- Board Rule 406 Section (V) (A) defines what contracts must be approved by the Board of Trustees
- All contracts for goods or services, or both, involving an expenditure of $1,000,000 or more for the term of the contract (including all option, renewal or extension periods) that were not pprocured through a competitive process.
- All consulting or professional service contracts involving $250K or more for the term of the contract (including all option, renewal or extension periods) regardless of whether the contract results from a competitive process.
- All contracts involving the receipt of $1,000,000 or more for the term of the contract (including all option, renewal, or extension periods).
- All information technology contracts or projects involving an expenditure of $750,000 or more for the term of the contract or project (including an extensions, renewals, upgrades or expansions to existing technology contracts or projects), regardless of the source of funds.
- All loans, whether the UA System entity is the lender of borrower. This provision does not supersede any affiliation agreements that specify a dollar threshold for Board approval of loans.
- Board Rule 406 (V) (B) defines what contracts are exempt from Board of Trustees approval
- Contracts that are otherwise required to be approved by the Board, such as construction contracts.
- Contracts that are otherwise required to be approved by the UAB Health System Authority Board.
- Contracts with publicly regulated utilities.
- Sponsored Research Grants and Contracts, including associated subcontracts.
- Contracts with related organizations that have an existing affiliation or joint operating agreement with the Board, or are otherwise incorporated as a university healthcare authority by the Board.
- Contracts with federal, state, or local governments or their agencies.
- Gift agreements or memorandums of understanding with donors to a UA system entity.
- Contracts related to the provision of legal services executed by the General Counsel.
- Example:
- A technology project includes multiple related contracts for hardware, software, training, contractual services, etc. For example, a single technology project could include a $200,000 contract for hardware, a $300,000 contract for software, and a $300,000 contract for training. Even though each individual project does note exceed $750,000, the cost of the entire project does exceed $750.000. Therefore, the entire technology project should be approved.
For more information, please contact:
Ron Colllins
Executive Director of Procurement
UAB Financial Affairs
801 Financial Services Building
801 5th Avenue South
Birmingham, AL 35233
205.934.4423
ronc@uab.edu