(Last Modified on October 8, 2010)
This section presents selected BOR policies in a highly summarized format. It should be considered a guide and used as a source of information for further research. For specific authority on executing contracts, the reader should also research the BOR Policy manual, as well as reviewing written documents delegating authority to the reader’s local institution to sign contracts.
3.4.1 Authority to Execute Contracts
(Last Modified on October 8, 2010)
Prior to any delegation of authority, only the Chancellor and the Chancellor’s designee are authorized to:
Enter into rental agreements where the total rent to be paid by the BOR does not exceed $5,000.00 per month.
Sign contracts, agreements, deeds, licenses, or other instruments related to the purchase or gift of real property where the purchase price or gift value does not exceed $100,000.00.
Accept gifts, bequests, agreements or declarations of trust in those instances where the initial gift or trust estate is $100,000.00 or less. The Chancellor may, at his/her discretion, delegate the authority to execute said documents to the Treasurer or to the presidents of the individual USG institutions. However, the Chancellor is not authorized to delegate to the presidents the authority to accept gifts of real property.
Act as contracting officers for and on behalf of the Board of Regents in the execution of construction contracts, contracts for professional services, selection of architects and engineers, execution of contracts for new buildings, etc. However, the authority so delegated shall not exceed the sum of $1,000,000.00 for any one contractual obligation.
The Chancellor and the Chancellor’s designee are authorized to delegate any or all of the above authority to act as contracting officers to the individual USG institutions.
Generally, the authority to sign contracts for the day-to-day operations of an institution has been delegated to the individual institutions. It is imperative that the documented authority is available in the permanent files of the institution as proof of such authorization.
3.4.2 Dining and Catering Contracts
(Last Modified on January 11, 2017)
3.4.2 Dining and Catering Contracts
University System of Georgia (USG) institutions utilize the Georgia Procurement Registry managed by the Department of Administrative Services for procurement of dining and catering services. Institutions must follow the procedures outlined in this section when developing procurement materials for contracts beginning on or after July 1, 2017. Institutions with contracts that are not fully compliant with these procedures must obtain any required amendments to their existing contracts or conduct a new procurement for services beginning no later than July 1, 2019.
22.214.171.124 Financial Model
126.96.36.199.1 Required Supplier Proposals
Requests for Proposals (RFPs) must require that suppliers submit proposals on a fixed cost basis (per meal/item or per plan) that reflects all the supplier’s fixed and variable costs. Institutions may require additional pricing models, including fee-based proposals.
Institutions may add to the supplier fixed price reasonable charges, necessary for associated lease payments, and for direct and indirect dining and catering expenses not covered by the supplier. If commissions are to be paid by the supplier, the rate must be based on all gross sales, including retail and catering sales, and may be variable based on sales volume.
188.8.131.52.2 Affordability and Efficiency
Dining and catering services must be structured with student affordability and operational efficiency as essential criteria for successful suppliers. Institutions must be able to demonstrate that overhead costs, including the administration of dining dollars, are reasonable and comparable to peer institutions.
Dining and catering contracts should be structured to enable a self-liquidating dining auxiliary, reserve balances sufficient to meet reserve requirements for lease financings and unique institutional needs as outlined in the 5 year dining auxiliary business plan, and to fulfill any lease payment obligations reliant upon dining revenues.
184.108.40.206.4 Performance Management
Supplier compensation must include a performance component and should be measured using campus designed performance measures or indicators that reflect customer satisfaction. Supplier should be responsible for any participation incentives.
220.127.116.11.5 Qualified Management Agreements
All RFPs must require that vendors certify their proposal is a Qualified Management Agreement in accordance with IRS Rev Proc. 2016-44. Opinion of bond counsel must be obtained prior to execution of the contract.
Institutions may not provide any meal plan purchase minimums or volume guarantees to suppliers.
18.104.22.168.2 Non-student Pricing
Meal plan and retail pricing for any party other than a student must not be less than charges paid by students.
22.214.171.124.3 Residential Student Meal Plan Pricing
Institutions may require students living in housing to purchase a meal plan. Actual utilization of dining options by students required to purchase meal plans will be reviewed as a part of the annual rate approval process.
126.96.36.199.4 Dining Dollars
Dining dollars may be an optional charge that students may elect to add to their meal plan. Any unused dining dollars must be tracked by the Institution. Unused dining dollars must be refunded to the student no later than upon separation from the institution.
188.8.131.52 Term and Renewal Options
Contracts must be annually renewable. Renewal options in excess of 9 years require the approval of the BOR Strategic Sourcing Director. Institutions are required to review contracts prior to exercising a renewal option to ensure the contract terms remain competitive.
184.108.40.206 Catering Services
Catering allowances should be sized according to institutional size and mission and should be utilized and tracked under the direction of the Chief Business Officer. Contracts shall allow for unused balances to rollover to subsequent years. Maximum annual allowances, exclusive of any rollover amount, for each sector are as follows:
- Research and comprehensive institutions: $85,000
- State universities: $70,000
- State colleges: $55,000
Catering allowances are considered institutional funds (see BPM 19.8). Prior to utilization of catering allowances, institutions should seek voluntary contributions from suppliers and cooperative organizations to support advancement and other events.
220.127.116.11 Grants and Scholarships
Contracts shall not require the provision of grants, scholarships, or complimentary meals. Complimentary meals do NOT include meals provided to students in return for serving as live-in, residence life staff. Limited guest passes for parents of students purchasing meal plans are not considered complimentary.
18.104.22.168 Capital Improvements
22.214.171.124.1 Capital Allowances
Request for Proposals for Dining and Catering Services that include a total capital allowance in excess of the institution’s delegated project authorization level must undergo facilities integrated review prior to contract award. This requirement applies to the total capital allowance regardless of the size of the individual projects contemplated. Institutions shall submit a Project Concept Proposal to start the review process with as much detail related to the future projects as is known at the time of the procurement. All capital allowances must be fully amortized over the life of the contract.
126.96.36.199.2 Capital Improvements in Leased Facilities
Capital improvements in leased facilities are typically funded through an increase in the rental agreement. All capital improvements in excess of the institution’s delegated project authorization, including those performed by a third-party in a leased facility, require submittal of a Project Concept Proposal. Capital improvements in leased facilities within the institution’s delegated project authorization level require the prior approval of BOR Fiscal Affairs, Finance Office.
Institutions must fully reserve any amount of capital allowance utilized if the contract requires the repayment of unamortized balances in the event of non-renewal. These reserve balances are in addition to any amounts held in a repair and replacement reserve. Institutions must reflect these reserves in account 329200 Reserve for Deferred Gift Revenue from Auxiliary Vendor (Unrestricted). Other non-renewal fees or penalties are not allowed.
188.8.131.52.4 Institutional Funding of Dining Capital Improvements
Institutions may propose in their 5 year dining auxiliary business plan to accumulate dining auxiliary unrestricted fund balances to self-fund capital improvements. Institutions should evaluate the cost-benefit of self-funding compared to vendor-financed improvements.
Institutions must provide notice of intent to proceed with a dining and catering services Request for Proposal to the BOR Strategic Sourcing Director at least 90 days prior to submission to the Department of Administrative Services.
Any variances from these procedures must be pre-approved by the USG Chief Fiscal Officer.