Our offices will close at 3:00 p.m. on Wednesday, November 25 and re-open for normal business hours on Monday, November 30. This includes the FinPro Help Desk.
How to Buy Services from Individuals
This commodity covers services that are performed by individuals and not by companies. A company operates under a Federal Employer Identification Number (FEIN). An individual is a person or a sole proprietor of a business who operates under a Social Security Number.
Note: The procedure for procuring professional services from companies varies from that for obtaining services from individuals. For information on those procedures, see How to Buy: Professional Services from Companies.
Procurement Options and Procedures
- Total purchase $5,000 or less: A Payment Voucher (PV), requires an SOW form approved by Employee Services (see below). Note: Multiple PVs may be used to issue a series of payments as long as the total being paid to that individual does not exceed $5,000.
- Total purchase above $5,000: A PO requisition, or an SPO requisition, requires an SOW form approved by Employee Services (see below).
For total purchase above $5,000, your purchasing agent needs (in addition to the approved SOW form):
- Services over $5,000 and up to $50,000: All written documentation regarding the procurement. This may include a quote, statement of work, or email messages/letters of correspondence.
- Services over $10,000 that are not bid: All documentation described above, plus evidence that what the University is paying is fair and reasonable.
- Services over $50,000 and up to $500,000: Competition via Documented Quote process, or Sole Source Justification
- Services over $500,000: Competition via Request for Proposals, or Sole Source Justification
For federally funded purchases, the following restrictions also apply:
- Over $5,000 and up to $500,000: Competition via Documented Quote process, or Sole Source Justification
- Over $500,000: Competition via Request for Proposals, or Sole Source Justification
- Over $5,000 that are not bid: All written documentation regarding the procurement. This may include a quote, statement of work, or email messages/letters of correspondence. In addition, evidence that what the University is paying is fair and reasonable.
Scope of Work (SOW) Review
Prior to the commencement of any work, the department completes the Scope of Work (SOW) form and the proposed service provider signs it. The completed form is reviewed by Employee Services to determine the nature of the relationship between the individual and the University. If the individual will function as an independent contractor, payment can be made through the PSC. If an employer-employee relationship will exist, payment must be made through Employee Services (payroll).
Detailed guidance and contact information for the SOW review process is available in the PSC Procedural Statement Scope of Work (SOW)/Independent Contractor.
- Voice: 303.764.3422
- Fax: 303.764.3434
- Email: David.Turner@cu.edu