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Professional Contracts Processes & Procedures

Created: 08/09/2012 | Updated: 08/09/2012
Professional service contracts are executed directly between UPI, acting in its capacity as University of Colorado School of Medicine's (SOM) authorized business and fiscal agent, and the outside company or agency. Only UPI needs to sign such contracts (acting on behalf of SOM as its designated agent) with countersignature by an authorized representative of the outside company or agency. By adopting this signature process, consulting contracts will be handled entirely within the UPI building and will not be routed for signature by SOM officials on the medical campus. By streamlining the contract signature process, and keeping the signature process within the UPI building, we are able to save significant time and resources that had been expended in the past on routing contracts for signature by SOM officials at various locations on campus.

As SOM’s agent, UPI can only sign contracts with SOM’s specific authority to do so (on a case-by-case basis). Such authority is provided to UPI by SOM via a simple e-mail message, rather than by having an SOM official physically sign the contract. Here are the procedures that are used to carry out this function:

1. To the greatest extent possible, please use and urge external entities with which we desire to enter a contractual relationship to use the professional services contract template. This template contract sets out very specific language regarding UPI’s authority to enter into contracts on behalf of SOM in its capacity as SOM’s designated business agent and that the services will be performed by SOM (and its employees) rather than by UPI. Given the complexity of these relationships, use of the template contract will quicken the process of finalizing a contract.

2. If it is not possible to use the template professional services contract, please provide a draft contract (from the company or agency) in an editable Microsoft Word document. All contracts which do not use the template format will need to be edited to incorporate the required language concerning UPI’s ability to contract on behalf of SOM and other legal requirements. Therefore, draft contracts must be provided in Microsoft Word format. Scanned pdf documents will not be accepted and will be returned without review.

3. When sending a new draft contract for UPI review by e-mail, please label the e-mail message (in the subject matter line) using the following format so that we will be able to track the subsequent e-mail correspondence throughout the contract management process --
Subject: New Contract with Name of Company for Name of Provider (Department/Division).

4. In all e-mail correspondence, please include a full signature block with your contact information including your title and the SOM organization for which you work. This will assist us to make sure we communicate to the correct individuals regarding the contract in question throughout the process.

5. Once all contract language has been finalized, we will send back a copy of the final contract via e-mail that requests the Department Director of Finance and Administration (DFA) to confirm (via return e-mail) that the Department Chair has authorized the faculty member(s) to participate in the contract activity and that UPI may proceed to sign the contract on behalf of the SOM Department. (This e-mail approval replaces the SOM signature(s) that we had obtained on contracts in the past). Once we receive e-mail confirmation that the Department Chair has approved the contract, we will have it signed by the UPI Executive Director and the external company or agency and then provide the Department a copy of the final executed contract for your files. Please note that UPI will not sign any contract until we have received an e-mail message confirming the approval of the Department Chair.

6. Contract classification (which determines the internal SOM tax assessment) is determined by the UPI Finance Department after the contract has been fully executed (so as to avoid delay in getting the contract signed). The chart used by the Finance Department to determine the classification of contracts can be found under the Official Documents section. In addition, to facilitate the billing and collection of fees pursuant to professional services contracts, you will need to fill out and submit the Contract Intake Form to the UPI Finance Department, as well as the Unrelated Business Income Tax (UBIT) form for certain consulting contracts. A copy of the Contract Intake Form and the UBIT form can be found under the Forms section.

7. The billing and collection of fees under professional services contracts is handled by the UPI Finance Department. For detailed information about the procedures and processes for the billing and collection of contract fees, please go to the following link:

8. Contracts that entail faculty speaking, lecturing, or giving a presentation for a medical device or pharmaceutical company or other commercial entity are subject to the restrictions contained in the School of Medicine Policy on Conflicts of Interest and Speaker Bureaus (May 2011). This policy can be found under the Policies section.

9. If the proposed contract entails the performance of clinical services by SOM physicians at a health care facility not located on the Anschutz Medical Campus, you may need to seek advance approval from the Sites of Practice Committee. The Sites of Practice Approval Request form can be found under the Forms section.

10. Certain payments are, under some limited circumstances, exempt from the requirement of being billed and collected by UPI on behalf of the SOM faculty member. Such payments are known as “exempt honoraria” and refer to a one-time modest payment to a faculty member for participation in a single occurrence event, such as a conference or meeting. Although “modest” is not specifically defined, this generally refers to one-time payments of less than $5,000. Exempt honorarium payments can be collected directly by the faculty member without needing to involve UPI.

11. Amendments to existing contracts to change items such as the termination date, the identity of the SOM provider, the number of hours of service, or the rate of compensation can be accomplished through a simple one-page amendment template that needs only the signature of the Department Chair on behalf of SOM. The simple Amendment template can be found under the Contracts section.