinois Procurement Code, conflict of interest statutes, state and federal tax exemptions and non-discrimination statutes.