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Personal Service Contracts Host: Sally Molsberger Contract Administration and Procurement Services. Definition and Policy. Definition
Personal service contract is described in 45A.690as an agreement whereby an individual, firm, partnership, or corporation is to perform certain services requiring professional skill or professional judgment for a specified period of time at a price agreed upon.
Policy ----Governed by University of Louisville Policy # 11.00
It is the policy of the University of Louisville to establish personal service contracts for professional services in accordance with the provisions of KRS 45A.690 – 45A.695. Examples of services that must be provided through a personal service contract include but are not limited to consultants, doctors, employee search firms, nurses, lawyers, engineers and architects.
Commodities, equipment and non professional services are not to be procured via a personal service contract.
When considering the establishment of a personal service contract on a sponsored project, the first determination to be made is whether or not the procurement mechanism should be a sub-award or a personal service contract. The following should assist in distinguishing between the two processes:
Sub-award: An agreement written under the authority of and consistent with the terms of the Prime Award (grant, contract or cooperative agreement) that transfers a portion of the research or substantive effort to another organization when such expertise is not available within the primary awardee’s institution. A sub-award should be identified at the time of proposal to the sponsoring agency and is considered fully executed once it has been signed by both parties.
A Sub-award is an appropriate procurement mechanism when:
The collaboration is substantive programmatic work which is beyond mere analytical work-for-hire normally conducted by a routine service provider.
The collaboration is substantial enough that the collaborating individual or organization will participate in preparation of results, publication, presentation or other collaborative participation beyond routine analytical work.
The collaborator will maintain control of the work to be performed under the sub-award.
Responsible Administrative Unit: The Office of Grants Management or Industry Contracts is
responsible for the preparation, signing and non-fiscal management of all sub-awards issued
by the University. Additional information can be obtained by contacting Judy Bristow, Director
of the Office of Grants Management at 852-3788 or Dave King, Director of Office of Industry
Contracts at 852-6543.
Personal Service Contract: A written agreement whereby an individual, firm, partnership or corporation is to perform certain services requiring professional skill or professional judgment for an agreed upon price for a specific period of time. The agreement is for a specialized service not available through a routine service provider. The contractor requires a specialized knowledge in a particular field and often requires originality, creativity and decision-making abilities. The agreement is intellectual and professional in nature and is signed by both parties.
A personal service contract is an appropriate procurement mechanism when:
The collaboration is not substantive programmatic work, however, is beyond mere analytical work-for-hire normally conducted by a routine service provider.
The collaboration is not substantial enough for the collaborating individual or organization to participate in scientific design, methodology, preparation of results, publication, presentation or other collaborative participation beyond the specialized service. The individual or organization acts as an independent contractor.
The collaborator meets a special agency (University) need and is usually professional in nature and is normally on a short term basis.
Responsible Administrative Unit: The Department of Purchasing is responsible for the
processing of all Personal Service Contracts. Additional information may be obtained by
Contacting Sally Molsberger at 852-8223.
University of Louisville State Appropriated Funds
University of Louisville Research Foundation Funds
University of Louisville Athletic Association Funds
University of Louisville Foundation, Inc. Funds
KRS 45A.095 provides for establishment of personal service contracts by noncompetitive negotiation only for sole source purchases or when competition is not feasible as determined by the Department of Purchasing in writing prior to award or when emergency conditions exist.
Emergency conditions are defined per KRS 45A.095 (3): An emergency condition is a situation which creates a threat or impending threat to public health, welfare, or safety such as may arise by reason of fires, floods, tornadoes, other natural or man-caused disasters, epidemics, riots, enemy attack, sabotage, explosion, power failure, energy shortages, transportation emergencies, equipment failures, state or federal legislative mandates, or similar events. The existence of the emergency condition creates an immediate and serious need for services, construction, or items of tangible personal property that cannot be met through normal procurement methods and the lack of which would seriously threaten the functioning of government, the preservation or protection of property, or health or safety of any person. Sole source is a situation in which there is only one (1) known capable supplier of a service, occasioned by the unique nature ofthe requirement, the supplier, or market conditions.
The signature process is handled in the same manner as original contract.
Amendment/Extension form can be found at:
No personal service contract amendment/extension shall be in order any sooner than ninety (90) days from the start date of an approved personal service contract.Amendment/Extension to a Personal Service Contract
No work can be done until all required signatures are affixed, and the contract has been received by the LRC or entered into the PeopleSoft system.
Department must enter a requisition using the assigned PSC # and vendor #Review and Approval Process for Personal Service Contracts (continued)
cannot be amended/extended for any reason.
Associate Director of Contract Administration and
Department of Purchasing
Department of Purchasing Website:
Revised 10/18/2011Contact Information