Generally speaking, a contract can be a written or verbal agreement that commits University funds. These can sometimes take the form of, for example, a quote asking for UCSF signature, a supplier proposal asking for UCSF signature, or even a handshake agreement. But as noted below, only individuals with properly delegated authority may make such commitments of University funds, and even in those cases such commitments should be in writing. Therefore, please avoid making any verbal commitments, handshake agreements, etc., that may explicitly or implicitly obligate or commit University funds.  Indeed, University policy states that, “An individual who has not been delegated purchasing authority who makes an unauthorized purchase of goods or services shall be responsible for payment of the charges incurred.”

Only individuals with properly delegated authority may execute agreements committing the University to a purchase of goods and/or services. UC policy requires that UC templates be used for purchasing agreements. Individuals with properly delegated authority are issued a signed “Delegation Letter” from the Supply Chain Management Chief Procurement Officer indicating they are authorized to execute agreements. Departmental staff, principal investigators/faculty, have very likely not received such a delegation.

Contracts – SCM Buyers will:

• Issue an appropriate purchasing agreement or similar contract instrument as appropriate, using UC-approved templates and language
• Review and negotiate terms and conditions as well as pricing with supplier
• Send supplier the final version to sign
• Sign the agreement and attach the signed agreement to the purchase order
• Approve requisitions above requesting department’s delegation

The department may be asked to provide acknowledgment (e.g., of logistics, restrictions) via email.

Per UC Business and Finance Bulletin BUS-43: An individual who has not been delegated purchasing authority who makes an unauthorized purchase of goods or services shall be responsible for payment of the charges incurred.

Use any BearBuy Form. Contract Signature Authority can apply to any type of purchase where there is a contract.

UC Business and Finance Bulletin BUS-43